00631L to Increase Spot TSMC Holdings to Better Track Twice the Taiwan 50 Index’s Daily Return

Yuanta Daily Taiwan 50 Bull 2X ETF (00631L), managed by Yuanta Funds, aims to deliver twice the Taiwan 50 Index’s daily return. It has primarily used Taiwan stock index futures to create leverage. However, those futures track the TAIEX, in which TSMC has a lower weighting than in the Taiwan 50 Index. That structural gap could increase tracking error, requiring the fund to adjust its exposure through spot holdings.

Yuanta Funds announced on May 26, 2026, that the ETF would increase its spot holdings of TSMC, but did not disclose the amount. Its May 19 creation and redemption basket showed spot TSMC holdings of 39.63% and Taiwan stock index futures exposure of 160.87%, implying total TSMC exposure of about 110%. That day, TSMC accounted for 60.9% of the Taiwan 50 Index and 43.7% of the TAIEX, a gap of 17.2 percentage points.