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Late-summer vacations and school prep usually signal a sleepy August for Wall Street. However, exchange-traded funds (ETFs) had other plans in mind.
iShares MSCI Taiwan ETF remains a buy due to Taiwan's central role in AI and semiconductors, despite elevated geopolitical risks. TSMC dominates EWT's portfolio, underlining the ETF's heavy exposure to advanced chip manufacturing and AI supply chains. Valuations are reasonable for tech: EWT's PE is 21.55 and PS is 2.16, with TSMC's metrics higher but justified by its industry position.
Taiwanese companies are planning another $20 billion of investments in the U.S. driven by demand for AI applications, the island's economy minister said on Wednesday without giving details, though drawing a warm response from a visiting U.S. official.
Bank of America Corp DE boosted its stake in iShares MSCI Taiwan ETF (NYSEARCA:EWT) by 22.4% during the undefined quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 598,887 shares of the exchange traded fund's stock after acquiring an additional 109,496
I reiterate a buy rating on the iShares MSCI Taiwan ETF, citing strong growth-adjusted valuation and resilient AI-driven fundamentals. EWT remains highly concentrated in information technology, with a 22.5% weighting in TSM and a 71% sector allocation. Despite recent volatility and seasonal headwinds, EWT's PEG ratio under 0.7x and rising 200-dma support a bullish long-term stance.
Foreign investors continued pulling money from Asian equities in July, but the headline outflow masks a striking shift underneath: capital moved away from the region's biggest AI winners while selectively returning to markets with less dependence on the semiconductor boom. Investors sold a net $25.48 billion of shares across seven major Asian markets during the month, extending the region's foreign-selling streak to nine months.
MediaTek , Taiwan's largest chip designer, said on Friday its board had approved a discretionary financing budget of $5 billion to support long-term growth, including its expansion into AI chips for data centers.
Taiwan's ASE Technology Holding , the world's largest chip packaging and testing provider, said on Thursday it would raise this year's capital expenditure by $2 billion to around $10.5 billion, driven by strong demand.