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Taiwan Index Plus Launches 'Pristine ESG Index' to Highlight Undervalued Stocks
Finance · Investment Managers · economic_daily · 2026-09-01
Taiwan Index Plus has introduced the Pristine ESG Index, a new benchmark designed to identify high-quality, overlooked stocks with strong sustainability credentials and proven resilience.
What Happened
Index Methodology: The new Taiwan Pristine ESG Index identifies hidden gems by filtering listed companies based on profitability, dividend payouts, and market liquidity. It further refines the selection using the TIP Taiwan Sustainability Rating, prioritizing firms with strong board structures and shareholder rights.
Historical Performance: Backtesting data from April 2017 to June 2026 reveals a cumulative return of 252.14%, outperforming the standard Pristine Return Index. The index also demonstrated superior defensive characteristics, with a maximum drawdown of only 23.86% during the same period.
Diversified Composition: The index spans 25 industries, including electronic components, finance, and biotechnology, with a balanced mix of large, mid, and small-cap stocks. This broad diversification helps mitigate sector-specific risks while supporting a well-rounded investment portfolio.
Promoting Sustainable Growth: With nearly 90% of the index weight allocated to companies rated 'A' or higher, the benchmark highlights the intersection of value and sustainability. It serves as a strategic tool for asset managers and investors to support ESG-focused development while increasing visibility for high-quality, under-the-radar companies.