taiwan stock index: TAIEX (Taiwan Weighted) Guide

A comprehensive, beginner-friendly guide to the taiwan stock index (TAIEX / Taiwan Weighted / TWII): definition, methodology, constituents, tradable access, risks and where to find official data.

2024-07-11 09:35:00

By Alex Carter

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Taiwan Stock Index (TAIEX / Taiwan Weighted Index)

The taiwan stock index is the primary broad-market benchmark for equities listed on the Taiwan Stock Exchange (TWSE). Commonly called the TAIEX or Taiwan Weighted (ticker: TWII), this index tracks the performance of listed common shares on TWSE with a base value of 100 in 1966 and first publication in 1967. Readers of this guide will learn what the taiwan stock index measures, how it is calculated and governed, how constituents and sector weights behave (notably the heavy technology and semiconductor concentration), where to find live and historical data, and common ways investors access Taiwan equity exposure — including ETFs, futures and other tradable products. The guide also notes practical market details (trading hours, settlement currency) and principal risks for benchmark users.

As of January 22, 2026, according to AP, Reuters and Bloomberg reporting, regional markets were generally higher and Taiwan's Taiex (the taiwan stock index) was reported up about 0.8% during intraday trading, reflecting broad gains in technology-related names.

Names, Symbols and Operators

The taiwan stock index appears under several names and tickers across data vendors. Common labels include:

TAIEX — a widely used short name referencing the Taiwan Stock Exchange Capitalization Weighted Stock Index.
Taiwan Weighted — the descriptive name emphasizing capitalization weighting.
TWII — common ticker shorthand used by many platforms.
TWSE:IND or TWSE Index — vendor-specific index codes referencing the TWSE index family.
.TWII or TWII:IND — variants used by international data services.

Official operators and maintainers:

Taiwan Stock Exchange (TWSE) — the exchange that publishes and oversees the primary index series.
Taiwan Index Plus (TIP) — an index business unit affiliated with TWSE that produces methodology documents and index factsheets for the TWSE index family.
TWSE index group / index committee — the formal governance bodies responsible for methodology updates and rules.

Data vendors (Bloomberg, Reuters, Yahoo Finance, Investing.com, TradingEconomics) republish the taiwan stock index values and may use slightly different tickers or formatting. For official methodology, constituents and fact sheets, consult TWSE and Taiwan Index Plus publications.

Index Specification and Calculation

Key specification points for the taiwan stock index:

Weighting method: market-capitalization weighted. Components are weighted by free-float adjusted market capitalization (subject to the specific TWSE/TIP free-float criteria in methodology documents).
Coverage universe: listed common shares on the Taiwan Stock Exchange that meet eligibility rules. Exclusions typically include preferred shares, depository receipts, newly listed securities subject to initial listing adjustment periods, and instruments not meeting liquidity/float thresholds.
Base value and base year: base = 100; base year = 1966; index first published in 1967.
Calculation frequency: official index updates are disseminated in real time; technical publication cadence is commonly every 5 seconds for official display values, with vendor feeds sometimes offering sub-second pricing.
Index types: price return (PR) variant that reflects price movements only, and total return (TR) variants that account for reinvested cash dividends (when published by TWSE/TIP).

The exact formulas and free-float adjustments are detailed in the TWSE / Taiwan Index Plus methodology documents and fact sheets. Those documents also describe rounding, divisor adjustments and the precise treatment of corporate actions.

Methodology and Governance

The taiwan stock index is governed by published methodology and oversight committees. Core governance features include:

Methodology documents: TWSE and Taiwan Index Plus publish formal methodology manuals and fact sheets that define eligibility criteria, free-float and market-cap calculations, corporate-action treatments, treatment of suspensions/delisting, and index maintenance rules.
Index committee / governance body: an index committee or governance group composed of exchange staff and independent advisors reviews methodology changes and approves rule updates to ensure index integrity and representativeness.
Eligibility criteria: common requirements center on listing status on TWSE, minimum trading history, liquidity thresholds (average daily value/volume measures), market capitalization minimums, and share class restrictions (common shares only).
Corporate actions: documented treatments exist for dividends, stock splits, rights issues, mergers/acquisitions, spin-offs and other corporate events. For price return indices, typical practice is to adjust the index divisor to maintain continuity; for total return indices, dividend reinvestment conventions are specified.
Rebalancing and review schedule: periodic reviews (quarterly or semiannual, per TWSE/TIP schedule) update constituents, free-float factors and weights. Ad-hoc adjustments are applied for corporate events and extraordinary circumstances.
Publication of methodology/factsheets: TWSE and Taiwan Index Plus publish the index methodology, fact sheets, historical constituent lists and calculation guides on their official publications (referenced under References and Further Reading below).

