With the decision to list on the NYSE, Alibaba has also rendered itself ineligible for inclusion in the PowerShares QQQ (NasdaqGM: QQQ). QQQ, the NASDAQ-100 tracking ETF, is the fifth-largest U.S. ETF with $43.5 billion in AUM. Alibaba also will not be able to join the Fidelity NASDAQ Composite Index (NasdaqGM: ONEQ).
Previously, gaining access to the NASDAQ-100 was seen as a possible advantage for Alibaba. In addition to QQQ, NASDAQ OMX offers NASDAQ-100 index products in 22 countries with comparable exchange traded products available in 13 countries, including the U.S. [Alibaba Faces Limited ETF Options]
With the Alibaba IPO just weeks away, the Renaissance IPO ETF (NYSEArca: IPO) and the KraneShares CSI China Internet Fund (NYSEArca: KWEB) remain the most likely ETFs to add the stock soon after its debut.
The First Trust US IPO Index Fund (NYSEArca: FPX) is another credible possibility for Alibaba, though FPX often does not add new IPOs as quickly as its Renaissance rival does. TheKraneShares CSI China Five Year Plan ETF (NYSEArca: KFYP) tracks an index from the same provider as KWEB, so it is possible KFYP could be another ETF home for Alibaba.
iShares MSCI China ETF
Tom Lydon’s clients own shares of EEM, IEMG and QQQ.