EWT Stock Recent News

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 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

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.

Tech-heavy Taiwan has been on a tear this year. By over-indexing to tech growth, the Taiwan Fund has appreciated at an even faster clip.

iShares MSCI Taiwan Capped ETF has generated a total return over 57% since the trough in October 2022. EWT's portfolio is heavily concentrated in the technology sector, which has contributed to its outperformance compared to the S&P 500 index. Taiwan's economy is in the expansion phase, providing potential for EWT's fund price to continue moving higher. However, conservative investors may want to wait for a pullback before investing.

Investors are flocking to Taiwan ETFs in quest of an exposure to the artificial intelligence (AI) supply chain.

Money is pouring into Taiwan exchange-traded funds as investors scramble for exposure to the artificial intelligence supply chain, raising analyst and regulator caution just as a rally in the sector has turned fickle and volatile.

iShares MSCI Taiwan ETF is worth considering for international diversification and potential outsized returns. The EWT ETF's top holdings include Taiwan Semiconductor Manufacturing Company Limited and MediaTek, Inc., with the former making up over 22% of the fund. EWT offers exposure to Taiwan's economy, but investors should be aware of currency and geopolitical risks.

In bull markets, a higher beta, tech-heavy fund like Nomura's Taiwan Fund tends to add a fair bit of outperformance.