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)
1 month: 5.32%
1 year: 14.06%
3 years: 25.50%
5 years: 111.55%
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 (28.02.22) | 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 (30.11.22) | 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 (30.11.22) | 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 |
| ETF ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI Taiwan UCITS ETFIE00B0M63623 | 285 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| Xtrackers MSCI Taiwan UCITS ETF 1CLU0292109187 | 98 | 0.65% p.a. | Accumulating | Luxembourg | Full replication | |
| HSBC MSCI Taiwan Capped UCITS ETF USDIE00B3S1J086 | 24 | 0.50% p.a. | Distributing | Ireland | Full replication | |
| Franklin FTSE Taiwan UCITS ETFIE000CM02H85 | 7 | 0.19% p.a. | Accumulating | Ireland | Full replication |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| MSCI Taiwan 20/35 | 8.97% | 5.60% | 2.23% | 9.78% | 31.92% | |
| MSCI Taiwan 20/35 Custom | 8.96% | 5.65% | 2.30% | 9.84% | 31.69% | |
| FTSE Taiwan 30/18 Capped | 9.03% | 6.12% | 2.68% | 11.22% | - |
| Index | 2023 in % | 2022 in % | 2021 in % | 2020 in % | 2019 in % | |
|---|---|---|---|---|---|---|
| MSCI Taiwan 20/35 | 18.92% | -25.01% | 37.83% | 24.27% | 37.99% | |
| MSCI Taiwan 20/35 Custom | 19.00% | -25.19% | 37.87% | 25.74% | 38.03% | |
| FTSE Taiwan 30/18 Capped | 20.64% | - | - | - | - |
Source: justETF.com; As of 30.11.23; Calculations in EUR based on the largest ETF of the respective index.
The best Taiwan ETFs
by 1 year return
| 1 | Franklin FTSE Taiwan UCITS ETF | 11.22% |
| 2 | HSBC MSCI Taiwan Capped UCITS ETF USD | 10.07% |
| 3 | Xtrackers MSCI Taiwan UCITS ETF 1C | 9.84% |
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. |
Alternative investment opportunities
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 11 ETFs. The total expense ratio (TER) of ETFs on Asia-Pacific is between 0.12% 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 | 1,308 (30.11.23) | 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 | 1,244 (30.11.23) | 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 | 1,122 (30.11.23) | 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) | 5 ETFs | 1,190 (30.11.23) | The MSCI Emerging Markets Asia index tracks large and mid cap companies from Asian emerging markets. Index factsheet |
| ETF ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI EM Asia UCITS ETF (Acc)IE00B5L8K969 | 2,019 | 0.20% p.a. | Accumulating | Ireland | Full replication | |
| SPDR MSCI EM Asia UCITS ETFIE00B466KX20 | 883 | 0.55% p.a. | Accumulating | Ireland | Optimized sampling | |
| Amundi MSCI Emerging Markets Asia UCITS ETF EUR (C)LU1681044480 | 836 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| iShares MSCI AC Far East ex-Japan UCITS ETFIE00B0M63730 | 807 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| Amundi MSCI Emerging Markets Asia UCITS ETF USDLU1681044563 | 594 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Lyxor MSCI AC Asia Pacific Ex Japan UCITS ETF - AccLU1900068328 | 321 | 0.60% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| HSBC MSCI AC Far East ex Japan UCITS ETF USDIE00BBQ2W338 | 218 | 0.45% p.a. | Accumulating | Ireland | Optimized sampling | |
| Lyxor MSCI AC Asia Ex Japan UCITS ETF - AccLU1900068161 | 215 | 0.50% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| UBS ETF (IE) MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-accIE00B7WK2W23 | 182 | 0.23% p.a. | Accumulating | Ireland | Swap-based | |
| Lyxor MSCI EM Asia UCITS ETF - AccLU1781541849 | 137 | 0.12% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| iShares MSCI AC Far East ex-Japan UCITS ETF USD (Acc)IE00BKPX3K41 | 12 | 0.74% p.a. | Accumulating | Ireland | Full replication |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| MSCI AC Asia Pacific ex Japan | 3.52% | -0.12% | -0.87% | -4.38% | -5.84% | |
| MSCI AC Far East ex Japan | 2.53% | -1.99% | -3.11% | -4.34% | -17.23% | |
| MSCI AC Asia ex Japan | 3.01% | -0.31% | -1.07% | -4.02% | -9.64% | |
| MSCI Emerging Markets Asia | 3.32% | -0.22% | 0.08% | -1.88% | -8.49% |
| Index | 2023 in % | 2022 in % | 2021 in % | 2020 in % | 2019 in % | |