All substantive changes to methodology are communicated via official notices and fact sheets so that market participants can reconcile index behavior with the published rules.

Constituents and Sector Weights

Selection and composition:

Constituent selection: the taiwan stock index is designed as a broad-market index. It includes the common shares listed on TWSE that meet the eligibility rules (liquidity, free-float, listing status). The exact number of constituents fluctuates with listings, delistings and periodic reviews.
Number of constituents: because the taiwan stock index is broad-market, its constituent count varies and can include several hundred stocks depending on current listings; it is not a fixed-count index like a 'Top 50' product.
Concentration characteristics: Taiwan’s market historically shows significant concentration in a relatively small number of large-cap technology and semiconductor firms. Taiwan Semiconductor Manufacturing Company (TSMC) is typically the largest single weight in the index and can drive index-level performance. This leads to a top-heavy market-cap structure where the largest names influence returns materially.
Sector composition: the taiwan stock index has a heavy tilt to information technology, electronics, and semiconductor-related sectors; other sectors such as financials, consumer and industrials are also represented but usually with smaller weights relative to tech.

Because of concentration, users of the taiwan stock index should review constituents and sector weights using the latest TWSE/TIP fact sheets. Those documents show constituent counts, top holdings by weight and sector breakdowns at each review date.

Historical Development and Milestones

Brief chronological highlights of the taiwan stock index:

1966/1967 — base year and publication: the index base was set to 100 in 1966 and the first published series began in 1967.
Late 1980s — bubble and subsequent collapse: Taiwan’s equity market experienced a major speculative run in the late 1980s followed by a significant correction in the early 1990s. These episodes shaped early regulatory and market-structure reforms.
1990s–2000s — liberalization and growth: market reforms, improved corporate governance initiatives and Taiwan’s growing role in global electronics supply chains contributed to market expansion.
Global financial crises and drawdowns: like most global indices, the taiwan stock index experienced major drawdowns during broad market stress periods (e.g., global financial crisis of 2008–2009). These drawdowns are captured in long-term historical return tables.
2010s–2020s — technology-driven re-rating: Taiwan’s rising prominence in semiconductor manufacturing (especially TSMC) and electronics exports has driven periods of strong outperformance, including multi-year rallies and record highs in the index.

Notable recent developments include strong demand for semiconductor-related stocks tied to global AI and data-center investment trends, which have contributed to rallies in Taiwan-listed technology companies. These structural sector drivers have changed the index’s risk and return profile over time.

Performance and Key Statistics

Presenting the taiwan stock index performance and statistics usually involves several standard metrics and visualizations. Reliable, quantifiable measures can be obtained from TWSE official data and market-data vendors (Bloomberg, Yahoo Finance, TradingEconomics, Investing.com).

Typical performance and statistic items to display:

Historical returns: annual returns, multi-year cumulative returns (1Y, 3Y, 5Y, 10Y) and longer-term compound annual growth rates (CAGR).
Volatility measures: annualized standard deviation, rolling volatility (e.g., 30-, 90-, 180-day rolling standard deviation).
Drawdowns: maximum drawdown, historical drawdown series showing peak-to-trough movements.
Market capitalization and trading volume: total market cap of TWSE-listed equities and average daily trading volume for the index or market; these can be expressed in local currency (TWD) and converted to USD for international comparisons.
Record highs/lows: calendar dates and index levels for historical peaks and troughs.
Correlations and betas: beta vs regional or global benchmarks (MSCI Taiwan vs MSCI Asia Pacific or S&P/ASX, etc.) and rolling correlation metrics.

Common data sources for live and historical figures: TWSE (official), Taiwan Index Plus (methodology and factsheets), Bloomberg, Reuters, Yahoo Finance, TradingEconomics and Investing.com. Always reference the date of the data snapshot when presenting numbers.

Long-term Returns and Annual Performance

When preparing tables or graphs for long-term returns, include:

A year-by-year table of calendar returns (percentage) for the taiwan stock index going back multiple decades where available.
Cumulative performance for standard horizons (1Y, 3Y, 5Y, 10Y, 20Y) and CAGR calculations.
A chart showing the index level on a log scale to illustrate long-run growth and major regime shifts.

These visualizations help users see volatility and growth trends across decades and identify periods of outperformance or extended downturns.

