New Version Of Old China Tech ETF Debuts
The new version of an old ETF tracking China's booming technology sector debuted today as Global X rolled out the Global X Nasdaq China Technology ETF (NYSE: QQQC). The fund was previously named the Global X China Technology ETF and traded on the New York Stock Exchange under the ticker “CHIB.”
The ETF now tracks the NASDAQ OMX China Technology Index. As of yesterday, the top three index components were ASM Pacific Techno, Lenovo Group and Baidu (Nasdaq: BIDU), China's largest provider of Internet search services.
Investors in the fund may stand to benefit from the fact that China now has more than 500 million internet users, representing an internet penetration rate just under 40% - significantly lower than the U.S. penetration rate of nearly 80% and demonstrating the potential for future user growth, Global X said in a statement.
The ETF, which just celebrated its second anniversary, has over $4.2 million in assets under management. Other top holdings include China Mobile (NYSE: CHL), Netease.com (Nasdaq: NTES), China Unicom (NYSE: CHU), Sohu.com (Nasdaq: SOHU) and Tencent Holdings, China's largest Internet firm.
“China is driving its efficient manufacturing and rapidly expanding consumer base into higher value, technology-based products and services,” said Bruno del Ama, CEO of Global X Management.
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