|---|---|---|---|---|---|---|
| MSCI AC Far East ex Japan | -2.57% | -15.89% | -2.74% | 14.53% | 20.95% | |
| MSCI AC Asia Pacific ex Japan | -0.34% | -12.62% | 3.78% | 11.51% | 20.31% | |
| MSCI AC Asia ex Japan | -0.29% | -14.78% | 1.91% | 13.80% | 19.40% | |
| MSCI Emerging Markets Asia | 1.66% | -15.09% | 1.48% | 16.80% | 20.74% |
Source: justETF.com; As of 30.11.23; Calculations in EUR 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 0.14% p.a. and 0.66% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| FTSE Emerging | Emerging Markets Taiwan: 15.84% (30/11/2022) | 2 ETFs | 2,021 (31.08.23) | The FTSE Emerging index tracks stocks from emerging markets worldwide. Index factsheet |
| MSCI Emerging Markets | Emerging Markets Taiwan: 14.41% (30/11/2022) | 19 ETFs | 1,437 (30.11.23) | The MSCI Emerging Markets index tracks stocks from emerging markets worldwide. Index factsheet |
| ETF ISIN | Fund size in m EUR | TER in % | Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| Xtrackers MSCI Emerging Markets UCITS ETF 1CIE00BTJRMP35 | 4,345 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares MSCI EM UCITS ETF (Dist)IE00B0M63177 | 3,608 | 0.18% p.a. | Distributing | Ireland | Optimized sampling | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR (C)LU1437017350 | 2,591 | 0.20% p.a. | Accumulating | Luxembourg | Full replication | |
| iShares MSCI EM UCITS ETF (Acc)IE00B4L5YC18 | 2,286 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| Vanguard FTSE Emerging Markets UCITS ETF DistributingIE00B3VVMM84 | 2,059 | 0.22% p.a. | Distributing | Ireland | Optimized sampling | |
| Amundi MSCI Emerging Markets UCITS ETF EUR (C)LU1681045370 | 2,053 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| HSBC MSCI Emerging Markets UCITS ETF USDIE00B5SSQT16 | 1,749 | 0.15% p.a. | Distributing | Ireland | Optimized sampling | |
| Amundi MSCI Emerging Markets II UCITS ETF DistLU2573966905 | 1,473 | 0.14% p.a. | Distributing | Luxembourg | Unfunded swap | |
| UBS ETF (LU) MSCI Emerging Markets UCITS ETF (USD) A-disLU0480132876 | 1,320 | 0.23% p.a. | Distributing | Luxembourg | Optimized sampling | |
| Amundi MSCI Emerging Markets UCITS ETF USDLU1681045453 | 909 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi MSCI Emerging Markets III UCITS ETF EUR AccFR0010429068 | 798 | 0.55% p.a. | Accumulating | France | Unfunded swap | |
| Xtrackers MSCI Emerging Markets Swap UCITS ETF 1CLU0292107645 | 614 | 0.49% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Amundi Index MSCI Emerging Markets UCITS ETF DR EUR (D)LU1737652583 | 457 | 0.20% p.a. | Distributing | Luxembourg | Full replication | |
| Vanguard FTSE Emerging Markets UCITS ETF AccIE00BK5BR733 | 369 | 0.22% p.a. | Accumulating | Ireland | Optimized sampling | |
| Invesco MSCI Emerging Markets UCITS ETFIE00B3DWVS88 | 358 | 0.19% p.a. | Accumulating | Ireland | Unfunded swap | |
| SPDR MSCI Emerging Markets UCITS ETFIE00B469F816 | 353 | 0.18% p.a. | Accumulating | Ireland | Optimized sampling | |
| Xtrackers MSCI Emerging Markets UCITS ETF 1DIE000GWA2J58 | 167 | 0.18% p.a. | Distributing | Ireland | Full replication | |
| HSBC MSCI Emerging Markets UCITS ETF USD (Acc)IE000KCS7J59 | 116 | 0.15% p.a. | Accumulating | Ireland | Optimized sampling | |
| Amundi MSCI Emerging Markets III UCITS ETF USD AccFR0010435297 | 96 | 0.55% p.a. | Accumulating | France | Unfunded swap | |
| Deka MSCI Emerging Markets UCITS ETF DE000ETFL342 | 76 | 0.66% p.a. | Accumulating | Germany | Unfunded swap | |
| Xtrackers MSCI Emerging Markets Swap UCITS ETF 1DLU2675291913 | 0 | 0.18% p.a. | Distributing | Luxembourg | Unfunded swap |
| Index | 1 month in % | 3 months in % | 6 months in % | 1 year in % | 3 years in % | |
|---|---|---|---|---|---|---|
| FTSE Emerging | 2.90% | -0.59% | 1.97% | -1.67% | -0.56% | |
| MSCI Emerging Markets | 4.04% | -0.17% | 1.38% | -1.34% | -3.72% |
| Index | 2023 in % | 2022 in % | 2021 in % | 2020 in % | 2019 in % | |
|---|---|---|---|---|---|---|
| FTSE Emerging | 1.91% | -12.40% | 7.62% | 4.99% | 21.97% | |
| MSCI Emerging Markets | 2.91% | -15.28% | 5.39% | 8.01% | 20.90% |
Source: justETF.com; As of 30.11.23; Calculations in EUR based on the largest ETF of the respective index.