The Invesco China Technology ETF (CQQQ) is an exchange-traded fund designed to track the performance of Chinese technology companies listed on international markets. The ETF follows an index composed of companies with significant exposure to technology, digital innovation, and platform-based services. The fund is managed by Invesco and trades under the ticker CQQQ on the NASDAQ.

Classified as an international thematic equity ETF, CQQQ aims to reflect, before fees and expenses, the performance of the stocks included in its reference index. To achieve this objective, the fund follows a passive management strategy, maintaining a portfolio that seeks to replicate the index composition and eligibility criteria without discretionary decisions by the manager.

The index tracked by CQQQ consists of Chinese companies with meaningful exposure to the technology sector, including firms listed outside mainland China. The methodology considers factors related to primary business activity, liquidity, and sector representation. 

The index undergoes periodic reviews, including additions, removals, and rebalancing, which are reflected in the ETF’s portfolio. This approach seeks to maintain alignment with the evolution of China’s technology sector on a global scale.

Diversification and sector exposure

CQQQ provides focused exposure to China’s technology ecosystem, covering multiple areas of the digital economy. Sector diversification includes:

• Information technology.

• Internet services.

• E-commerce.

• Software and digital platforms.

• Telecommunications.

• Data services.

This composition reflects the structure and dynamics of the Chinese technology sector in global markets.

Structure and costs

Shares of CQQQ are traded on the secondary market, while share creation and redemption occur through authorized participants, a mechanism that helps keep the ETF’s market price aligned with its net asset value (NAV).

The fund charges a management fee, which is typical for international thematic ETFs, and does not apply a performance fee. CQQQ may distribute income derived from dividends paid by portfolio companies, in accordance with the fund’s distribution policy.

History and evolution of the ETF

The Invesco China Technology ETF was launched during a period of expansion in China’s technology sector and increasing global interest in digital innovation companies.

Over time, CQQQ has tracked the consolidation and transformation of China’s technology environment, maintaining its focus on index replication and thematic exposure.

Additional Information

Invesco China Technology ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $1.73 billion.

Over the past 12 months, Invesco China Technology ETF recorded a return of -25.41%, with its price trading between $37.68 and $58.89 during the same period.

The ETF is traded under the ticker CQQQ.