Exports orders in Taiwan brightens related-ETFs outlook

Data from the Taiwanese Ministry of Economic Affairs showed that exports orders rose by +12.1% from a year earlier to a historic high of USD 67.9 billion in December 2021, following a +13.4% increase in the previous month and beating market expectations of an +8% improvement. Demand was up for information and communication products (+12.7%), electronic products (+12.2%), basic metals and articles thereof (24.9%), plastics, rubber, and articles thereof (+12.9%), chemicals (+19.1%), and electrical machinery products (+8.7%).

Despite the ongoing tensions with China, Taiwan remains a well-known information and communications technology (ICT) manufacturing hub due to its strong ICT industry base, robust semiconductor manufacturing clusters, and advanced manufacturing capacity. These perks have enabled it to rapidly develop several companies that offer advanced ICT-related products and services.

Investors can gain diversified exposure to Taiwanese equities through ETFs. This year, over $293 million flowed into Taiwan ETFs — of which $146 million were received by APAC-based Cathay TIP TAIEX+ Low Volatility Select 30 ETF. In America, no significant flows were registered. Meanwhile, in Europe, iShares MSCI Taiwan UCITS ETF (ITWN) and HSBC MSCI Taiwan Capped UCITS ETF (HTWN) received a total of $12 million.

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