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 find 1 index, which is tracked by ETFs.
Alternatively, you may invest in indices on the Asia-Pacific region or emerging markets. However, with a share of less than 20% the weight of Taiwan is not significant.
Performance of Taiwanese stocks (MSCI Taiwan)
Indices in comparison
The best indices for ETFs on Taiwan
For an investment in the Taiwanese stock market, 1 index tracked by 4 ETFs are available. On the MSCI Taiwan index there are 4 ETFs. The total expense ratio (TER) of ETFs on these indices is between 0.60% p.a. and 0.74% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
MSCI Taiwan |
Taiwan | 4 ETFs | 89 (31/08/18) |
The MSCI Taiwan index tracks large and mid cap equity market performance of Taiwan.
Index factsheet |
| ETF ISIN |
Fund size in m GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI Taiwan UCITS ETFIE00B0M63623 | 178 | 0.74% p.a. | Distributing | Ireland | Full replication | |
| Xtrackers MSCI Taiwan Index UCITS ETF 1CLU0292109187 | 92 | 0.65% p.a. | Accumulating | Luxembourg | Full replication | |
| Lyxor MSCI Taiwan UCITS ETF C-EURFR0010444786 | 24 | 0.65% p.a. | Accumulating | France | Unfunded swap | |
| HSBC MSCI Taiwan UCITS ETF USDIE00B3S1J086 | 5 | 0.60% p.a. | Distributing | Ireland | Full replication |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI Taiwan | -9.66% | -7.81% | -0.86% | -5.99% | 58.96% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| MSCI Taiwan | -1.80% | 15.31% | 41.81% | -7.95% | 15.22% |
Source: justETF.com; As of 31/10/18; Calculations in GBP based on the largest ETF of the respective index.
The best Taiwan ETFs
by 1 year return
| 1 | Lyxor MSCI Taiwan UCITS ETF C-EUR | -5.84% |
| 2 | HSBC MSCI Taiwan UCITS ETF USD | -5.89% |
| 3 | Xtrackers MSCI Taiwan Index UCITS ETF 1C | -5.94% |
The cheapest Taiwan ETFs
by total expense ratio (TER)
| 1 | HSBC MSCI Taiwan UCITS ETF USD | 0.60% p.a. |
| 2 | Lyxor MSCI Taiwan UCITS ETF C-EUR | 0.65% p.a. |
| 3 | Xtrackers MSCI Taiwan Index 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 10 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: 10,59% (29/12/2017) |
1 ETF | 1,013 (31/08/18) |
The MSCI AC (All Cap) Asia Pacific ex Japan (price-) 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: 12,99% (29/12/2017) |
2 ETFs | 939 (31/08/18) |
The MSCI AC (All Cap) 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: 14,46% (29/12/2017) |
2 ETFs | 855 (31/08/18) |
The MSCI AC (All Cap) 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: 15,40% (29/12/2017) |
5 ETFs | 867 (31/08/18) |
The MSCI Emerging Markets Asia index tracks large and mid cap companies from Asian emerging markets.
Index factsheet |
| ETF ISIN |
Fund size in m GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI AC Far East ex-Japan UCITS ETFIE00B0M63730 | 1,475 | 0.74% p.a. | Distributing | Ireland | Optimized sampling | |
| Amundi ETF MSCI Emerging Markets Asia UCITS ETF - USDLU1681044563 | 525 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI EM Asia Index Swap UCITS ETF 1CLU0292107991 | 461 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI AC Asia ex Japan Index Swap UCITS ETF 1CLU0322252171 | 412 | 0.65% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| SPDR MSCI EM Asia UCITS ETFIE00B466KX20 | 374 | 0.55% p.a. | Accumulating | Ireland | Optimized sampling | |
| iShares MSCI EM Asia UCITS ETF (Acc)IE00B5L8K969 | 373 | 0.65% p.a. | Accumulating | Ireland | Optimized sampling | |
| Lyxor MSCI AC Asia Pacific Ex Japan UCITS ETF C-EURFR0010312124 | 277 | 0.60% p.a. | Accumulating | France | Unfunded swap | |
| HSBC MSCI AC Far East ex Japan UCITS ETF USDIE00BBQ2W338 | 224 | 0.60% p.a. | Accumulating | Ireland | Optimized sampling | |
| UBS ETF (IE) MSCI AC Asia Ex Japan SF UCITS ETF (USD) A-accIE00B7WK2W23 | 69 | 0.32% p.a. | Accumulating | Ireland | Swap-based | |
| Lyxor MSCI EM Asia UCITS ETF - AccLU1781541849 | 57 | 0.12% p.a. | Accumulating | Luxembourg | Unfunded swap |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI Emerging Markets Asia | -8.81% | -10.43% | -11.54% | -11.58% | 43.23% | |
| MSCI AC Far East ex Japan | -9.13% | -10.06% | -11.86% | -10.85% | 42.98% | |
| MSCI AC Asia ex Japan | -8.72% | -10.27% | -11.39% | -10.66% | 41.88% | |
| MSCI AC Asia Pacific ex Japan | -7.94% | -10.19% | -9.46% | -9.36% | 42.38% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| MSCI Emerging Markets Asia | -12.26% | 29.44% | 27.16% | -5.69% | 10.74% | |
| MSCI AC Asia ex Japan | -12.10% | 28.95% | 26.11% | -5.38% | 10.26% | |
| MSCI AC Far East ex Japan | -11.82% | 28.59% | 27.11% | -5.57% | 8.54% | |
| MSCI AC Asia Pacific ex Japan | -10.68% | 23.61% | 27.08% | -5.73% | 8.46% |
Source: justETF.com; As of 31/10/18; 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 11 ETFs. The emerging markets indices weight Taiwan with less than 20%. The total expense ratio (TER) of ETFs on emerging markets indices is between 0.20% p.a. and 0.85% p.a..
