Core Viewpoint - BlackRock's iShares has surpassed $5 trillion in global assets under management for its ETFs, with expectations for the ETF industry to nearly double in size over the next five years, growing from $15 trillion to $27 trillion [1] Group 1: ETF Growth and Performance - iShares recorded a record net inflow of $192 billion in the first half of 2025, benefiting from global growth in several key areas [1] - The iShares bond series has exceeded $1 trillion in global assets under management, capturing approximately 40% of the market share, indicating a growing reliance on ETF products to navigate the complex bond market environment [1] Group 2: Regional Insights - BlackRock's Asia-Pacific head, Aarti Angara, stated that ETFs provide higher quality, convenience, and cost-effective investment solutions for investors in the region, driving rapid growth of ETFs in Asia-Pacific [1] - Nicholas Peach, head of iShares in Asia-Pacific, noted that the convenience, efficiency, and cost-effectiveness of investments attract more investors, which is a key reason for the increasing popularity of ETFs [1]

Core Viewpoint - BlackRock and JPMorgan are entering the Taiwan ETF market, but local players hold a significant home advantage in distribution channels and investor preferences [3][5]. Group 1: Market Challenges - JPMorgan and BlackRock may face obstacles in the Taiwan ETF market due to the competitive landscape and sensitivity to fees among investors [3][5]. - The top four local ETF issuers in Taiwan attracted approximately 80% of the capital inflows over the past three years, highlighting the dominance of local players [3][5]. Group 2: Fee Sensitivity - Low fees could be a critical strategy for international issuers to attract funds in Taiwan, as investors are increasingly sensitive to fee structures [5][6]. - The largest ETF in Taiwan, Yuanta Taiwan 50 ETF, recorded its highest quarterly inflows after reducing its fees, indicating the importance of competitive pricing [5][6]. Group 3: Active ETFs and Derivatives - For active ETFs to gain traction in Taiwan, issuers may require more regulatory support to utilize derivatives, which could enhance yield and attract investors [5][6]. - Active ETFs currently represent a small portion of the market, with only $371 million in trading volume compared to $22 billion for passive ETFs as of mid-2025 [6]. Group 4: Market Growth - Taiwan's ETF assets under management (AUM) grew robustly, ranking third in the Asia-Pacific region, with a 13% growth rate as of the second quarter of 2025 [6].