In this series, we analyze the performance of three Chinese tech ETFs: the Global X NASDAQ China Technology ETF (QQQC), the KraneShares CSI China Internet ETF (KWEB), and the Guggenheim China Technology ETF (CQQQ).
About the Global X NASDAQ China Technology ETF
The Global X NASDAQ China Technology ETF (QQQC) tracks a cap-weighted index of Chinese technology firms. QQQC offers exposure to China’s fast-growing tech sector, which is mainly dominated by Internet companies. The assets under management for QQQC stand at $24.2 million.
The ETF has 39 stocks listed in various subsectors. The top five holdings include NetEase ADR (NTES) with an 8.45% weight, Tencent Holdings (TCTZF) with a 7.81% weight, Qihoo 360 Technology (QIHU) with a 6.80% weight, Lenovo (LNVGF) with a 6.15% weight, and Alibaba Health Information Technology, a part of Alibaba Group (BABA), with a 5.80% weight. These top five companies comprise over 35% of ETF’s portfolio. Baidu makes up 2.8% of QQQC, and is also part of the Power Shares ETF (QQQ).
QQQC’s portfolio includes stocks in diverse subsectors with the following weights:
- 55.83% in software and IT services
- 15.49% in computers, phones, and household electronics
- 9.91% in communications and networking
- 8.47% in semiconductors
- 6.23% in telecommunication services
- 2.32% in electronic equipment
- 1.54% in office equipment
- 0.2% in professional and commercial services
QQQC has 47.67% exposure to firms listed in Hong Kong, 45.19% exposure to Chinese stocks, and 7.14% exposure to US equities.
Return on investments
QQQC has generated a trailing one-month return of 0.50%, a trailing three-month return of 27.92%, a trailing six-month return of 29.98%, and a trailing 12-month return of 29.33%. QQQC’s year-to-date (or YTD) returns are 33.25%, while its three-year and five-year returns are 111.23% and 110.33%, respectively. The ETF is currently trading at $27.37 with a 52-week low of $20.34 and a 52-week high of $29.26.
QQQC has an expense ratio of 0.65%, a price-to-earnings ratio of 29.10x, and a distribution yield of 0.25%.