I previously wrote an article titled "Guide to Investing in US ETFs" which covered various investment targets in the US ETF market. Today, I will mainly discuss ETFs related to Chinese concept stocks in the US stock market. There are many Chinese concept ETFs in the US stock market, including both overseas-listed Chinese concept stocks and stocks listed on the Shanghai, Shenzhen, and Hong Kong markets. The following is a list for investment reference:
FXI - iShares China Large-Cap ETF#
Mainly invests in top internet companies such as AMT, and Chinese state-owned enterprises listed in Hong Kong, such as ICBC, Ping An Insurance, etc.
KWEB - KraneShares CSI China Internet ETF#
Invests in Chinese concept internet stocks, different from FXI, it mainly invests in internet companies.
CQQQ - Invesco China Technology ETF#
Mainly invests in technology and communication stocks.
MCHI - iShares MSCI China ETF#
Mainly tracks the MSCI China Index and invests in cyclical consumer and communication stocks.
GXC - SPDR S&P China ETF#
Mainly tracks the S&P China BMI Index, with investment targets similar to MCHI.
To better understand the investment philosophy and focus of the above-mentioned ETFs, the top 10 holdings of these ETFs are listed in Table 1.
Table 1: Top 10 holdings of various Chinese concept ETFs (as of December 31, 2020)
(Data source: SeekingAlpha)
From Table 1, it can be seen that:
- Most ETFs have concentrated holdings in AMT (Alibaba, Tencent, Meituan), while CQQQ's major holdings are in BMT (Baidu, Tencent, Meituan), without involving Alibaba.
- FXI, MCHI, and GXC all invest in a combination of internet companies (such as AMT) and state-owned enterprises (such as Ping An Insurance and China Construction Bank), while KWEB purely invests in large-scale internet companies, and CQQQ invests in large-scale internet and technology companies (such as Sunny Optical, TSMC, Kingdee, Wanguo Data, Autohome, Joyy Inc. (YY Live, Huya Live)).
- The investment targets of FXI are mostly primary shares, while KWEB mainly invests in ADRs.
- KWEB has a corresponding ETF in China (513050.XSHG), just as QQQ has a corresponding ETF in China (513100.XSHG), while others do not currently have one.
Table 1: Source file for the top 10 holdings of various Chinese concept ETFsDownload