Everyday investors in Taiwan are pouring money into index funds even as foreign investors dump local stocks, which is good news for small investors and a sign of shifting power in the market.

• Foreign investors have sold off $2.4 trillion NT dollars worth of Taiwan stocks this year, but index ETFs are still pulling in huge money.
• The top ETF, Yuanta Taiwan 50, has already taken in more than double last year's full-year total, with similar strength in several other Taiwan ETFs.
• These ETFs have beaten most actively managed funds this year, making them an increasingly attractive option for regular savers who don't want to pick individual stocks.
• Analysts say this growing wall of retail ETF money could become a fourth major market force, strong enough to help cushion Taiwan's stock market during downturns.
• Meanwhile Taiwan's stock market swung wildly around the US midterm elections, and the Taiwan dollar hit its weakest level in over a year and a half as foreign money keeps flowing out.

Outlook: If foreign selling continues, retail ETF buying may increasingly act as a buffer, but the weak currency and volatile market suggest more turbulence ahead.