Slower Growth Doesn't Hurt Taiwan ETFs | ETF Trends

Taiwan’s exchange traded fund (ETF) surged 3.3% last week, undaunted by reports that the economy there grew at a slower pace last month.

Economic expansion in the Taiwanese economy slowed slightly last month, and measures show that future economic growth may not be so hot, either. [Trade Agreement Agrees with Taiwan ETF.]

If this continues, warns one of the country’s officials, the economy could begin to shrink by the second quarter of 2011, reports CENS. [4 ETFs for Asia’s Growing Digital Market.]

Taiwan’s president, however, points out that the country’s economy expanded a healthy 13.1% in the first half of the year from a year earlier. The president also says that foreign investment in the country has surged since signing a trade deal with China, says Focus Taiwan.

Despite the slower growth in the country, iShares MSCI Taiwan (NYSEArca: EWT) has held up, gaining 3.3% last week. It’s up 12% in the last three months, as well. Part of the reason may be because Taiwan is not putting all its eggs in China; the country wants to open its doors to the world.

IQ Taiwan Small-Cap (NYSEArca: TWON) is up 1.2% in the last month and 10.9% in the last three months.

Taiwan ETF, Small-Cap ETFs

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.