The recent WSJ article Taiwan Heads for Thaw with China made a bullish case for Taiwan’s prospects based on the pro-trade positions of both candidates in Saturday’s presidential election. The investment thesis is that a departure from the current president’s anti-Beijing policies will reignite Taiwan’s economic growth.
A Taiwan ETF for investors to consider is iShares’ MSCI Taiwan ETF (NYSEArca: EWT). The fund tracks a cap-weighted index of Taiwan equities representing 85% of the Taiwan market. Top holdings as of Feb. 29 include Taiwan Semiconductor (NYSE: TSM) and Hon Hai Precision Industries (2317.TW).
Over the past 5 years, EWT has largely tracked the performance of the overall market. EWT started to pull ahead of the S&P 500 beginning in February.
For more information, see iShare’s website.