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TCHI iShares MSCI China Multisector Tech ETF
BlackRock’s latest addition to its lineup of ETFs aims to capture a swath of China’s technology firms across multiple sectors.
The iShares MSCI China Multisector Tech ETF (TCHI) debuted on the Nasdaq in late January with an expense ratio of 0.59%.
TCHI tracks an MSCI index that selects mid and large capitalization companies in technology-related subindustries in the communication services, consumer discretionary, financials, health care and information technology sectors. The index rebalances quarterly based on free float market capitalization available for non-Chinese investors to acquire, with a 4% limit on any one stock or group of stocks that are subsidiaries of a holding company.
The top holdings in TCHI’s index as of Dec. 31 last year include optics device maker Sunny Optical as the largest holding, with 5%, along with battery maker Contemporary Amp at a 3.73% weight. The rest of the top 10 include internet industry names like Baidu, Tencent, JD.com and Alibaba.
Chinese internet names suffered deep sell-offs last June after Beijing started a wave of crackdowns on the industry. Firms like Alibaba, Tencent and Meituan among others were hit with antitrust fines and investigations. However, many are not ready to give up on China’s technology firms.
Source: ETF.com. Data and information as of 1/31/2022.
The above sidebar covers launches for the month of January 2022.