ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Emerging Markets Channel
  2. Another Index Adjustment Has EMQQ Implications
Emerging Markets Channel
Share

Another Index Adjustment Has EMQQ Implications

Tom LydonFeb 18, 2022
2022-02-18

The Emerging Markets Internet Ecommerce ETF (EMQQ C+) could be affected by some index alterations in Hong Kong, and that might be a positive for investors.

Hang Seng Indexes Co., the index provider for the Hang Seng Index — the widely followed gauge of Hong Kong-listed stocks — is expected to make some adjustments to that benchmark, and that could include the addition of some names currently residing in EMQQ.

“Baidu, Nongfu Spring Co. and Genscript Biotech Corp. are potential additions in the latest review, according to Bloomberg Intelligence analyst Marvin Chen. The results are set to be announced Friday evening local time,” reports John Cheng for Bloomberg.

Baidu (NASDAQ:BIDU), China’s largest internet search provider that was once dubbed the Google of that country, is the ninth-largest holding in EMQQ at a weight of 3.64% as of February 16, according to issuer data.

Some analysts believe that as many eight stocks could be added to the Hang Seng during the current index review and that all are likely to be “new economy” stocks — a group EMQQ focuses on — as the index provider looks to reduce the benchmark’s heavy allocations to banks and real estate companies.

Analysts are also forecasting that consumer, healthcare, and technology stocks will account for most of the new additions to the Hang Seng. Those sectors are well-represented in EMQQ.

“Other possible new inclusions in the benchmark are JD Health International Inc., Smoore International Holdings Ltd., Semiconductor Manufacturing International Corp. and China Gas Holdings Ltd.,” Bloomberg reports, citing China International Capital Corp.

JD Health International is a smaller member of the EMQQ portfolio. Should that name and Baidu get promoted to the Hang Seng, fund managers who benchmark to the index will have to buy those two stocks, which could be constructive for EMQQ.

Speculation surrounding the potential additions to the Hang Seng emerges a week after MSCI Inc., one of the largest providers of indexes for use by ETF sponsors, revealed its additions to the widely followed MSCI ACWI Index. Those include several members of EMQQ’s roster.

Some EMQQ member firms, including Chinese online retail giant JD.com (NASDAQ:JD), are already Hang Seng components.

For more news, information, and strategy, visit our Emerging Markets Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X