Taiwan: More to Come for This Emerging Market ETF

EWT has a smart beta rival in the form of the First Trust Taiwan AlphaDEX (NYSEArca: FTW). FTW’s holdings are selected based “on growth factors including 3-, 6- and 12- month price appreciation, sales to price and one year sales growth, and separately on value factors including book value to price, cash flow to price and return on assets,” according to First Trust.

That ETF is up 15.4% year-to-date.

“Of course, even if this breakout holds, the TAIEX will have to contend with its 1990 highs about 2000 points away. Even so, that would mark a 20% increase from current levels – not chump change. Most importantly, in our view, is the fact that the index is making a legitimate run at surpassing those peaks of the past 25 years,” according to ETF Daily News.

The $3.5 billion EWT tracks the MSCI Taiwan 25/50 Index and holds 92 stocks.