“Unlike other developed Asian nations like Japan, it’s not running negative interest rates, so it’s got plenty of room to loosen its monetary policy if its economy needs some help. Also, its stock market valuations are some of the best in the world,” said Konstantin Etus, co-manager of the AdvisorOne CLS International Equity fund, in an interview with Lewis Braham of Barron’s.
The iShares MSCI Taiwan ETF (NYSEArca: EWT) and the First Trust Taiwan AlphaDEX (NYSEArca: FTW) are two options for investors looking to access Taiwan’s tech-driven economy. On average, those ETF’s allocate half their weights to tech stocks.
However, investing in Taiwan does not take China out of the equation.
“Taiwan exports 27.6% of GDP to China. But it has been shifting more to a service-oriented economy to accommodate China’s increasingly consumption-oriented focus. China’s consumption culture also drives one of Taiwan’s biggest industries—semiconductor production,” according to Barron’s.
iShares MSCI Australia ETF