Roundhill Investments is seeking to replicate the success of its Magnificent Seven ETF in China with the launch of the Lucky Eight ETF. The firm’s CEO, Dave Mazza, aims to create a Chinese equivalent to the success of Wall Street’s big tech stocks. Mazza believes that investors are looking for precision in their exposures, similar to what was found with the MAGS ETF.
The Lucky Eight ETF, trading under the ticker “LCKY,” will include equal-weighted exposure to Tencent Holdings, Alibaba, Meituan, BYD, Xiaomi, PDD Holdings, JD.com, and Baidu at launch. These companies were chosen due to their market dominance in technological innovation. Mazza sees potential in investing in these key Chinese tech names, especially as the country emerges from an economic slowdown.
While existing ETFs like the KraneShares CSI China Internet ETF offer broad exposure to Chinese tech companies, Mazza hopes to provide investors with the option to focus on select key names in the space with the Lucky Eight ETF. He emphasizes the importance of broad-based diversification in portfolios but recognizes the value in being able to invest specifically in these top Chinese tech companies.
The launch of the Lucky Eight ETF is pending SEC approval and is scheduled for this summer. Mazza is optimistic about the potential for this new ETF to attract investors looking for exposure to the Chinese tech sector. The focus on precision and market dominance in technological innovation sets the Lucky Eight ETF apart from existing Chinese ETFs by offering a more targeted approach to investing in key companies within the sector.
Investors interested in gaining exposure to the Chinese tech sector, particularly in companies like Tencent Holdings and Alibaba, may find the Lucky Eight ETF appealing due to its equal-weighted exposure to these key names. Mazza believes that despite uncertainties surrounding the Chinese economy, there is an opportunity for investors to capitalize on the growth potential of these companies.
In summary, Roundhill Investments is preparing to launch the Lucky Eight ETF with the aim of replicating the success of its Magnificent Seven ETF in China. The focus on precision and market dominance in technological innovation sets this ETF apart, offering investors a more targeted approach to investing in key Chinese tech companies. The pending launch of the Lucky Eight ETF demonstrates Roundhill’s commitment to providing investors with unique opportunities in the Chinese market, particularly in the tech sector.
