UBS Asset Management has expanded its ETF range with the launch of a China large-cap tech strategy.
The UBS ETF Solactive China Technology UCITS ETF (CQQQ) is listed on SIX Swiss Exchange, Borsa Italiana and the Deutsche Boerse with a total expense ratio (TER) of 0.47% for the US dollar share classes and 0.52% for euro share classes.
Tracking the Solactive China Technology index, CQQQ offers exposure to the 100 largest technology companies headquartered in mainland China.
The index includes companies from the traditional tech and health tech sectors along with businesses that derive the majority of their revenues from innovative tech activities such as genomics, robotics and automation, cybersecurity, digital entertainment, cloud computing, future cars, blockchain and social media.
The index includes A-Shares and H-Shares as well as foreign listings. To keep the index replicable, only A-Shares trading through Stock Connect are eligible and are included at 20% of their free-float market cap to reflect foreign ownership restrictions.
The firm said tech has been a strategic growth priority for the Chinese government and the sector is now one of the main growth drivers for the country with its digital economy now accounting from approximately 30% of GDP.
Commenting on the launch, Clemens Reuter (pictured), global head of ETF and index fund client coverage at UBS AM, said: “CQQQ is part of UBS AM’s strategic focus to provide investors with innovative exposure to one of the world’s fastest growing markets.
“The ETF incorporates stocks beyond ‘traditional tech’, including exposure to areas such as social media, future mobility or medical technologies companies, and shows our strength to create products that align client interest and China’s long-term economic trends.”
Timo Pfeiffer, chief markets officer at Solactive, added: “China’s innovation potential is driven by the country’s ambition to become the number one in virtually any discipline. This aspiration bears immense growth potential.”
This is UBS AM’s second ETF launch this week. On 17 March, the Swiss issuer launched its first ETF linked to the European Union’s climate benchmarks, the UBS Climate Aware Global Developed Equity UCITS ETF (CLIMA).