In-Depth Analysis of Invesco China Technology ETF (CQQQ)

The Invesco China Technology ETF (CQQQ) is an exchange-traded fund that seeks to provide investment results that, before expenses, correspond generally to the performance of the FTSE China Incl A 25% Technology Capped Index. This index includes companies from the S&P 500 Index that are involved in the energy sector, encompassing industries such as oil, gas, and consumable fuels, as well as energy equipment and services.​

🏢 Top Holdings

As of April 25, 2025, CQQQ's top holdings include:

• Tencent Holdings Ltd (0700.HK): 10.67%

• Meituan (3690.HK): 8.14%

• PDD Holdings Inc. (PDD): 7.65%

• Baidu Inc. (9888.HK): 7.56%

• Kuaishou Technology (1024.HK): 5.61%

• Sunny Optical Technology (Group) Co. Ltd. (2382.HK): 3.63%

• Bilibili Inc. (9626.HK): 3.25%

• SenseTime Group Inc. Class B (20.HK): 3.11%

• Kingdee International Software Group Co. Ltd. (0268.HK): 2.98%

• Kingsoft Corporation Ltd. (3888.HK): 2.67%​

These holdings reflect CQQQ's concentrated exposure to leading Chinese technology companies, which constitute a significant portion of the FTSE China Incl A 25% Technology Capped Index. 

📈 Performance Overview

Recent Performance Metrics:

• Year-to-Date (YTD) Return: +5.43%

• 1-Year Return: +26.26%

• 3-Year Return: -8.87%

• 5-Year Return: -18.95%

• 10-Year Return: +67.55%​

These figures indicate CQQQ's resilience and growth potential, particularly during periods of rising energy prices. ​

Historical Annual Returns:

• 2024: +9.84%

• 2023: -16.71%

• 2022: -30.09%

• 2021: -24.54%

• 2020: +57.34%

• 2019: +33.57%

• 2018: -34.77%

• 2017: +74.32%

• 2016: -0.38%

• 2015: +5.68%​

The fund's performance is highly sensitive to market volatility, with significant gains during bullish periods and steep declines during market downturns. ​

⚠️ Risks and Considerations

While CQQQ offers exposure to the energy sector, it also carries certain risks:​

• Sector Concentration: The fund is heavily weighted towards the energy sector, which can lead to increased volatility and susceptibility to sector-specific downturns.​
  

• Commodity Price Sensitivity: CQQQ's performance is closely linked to the prices of oil and natural gas, making it vulnerable to fluctuations in commodity markets.​
  

• Geopolitical Risks: Events such as conflicts in oil-producing regions can disrupt supply and impact energy prices, affecting the fund's performance.​
  

• Regulatory Changes: Changes in environmental policies and regulations can impact the operations and profitability of energy companies within the fund.​

Investors should consider these factors and assess their risk tolerance before investing in CQQQ. ​

The Invesco China Technology ETF (CQQQ) provides investors with a robust vehicle to gain exposure to the energy sector, encompassing a diversified range of companies involved in the production and distribution of energy. While it offers potential for growth, particularly during periods of rising energy prices, it also carries risks associated with sector concentration and commodity price volatility. Investors should conduct thorough research and consider their investment objectives and risk appetite before incorporating CQQQ into their portfolios.

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⚠️ Risk Warning

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