Volatility and Risk Measures

Key risk metrics to compute and display:

Rolling volatility (e.g., 30-, 90-, 180-day) to capture changing short- and medium-term risk.
Maximum drawdown and drawdown duration — useful to understand worst-case historical losses.
Beta versus regional benchmarks (MSCI Asia Pacific, MSCI Taiwan, regional large-cap indices) and versus a global benchmark (MSCI World or S&P 500) to understand sensitivity to global moves.
Value-at-Risk (VaR) or conditional VaR for users who require tail-risk measures.

These metrics should be accompanied by clear data dates and sources so readers can verify calculations.

Related Indices and Benchmarks

Investors and analysts often compare or use related indices to isolate exposures or construct investment products. Relevant indices include:

FTSE TWSE Taiwan 50 — an index focused on the largest and most liquid Taiwan-listed companies (a large-cap subset).
TWSE Corporate Governance 100 (CG100) — a governance-focused index on TWSE-listed companies meeting corporate governance criteria.
MSCI Taiwan — the MSCI country index capturing Taiwan-listed companies accessible to international investors under MSCI eligibility rules.
MSCI Taiwan 20/35 — specific MSCI free-float and capping rule variants relevant for index replication and ETF construction.
Sector indices on TWSE — indices that isolate sectors such as semiconductor, electronics, financials and industrials.
International benchmarks that include Taiwanese stocks — e.g., MSCI Emerging Markets, MSCI Asia Pacific, and other regional composites where Taiwan has representation.

Comparing the taiwan stock index to these related benchmarks helps investors select the right vehicle for Taiwan exposure (broad-market vs large-cap, governance-tilted vs cap-weighted, accessibility for international investors).

Tradable Products and Ways to Access the Index

There are multiple ways investors access Taiwan equity exposure; each vehicle has different domicile, replication method and accessibility characteristics.

Domestic and international ETFs / ETNs:

Domestic ETFs: TWSE-listed ETFs replicate TAIEX or large-cap Taiwan indices and are traded in TWD. These are direct ways to access Taiwan exposure for local investors.
International ETFs: ETFs domiciled outside Taiwan (Ireland, US, or other domiciles) often track MSCI Taiwan or FTSE TWSE Taiwan 50. They typically replicate via physical replication (holding underlying securities) or synthetic replication depending on the product.
ETNs and ADRs: Some Taiwan-listed companies have American Depositary Receipts (ADRs) or are accessible via international issuance. ETNs may offer alternative exposures but carry issuer credit risk.

Derivatives and futures:

TAIEX futures: Taiwan offers futures contracts on the TAIEX index, listed on the Taiwan Futures Exchange (TAIFEX). Contract sizes include standard, mini and micro derivatives to accommodate different investor sizes.
TAIEX options and single-stock options: options markets exist on index futures and many liquid single-stock names.

Other access routes:

Direct local brokerage accounts: investors with access to TWSE can buy shares directly in TWD.
Crypto-native or multi-asset platforms: platforms that support equity and derivatives trading may offer Taiwan ETFs and futures (when available and compliant). For users seeking Web3 wallet integration, consider Bitget Wallet for custody and Bitget for access to tradable products where the platform lists Taiwan ETFs or derivatives (subject to local regulatory availability and product listings).

When choosing a product, check the ETF’s domicile, replication method, expense ratio, tracking error and tax treatment for dividends. International ETF wrappers vary in how they treat withholding taxes and dividend distributions.

Market Microstructure and Trading Details

Important practical details about the market that affect index calculation and trading:

Trading hours: TWSE equity trading hours are set by the exchange. Pre-market and after-hours sessions may exist for certain order types but primary continuous trading occurs during official market hours; verify the current TWSE schedule for session times.
Settlement currency: trading and settlement on TWSE are denominated in New Taiwan Dollar (TWD / NTD). International investors must consider FX conversion and settlement implications.
Trading mechanisms: TWSE uses an electronic order-driven market structure with continuous matching. The index calculation uses real-time price feeds from the exchange.
Liquidity characteristics: liquidity varies across names; large-cap technology names typically exhibit deep liquidity while smaller caps may have lower daily turnover. Average daily trading volume and turnover statistics are published by TWSE.
Trading halts / circuit breakers: TWSE implements measures for market stability, including individual-stock trading halts for extraordinary events and market-level circuit breakers or temporary trading suspensions in extreme volatility situations. Consult TWSE notices for current rules.

Understanding these mechanics is important for index replication, timing trades and managing operational settlement risks (FX, custody and clearing).

