Who Leads The China Internet Motif?

Motif Investing offers investors more than 100 ready-made, professionally built portfolios called motifs.

One of the more popular motifs, China Internet, achieved a 22.6 percent one-year return. The selection of stocks offers investors a hypothetical exposure to the world's largest internet market with 591 million users.

According to Motif, Chinese-based internet companies dominate the local landscape. For example, users will skip over Google Inc GOOG GOOGL in favor of Baidu Inc BIDU, which controls 65.7 percent of the search market.

Motif re-balances its portfolio on a quarterly basis and portfolio allocation is derived by each company's percentage of total revenue from providing internet services in China. The portfolio is divided in to five segments: Ecommerce (42.0 percent), Portal (37.3 percent), Gaming (12.1 percent), Subscription Networks (4.8 percent) and Social Networks (4.0 percent).

Alibaba Group Holding Ltd BABA is the largest holding within the Ecommerce segment, representing 13.0 percent of the entire portfolio. The company is also the largest in terms of market cap at $200.5 billion. However, Baidu (Portal) is the largest holding in the entire portfolio at 23.3 percent, despite a $71.5 billion market cap.

Shares of Alibaba traded at new 52-week lows on Tuesday of $77.77 –- a factor that is not considered in total portfolio exposure.

Within Gaming, NetEase, Inc NTES is the largest holding (9.1 percent of total portfolio), SouFun Holdings Ltd SFUN (2.1 percent of total portfolio) is the largest Subscription Networks holding while Weibo Corp WB (1.9 percent of total portfolio) is the largest holdings within Social Networks.