Fund Unboxing: Stop Worrying About Choosing Between Taiwan and US Stocks — First Team Alliance Helps You Have Both!

When it comes to Taiwan and US stocks, which side does your investment scale tilt toward? In recent years, both markets have demonstrated distinct growth momentum. Investors focused on Taiwan often fear missing out on US market gains, while those emphasizing US stocks feel they're missing the profit drivers from Taiwan. Now, there's no need to worry. Through the 'First Team Alliance,' Chinext Fund integrates these two core markets into a single portfolio, achieving a more balanced and well-positioned allocation through diversified industry exposure.

1. Why Are Taiwan and US Stocks the 'Standard' for Asset Allocation?

Analyzing the performance of Taiwan and US stock indices over the past 43 years, with index values calculated in USD, Taiwan stocks achieved an annualized return of 12.8%, while US stocks reached 11.8%. This shows both markets have consistently demonstrated stable long-term growth momentum, forming a crucial foundation for asset allocation. Further examining recovery strength from past market crashes, both Taiwan and US markets, despite significant short-term declines during major corrections, ultimately rebounded and reached new highs, showcasing strong resilience and market durability. Overall, both markets exhibit clear long-term growth trends, strong recovery after pullbacks, and a combination of growth and resilience.

Taiwan Stock Market: Major Crashes and Recovery Times

Source: Bloomberg, Chinext Fund analysis. Data period: 1983–2026. Data date: 2026/7/21.

US Stock Market: Major Crashes and Recovery Times

Source: Bloomberg, Chinext Fund analysis. Data period: 1983–2026. Data date: 2026/7/21.

2. Divergent Industry Structures Between Taiwan and US Markets Create Complementary Growth Engines

Looking at industry distribution, Taiwan stocks are highly concentrated in the technology sector, with 'Technology Hardware and Semiconductors' accounting for 76.5%—far exceeding the 25% in US stocks—indicating Taiwan's deep integration into the core AI hardware supply chain. In contrast, US stocks have a more diversified industry mix, covering communications and media (17%), financials (12.2%), consumer discretionary (11.6%), and healthcare (8.2%). The US not only has hardware support but also dominates AI software applications, cloud ecosystems, and end-user consumer markets, forming a more comprehensive value creation system. Therefore, the two markets are not competitors but complementary. By including both Taiwan and US markets, investors can link hardware manufacturing with software applications, allowing portfolios to capture long-term growth opportunities.

Comparison of Industry Structures: Taiwan vs. US Stocks

Source: Bloomberg, Chinext Fund analysis. Data date: 2026/7/21. Taiwan index: Taiwan Weighted Index; US index: S&P 500.

3. Why Choose the First Team Alliance?

How to simultaneously capture the advantages of both Taiwan and US markets while flexibly adjusting asset allocation under different conditions is a core challenge in investment decisions. 'First Team Alliance' is built on this very concept—integrating Taiwan stocks, US stocks, and global tech markets into a single investment framework, with a professional research team conducting regular reviews and dynamic adjustments based on market trends. Currently, the portfolio allocates approximately 40% to Taiwan stocks, 39% to US stocks, with the remainder distributed across Japan (~10%), South Korea (~3%), and other markets, reducing concentration risk in any single market while capturing growth opportunities across regions. The core logic of this allocation is to center on Taiwan and the US, then extend to Japan, South Korea, and other Asian tech supply chains. The US market focuses on AI applications, cloud services, and large tech firms, while Taiwan, Japan, and South Korea cover semiconductors, electronic components, memory, and hardware manufacturing. By connecting US tech innovation with Asia's manufacturing supply chain strengths, the portfolio can more fully participate in global tech growth—from computing infrastructure and key components to end-market AI applications.

From an industry perspective, as AI applications accelerate and related demand heats up, First Team Alliance has increased exposure to technology and growth sectors. Information Technology accounts for 52.3%, Consumer Discretionary for 22.5%, totaling 74.8%—significantly higher than the S&P 500's 41.4%. This aggressive positioning focuses on capturing growth in AI applications, computing power infrastructure, and semiconductors. The remaining ~25.2% is diversified across industrials, consumer staples, materials, and other sectors, maintaining a degree of industry diversification while enhancing tech-driven growth.

First Team Alliance vs. S&P 500 Industry Allocation

Source: Lipper, Chinext Fund analysis. Data date: 2026/6/30. Funds within the First Team Alliance portfolio may be adjusted as needed; this table is for reference only.

Examining the long-term performance of the portfolio's core assets reveals outstanding results. Core assets have outperformed peer averages across various timeframes, indicating that First Team Alliance not only participates in broad market movements but also enhances growth momentum through active funds, delivering impressive cumulative performance over the long term. Overall, the strategy of 'passive index as base + active funds for offense' balances market breadth with growth flexibility, offering a more efficient way to capture opportunities in both Taiwan and US markets.

Source: Lipper, Chinext Fund analysis. Data date: 2026/6/30, in TWD. Past performance does not guarantee future results. Funds within the First Team Alliance portfolio may be adjusted as needed.

Chinext Investment Strategy

Capture Dual Engines: First Team Alliance Makes Investment More Comprehensive and Effective

First Team Alliance represents Taiwan's growth momentum, the US's stable foundation, and global tech trends. Through strategic allocation, it not only captures returns during market upswings but also effectively controls volatility during turbulent periods. This asset allocation further validates the practical value of cross-market and sector-diversification strategies, enabling portfolios to maintain relatively stable and competitive long-term performance across different market environments.

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