Taiwan is a fast-growing emerging market that often gets lost in the hubbub over giants like China, Russia and Brazil. Taiwan has a sensitive relationship with China, but that’s no reason to dismiss the various exchange traded funds (ETFs) that can give you a play on this island nation.
Thanks to their transparency and versatility, ETFs are a good way to play Taiwan and harness the growth anticipated for the coming year. This weekend, Taiwan reported a 9.2% surge in fourth-quarter GDP, and a 4.7% growth rate is expected in 2010. The ETF Professor on Benzinga reports that with numbers like that, there are several ETFs that investors may want to take a look at. [How Taiwan is Regaining Its Growth.]
For more stories about Taiwan, visit our Taiwan category.
- iShares MSCI Taiwan Index (NYSEArca: EWT): Trades 13.6 million shares per day and is up 80% in the past year. EWT has $3.37 billion in assets and an expense ratio of 0.82%
- SPDR S&P International Dividend ETF (NYSEArca: DWX): DWX is also far less liquid than EWT, trading less than 45,000 shares a day, but remains an interesting option for investors looking for Taiwan exposure mixed with some other countries combined with the allure of global dividends. Devotes about a third of its country weight to Taiwan.
- WisdomTree Emerging Markets Small-Cap ETF (NYSEArca: DGS): DGS doesn’t have the volume or assets that EWT has, but of the three choices mentioned here, DGS has the best sector diversification with six sectors accounting for roughly 84% of the ETF’s weight. About one-third of the fund is weighted to Taiwan. [Can China Stunt Taiwan’s Growth?]
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.