EWT: Taiwan Exposure With Tech Overload And Geopolitical Risk
EWT offers exposure to Taiwan's large- and mid-cap stocks, with a heavy tilt toward tech (66% of holdings), especially Taiwan Semiconductor, which alone makes up ~24% of the ETF. The expense ratio is relatively high at 0.59%, especially compared to the Franklin FTSE Taiwan ETF at 0.19%. At a P/E around 21x, the risk-reward balance doesn't seem compelling, as the country faces geopolitical risks.
EWT: Taiwan Semiconductor Surging, Lifting The Taiwan ETF
EWT remains a buy due to strong momentum, attractive valuation, and a technical breakout above key resistance. The ETF's performance is heavily tied to Taiwan Semiconductor, which now makes up over 24% of the fund and benefits from the AI rally. EWT offers a high dividend yield, growing assets, and robust liquidity, but investors should note its elevated risk and sector concentration.
EWT: Coming Out Of A Slump
Taiwan's economy has recovered from a brief recession in early 2023 but faces new challenges due to semiconductor industry volatility. Quarterly GDP growth dipped to 1.8% last quarter, indicating slower economic momentum. Trade war tensions are contributing to economic uncertainties and could impact future growth prospects.
EWT: In A Good Place, But Doesn't Offer Great Value
iShares MSCI Taiwan ETF has outperformed its peers with an 18.2% return in 2024, driven by strong performance from TSMC. Taiwan's macroeconomic environment remains robust, with GDP growth expected to surpass IMF forecasts, bolstered by domestic spending and a recovering manufacturing sector. With a 23% stake, the prospects of TSM weigh heavily on EWT's prospects; fortunately, the outlook looks bright.
Taiwan's Net Exports Surged To Record High In August
A surge in exports and a slowdown of imports led to a record high trade surplus of USD$11.5bn last month. The stronger-than-anticipated trade surplus should offer some support to Taiwan's third-quarter GDP.
EWT: Taiwan Sports Value Despite The Risks, Better Chart Today
EWT has given back some of its year-to-date gain due to US tech selloff spreading to foreign areas, including Taiwan. The Taiwan fund has a high concentration in Taiwan Semiconductor, making it vulnerable to weakness in chip stocks. EWT's valuation is compelling with an impressive EPS growth trajectory, but concentration risk and geopolitical issues should be considered.
EWT: There Are Better Options Than This ETF
EWT: There Are Better Options Than This ETF
Taiwan Export And Import Growth Surge To 28-Month Highs In June
Export and import growth both far exceeded forecasts in June, reaching their highest levels since February 2022. Exports to other regions finally recovered in June, after previously being concentrated in North and Central America.
