China tech ETFs have stood out in 2019 with Chinese markets rebounding thanks to trade talks between Washington and Beijing making progress.
For example, the Global X MSCI China Information Technology ETF (CHIK ) jumped 37.9% year-to-date.
CHIK tries to reflect the performance of the large- and mid-capitalization segments of the MSCI China Index that are classified in the Information Technology Sector as per the Global Industry Classification System. The fund includes top Chinese tech-related names, such as Lenovo Group 9.8%, Sunny Optical Tech 9.1%, Xiaomi Corp 8.9% and AAC Technologies 7.8%, among others.
The KraneShares CSI China Internet Fund (KWEB ) advanced 27.4% year-to-date.
KWEB tracks a portfolio of Chinese internet and internet-related companies. The portfolio includes Chinese internet companies that provide similar services as Google, Facebook, Twitter, eBay and Amazon. Specifically, the ETF’s top holdings include Alibaba 9.5%, Tencent 9.4%, Meituan Dianping 7.4% and Baidu 6.6%. The strategy can provide exposure to companies benefiting from increasing domestic consumption by China’s growing middle class.
The Invesco China Technology ETF (CQQQ ) increased 25.5% year-to-date.
CQQQ is based on the AlphaShares China Technology Index, which is designed to measure the performance of the investable universe of publicly-traded information technology companies open to foreign investment that are based in mainland China, Hong Kong or Macau. The portfolio also includes many prominent Chinese names, such as Tencent 9.7, Alibaba 9.6%, JD.com 7.9%, Baidu 6.6% and Ctrip.com 5.1%.
The Emerging Markets Internet & Ecommerce ETF (EMQQ ) rose 23.09% year-to-date.
While not a China-specific fund, EMQQ provides exposure to the growing emerging market consumer sector, notably those related to online retailers or the quickly expanding e-commerce industry, along with many Chinese names. Companies must derive the majority of their profits from E-commerce or Internet activities and further includes search engines, online retail, social networking, online video, e-payments, online gaming and online travel. Top holdings include Chinese names like Tencent 8.2%, Alibaba 7.6% and Ctrip.com 5.9%, among others.
Lastly, the more recently launched TigerShares China-U.S. Internet Titans ETF (TTTN ) gained 22.3% year-to-date.
TTTN tracks the Nasdaq China US Internet Tiger Index and holds 20 stocks, which is split between the 10 largest US-based Internet companies and the 10 largest Chinese public Internet companies. The China internet names also includes players like Tencent 8.2%, Alibaba 8.1%, Ctrip.com 5.2% and JD.com 4.9%.
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