Taiwan MidCap 100 Index

Taiwan Mid-Cap 100 Index

The Taiwan Mid-Cap 100 Index (TM100) is a free-float market capitalization-weighted index that tracks the performance of the top 100 companies by market capitalization listed on the Taiwan Stock Exchange (TWSE). The index is intended to serve as a medium-cap benchmark for Taiwan listed companies.

The index is calculated and maintained by Taiwan Stock Exchange Corporation (TWSE). Constituents are reviewed and adjusted semi-annually. The TM100 index consists of the following constituent stocks; Borqs Technology, Kingnet Technology, Taiwan Liposome Co., Chinese Petroleum Corporation, King Dollar Corporation, and WTM Corporation.

The Taiwan Mid-Cap 100 Index (TM100) is designed to be a performance benchmark of the Taiwan Mid Cap market and measure the collective performance of the 100 largest companies in Taiwan. It is a float-adjusted market capitalization weighted index and its constituents are reviewed semi-annually.

The index is divided into five sub indices; Main Board, Small-Cap, High Beta, Low Volatility and Liquidity Index. Main Board Index includes 80 stocks selected from all publicly traded companies on the main board of Taiwan’s TWSE. Small-Cap Index includes the remaining 20 stocks from the TWSE main board and the OTC (Over The Counter) from the Taiwan Stock Exchange. High Beta Index tracks only securities with the highest Beta risk amongst the TM100 constituents. Low Volatility Index comprises stocks with the lowest volatility amongst the TM100 constituents. The Liquidity Index includes stocks that have the highest turnover rate amongst the TM100 constituents.

The index is composed of two main broad market industries; Technology and Industrials, which account for 44.70% and 34.71% respectively. The remaining 20.59% of the index is distributed amongst a variety of sub industries including Energy (6.19%), Financials (5.55%), Consumer Discretionary (5.07%) and Consumer Staples (2.75%).

The Taiwan Mid-Cap 100 Index (TM100) is a benchmark measure of the performance of Taiwan’s medium cap companies. Its components mirror that of the Taiwan Stock Exchange and is calculated daily. The index is used as a primary benchmark by institutional investors, pension funds and private investors for mid-cap exposure in Taiwan. The 100 constituent stocks, chosen from over 1,000 publicly traded companies, are reviewed semi-annually, providing investors with a diversified, representative and up to date performance benchmark.

The Taiwan Mid-Cap 100 Index is a widely-followed stock index of the Taiwan Stock Exchange that tracks the performance of mid-cap Taiwanese stocks. The index is composed of the top 100 companies in the exchange based on their market capitalization.

The purpose of the index is to provide a benchmark for the performance of mid-cap stocks in Taiwan and has been in operation since 2012. The index is weighted by free-float market capitalization, meaning stocks of companies with a larger market capitalization and higher liquidity are given higher weight in the index, while smaller and less liquid stocks are given a lower weight in the index.

The index has provided investors with a reliable gauge of the performance of mid-cap stocks in Taiwan, and has been growing in popularity amongst investors. As of February 2020, the index is composed of 19 conglomerates, 3 financial institutions and 8 electronics companies, as well as a diverse range of industries such as energy, transportation, and media & entertainment.

The performance of the index is influenced by the performance of the Taiwan Stock Exchange as a whole, as well as the performance of any individual stocks in the index. Economic and political sectors play a role in the overall performance of the index, as do industry factors such as consumer sentiment, technology advances, and global economic events.

Investors use the Taiwan Mid-Cap 100 Index as a proxy for their investments in mid-cap Taiwanese stocks, as it provides them with a broad overview of the sector’s performance. The performance of the index has been generally positive in recent years, and is projected to continue to stay that way.