Please note: This article discusses the “Taiwan stock index (or Taiwan Weighted Index, aka taiex)” that represents the broader market of Taiwan stocks, not ETFs such as the Yuanta Taiwan 50 (aka 0050) that claim to track the broader market of Taiwan stocks.
Taiex and S&P 500 long-term return
Readers can click on this link on my website to see the cumulative long-term return comparison table of the Taiwan Stock Weighted Index and the S&P 500 Index in the past 30 years — the third and fourth rows of the bottom table Comparison of annual figures in .
US-Taiwan stock index returns are similar
After reading this link I listed above, you must be surprised by the returns of the US-Taiwan market index. Although the returns of the Taiwan stock market are still relatively poor, the gap between the two is not too big in the long run.
Please note: If it is the rewards of individual stocks that actively select stocks, then there is no doubt that the rewards of individual stocks in the United States are much higher than those in Taiwan stocks. Please refer to the content of my book “The Rules of Super Growth Stocks Investing“.
Taiwan stocks large-cap ETF is more suitable for the general public
If you consider the US dollar remittance fee, you can worry about sending money abroad, English proficiency, US taxation, time difference and other factors; in addition, most stock market investors are not suitable for investing in individual stocks, but ETFs that track the market. My article today can be an important reference to help investors who are hesitant to open an account with an online brokerage in the United States to buy an ETF that tracks the S&P 500 of the U.S. stock market, or simply buy a local ETF in Taiwan.
In addition, in fact, there are local brokerages in Taiwan that also issue ETFs that track the S&P 500 of the U.S. stock market, but the handling fee is much higher than that of online brokerages in the United States. If this does not cause trouble to investors, then for Taiwanese stock market investors who generally do not have time and are too lazy to take care of their investments, why should you directly buy ETFs that track the broader market of Taiwan stocks, because:
- Long-term data prove that the long-term return of the Taiwan weighted index of the Taiwan stock market is only slightly inferior to the S&P 500 representing the US stock market.
- Buying an S&P 500 ETF in Taiwan that tracks the U.S. stock market, the renewal fee is much more expensive than in the U.S., so it is not worth buying or thinking it is not worth it.
- It can simplify investment without changing US dollars, and you can see the data of Taiwan weighted index every day, even anytime and anywhere. Obtaining Taiwan stock information in Taiwan is much easier and more convenient than obtaining information about US stocks.
Table for stock investment toolset
Here is a list of these must-have tools for investors:
- “Taiwan stock index and the S&P 500 index long-term return is almost equal“
- “Global stock markets performance comparision over the past 30 years in a table“
- “Market index and the market index ETF is not identical“
- “S&P 500 vs. Nasdaq 100 index, how to choose a market index?“
- “How to invest in US stocks? sub-brokerage, and fintech“
- “Should investors care about currency exchange risk when investing in US stocks?“
- “S&P 500 index next year performance, based on last century record“
- “Return rate comparison among Buffett portfolio, Berkshire stock price, S&P 500 over the years“
- “S&P 500 P/E ratio has been rising in the past century, S&P 500 PE Ratio and Average Querier“
- “2022 S&P 500 Constitutent Stocks Performance“
- “Querier to Annualized rate of return for Taiwan Stock Exchange“
- “Querier to Annualized rate of return for S&P 500 Index“
- “S&P 500 index, the only stock worth holding forever“
- “Stocks Better than the S&P 500, Procter & Gamble (P&G)
- “A table comparing S&P 500, Nasdaq, Dow Jones, Philadelphia Semiconductor Index over the years since its inception and annualized returns“
- “Top 10 ETFs and important major US stock market index“
- “Querier to Annualized rate of return for Nasdaq Index“
- “US issued ETFs tracking US market is your best bet“
- “Most investors should invest ETFs tracking broader market“
- “Investors should care annualized rate of return (IRR), How to calculate?“
- The content of this site is the author’s personal opinions and is for reference only. I am not responsible for the correctness, opinions, and immediacy of the content and information of the article. Readers must make their own judgments.
- I shall not be liable for any damages or other legal liabilities for the direct or indirect losses caused by the readers’ direct or indirect reliance on and reference to the information on this site, or all the responsibilities arising therefrom, as a result of any investment behavior.