Invesco launches China ETF with tech focus

ETF screenGlobal fund manager Invesco has launched an ETF that tracks Chinese tech companies. The MSCI China Technology All Shares Stock Connect Ucits ETF will focus on a broad selection of Chinese companies that generate their income from so-called ‘innovative’ sectors such as internet and digital services, autonomous technology, industrial innovation and digital healthcare. According to Invesco, the ETF is designed to offer a broader array of exposure than would be available in the traditional IT and software sectors. “Companies in the information technology sector account for less than 20% of the index weighting,” said Chris Mellor, head of EMEA ETF equity and commodity product management at Invesco. “The largest sector exposures are currently in consumer discretionary and communication services. However, this isn’t a sector ETF. The focus is where a company is making its money, what technologies are underpinning its revenue. In that way, sector classification is immaterial,” added Mellor. It is also looking to capitalise on China’s ambitions to be a global leader in innovation as signalled in its five-year plan, announced in March.  The ETF is Invesco’s second passive product to be launched this year targetting exposure to China. In March, Invesco launched the Invesco MSCI China All Shares Stock Connect Ucits ETF. Both products will use the same MSCI index as their starting universe. © 2021 funds global asia

Executive Interviews

Executive interview: PGIM CEO on where the ESG flowers should bloom

Sep 27, 2021

David Hunt, president and chief executive of PGIM, tells Romil Patel about leading a top 10 global asset manager in times where “empowering and encouraging the kind of investment decisions as...

Executive interview: Nicolas Moreau’s orderly transition

Jul 12, 2021

Nicolas Moreau, CEO of HSBC Asset Management, is moving to Asia as the firm looks to connect more directly with the region’s growth story. ESG is also a key focus – including the ‘just’ carbon...


Roundtable: How well geared are Japanese assets for a new world?

Jul 12, 2021

As we prepare to emerge from Covid, experts look at overcoming demographic issues through a combination of good tech and corporate governance, improving productivity and meeting an ambitious government carbon emissions reduction target. Chaired by Romil Patel.

Hong Kong roundtable: Increasing China’s prominence as an asset class

Mar 04, 2021

Our line-up of experts in Hong Kong considers the importance of fixed income ETFs, sustainability and the prospects of increasing China in the indices. Chaired by Romil Patel.