ETFs
The Chinese “Magnificent Seven” obtains a new ETF
Roundhill Investments wants to emulate the success of its Magnificent seven ETFs (MAGS) in China.
The company’s CEO, Dave Mazza, plans to launch the Lucky Eight ETF, which aims to be China’s answer to Wall Street’s success. major technology stocks.
“There are a lot of question marks regarding the Chinese economy and the potential for consumption growth in China,” Mazza told CNBC.Advantage of ETFs” Monday. “But ultimately, we think investors are looking for exposures that give them precision, just like we found with MAGS.”
Trading under the symbol “LCKY,” the Lucky Eight ETF will include equal weight exposure to Tencent Holdings, Ali Baba, Meituan, BYD, Xiaomi, Securities in PDD portfolio, JD.com And Baidu during launch. According to Roundhill’s filing with the SEC on May 17, these names were chosen because of their “market dominance in technological innovation.”
“Particularly if they come out of an economic downturn, this could be an opportunity for investors to move into China and do it in the names that really matter,” Mazza said.
Although existing exchange-traded funds, such as KraneShares CSI China Internet ETF offer broad exposure to Chinese technology, Mazza hopes to give investors the opportunity to focus on just a few key names in the sector.
“I’m a big believer in broad diversification for large parts of a portfolio,” Mazza said. “But if you just want those names, that’s hard to get with some traditional China ETFs. And that’s what this is going to do.”
Pending SEC approval, the Lucky Eight ETF is expected to launch this summer.