CQQQ: More Questions Than Answers In China Tech
Summary
- I have a hold rating on CQQQ due to its mixed technicals, high valuation, and exposure to US-China tensions despite some accumulation by large investors.
- CQQQ has underperformed FXI but is trending slightly higher versus the S&P 500 ETF since late 2024, with a volatile ride for investors.
- The ETF's top 10 holdings comprise over half of its assets, with significant exposure to Information Technology and Communication Services sectors.
- Seasonality trends are lukewarm, and technicals show a trading range with support at $36-$37 and resistance at $50-$51, indicating balanced price action trends.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.