Chuck Chang, CFA
The FTSE TWSE Taiwan 50 Index tracks the performance of Taiwan’s largest 50 companies. Its constituents reflect the core industries driving Taiwan’s economy, making it a valuable tool for investors seeking exposure to the Taiwan equity market.
- A representative benchmark: the FTSE TWSE Taiwan 50 index captures over 70% of Taiwan’s total equity market capitalisation and has shown a strong correlation with the broader Taiwan Stock Exchange Capitalization index.
- Tracked by Taiwan’s two largest ETFs: both tracking the FTSE TWSE Taiwan 50 Index, the Yuanta/P-shares Taiwan Top 50 ETF and the Fubon FTSE TWSE Taiwan 50 ETF are the largest market capitalisation-weighted equity ETFs in Taiwan. The rising assets under management of the two ETFs appear to reflect growing investor confidence in both the index and in Taiwan’s economic outlook.
- Technology-led growth without excessive valuations: dominated by the technology industry, the FTSE TWSE Taiwan 50 index has delivered strong performance while maintaining attractive valuations and robust earnings growth potential compared to regional peers.
The leading barometer of Taiwan’s equity market
The FTSE TWSE Taiwan 50 index comprises the 50 most highly capitalised stocks listed on the Taiwan Stock Exchange and currently represents over 70% of the total market capitalisation of Taiwan’s equity market (measured by the Taiwan Stock Exchange Capitalization index).
The FTSE TWSE Taiwan 50 index has shown a strong correlation with the broader equity market, as is illustrated in Exhibit 1: the three-year rolling monthly correlation of returns between the FTSE TWSE Taiwan 50 index and the Taiwan Stock Exchange Capitalization Total Return index has ranged between 92-98% over the past 10 years, demonstrating the FTSE TWSE Taiwan 50 index’s effectiveness as a barometer of Taiwan’s equity market as a whole.
EXHIBIT 1: Correlation of FTSE TWSE Taiwan 50 index and Taiwan Stock Exchange Capitalization index (total returns)
Expanding ETF Market reflects growing confidence in Taiwan equities
The two largest market capitalisation-weighted equity ETFs in Taiwan, the Yuanta/P-shares Taiwan Top 50 ETF and the Fubon FTSE TWSE Taiwan 50 ETF, both track the FTSE TWSE Taiwan 50 Index. Both ETFs have shown steadily rising popularity: in Exhibit 2, we show how the assets under management (AUM) for the two ETFs have grown steadily, particularly in the past two years. This trend appears to reflect both investor confidence in the index and in Taiwan’s economic outlook.
EXHIBIT 2: Assets Under Management (TWD)
Technology industry has driven Taiwan’s market momentum
The FTSE TWSE Taiwan 50 index has demonstrated strong performance relative to other global equity markets both in the year to September 2025 and the most recent quarter, primarily driven by the technology industry (see Exhibits 3 and 4). As at September 2025, the Technology Industry accounted for nearly 80% of the FTSE TWSE Taiwan 50 index by weight and the industry has therefore served as the dominant contributor to the index’s overall returns, driven by strong global demand for semiconductors, AI-related components and advanced manufacturing[Note1].
EXHIBIT 3: FTSE TWSE Taiwan 50 and FTSE Regional Indices Total Return (USD)
EXHIBIT 4: Industry Distribution and Return Contribution of the FTSE TWSE Taiwan 50 Index (TWD)
Despite recent strong performance, the valuation of the FTSE TWSE Taiwan 50 index remains broadly in line with that of other major regional indices. As is shown in Exhibit 5, Taiwan’s trailing price/earnings (P/E) ratio is slightly higher than most regional indices, yet remains well below that of the Russell 1000, FTSE Russell’s flagship index for US large-cap stocks. Moreover, the FTSE TWSE Taiwan 50 index’s projected earnings-per-share (EPS) growth over the next 12 months remains comparatively strong, supported by continuing momentum in Taiwan’s technology sector and resilient corporate earnings.
EXHIBIT 5: Forward EPS Growth vs. Trailing P/E
Conclusion
The FTSE TWSE Taiwan 50 index continues to serve as the leading benchmark for Taiwan’s equity market, capturing its most influential companies and sectors. With strong market representation, increasing ETF participation and a balanced valuation outlook, the index remains a key reference point for investors seeking quality exposure to Taiwan’s growth story.
Sources
[1] Investors seeking more diversified exposure to Taiwan’s large-cap stocks can use the FTSE TWSE Taiwan 50 30% Capped Index—which contains the same constituents as the FTSE TWSE Taiwan 50 Index but where each constituent company’s weight is capped at 30% at the quarterly review | Back to Note 1
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