ETF investors can capture technology upside in the world’s second largest economy with funds like the
CQQQ is based on the FTSE China Incl A 25% Technology Capped Index. The Fund will invest at least 80% of its total assets in securities that comprise the Index, as well as American depositary receipts and global depositary receipts based on the securities in the Index.
The Index includes constituents of the FTSE China Index and FTSE China A Stock Connect Index that are classified as information technology securities, including China A-shares and China B-shares. The fund can be used as a multifaceted market tool, whether investors are looking for a buy-and-hold fund or a short-term gain play.
January 25, 2021
The technology play doesn’t look to be letting up anytime soon, and that’s also the case for the world’s second largest economy. ETF investors should give the
CQQQ is based on the FTSE China Incl A 25% Technology Capped Index. The Fund will invest at least 80% of its total assets in securities that comprise the Index as well as American depositary receipts and global depositary receipts based on the securities in the Index.
The Index includes constituents of the FTSE China Index and FTSE China A Stock Connect Index that are classified as information technology securities, including China A-shares and China B-shares. CQQQ is up about 75% within the past year.
China’s biggest technology companies were initially pummeled at the start of the week as Chinese regulators tightened their grip on the internet industry to rein in monopolistic practices, South China Morning Post reports.
“The bad news [on antitrust against tech giants]has been digested by investors,” Kingston Lin, managing director of asset management department at Canfield Securities in Hong Kong, told the South China Morning Post.
“The tech index rebound is short-term as investors are still concerned about the outlook, the lack of news and even bad news will weaken its momentum to further rise,” he added.
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#1 Diversification
ETFs are a great way to ease yourself into investing if you’re not confident in individual stock picking. With an ETF, you gain exposure to a basket of stocks, bonds or other asset classes depending on the ETF you invest in.
This helps to diversify your portfolio at a low cost. Diversification helps you to reduce your investment risk by not having all your eggs in one basket.
#2 High liquidity
ETFs are traded on the open market. This makes them highly liquid as investors can choose to buy and sell the ETF at any time. All that’s required for you to purchase an ETF is a brokerage account and your Central Depository (CDP) account.