Recent escalations in Middle Eastern conflicts and lingering uncertainties over tariffs have continued to impact Taiwan's stock market, which remains in a consolidation phase. Fortunately, the peak of market panic over tariff issues has diminished, and large corporations have reported optimistic revenues and outlooks, leading to renewed performance in Taiwan stocks. Investment trusts assert that while the fundamentals remain sturdy, the market is still challenged by international trade policies and geopolitical tensions, indicating that the market will remain in a large trading range. Therefore, a selective stock picking strategy is deemed appropriate, leveraging active ETFs to navigate through market volatility.

Observing the recent performance of active and passive ETFs in the Taiwan market, the past week has shown a near even split in performance; notably, active ETFs have excelled, with the 00982A Active Yuanta Taiwan Strong Stocks rising by 2.99% and the 00981A Active Uni-President Taiwan Growth ETF up by 2.29%, respectively ranking as the top two active Taiwanese ETFs, also leading in the overall performance of related ETFs. Among passive ETFs, the 006201 Yuan Tai Fortune 50 has distinguished itself with an increase of nearly 1.61%. Manager Chen Yu-Tsai of Active Yuanta Taiwan Strong Stocks pointed out that individual stocks with abundant themes and capital still present bright performance opportunities, warranting gradual investment in mid to long-term trend indicators.

Overall, under uncertainties in policies, short-term fluctuations are inevitable; however, the active rotation of small to medium-sized stocks and the potential for foreign capital to return injects vitality into the market. Focus industries include semiconductors and AI server-related stocks that benefit from upward trends in AI concepts, while further diversification into domestic demand and dividend growth stocks is also advisable.

Meanwhile, Lin Hao, manager of Nomura Taiwan Enhanced 50, highlighted that value investing in larger companies is expected to shine in this year’s market. Nevertheless, due to rapid sector rotations, investors should avoid heavy betting on single stocks or passively tracking one index. The recommended approach is to maintain a balanced weighting on TSMC while also considering other investment opportunities—this combination of market capitalization and active selection should participate in the momentum of large stocks and the overall market rotation strategy, thus helping to withstand market fluctuations and diversify risk. Lin noted that during market rallies or declines, market sentiment can influence investment decisions, underscoring the importance of active stock selection; currently, the market appears to favor theme-based stocks, with AI remaining a fundamental component of holdings that attract long-term investment opportunities.

Finally, Tseng Wan-Sheng, manager of First Gold Industrial 30 Fund, remarked that Taiwan stocks currently lag behind US stocks. The months from June to August are expected to be peak seasons for shareholder meetings and dividend rights, with high dividend yielding stocks and those benefitting from favorable policies related to industry and infrastructure likely to attract investor interest, contributing to an optimistic market outlook that could bolster Taiwan stock performance moving forward.