For investors seeking momentum, Invesco China Technology ETF (CQQQ - Free Report) is probably a suitable pick. The fund just hit a 52-week high, up roughly 39.7% from its 52-week low of $37.80/share.
But does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
CQQQ in Focus
The fund is based on the FTSE China Incl A 25% Technology Capped Index. The index 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. CQQQ is charging 70 bps in fees. The fund has amassed $550.2 million in AUM.
Why the Move?
The world’s two largest economies, United States and China, recently announced agreeing on a phase-one trade deal. Within the trade pact, the United States has agreed to lower its 15% tariff to 7.5% on about $120 billion worth of Chinese goods. The country has also indefinitely suspended tariffs on roughly $160 billion of Chinese consumer goods, scheduled to be imposed on Dec 15. China has also released strong economic data. The industrial production increased 6.2% year over year in November, beating expectations. Retail sales in Beijing also rose 8% last month. These factors have raised the optimism among investors, making the fund an attractive pick.
More Gains Ahead?
Currently, CQQQ has a Zacks Rank #3 (Hold). However, it seems CQQQ might remain strong given a positive weighted alpha of 34.20.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
For investors seeking momentum, Invesco China Technology ETF (CQQQ - Free Report) is probably a suitable pick. The fund just hit a 52-week high, up roughly 39.7% from its 52-week low of $37.80/share.
But does it have more gains in store? Let’s take a look at the fund and its near-term outlook to gain an insight into where it might be headed:
CQQQ in Focus
The fund is based on the FTSE China Incl A 25% Technology Capped Index. The index 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. CQQQ is charging 70 bps in fees. The fund has amassed $550.2 million in AUM.
Why the Move?
The world’s two largest economies, United States and China, recently announced agreeing on a phase-one trade deal. Within the trade pact, the United States has agreed to lower its 15% tariff to 7.5% on about $120 billion worth of Chinese goods. The country has also indefinitely suspended tariffs on roughly $160 billion of Chinese consumer goods, scheduled to be imposed on Dec 15. China has also released strong economic data. The industrial production increased 6.2% year over year in November, beating expectations. Retail sales in Beijing also rose 8% last month. These factors have raised the optimism among investors, making the fund an attractive pick.
More Gains Ahead?
Currently, CQQQ has a Zacks Rank #3 (Hold). However, it seems CQQQ might remain strong given a positive weighted alpha of 34.20.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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