iShares MSCI Taiwan ETF

EWT

Market cap $10.8B

At Taiwan's annual Computex trade show next week, the spotlight ​is likely to be dominated, as usual, by Nvidia and its products, but also by the island's central and growing role ‌in AI infrastructure.

The iShares MSCI Taiwan ETF offers concentrated exposure to Taiwan's booming technology sector, with TSMC as its dominant holding. EWT is strategically positioned at the center of the global AI infrastructure surge, benefiting from hyperscaler capex and robust semiconductor demand. Despite stellar recent performance and strong macro tailwinds, EWT now trades at a significant valuation premium (25.25x P/E vs. 10-year average of 15x).

Taiwan sent ships and fighter jets to monitor the second Chinese "joint combat readiness patrol" in a week near the island, as ​Taipei steps up its guard over Beijing's activities.

Asia's smaller companies have delivered stronger returns than the region's large-cap stocks over the past five years, while also offering lower volatility and broader sector exposure, according to HSBC Asset Management. The firm said Asia small-cap stocks outperformed their large-cap counterparts by nearly 3% annualised at the index level over the period.

Contrary to what some Trump officials believe, Europe remains critical to our defense and, indeed, to securing the Free World. Therefore, the sudden, unexpected cancellation of a U.S. Army armor brigade's deployment in Poland raises a deeply disturbing question: Is Washington retreating from Europe?

Investors are focusing on AI developments in North Asia. China is coming out of more than three years of deflation measured by the producer price index.

Further delays to Taiwan military ​spending are a "concession" to China, the U.S. State Department said, as Taipei's defence ministry detailed ‌the impact of projects excluded from a package passed by the opposition-controlled parliament.

AI, Alternative Energy and Commodity stocks are all leading this market as a confluence of economic developments drive growth and constrain supply.

Taiwan's opposition-controlled parliament on Friday ​approved $25 billion in extra ‌defence spending, around two-thirds of the much ​larger package the ​government had asked for ⁠to bolster the armed ​forces in the ​face of a rapidly modernising Chinese military.

Taiwan and South Korea sit at the center of the global chip supply chain, and three exchange-traded funds offer the most direct way to hold that exposure: the iShares MSCI Taiwan ETF (NYSEARCA:EWT | EWT Price Prediction), the iShares MSCI South Korea ETF (NYSEARCA:EWY), and the iShares Semiconductor ETF (NASDAQ:SOXX).