EWT VS TWI: A Comprehensive Comparison of ETFs
4 min read
By Beqa Bumbeishvili, ETF Insider

EWT VS TWI: A Comprehensive Comparison of ETFs

The investment landscape has been transformed by the introduction of Exchange-Traded Funds (ETFs), providing investors with easy access to global markets. In this detailed guide, we will compare two Taiwan-focused ETFs: EWT (iShares MSCI Taiwan ETF) and TWI (Taiwan Index ETF). This comparison will cover a variety of factors, including their tickers, full names, issuers, sectors, top holdings, capitalization, strategies, tracking, and exposure.

EWT > TWI: Overview

Both EWT and TWI aim to provide investors with exposure to Taiwan's market, but they take different paths to achieve this. EWT tracks the MSCI Taiwan Index, offering a broad representation of Taiwan's large- and mid-cap companies. TWI, meanwhile, focuses on tracking the Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX), offering a more concentrated bet on Taiwan's top companies.

EWT > TWI: Issuers and Strategies

EWT is managed by BlackRock, one of the world's leading asset managers, known for its range of iShares ETFs. TWI is managed by a lesser-known entity, focusing primarily on Asian markets. While EWT seeks to replicate the MSCI Taiwan Index, TWI aims for more targeted exposure through its focus on TAIEX. The issuer's credibility and strategies play a pivotal role in the overall risk and return profile of these ETFs.

EWT overlap EWT VS TWI: A Comprehensive Comparison of ETFsEWT overlap EWT VS TWI: A Comprehensive Comparison of ETFs

EWT > TWI: Sectors and Top Holdings

EWT offers diversified sector exposure, including technology, healthcare, and financials. Top holdings include well-known companies like Taiwan Semiconductor Manufacturing Company (TSMC) and MediaTek. On the other hand, TWI mainly focuses on technology and industrial companies. Recognizing the sectoral focus and leading holdings of each ETF can guide investors in aligning their portfolios with their investment objectives.

EWT > TWI: Capitalization and Asset Under Management (AUM)

Both EWT and TWI have substantial assets under management, reflecting their popularity among investors interested in the Taiwan market. However, EWT, with its broader index focus, tends to have a larger AUM, suggesting better liquidity and perhaps less risk. Differing capitalization between the two ETFs can offer valuable insights for prospective investors.

Conclusion

EWT and TWI present distinct opportunities for investing in Taiwan's thriving market. For investors keen on drilling deeper into these ETFs' nuances, ETF Insider is an invaluable tool. Its user-friendly app delivers comprehensive data on holdings, correlations, and overlaps, among other critical insights.

By unpacking the complexities of EWT and TWI, this article provides investors with a robust framework for making informed decisions. Whether you're a seasoned investor or someone new to international investing, this comparison serves as an invaluable guide to Taiwan-focused ETFs.

Disclaimer: This article does not provide any investment advisory services.

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