Goldman Sachs Says Monetize TSMC Premium Before ETF Rule Change
The TSMC campus in Hsinchu, Taiwan.
Photographer: An Rong Xu/BloombergThis article is for subscribers only.
The popular Taiwan Semiconductor Manufacturing Co. arbitrage trade may soon see a change in dynamics that could affect the trading of the US listing versus the local one. And for anyone who wants to monetize the elevated premium, Goldman Sachs Group Inc. highlights potential trades.
A note from the bank’s sales desk published Friday said demand for TSMC’s Taipei-traded stock could rise as Taiwan’s regulator is considering an amendment to local exchange-traded funds’ ownership. The changes, which could come in the first half of this year, could push up the current 30% single-stock weight limit and affect allocations to the shares. As a result, the spread between the two listings could narrow.