Taiwan ETF surges 62% YTD, driven by semiconductor giant TSMC's AI chip boom.

The iShares MSCI Taiwan ETF (EWT) has surged about 62% year-to-date and 103% over the past year, far outperforming the S&P 500's 11% YTD gain. This strong performance is largely driven by Taiwan Semiconductor Manufacturing Company (TSMC), which makes up 22.3% of the fund and has seen its stock rise over 114% in the past year due to booming AI-related semiconductor demand. Taiwan's semiconductor industry revenue is projected to grow nearly 30% in 2026, fueled by global AI investment. While the fund offers some diversification, its returns are heavily tied to TSMC and related chipmakers, making it effectively a concentrated bet on the AI-driven chip supply chain. Investors should watch upcoming TSMC revenue reports and geopolitical risks that could impact the fund's outlook.