iShares MSCI Taiwan ETF offers tech exposure but trades at high valuation amid geopolitical risks

The iShares MSCI Taiwan ETF (EWT) provides focused exposure to Taiwan's technology sector, led by TSMC, benefiting from the global AI infrastructure boom and strong semiconductor demand. Despite strong recent performance and favorable macro trends, EWT currently trades at a high valuation premium of 25.25x P/E compared to its 10-year average of 15x. Analysts issue a HOLD rating due to the elevated valuation, ongoing geopolitical tensions with China, and potential trade policy challenges that could impact risk-adjusted returns.