Investors looking for momentum can opt for Guggenheim China Technology ETF CQQQ now. The fund hit a new 52-week high recently. Shares of CQQQ are up roughly 48.55% from their 52-week low of $31.82/share.
Could more gains be ahead for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea of where it might be headed.
CQQQ in Focus
CQQQ focuses on providing exposure to the Technology sector of Chinese equity markets. It charges 70 basis points in fees per year. It has top holdings in Tencent Holdings Ltd, Alibaba (NYSE:BABA) Group Holding, and Netease Inc with 11.27%, 10.74%, and 7.69% allocation, respectively (as of June 8, 2017) (see all Technology ETFs here).
The fund has AUM of $98.65 million and trades in average volumes of 20,000 shares a day.
Why the Move?
The move can primarily be attributed to the better-than-expected sales growth forecast of Alibaba Group. Alibaba predicted that its revenue for the year ending March 2018 will grow between 45–49%. The announcement of this forecast triggered a rally in the stock price. The company’s share price closed 13% higher on Thursday, June 8, 2017.
More Gains Ahead?
Currently, CQQQ has a Zacks ETF Rank #2 (Buy) with a High risk outlook. It has a moderate 14-day volatility of 17.30% and an impressive weighted alpha of 44.80. So, there is some promise for those who want to ride this surging ETF a little further.
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GUGG-CHINA TEC (CQQQ): ETF Research Reports
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Zacks Investment Research