Futu Research | ETF Investment Research
[Interim Stock ETF] Popular Midstream ETFs in the US Stock Market
With the continued rise in Hong Kong stocks and Chinese Assets, market sentiment has soared, leaving many investors feeling unable to get on their own. In such a market environment, direct purchase of investmentsExchange-traded TradeFund Funds (ETFs)Became a very practical option.
In summary, ETF not only offers the advantages of diversified investments, but also effectively monitors the performance of Chinese Assets, and investors can seize opportunities in the bull market.
Why Choose an Overview ETF?
1. Diversified Investment
Many investors are aware of the advantages of diversifying investments, but the practical use is, as we discussed today. In this upswing market, the most common concern among investors is that companies will not make a high dividend after the share price rises (this is one of the main reasons for the fall on the first day), because the strategy of buying ETFs can be effective to reduce the performance of a single company is not good. Risk. FOR EXAMPLE, IF AN INDIVIDUAL COMPANY MAKES A DIVIDEND IN A BULL MARKET, THIS MAY AFFECT THE COMPANY'S SHARE PRICE, AS ETF'S MULTIVARIATE COMBINATION MAY REDUCE THIS IMPACT.
2. Good tracking ability
Many ETFs are focused on a specific market or industry and can closely monitor the performance of relevant indicators. This allows investors to easily track the growth of China Assets without the need for in-depth research on each company. Especially since the market is tracking stocks that are high beta in the past, ETFs can easily help investors reduce the losses of a single high-beta stock (high betas are generally high risk stocks, such as US groups that are close to strong, but many ETFs have very high ratios)
What are the Prospects ETFs in US Stocks
In the current market, there are several popular Midstream ETFs worth paying attention to, including:
YINN (China ETF That Makes You Three Times Rich)
$Direxion Daily FTSE China Bull 3X Shares ETF(YINN.US)$It is an ETF based on Chinese stocks and is a leveraged ETF that offers 3x returns. It is especially suitable for those investors who want to increase market performance.
CQQQ (China E Fund CSI Technology 50 ETF）
$Invesco China Technology ETF(CQQQ.US)$ Specializing in China Technology, ETF provides a direct spotlight on the Technology Industry, and the direct rays of China, and the continued growth of ETF with China Technology companies, while ETF's dipping power cannot be limited.
KWEB (China Overseas Internet ETF)
$KraneShares CSI China Internet ETF(KWEB.US)$ This ETF is aimed at Chinese Internet companies, and due to the acceleration of digitalization, KWEB is a good choice in the market.
CHAU（TWO MULTI-LEVEL 300ETF）
$Direxion Daily CSI 300 China A Share Bull 2X Shares(CHAU.US)$ This is a 2-pin ETF based on the Csi 300 Index that offers upside opportunities for investors looking at the space market.
CWEB (Two Chinese Internet Stock StocksETFs)
$Direxion Daily CSI China Internet Index Bull 2x Shares ETF(CWEB.US)$ With the rapid development of e-commerce and Internet services companies in China, this ETF is in the forefront of tourism.
These ETF companies basically include popular stocks that everyone is familiar with. For example: $BABA-W(09988.HK)$ $TENCENT(00700.HK)$ $MEITUAN-W(03690.HK)$ $XIAOMI-W(01810.HK)$ $JD-SW(09618.HK)$ $XIAOMI-W(01810.HK)$ $BIDU-SW(09888.HK)$ $BILIBILI-W(09626.HK)$ $WB-SW(09898.HK)$ $PDD Holdings(PDD.US)$ $KE Holdings(BEKE.US)$ $KUAISHOU-W(01024.HK)$ $CITIC SEC(06030.HK)$ $Kweichow Moutai(600519.SH)$ $WUXI BIO(02269.HK)$ $LI AUTO-W(02015.HK)$ $XPENG-W(09868.HK)$ $NIO-SW(09866.HK)$
(There are many more, but the writer has limited memory. Details can be seen, individual ETF->Analysis->Ingredients)
Newly Listed Mid-Market ETF: DRAG
Of the many ETFs, more than one has recently been listed as the market has turned better $Roundhill China Dragons ETF(DRAG.US)$ 。 DRAG'S MANAGEMENT COSTS ARE RELATIVELY LOW, WHICH ENABLES LONG-TERM HOLDERS TO REDUCE COSTS AND EARN HIGHER RETURNS. IN ADDITION, DRAG'S PORTFOLIO INCLUDES SEVERAL CHINESE COMPANIES WITH HIGH GROWTH POTENTIAL, WHICH IS AN IDEAL CHOICE FOR INVESTORS LOOKING TO PARTICIPATE IN CHINA'S ECONOMIC RECOVERY..
Against the backdrop of the recent boom in Hong Kong stocks and Chinese Assets, choosing ETFs as an investment tool is a wise decision. ETFS NOT ONLY OFFER THE ADVANTAGES OF DIVERSIFIED INVESTMENTS, BUT THEY CAN ALSO ALLOW INVESTORS TO SEIZE OPPORTUNITIES IN THE BULL MARKET, AND THE HIGHER RETURN ON THE DIPS ARE MORE LIKELY TO BENEFIT FROM DIPS. For example, when the investor day at the NOW fund in Hong Kong, it is recommended to invest in a medium-long line ETF with 7200 Hong Kong-listed shares. If more is desired by investors, then 7226 can be considered as a target.
Some Summaries About Midterm ETFs
IN FACT, ETFS ARE NOT VERY DIFFERENT IN HONG KONG-LISTED AND US-LISTED ETFS. ETFs listed in US stocks have the advantage of being able to trade close to 24 hours. In the current volatile market, the overnight trading function has become extremely important for shorted investors, such as the day's US ETF is seen peaking on the left and right at 0910am in the morning, and the same can be seen in the mid-afternoon phase. Different types of ETFs vary in length, and the most important thing for investors is to find an ETF that suits their preference and type.
For progressive investors, the biggest benefit of buying ETFs is to efficiently increase returns on leverage (more aggressive is buying leveraged ETFs, but investors need to be aware of the risks involved first).
Last but not least, the discussion schedule for Chinese stocks in the near future is very strong, as Ashares go on the market on October 7, and close A shares related to ETFs have become more dramatic, as a result of which some large stocks are well ahead of the A50 or Csi 300 Index, there is a lot to follow. Starboard's ETF tracks errors by heart. However, during the period of the stock market, the Market maker may experience discrepancies when there is a lack of circulation. As the market currently performs after a stock market rebound, investors in ETFs need to consider the risks involved.
Chief Analyst of Futu Securities Liang
(The author is a licensee of the Securities and Exchange Commission and its affiliates do not have any financial interest in the proposed issuer of shares)
