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Active ETFs Increase Stakes in UMC, Favor Defensive Financial Stocks
Finance · Investment Managers · economic_daily · 2026-09-20
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Taiwanese active ETFs have pivoted toward defensive assets, with UMC leading the buying list as managers prioritize cash-flow-rich financial and industrial stocks.
What Happened
Buying Activity: Active ETFs in the Taiwan market have seen significant growth, with recent data highlighting their latest portfolio adjustments. UMC topped the list of net additions last week with 17,000 shares, followed by Nan Ya Plastics and Far Eastern International Bank.
Defensive Shift: The sector allocation reveals a clear defensive bias among active managers. Financial stocks accounted for six of the top ten additions, while traditional industries held two spots, leaving only two positions for electronics, reflecting a cautious stance amid market volatility.
Market Outlook: Nomura Investment manager Yu Jing-de noted that the market remains sensitive to U.S. Treasury yields and foreign capital flows. He emphasized that corporate earnings visibility will be the primary driver of stock prices in the coming months, rather than valuation expansion.
Investment Strategy: Experts recommend reducing leverage and focusing on companies with strong cash flows and order backlogs. Preferred sectors include AI infrastructure leaders, exporters with U.S. dollar-denominated revenue, and financial institutions that benefit from interest rate spreads, while avoiding highly leveraged firms.