Financial Center / Reporter: Shih Jui-Te

According to Cathay Investment Trust, the Taiwanese stock market has entered a bottom-building phase, suggesting that investors consider incorporating market-cap-focused ETFs into their portfolios. Cathay Taiwan Leaders 50 emphasizes a balance between market capitalization and profitability, enhancing the quality of stock selection.

Recently, the tense situation between China and the US has eased slightly, with Trump expressing no intention to replace Federal Reserve Chairman Powell. The market is interpreting these tentative interactions positively, boosting major US stock indices. Today (28th), Taiwan's stock market also strongly returned above the 20,000-point mark, revealing new opportunities.

Cathay Taiwan Leaders 50 (Code: 00922) manager Su Ding-Yu stated that multiple market-cap-focused ETFs have entered the Taiwanese market this year, but each product’s structure and component weightings vary significantly. Merely relying on market capitalization could lead to higher risks if component stock concentrations are excessive. Therefore, 00922 pays special attention to companies' profitability, with companies reporting losses in the prior year potentially being excluded.

As of April 25, the top ten holdings of 00922 are as follows: TSMC (29.03%), MediaTek (6.70%), Hon Hai (5.21%), Delta Electronics (2.89%), Fubon Financial (2.40%), Quanta Computer (2.38%), CTBC Financial (2.35%), Cathay Financial (2.00%), ASUS (1.80%), and UMC (1.79%). These companies not only possess substantial market capitalization but also potential for long-term growth, providing a robust selection for investors.

In the face of uncertain market factors, investors should ensure proper asset allocation. Furthermore, Su Ding-Yu cautioned that global trade and tariff policies are influencing corporate operations, and investors are advised to take heed of future market trends.