In the Large Taiwanese Cap ETF category, the Cathay TIP TAIEX+ Low Volatility Div Plus Sel 30 ETF is awarded Outstanding Achiever. We like that this ETF is bringing innovation into the market, highlighting how it is different from Competitor ETF offerings and, since launch in 2017, has grown AUM by more than 412%.

The ETF is based-off the underlying Index compiled by the Taiwan Index Plus Corporation (TIP) known as the TIP TAIEX Low Volatility Dividend Plus Select 30 Index, launched in 2016.

Weighted volatility is calculated by measuring the short, medium, and long-term standard deviation of listed stocks while also considering liquidity and whether the equity is available for short sales. The top 30 stocks are then selected using a free float-adjusted market cap, whereby no one stock can be more than 20% of the Index, or top-five exceed 60%.

This ETF has a small bid-ask spread and good transparency with a daily public shareholding status, although overall liquidity is slightly insufficient. The Manager uses smart Beta to select stocks with low volatility, although the tracking ability with a R2 of less than 85% could be improved.

This ETF has been reviewed by six industry veterans of the Benchmark judging committee.