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Invesco China Technology ETF (CQQQ) Hits a New 52-Week High
For investors looking for momentum,Invesco China Technology ETF (CQQQ - Free Report) is probably a suitable pick. The fund just hit a 52-week high and is up 75.8% from its 52-week low price of $43.19/share.
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. It has AUM of $1.05 billion and charges 70 basis points in annual fees.
Why the Move?
The coronavirus pandemic continues to aggravate in the United States and globally. Governments across the globe are once again shutting down economic activities and imposing social-distancing measures to contain the spread of COVID-19. However, China is seeing economic growth and is rebounding from the pandemic-driven slowdown. It is consistently showing a stronger control on the outbreak. Also, China’s manufacturing sector has been growing steadily. Moreover, per the International Monetary Fund’s World Economic Outlook released earlier in October, China continues to be the only major economy to see growth in 2020, according to sources. In the current scenario, funds like CQQQ appear an attractive investment option and also provide portfolio diversification benefits.
More Gains Ahead?
It seems like the fund will remain strong, with a positive weighted alpha of 55.30, which gives cues of further rally.
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