There are two ways of trading in the secondary market of ETN：system trading and negotiating over-the-counter at securities firms.
|ways of trading||
Investors can buy and sell ETN with an existing stock trading account
|trading hours||Same as the stock|
|margin trading||Not allowed|
|price fluctuation limits||
|tick size||The price quote for each ETN trade shall be based on 1 ETN unit. The tick size for the price referred to in the preceding paragraph shall be 1 cent if the market price is below NT$50, and 5 cents if the market price is NT$50 or above.|
|securities transaction tax||0.1%, the same as an ETF|
|RP/RS transactions||Not allowed|
The price at which an investor buys or sells an ETN will vary depending on the method of trading. When an investor places an order through a securities broker in the secondary market, the transaction price is the market price of the ETN on the day. In addition, when an investor purchases or sells back to an issuing securities firm through a securities broker, the transaction price is the indicative value of the ETN on that day. The indicative value of each ETN is calculated in a slightly different way. Investor should read carefully the ETN prospectus.
When investors purchase or sell the ETN to the issuer, the investors need to pay the fees. The cost of each ETN subscription or sale is different. Investor should read carefully the ETN prospectus.
Investors investing in ETN are required to pay the “investor fee” to the issuing securities firm. The investor fee will be directly reflected in the value of the indicative value. Each ETN’s investor fee will also be different. Investor should read carefully the ETN prospectus.
|1||No tracking error||ETN's investment returns are fully linked to the performance of the index being tracked. However, the indicative value is calculated by the return of the index with deduction of the investor fee.|
|2||Small diversified investment||Investing in one unit of an ETN is equivalent to investing in a basket of securities or other tracked assets.|
|3||Participation in specific markets||ETN tracks specific index returns, making it easier for investors to engage in thematic investments, or for general investors to enter higher-threshold markets.|
|4||Investment threshold is low||ETN’s price per unit is between 5 NTD and 20 NTD.If investors buy 1 ETN, they only have to pay 5,000 to 20,000 NTD.|
|5||Simple procedure||As long as the existing stock account is used, an ETN can be traded via the existing stock account. As long as the stock market is open, investors can engage in trading.|
|6||Instant and transparent information||During the trading hours, there are real-time transaction prices, and the value of real-time indicative value can be found. Investors can also obtain ETN related information through the public information observatory, our website, and the website of the issuing securities firm.|
|7||Low Transaction Tax||When an investor places an order through a securities broker, the brokerage fee is the same as the stock. Capital gains are tax-free, paying only 0.1% securities transaction tax at the time of sale.|
|8||Transparent investor fee||ETN’s issuer will announce the investor fee rate, which is directly reflected in the indicative value of an ETN. The calculation is simple and transparent, and the investor does not have to pay additional fees such as custodian fees and manager fees. Other fees like subscription fees and redemption fees, please check the ETN's prospectus.|
|Subscription and Redemption||Cash ONLY||Cash/ in-kind creation and in-kind redemption|
|Credit risk of issuer||YES||NO|