|
|
|
| MSCI
Taiwan iShares (EWT) |
Published: August 23, 2004
The iShares MSCI Taiwan Fund (EWT) is an international
exchange-traded fund (ETF) that holds a basket of 104 companies and is
meant to represent the movement of the Taiwanese Stock Market.
If it's an international ETF, then it must be a Morgan Stanley Capital
International (MSCI) fund, as the company publishes numerous
international indices. There are a few non-MSCI international funds, but
the sum total of their average daily volume amounts to less than 350,000
shares. (By comparison, EWT has averaged more than 400,000 shares traded
per day this year.) All of the single country specific ETFs are based on
MSCI indices.
The Taiwanese currency is pegged to the U.S. dollar (USD). Because of
this, fluctuations in the exchange rate are not an issue when it comes
to this fund's returns. Of course, there is always risk that Taiwan
could revalue (increase the value) or devalue (lower the value) its
currency. In the first case, that would be bullish for EWT in dollar
terms, as it would mean that U.S. investors would get more dollars for
their current holdings. The second case would have the opposite effect.
However, neither event is likely in the foreseeable future.
Interestingly, the MSCI Taiwan iShares are not highly correlated with
the MSCI Hong Kong iShares (EWH). The correlation between the two funds
is just 56%, which is well under EWT's 61% correlation with the Nasdaq
Composite. EWH has a fairly large real estate component, while EWT has
more than 50% of its value invested in technology-oriented issues. The
fund's largest holding is Taiwan Semiconductor (TSM), which accounts for
a full 12.14% of EWT.
It is worth noting that the Taiwan iShares are more volatile than
most other funds. This is because the Taiwanese stock market is quite
volatile. Taiwan, although not truly a developing country, sometimes
trades as if it was one. The country's economy was susceptible to the
so-called 1997 "Asian Contagion," when many Asian stock
markets fell sharply due to a currency crisis. There is also always
political risk vis-à-vis China, which claims Taiwan is still part of
the mainland.
| MSCI
Taiwan iShares (EWT) |
|
|
| Type: |
Sector |
|
|
|
| Similar funds: |
MSCI Hong
Kong iShares (EWH) |
|
|
MSCI Japan
iShares (EWJ) |
|
|
MSCI
Malaysia iShares (EWM) |
|
| Options?: |
No |
|
|
|
|
|
|
|
|
|
|
| Performance
Data |
|
|
|
|
| 52-week High: |
$13.43 |
3/4/2004 |
|
Annualized
return since: |
| 52-week Low: |
$9.51 |
7/26/2004 |
|
One-year |
-1.59% |
| YTD Return: |
-6.67% |
(as
of 7/30/2004) |
Three-year |
4.54% |
|
|
|
|
Five-year |
N/A |
| Dividends: |
$0.45 |
past 12-mos |
Life of fund* |
-12.03% |
| Expense: |
0.74% |
|
|
*
- Started trading 6/23/00 |
|
|
|
|
|
|
| Correlation
Data* |
(1/02/02-7/30/04) |
Holdings* |
(as of 7/31/2004) |
| Dow
Jones Industrials |
54.6% |
|
Taiwan Semi
(TSM) |
12.14% |
| S&P 500 |
|
56.6% |
|
United Microelec (UMC) |
5.95% |
| Nasdaq
Composite |
60.9% |
|
Cathay Fincl (CHYYY)** |
4.30% |
| Nasdaq-100 |
|
59.5% |
|
Hon Hai Precision (HNHPF)** |
4.11% |
|
|
|
|
Nan Ya Plastic |
3.98% |
| EWH |
|
56.2% |
|
China Steel (CISXF)** |
3.58% |
| EWJ |
|
57.3% |
|
Mega Fincl (CTBFF)** |
3.13% |
| EWM |
|
28.8% |
|
Formosa Plastic |
2.96% |
|
|
|
|
Chinatrust Fincl |
2.66% |
|
|
|
|
China Development
Fincl |
2.60% |
|
|
|
|
* Percent top ten
are of total |
45.41% |
|
|
|
|
** Pink Sheets
(very illiquid) |
|
|
|
|
| Average
Daily Volume |
|
Average
Daily Price Range |
| Jul-04 |
402,352 |
|
|
Jul-04 |
2.5% |
| 2004 YTD |
621,575 |
|
|
2004 YTD |
2.8% |
| 2003 |
293,165 |
|
|
2003 |
2.9% |
| *
- Correlation measures how closely the two items track each
other |
|
*
Includes prior day's close (true range) |
HOW TO MAKE MONEY IN EWT THIS YEAR
The Taiwan iShares now shows potential to push up towards $11.50 to
$12.00 in the coming month. Unfortunately, the fund's larger bear market
is not yet over. As such, I expect EWT to drop to a low near $8.50
during the first half of 2005.
|
|
11
Surprising Investment Predictions for 2009
A wind-powered car . . .
oil at $160 per barrel . . . a +200% to +300% rebound in shipping
stocks... a war fought over water . . . these are just a few of the
startling predictions that StreetAuthority
Market Advisor has just revealed for 2009. Each of these
developments will trigger explosive profits for investors in the coming
year. Click
here to see our full range of forecasts.
Income Security
of the Month -- January 2009
If you're looking for
high yields, monthly payments and unprecedented safety, then you need to learn more about our "Income
Security of the Month" for January 2009. This stable
preferred stock has a long
track record of paying some of the most dependable dividends in Wall
Street history. It pays a monthly dividend
totaling 9.9% annually
and has
outperformed the S&P 500 by more than +52% over the last
year.
|
The Top Stocks to Own Before
Obama Takes Office
Whenever
Washington decides to help a new industry get off the
ground, the investment profits follow in lockstep.
And a small group of 20 to 30 stocks is going to be flooded
with so much new government cash that our research team
believes a few of them could shoot up 40-to-1 in the next three or four
years. This group of investments was a good bet even
before Obama was elected . . . now it's a slam dunk.
Wall
Street Meltdown Creates Highest Dividend Yields in a Decade
The recent Wall Street crisis has created a once-in-a-lifetime
opportunity for investors like you to lock in high yields on safe, low-risk
stocks. Yields of 20.2% . . . 22.4% . . . even 33.1%!
Our new special report on the subject shows you SEVEN dividend superstars
that can help you rebuild your portfolio. Click
here to get your free copy of the report. |
|
6
Free Months of Bernie Schaeffer's Option Advisor
Learn the secrets of successful options trading from top trader,
Bernie Schaeffer. Start your free 6-month subscription to The Option
Advisor newsletter now and get free online access to Bernie's Crash
Course in Top Gun Trading Techniques.
3
Penny Stocks Poised to Soar 300%
By the time Wall Street notices the 3 picks revealed in this report,
you could be sitting on a fortune. Click
here to get immediate access to an exclusive Free report --
"3 Underground Penny Stocks Poised to Soar."
|
Investor's
Business Daily (IBD)
Get 10 Free Issues of Investor's Business Daily (IBD) – Plus 2
Free Weeks of Investors.com
Capture
22.8% Yields and +701.8% Gains with ETFs
Join exchange-traded fund (ETF) expert Nathan Slaughter's
"V.I.P. List" and get these three members-only benefits
for free --> 1.) Free ETF report revealing the 3 best ways to
profit from ETFs right now, 2.) Free 9-lesson course showing you how
to pick winning ETFs, 3.) Specific details on Nathan's favorite
individual ETFs for today's market.
|
|
|
|
|
|
