News

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

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