tsmc gets bigger slice of taiwan leadership etf

2025-08-25 tsmc

taipei, Monday, 25 August 2025.
cathay site increased tsmc’s weighting in its taiwan leadership 50 etf (00922) on wednesday, august 27. this move aligns the etf more closely with tsmc’s prominent role in the taiwan stock market. tsmc’s stock surged by nt$45 to nt$1,180 amidst a broad market rebound. the etf’s msci taiwan leaders 50 select index has seen cumulative returns of 400.37% since 2013, surpassing the taiwan weighted return index by 63.46%.

Taiwan stock market impact

The Taiwan stock market experienced a significant rebound on Monday, August 25, 2025, increasing by over 500 points [1][4]. This surge was partly fueled by TSMC’s strong performance, with its shares rising by 45 New Taiwan dollars to reach 1,180 New Taiwan dollars [1][4]. Cathay Taiwan Leadership 50 ETF (00922) proactively adjusted its TSMC weighting to align more closely with the broader market, effective August 27 [2][3]. This adjustment makes it the first market-value ETF to update its tracking index rules [1][2].

fund manager’s perspective

Su Dingyu, the fund manager for Cathay Taiwan Leadership 50 (00922), noted that TSMC accounted for nearly 40% of the Taiwan stock market as of the end of July [1][2][3]. He anticipates that the demand for semiconductors will continue to rise with the rapid development of AI, potentially increasing TSMC’s weighting in the Taiwan stock market [1][2]. The fund manager also confirmed that investors would see the adjusted TSMC weighting in the 00922 ETF after the market closed on August 27 [1][3].

accessibility for retail investors

The Cathay Taiwan Leadership 50 ETF (00922) offers a more accessible investment option for retail investors [4][7]. A single TSMC share costs over one million New Taiwan dollars, while shares of 00922 are priced around 20,000 New Taiwan dollars [4]. This allows smaller investors to benefit from TSMC’s performance [7]. The ETF’s strategy of aligning its TSMC weighting with the broader market is expected to attract further investment, especially from those seeking exposure to the semiconductor giant [1][8].

etf performance and economic outlook

The MSCI Taiwan Leadership 50 Select Index, which the 00922 ETF tracks, has demonstrated strong performance [1][2][4]. It has achieved a cumulative return of 400.37% since its inception in November 2013 through July 31, 2025 [2][3][4]. This return outperforms the Taiwan Weighted Index by 63.46% [1][3][4]. Taiwan’s economic outlook remains positive, with the Directorate-General of Budget, Accounting and Statistics revising the 2025 annual economic growth rate to 4.45% [4][6]. Taiwan’s per capita GDP is projected to exceed 40,000 USD in 2026 [4].

tsmc’s strategic importance

TSMC’s position remains strong, as confirmed by Chairman Wei Zhejia on August 22, who stated that the U.S. would not be acquiring shares in TSMC [2][3]. This reassurance contributed to a nearly 4% rise in TSMC’s shares on August 25, significantly boosting the Taiwan stock market [2]. The adjustment in the Cathay Taiwan Leadership 50 ETF reflects TSMC’s critical role in the semiconductor industry and its importance to the Taiwanese economy [1][5]. The ETF also considers the low-carbon transition scores of companies when adjusting holdings [6].

Bronnen

tsmc weighting etf adjustment