Because many believe trade tensions will persist for years (and their implied assumption is that Trump will be re-elected in 2020), Taiwanese companies spoke of a ‘decentralized manufacturing’ and ‘two supply-chain systems.’ In the long run: There will be two dominant supply-chains in the world, one that’s US-centric and another China-centric,” he added.

Trading Taiwan

Investors looking to invest in Taiwan can look at the iShares MSCI Taiwan ETF (NYSEArca: EWT). EWT seeks to track the investment results of the MSCI Taiwan 25/50 Index. The index is designed to measure the performance of the large- and mid-cap segments of the Taiwanese market.

Reasons to use EWT:

  • Exposure to large and mid-sized companies in Taiwan
  • Targeted access to the Taiwanese stock market
  • Use to express a single country view

Additionally, the fund uses a capping methodology is applied that limits the weight of any single component to a maximum of 25% of the underlying index.

Top 10 holdings:

  1. Taiwan Semiconductor Manufacturing: 22.72%
  2. Hon Hai Precision Industry Ltd: 5.88%
  3. Mediatek Inc: 3.22%
  4. Formosa Plastics Corp: 2.28%
  5. Largan Precision Ltd: 2.26%
  6. Chunghwa Telecom Ltd: 2.25%
  7. Ctbc Financial Holding Ltd: 2.10%
  8. Nan Ya Plastics Corp: 1.96%
  9. Cathay Financial Holding Ltd: 1.86%
  10. Uni-President Enterprises Corp: 1.81%

For more market trends, visit ETF Trends.