This ETF seeks to capture the essence of China's 'Magnificent Seven'.
In China, Roundhill Investments aims to replicate the success of its Magnificent Seven ETF (MAGS).
Dave Mazza, CEO of the firm, intends to introduce the Lucky Eight ETF, a China-based answer to Wall Street's big tech stock success.
"Mazza stated on CNBC's "ETF Edge" on Monday that there are many uncertainties regarding the Chinese economy and the potential for growth of the consumer in China. However, Mazza believes that investors are seeking investments that provide accuracy, as they discovered with MAGS."
The Lucky Eight ETF, trading under the ticker "LCKY," will provide equal-weighted exposure to Tencent Holdings, , , , Xiaomi, , and at launch. According to Roundhill's SEC filing on May 17, these companies were selected for their "market dominance in technological innovation."
If China is emerging from an economic slowdown, it could be a chance for investors to invest in the country's top companies, according to Mazza.
Mazza aims to provide investors with a narrower focus on specific Chinese tech companies through exchange-traded funds.
"Mazza stated that he strongly supports diversification in portfolios, but it can be challenging to achieve with traditional Chinese ETFs. However, this product will accomplish that."
This summer, the Lucky Eight ETF is expected to launch, pending SEC approval.
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