Taiwan ETF makes three-for-three swap to strengthen AI and cloud security exposure

A Taiwan-listed technology ETF has reshaped part of its portfolio around cybersecurity and artificial intelligence, making what its manager described as a three-in, three-out adjustment.

Dahua US MAG7+ ETF 009815, which tracks the Bloomberg TPEx Magnificent 7 Plus Big Tech Index, put the new holdings into effect before trading began. It removed Accenture, which previously carried a 0.4% weighting, Intuit at 0.3%, and Uber at 0.5%.

Taking their places were cybersecurity companies Palo Alto Networks and CrowdStrike Holdings, with new weightings of 0.9% and 0.6%, respectively, along with analog-chip maker Analog Devices at 0.5%. Fund manager Kuo Hsiu-cheng said the changes preserve the stability of the portfolio’s top holdings while expanding its two-track exposure to AI hardware and cloud security.

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The portfolio is further deepening its two-track deployment in AI hardware and cloud security while maintaining a stable structure among its top 10 holdings.

The top 10 holdings remained unchanged. Nvidia led with a 15.5% weighting, followed by Apple at 14.4%, Microsoft at 11.4%, Alphabet at 10.8% and Amazon at 7.7%. Taiwan Semiconductor Manufacturing Co.’s American depositary receipts accounted for 5.8%, Broadcom 5.0%, Meta 4.2%, Tesla 4.2% and Micron 3.1%.

Kuo said the changes reflected the expansion of AI applications from basic computing power into edge computing and software. In his view, cybersecurity and advanced analog chips now form important parts of the infrastructure supporting that expansion. The fund’s promotion also pointed to Broadcom’s forecast of doubled AI revenue and strong operating performance among server makers such as Dell.

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The precise adjustment of the constituent stocks highlights that cybersecurity and advanced analog chips have become indispensable foundations for protection and transmission.