Sector Rotation Broadens, Returns Lead
Taiwan semiconductor stocks recently staged a strong rebound, with market capital no longer concentrated in a single leader but spreading to mid- and upstream supply chains including foundry, IC design and packaging and testing. In this wave of sector rotation, Mega 00913, which seeks moderate TSMC exposure with balanced allocation, delivered outstanding results, with a cumulative year-to-date return of 99.40% through end-October, ranking among the top performers. Since its inception on August 1, 2022, through more than 4 years of industry cycles, the ETF has gained 296.17% cumulatively through end-October, and its latest market price on November 12 had advanced to 41.21.
Valuations and Business Cycle Support Outlook
Looking ahead, Mega Investment Trust remains positive on the market outlook for Q1 2027. First, valuations provide support: as of last week, estimated 2027 P/E ratios for both U.S. and Taiwan stocks were below their 10-year averages, indicating overall market valuations are not stretched. Second is the U.S. presidential term cycle effect: history shows U.S. stock gains during a presidential term have tended to be strongest in the third year, followed by the fourth year. Third is the expected turn in inflation and interest rates: although inflation is expected to remain high and volatile in Q4 2026, keeping rates relatively high, starting in March 2027, thanks to the high-base effect from 2026, CPI is expected to fall sharply, guiding rates lower in Q2 2027, which would favor valuation repair for technology stocks.
Guardian Mountains Lineup Resolves Dilemma
Market analysts note that investors in semiconductor ETFs have often faced a dilemma of either excessive concentration in a single heavyweight, causing sharp swings with one stock, or excessive diversification, missing the leader's rally. Through its index weighting design, Mega 00913 caps its largest holding, TSMC, at about 23.88%, and allocates the rest to major names including UMC at 13.96%, Winbond at 11.79%, MediaTek at 11.56%, ASE Technology Holding at 9.82% and WIN Semiconductors at 7.54%, building a Guardian Mountains lineup that balances leader stability with semiconductor-sector growth.
Accessible Entry to Participate in Supply-Chain Growth
Mega Investment Trust said high-priced semiconductor heavyweights have a higher entry barrier for single-stock investment, and a single company is more vulnerable to short-term news. Through a basket-type ETF vehicle such as Mega 00913, investors can reduce stock-picking effort and participate in the overall development of Taiwan's semiconductor supply chain at a relatively accessible funding threshold, and are advised to include it in medium- to long-term asset allocation via installments or dollar-cost averaging according to personal risk tolerance.