How to invest in Taiwan using ETFs
How do I invest in Taiwanese stocks?
The easiest way to invest in the whole Taiwanese stock market is to invest in a broad market index. This can be done at low cost by using ETFs.
On the Taiwanese stock market you'll find 3 indices which are tracked by ETFs.
Alternatively, you may invest in indices on the Asia-Pacific region or emerging markets.
Performance of Taiwanese stocks (MSCI Taiwan 20/35)
Indices in comparison
The best indices for ETFs on Taiwan
For an investment in the Taiwanese stock market, there are 3 indices available which are tracked by 4 ETFs. On the FTSE Taiwan 30/18 Capped index there is 1 ETF. On the MSCI Taiwan 20/35 index there are 2 ETFs. On the MSCI Taiwan 20/35 Custom index there is 1 ETF. The total expense ratio (TER) of ETFs on these indices is between 0.19% p.a. and 0.74% p.a..
Index | Investment focus | Number of ETFs | Number of constituents | Short description |
---|---|---|---|---|
FTSE Taiwan 30/18 Capped | Taiwan | 1 ETF | 108 (28/02/2022) | The FTSE Taiwan 30/18 Capped index tracks Taiwanese large and mid capitalization stocks. The weight of the largest constituent is constrained to 30% and the weights of all other constituents are constrained to a maximum of 18%. Index factsheet |
MSCI Taiwan 20/35 | Taiwan | 2 ETFs | 87 (30/11/2022) | The MSCI Taiwan 20/35 index tracks large- and mid-cap companies from Taiwan. The weight of the largest constituent is constrained to 35% and the weights of all other constituents are constrained to a maximum of 20%. Index factsheet |
MSCI Taiwan 20/35 Custom | Taiwan | 1 ETF | 87 (30/11/2022) | The MSCI Taiwan 20/35 Custom index tracks large- and mid-cap companies from Taiwan. The weight of the largest constituent is constrained to 35% and the weights of all other constituents are constrained to a maximum of 20%. A buffer of 10% is applied on these limits at each index rebalancing. Index factsheet |
Source: justETF.com; As of 31/12/2024; Calculations in GBP based on the largest ETF of the respective index.
The best Taiwan ETFs
by 1 year return
1 | HSBC MSCI Taiwan Capped UCITS ETF USD | +27.07% |
2 | Xtrackers MSCI Taiwan UCITS ETF 1C | +25.93% |
3 | iShares MSCI Taiwan UCITS ETF | +25.71% |
The cheapest Taiwan ETFs
by total expense ratio (TER)
1 | Franklin FTSE Taiwan UCITS ETF | +0.19% p.a. |
2 | HSBC MSCI Taiwan Capped UCITS ETF USD | +0.50% p.a. |
3 | Xtrackers MSCI Taiwan UCITS ETF 1C | +0.65% p.a. |
Asia-Pacific indices with a share of Taiwan
Besides Taiwan ETFs you may consider ETFs on Asia-Pacific. In total, you can invest in 4 Asia-Pacific indices, which are tracked by 9 ETFs. The total expense ratio (TER) of ETFs on Asia-Pacific is between 0.20% p.a. and 0.74% p.a..
Index | Investment focus | Number of ETFs | Number of constituents | Short description |
---|---|---|---|---|
MSCI AC Asia Pacific ex Japan | Asia Pacific Taiwan: 13.57% (30/11/2022) | 1 ETF | 1,113 (29/11/2024) | The MSCI AC Asia Pacific ex Japan index tracks equity markets of the emerging and developed countries of the Asia and Pacific region, excluding Japan. Index factsheet |
MSCI AC Asia ex Japan | Asia Pacific Taiwan: 16.42% (30/11/2022) | 2 ETFs | 1,054 (29/11/2024) | The MSCI AC Asia ex Japan index tracks equity markets of the emerging and developed countries of the Asia region, excluding Japan. Index factsheet |
MSCI AC Far East ex Japan | Asia Pacific Taiwan: 19.76% (30/11/2022) | 3 ETFs | 898 (29/11/2024) | The MSCI AC Far East ex Japan index tracks equity markets of the emerging and developed countries of the East Asian region, excluding Japan. Index factsheet |
MSCI Emerging Markets Asia | Asia Pacific Taiwan: 18.46% (30/11/2022) | 3 ETFs | 1,010 (29/11/2024) | The MSCI Emerging Markets Asia index tracks large and mid cap companies from Asian emerging markets. Index factsheet |
Source: justETF.com; As of 31/12/2024; Calculations in GBP based on the largest ETF of the respective index.
Emerging markets indices with a share of Taiwan
As further alternative you may invest in ETFs on emerging markets. In total, you can consider 2 emerging markets indices tracked by 21 ETFs. The total expense ratio (TER) of ETFs on emerging markets indices is between 0.11% p.a. and 0.55% p.a..
Index | Investment focus | Number of ETFs | Number of constituents | Short description |
---|---|---|---|---|
FTSE Emerging | Emerging Markets Taiwan: 15.84% (30/11/2022) | 3 ETFs | 2,219 (28/06/2024) | The FTSE Emerging index tracks stocks from emerging markets worldwide. Index factsheet |
MSCI Emerging Markets | Emerging Markets Taiwan: 14.41% (30/11/2022) | 18 ETFs | 1,253 (29/11/2024) | The MSCI Emerging Markets index tracks stocks from emerging markets worldwide. Index factsheet |
Source: justETF.com; As of 31/12/2024; Calculations in GBP based on the largest ETF of the respective index.