Taiwan stock market crashed! He was dumbfounded that a bunch of people were raising prices to grab "these stalls". The reaction on the Internet was extremely polarizing.

Taiwan stocks opened sharply today (6th). (Reuters photo)

Taiwan stocks fell sharply at the opening today (6th), but leveraged ETFs tracking Taiwan stocks showed a significant premium. A netizen shared that Yuanta Taiwan 50 Positive 2 (00631L), Fubon Taiwan Weighted Positive 2 (00675L), and Qunyi Taiwan Weighted Positive 2 (00685L) all showed a premium during the trading session, which surprised him, "Should I buy now and make a profit or buy now and cash out?" The article aroused heated discussion.

The original PO shared on PTT that the intraday premium rate of Yuanta Taiwan 50 Positive 2 (00631L) reached 5.04%. Even Fubon Taiwan Weighted Positive 2 (00675L) and Qunyi Taiwan Weighted Positive 2 (00 685L) also reached 3.09% and 4.59% respectively. It surprised him that it was the first time he saw so many people willing to increase the price by 5% to buy the Zhenger ETF. It also made him curious, "Should I buy now and make a profit or buy now and cash out?".

As of the deadline of about 10:50, Yuanta Taiwan 50 Positive 2 (00631L) fell 5.41% or 1.58 yuan to 27.63 yuan; Qunyi Taiwan Weighted Positive 2 (0068 5L) fell 5.58% or 0.53 yuan to 8.97 yuan; Fubon Taiwan Weighted Positive 2 (00675L) fell 13.50 yuan or 5.39% to 236.80 yuan.

As soon as the article came out, it caused heated discussions. Some netizens said, "There are too many gamblers. Positive 2 was directly bought at a premium. They are doomed this time." Many people believed that these investors were betting on a rebound at the opening next week and took advantage of the low. Others said, "Gamblers are not panic enough."

However, some people are worried, "There are many ghost stories on the weekend", "I don't want to buy at such a high premium, and I may sell again on Monday", "Don't worry, there is still a wave of beheadings", and believe that there is still a risk of Taiwan stocks falling in the short term, especially during the weekend. The international market variables are unpredictable. If the opening of next Monday does not rebound as expected, investors chasing higher purchases may have to suffer greater losses.

It is worth noting that the Positive 2 ETF is a leveraged ETF that pursues twice the "single day" return of the underlying index, but it does not mean that the long-term cumulative return will be twice that of the prototype ETF. Generally, passive ETFs mainly track the performance of a specific index or commodity and adjust the investment portfolio according to the index constituents; Positive 2 ETFs establish leveraged positions through financial derivatives such as futures to amplify daily returns.

In other words, when the market rises, Positive 2 ETF has the opportunity to amplify profits; but if the stock market falls, losses will also expand simultaneously. Coupled with daily rebalancing and compound interest effects, long-term holding performance may differ from the trend of the underlying index. Investors must still carefully evaluate risks before entering the market.