Volatility Does Not Change Long-Term Bullish Pattern
Taiwan stocks recently saw short-term volatility amid mixed international technology earnings, international political and economic headlines, and digestion of market positions, shaking confidence among many investors. In response, UOB Asset Management Quantitative Investment Department Head and UOB Optimal High Dividend Fill 30 ETF manager Kuo Hsiu-cheng said the long-term bull market pattern in Taiwan stocks has not changed and investors need not panic excessively. He noted that, supported by sustained rigid global AI industry demand, continued strong capital expenditure by large cloud service providers, and stronger-than-expected domestic macroeconomic momentum, with Taiwan's 2026 and 2027 GDP growth performing brightly, strong support is provided for the medium- to long-term fundamentals of Taiwan stocks.
AI Leads the Offense While Financials Show Defensive Strength
Kuo Hsiu-cheng further analyzed that, driven by a dual engine of the AI hardware supply chain continuing to serve as the main offensive force, paired with financial and insurance groups demonstrating both growth and defensive strength, the market remains resilient. Among them, the substantial earnings momentum of AI servers, high-speed transmission and semiconductor-related supply chains remains clear. In a highly growing macroeconomic environment, the domestic financial industry has entered a phase where operations and macroeconomics rise in tandem, with banks continuing to expand lending, widening spreads and thriving wealth management business, plus significantly rising profits in life insurance and securities, making financial stocks an excellent shock absorber in the market.
00918 Includes Technology Giants and Quality Financial Holdings
In terms of constituent allocation, 00918 captures the above advantages, including not only AI technology giants such as Wistron, Quanta and ASUS, but also profitable financial stocks such as CTBC Financial Holding, E.SUN Financial Holding, Mega Financial Holding, First Financial Holding and Taishin Shin Kong Financial Holding. Kuo Hsiu-cheng said that through diversified and balanced industry allocation, the ETF combines high dividend and high fill characteristics, effectively delivering an offensive yet defensive profile and providing an allocation choice amid volatile markets. As the operating fundamentals of domestic listed companies continue to improve, and the global AI new-product supply chain enters successive shipment stages, fundamental support for Taiwan stocks remains resilient.
Treating Pullbacks as Staged Entry Opportunities
On strategy, Kuo Hsiu-cheng recommends investors adopt a mindset of treating pullbacks as buying opportunities, building positions in 00918 through regular fixed-amount investment or buying on dips in batches. The ETF blends two core strengths: first, offensive AI growth, capturing technology industry fill and share price performance opportunities; second, defensive financial protection, with built-in quality financial assets that provide downside resilience during market fluctuations. Against a backdrop of short-term markets disturbed by international headlines and position digestion, short-term pullbacks instead provide layout opportunities for long-term capital, and investors need not panic excessively.