State Street Global Advisors and the Taiwan-based Polaris International Securities Investment Trust are developing the ETF under a Taiwan Stock Exchange license, according to Dow Jones. State Street said it expects to launch the Taiwan ETF by mid-2003.
The Taiwan ETF will be based on the Taiwan 50 Index launched in November by the Taiwan Stock Exchange and the London-based index provider FTSE Group. The Taiwan 50 Index is based on the weightings of 50 of the most heavily traded stocks in that market.
ETFs are open-end mutual funds listed on a stock exchange, where they can be traded just like any company stock during trading hours.