The Taiwan stock market has experienced an impressive surge this year, with a cumulative return of 56.59% as of July 9, placing it fourth globally in stock market performance. This remarkable growth is largely driven by the ongoing boom in artificial intelligence (AI) applications, which has propelled Taiwan's stock market to outperform the NASDAQ for three consecutive years.

According to investment analysts, the cumulative return for Taiwan's stock market over the past three years has reached 178%, significantly outpacing the NASDAQ, which has seen returns of nearly half that amount. The first five months of this year alone have seen Taiwan's stock market achieve returns exceeding five times that of the NASDAQ.

As AI continues to be integrated into various sectors, analysts anticipate a rotation of performance among technology companies in Taiwan, suggesting that the second half of the year will maintain this upward trajectory. The electronic industry in Taiwan has also reached a market capitalization of 131 trillion NTD, accounting for 83% of the total market, marking a new high.

In a broader context, global stock market performance has varied, with Venezuela leading with a 171.09% increase, followed by the Philadelphia Semiconductor Index at 82.97%, and South Korea at 73.03%. Taiwan's stock market stands out as a critical player in the global tech landscape.

Looking ahead, analysts from Yongfeng Investment suggest that the increasing capital expenditure from the four major cloud service providers in the U.S. will ignite a race for infrastructure development. This, combined with the commercialization of AI, is expected to usher in a new growth phase for the global semiconductor industry. Taiwanese companies, known for their advanced manufacturing processes and high market share, are well-positioned to benefit from this trend.

In response to the evolving market dynamics, Yongfeng Investment has launched its first actively managed ETF, the Yongfeng Taiwan Technology Trend Active ETF (00410A). This fund does not track a specific index but instead focuses on strategically investing in key sectors related to AI, including electronic components and semiconductors. The fund aims to identify high-potential stocks based on six core selection criteria, ensuring it captures the growth of companies that have yet to be fully recognized by the market.

As the Taiwan stock index continues to reach new heights, investors are encouraged to focus on industry rotations and growth trends to enhance their investment performance. Unlike passive ETFs that primarily track indices, actively managed ETFs offer the flexibility to adjust holdings according to market conditions, potentially yielding superior returns during volatile periods. This approach is increasingly becoming a focal point for investors looking to capitalize on the ongoing AI-driven technological advancements.