| Index | Investment focus | Number of ETFs | Number of constituents | Short description |
|---|---|---|---|---|
| MSCI Emerging Markets | Emerging Markets
Taiwan: 12.28% (29/12/2017) |
10 ETFs | 1,136 (31/08/18) |
The MSCI Emerging Markets index tracks stocks from emerging markets world wide (end of day).
Index factsheet |
| MSCI Emerging Markets Islamic | Emerging Markets
Taiwan: 6.54% (29/12/2017) |
1 ETF | 258 (31/08/18) |
The MSCI Emerging Markets Islamic index tracks stocks from the MSCI Emerging Markets Index which comply with Shariah investment principles. The MSCI Emerging Markets Index includes stocks from emerging markets world wide.
Index factsheet |
| ETF ISIN |
Fund size in m GBP |
TER in % |
Use of profits | Fund domicile | Replication method | |
|---|---|---|---|---|---|---|
| iShares MSCI Emerging Markets UCITS ETF (Dist)IE00B0M63177 | 3,598 | 0.75% p.a. | Distributing | Ireland | Optimized sampling | |
| Amundi ETF MSCI Emerging Markets UCITS ETF - USDLU1681045453 | 1,694 | 0.20% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI Emerging Markets Index Swap UCITS ETF 1CLU0292107645 | 1,298 | 0.49% p.a. | Accumulating | Luxembourg | Unfunded swap | |
| Xtrackers MSCI Emerging Markets UCITS ETF 1CIE00BTJRMP35 | 777 | 0.20% p.a. | Accumulating | Ireland | Optimized sampling | |
| UBS ETF (LU) MSCI Emerging Markets UCITS ETF (USD) A-disLU0480132876 | 774 | 0.45% p.a. | Distributing | Luxembourg | Optimized sampling | |
| iShares MSCI Emerging Markets UCITS ETF (Acc)IE00B4L5YC18 | 491 | 0.68% p.a. | Accumulating | Ireland | Optimized sampling | |
| Invesco MSCI Emerging Markets UCITS ETFIE00B3DWVS88 | 384 | 0.29% p.a. | Accumulating | Ireland | Unfunded swap | |
| SPDR MSCI Emerging Markets UCITS ETFIE00B469F816 | 207 | 0.42% p.a. | Accumulating | Ireland | Optimized sampling | |
| HSBC MSCI Emerging Markets UCITS ETF USDIE00B5SSQT16 | 183 | 0.40% p.a. | Distributing | Ireland | Optimized sampling | |
| Lyxor MSCI Emerging Markets UCITS ETF C-USDFR0010435297 | 159 | 0.55% p.a. | Accumulating | France | Unfunded swap | |
| iShares MSCI Emerging Markets Islamic UCITS ETFIE00B27YCP72 | 33 | 0.85% p.a. | Distributing | Ireland | Full replication |
| Index | 1 month in % |
3 months in % |
6 months in % |
1 year in % |
3 years in % |
|
|---|---|---|---|---|---|---|
| MSCI Emerging Markets Islamic | -8.20% | -9.72% | -10.35% | -10.91% | 45.80% | |
| MSCI Emerging Markets | -6.52% | -8.89% | -10.24% | -9.55% | 42.99% |
| Index | 2018 in % |
2017 in % |
2016 in % |
2015 in % |
2014 in % |
|
|---|---|---|---|---|---|---|
| MSCI Emerging Markets | -10.99% | 24.34% | 33.15% | -11.09% | 3.09% | |
| MSCI Emerging Markets Islamic | -10.99% | 28.32% | 31.26% | -12.13% | -2.84% |
Source: justETF.com; As of 31/10/18; Calculations in GBP based on the largest ETF of the respective index.