“Right now the participation level of foreign investors is not high because the international market is not very stable,” commented Tom Tang, a vice president of Masterlink Investment Advisory.

Morningstar analyst Patricia Oey said iShares MSCI Taiwan is “often considered a technology play, which would make sense — information technology companies (primarily hardware manufacturers) constitute almost 60% of EWT’s portfolio.”

Taiwan and China “are in the process of liberalizing cross-straits trade and investment restrictions,” she wrote in a report on the ETF. “Although China is already Taiwan’s largest trading partner, this increased economic interdependence will make an investment in Taiwan even more of an indirect play on China.”

For more information on Taiwan, visit our Taiwan category.

  • iShares MSCI Taiwan


Max Chen contributed to this article.