With the technology sector rallying, tech-heavy Taiwan country-specific exchange traded funds are pulling ahead as the benchmark Taiex index ended one of its best weeks this year.
After Nasdaq broke through its dot.com record, the tech-heavy Taiex hit its highest close in 15 years, reports Kyoungwha Kim for Bloomberg.
Chipmaker Taiwan Semiconductor Manufacturing Company (NYSE: TSM) was among the leaders among industry groups.
Over the past week, the iShares MSCI Taiwan ETF (NYSEArca: EWT) gained 4.1% and First Trust Taiwan AlphaDEX (NYSEArca: FTW) rose 5.5%. FTW was trading at an all-time high while EWT was moving toward pre-financial-crisis highs.
EWT includes a hefty 57.6% tilt toward the information technology sector and FTW includes a robust 59.4% tech position. EWT also includes a large 22.6% position in Taiwan Semiconductor Manufacturing while FTW has a smaller 2.4% weight toward the chipmaker. [ETF Plays to Capture Growth in Emerging Asia]
The Taiwanese market was also attracting greater foreign investments, with foreign investors funneling 46.5 billion New Taiwan dollars or $1.5 billion, on Friday, the third-largest single day of net buying on record, reports Chao Deng for the Wall Street Journal.
ETF investors have also taken a shine toward Taiwan country-specific ETFs. EWT has attracted $671.4 million in net inflows year-to-date, according to ETF.com. EWT now has $4.1 billion in assets under management.