Taiwan stock index and the S&P 500 index long-term return is almost equal

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.

Note: Strictly speaking, there is no ETF in the Taiwan stock market that track TaiEx index. IVV or VOO for US stocks are ETFs that track US stocks market index. Additionally, popular high-dividend ETFs are NOT ETF track stock market index.

Taiex and S&P 500 long-term return

Readers can click on this link to query S&P 500 index annual return rate and this link to query Taiwan Stock Exchange annual return rate 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 study the free online query tools 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 US stock investment toolset

Special reminder

For all major market index annualized return query tools listed in the table; including Taiwan Stock Index, Dow Jones Index, S&P 500 Index, Nasdaq Index, Philadelphia Semiconductor Index, not only annualized return query , you can also query the index return rate in any year──just enter the year you want to query in both the start and end fields.

The following is a list of must-have US stock investment free tools developed by Andy Lin:

The online tool I develop	URL for the tool	For detailed function description, please click the description article directly
Andy Lin’s Indices
Andy Lin self-compiled Index, daily updated (including growth stock index, moat index, tracking stock index and other three major indices)	Andy Lin’s Indices	“Andy Indices will be daily updated on the homepage
Annualized rate of return and compound interest
IRR calculator	IRR calculator	“IRR calculator“
Simple and compound interest calculator	Simple and compound interest calculator	“Simple and compound interest calculator“
Famous market index
Taiwan stock exchange	Querier to Annualized rate of return for Taiwan Stock Exchange	“Querier to Annualized rate of return for Taiwan Stock Exchange“
Dow Jones Industrial Average (DJIA) Index	Querier to Annualized rate of return for Dow Jones Industrial Average Index	“Querier to Annualized rate of return for Dow Jones Industrial Average (DJIA) Index“
S&P 500	Querier to Annualized rate of return for S&P 500 Index	“Querier to Annualized rate of return for S&P 500 Index“
Nasdaq	Querier to Annualized rate of return for Nasdaq Index	“Querier to Annualized rate of return for Nasdaq Index“
Philadelphia Semiconductor Index	Querier to Annualized rate of return for Philadelphia Semiconductor Index	“Querier to Annualized rate of return for Philadelphia Semiconductor Index (SOX)“
Important ecnomic data query
US historial GDP querier	US GDP querier	“US Gross domestic product (GDP) querier“
Querier of US Inflation Rate	Querier of US Inflation Rate	“Querier of US Inflation Rate“
Valuation
DCF (Discounted Cash Flow) Calculator	DCF (Discounted Cash Flow) Calculator	“DCF (Discounted Cash Flow) Calculator“
S&P 500 historical PE Ratio and average Querier	S&P 500 historical PE Ratio and average Querier	“S&P 500 P/E ratio has been rising in the past century, S&P 500 PE Ratio and Average Querier“
Data share
Data and sample download	Sample and file download	“Sample and file download“

For the detail, please see “Free online US stock investment toolset＂.

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