News / Taiwan / economic_daily
Active ETFs Face Volatility Test; 00401A and 00985A Outperform
Miscellaneous · Investment Trusts/Mutual Funds · economic_daily · 2026-11-03
00400, 00401, 00404, 00406, 00985
Amidst recent market volatility, only a few active ETFs have managed to beat the benchmark, highlighting the importance of manager stock-picking and portfolio allocation.
What Happened
Volatility Test: Since June, the Taiwan stock market has experienced significant volatility, putting the stock-picking strategies of active ETFs to the test. Data indicates that only a small number of these funds have managed to deliver returns exceeding the broader market index during this period.
Keys to Outperformance: Fund managers emphasize that success in a volatile market requires not only portfolio diversification but also the ability to adjust holdings and manage risk effectively. Funds like 00985A and 00401A have demonstrated resilience through active management and strategic asset allocation.
Strategy Disparities: Even among ETFs utilizing similar covered call strategies, performance has varied significantly. This underscores that such strategies are not a panacea, and that a manager's ability to rotate sectors and prune underperforming stocks is the true driver of performance.
Portfolio Rebalancing: The management team for 00401A proactively adjusted its portfolio as the AI investment narrative shifted. By increasing exposure to semiconductor and satellite stocks while maintaining defensive positions in finance and telecommunications, the fund successfully mitigated the impact of market fluctuations.