No qualifying author-owned investment thesis was confirmed in this post.
The author is asking questions and expressing hesitation rather than providing a directional investment judgment or thesis.
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Hi everyone,
I’ve been living in Taiwan for the last 10 years, I have some Taiwanese friends heavily invested into Taiwan index funds, specifically the Yuanta Mid-Cap 100 (0051) and the Taiwan Top 50 (0050). Looking at the last three years (2023-2026), these funds have posted incredible performance, with some metrics showing a total return of nearly 40% annualized.
I know Taiwan has been the "AI engine" of the world lately, but I have a few questions for the seasoned investors here:
1. TSMC alone is often 30-50% of the large-cap index. Is it better to just buy TSMC directly, or is there a real diversification benefit to the Mid-Cap 100 (0051)?
2. I love Taiwan and plan to make Taiwan my home for the rest of my life. But not going to lie, the whole China thing does makes me a bit hasitant to invest in stocks or real state here. Does the high return justify the potential tail risk?
3. For those outside Taiwan, do you prefer the US-listed EWT (iShares MSCI Taiwan ETF) or is it worth the effort to gain direct access to the local TWSE-listed funds?
Would love to hear perspectives from anyone currently overweight in Taiwan