CNQQ: RayliantChinaAMC Transformative China Tech ETF
What this ETF is trying to do
The RayliantChinaAMC Transformative China Tech ETF (ticker: CNQQ) is an exchange-traded fund designed to invest in Chinese technology companies. Based on its top holdings, the fund focuses on various tech sectors, including companies like Tencent Holdings Ltd and Xiaomi Corp Class B. This ETF holds a total of 104 different investments, though the list provided below only shows the largest ones.
What the numbers show
The recent data for CNQQ shows a decline in share prices. The current price is $21.59. To understand how the price has changed, we can look at an estimated price from roughly one year ago, which was approximately $26.00.
Here is a breakdown of the performance:
• Year-to-Date (YTD) Price Return: The share price has fallen by approximately 7.13% since the start of the year.
• One-Year Price Return: Over the last year, the share price has decreased by approximately 16.95%.
• One-Year Total Return: When including distributions, the total return for the year was approximately -16.62%.
It is important to note that "price return" only tracks the change in the share price, while "total return" includes the impact of any cash distributions paid out to investors.
Income and distribution explanation
CNQQ provides some cash distributions to investors, but it is not primarily an income-focused fund. The distribution yield is approximately 0.44%. Over the last 12 months, there were 6 distributions. The fund usually pays these out on a quarterly basis.
Because the distribution yield is relatively low, this ETF may not be a primary choice for those looking specifically for high regular income.
NAV erosion explanation
The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.
"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the fund's underlying assets). While we cannot confirm NAV erosion with the current data, we can look at "price erosion," which is the decline in the market price of the shares. The fund has an erosion-risk score of 55, which is labeled as "moderate price erosion." This means the share price has shown a downward trend.
Pros
• The fund provides exposure to a wide variety of Chinese technology companies (104 total holdings).
• It offers some level of cash distributions to shareholders.
Cons
• The fund has experienced a significant share-price decline over the past year.
• It shows signs of moderate price erosion.
• The total return has been negative over the one-year period.
Beginner takeaway
When researching CNQQ, it is important to distinguish between price changes and total returns. While the fund pays small distributions, the overall value of the shares has decreased significantly over the last year. Investors should be aware that a falling share price can impact the total value of their investment, even if the fund pays out occasional cash.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | n/a | n/a | 8.88% |
| 2 | TENCENT HOLDINGS LTD | n/a | 8.67% |
| 3 | ZHONGJI INNOLIGHT CO LTD CLASS A | n/a | 5.88% |
| 4 | n/a | n/a | 5.35% |
| 5 | XIAOMI CORP CLASS B | n/a | 3.28% |
| 6 | MEITUAN CLASS B | n/a | 2.92% |
| 7 | CAMBRICON TECHNOLOGIES CORP LTD CLASS A | n/a | 2.63% |
| 8 | NETEASE INC ORDINARY SHARES | n/a | 2.52% |
| 9 | EOPTOLINK TECHNOLOGY INC LTD CLASS A | n/a | 2.18% |
| 10 | NAURA TECHNOLOGY GROUP CO LTD CLASS A | n/a | 1.99% |