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:
- Taiwan Semiconductor Manufacturing: 22.72%
- Hon Hai Precision Industry Ltd: 5.88%
- Mediatek Inc: 3.22%
- Formosa Plastics Corp: 2.28%
- Largan Precision Ltd: 2.26%
- Chunghwa Telecom Ltd: 2.25%
- Ctbc Financial Holding Ltd: 2.10%
- Nan Ya Plastics Corp: 1.96%
- Cathay Financial Holding Ltd: 1.86%
- Uni-President Enterprises Corp: 1.81%
For more market trends, visit ETF Trends.