Concentration, Currency and Geopolitical Risks

Key limitations and risks when using the taiwan stock index as a benchmark:

Concentration risk: the taiwan stock index is often top-heavy, with a few large-cap technology and semiconductor firms representing a substantial portion of the index capitalization. This concentration increases single-name and sector risk compared with more diversified benchmarks.
Currency risk: the index is denominated in TWD; international investors face FX exposure that can amplify or reduce USD-return volatility depending on TWD/USD movements.
Geopolitical and trade dependencies: Taiwan’s economy and listed companies are closely integrated with global technology supply chains. Geopolitical tensions or trade disruptions can affect the market, supply chains and investor sentiment. (This guide presents facts and avoids political conclusions.)

Users of the index should consider diversification strategies and hedging approaches if currency or concentration risks are material to their mandates.

Uses and Significance

Common uses of the taiwan stock index:

Benchmarking: asset managers use the taiwan stock index as a performance benchmark for Taiwan-focused mandates and for large-cap or broad-market comparisons.
ETF replication: fund issuers use the index or related custom indices to replicate Taiwan exposure via ETFs and index funds.
Derivatives: the index underpins futures and options contracts used for risk management, speculative positions and index arbitrage.
Macro monitoring: economists and strategists monitor the taiwan stock index as a barometer for Taiwan’s listed equity market and, given Taiwan’s importance in semiconductor manufacturing, as a signal for tech supply-chain sentiment.

For global investors seeking exposure to semiconductor and electronics supply chains, the taiwan stock index is particularly significant because the country hosts several of the world’s largest semiconductor manufacturers.

Notable Data Providers and Tickers

Popular data vendors and how they commonly list the taiwan stock index:

TWSE / Taiwan Index Plus — official index pages and fact sheets (primary source for methodology and constituents).
Bloomberg — TWII or vendor-specific ticker codes for the Taiwan Weighted index on terminal services.
Reuters and Refinitiv — index codes and real-time data for institutional users.
Yahoo Finance — often lists the index under ".TWII" or similar ticker forms for retail users.
TradingEconomics, Investing.com, CNBC and other market sites — publish snapshot pages and historical charts for the index.

Note: Small formatting differences and update latencies may produce minor discrepancies in reported levels among vendors. For authoritative constituent and methodology details, rely on TWSE and Taiwan Index Plus official publications.

References and Further Reading

For an authoritative article, the following primary sources and data providers are recommended to cite and consult:

TWSE official index methodology and notices (TWSE publications and press releases) — for corporate-action rules, divisor adjustments and review schedules.
Taiwan Index Plus (TIP) fact sheets and methodology — for index definitions, free-float rules and constituent lists.
Market-data vendors for live prices and historical series (Bloomberg, Reuters/Refinitiv, Yahoo Finance, TradingEconomics, Investing.com) — for snapshots, historical returns and charts.
MSCI and FTSE fact sheets — for comparisons with MSCI Taiwan or FTSE TWSE Taiwan 50 indices and ETF-underlying methodologies.
Historical narratives and academic treatments (including industry reports and documented market history) for further reading on major market episodes.

Sources used for market context in this guide: As of January 22, 2026, reporting from AP, Reuters and Bloomberg indicated regional markets were broadly higher and Taiwan’s Taiex (the taiwan stock index) was up about 0.8% in intraday trading on that date.

Practical Notes and How to Stay Updated

Check TWSE and Taiwan Index Plus for the latest methodology updates and fact sheets prior to using the index for benchmarking or product design.
When citing performance or top-constituent weights, always include the data date and the source (e.g., TWSE fact sheet as of [date]) so readers can validate the snapshot.
For tradable product details (ETFs, futures contract specifications), consult the issuer’s prospectus and exchange documentation (TAIFEX for futures and options specifications).

Further Exploration and Bitget Services

If you want to explore how to gain or hedge exposure to Taiwan equities using tradable products available on multi-asset platforms, consider Bitget’s market products where available and compliant with regional regulation. For custody and Web3 wallet integration, Bitget Wallet offers multi-asset management capabilities. Check Bitget’s platform for product listings, available ETFs or derivatives, and jurisdictional availability before trading.

Explore more Bitget educational resources to deepen your understanding of index-linked products, and always confirm product details with the issuer and exchange documentation before trading.

Note on neutrality: This article is informational and not investment advice. Data points and market moves are attributed to the named news providers and TWSE/TIP official publications. Always verify figures against official exchange releases and current market-data sources.

The content above has been sourced from the internet and generated using AI. For high-quality content, please visit Bitget Academy.