While Taiwanese bourse won’t show any activity tomorrow, U.S.-listed Taiwan ETFs, the iShares MSCI Taiwan ETF (NYSEArca: EWT) and First Trust Taiwan AlphaDEX (NYSEArca: FTW), will continue to trade during normal U.S. hours. Consequently, U.S. traders will be able to speculate on how Taiwanese stocks will react once the typhoon passes. [Sudden Shock for Semiconductor ETFs]
Even in normal operating conditions, Asia country-specific ETFs won’t likely perfectly mirror their underlying stocks since most Asian markets are opened in a different time zone that does not correspond with normal U.S. hours.
“According to the Taiwan Securities and Futures Bureau, domestic retail investors account for 63% of all trading value,” according to Morningstar analyst Patricia Oey. “As a result, the Taiwan market tends to march to a slightly different beat.”
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.