After November’s significant global rally, it may not be a surprise to learn that Invesco’s top two performing ETFs in the past one-month period offer focused exposure to China stocks.
The Invesco Golden Dragon China ETF (PGJ) and the Invesco China Technology ETF (CQQQ) have posted impressive returns in recent weeks, as China stocks recovered about $1.7 trillion of value in the November rally.
PGJ has increased 24.5% in the past one-month while CQQQ is up 16.7% during the same period as of December 5, according to ETF Database. In the one week trailing December 5, PGJ and CQQQ increased 19% and 14.2%, respectively.
Year to date, PGJ and CQQQ are down -23.2 and -31.6%, respectively, making now an ideal time to still buy in at a discount relative to past valuations.
PGJ was among the best performing non-leveraged ETFs in November. The fund is based on the NASDAQ Golden Dragon China Index, which is composed of US exchange-listed companies that are headquartered or incorporated in the People’s Republic of China.
The top industries represented in PGJ include internet direct marketing retail, interactive media services, automobiles, hotels, restaurants, and leisure, entertainment, and semiconductors and semiconductor equipment. The ETF leans toward the technology, internet, and e-commerce segments.
CQQQ is based on the FTSE China Incl A 25% Technology Capped Index, which includes constituents of the FTSE China Index and FTSE China A Stock Connect Index that are classified as information technology securities, including China A-shares and China B- shares.
As of November 25, CQQQ has 129 holdings, with the largest being Tencent Holdings Ltd (10.29%), Meituan Class B (7.91%), Pinduoduo Inc Sponsored ADR Class A (7.60%), Baidu Inc Class A (6.23%), and Kuaishou Technology Class B (5.47%), according to ETF Database.
PGJ and CQQQ each charge a 70 basis point expense ratio.
For more news, information, and analysis, visit the Innovative ETFs Channel.