facebookHi, I bought CQQQ since three months ago. Since tencent holds 8% of the portfolio and trump is banning tencent, is it logical to sell my CQQQ since the ETF going to drop in price? - Seedly

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Anonymous

07 Aug 2020

General Investing

Hi, I bought CQQQ since three months ago. Since tencent holds 8% of the portfolio and trump is banning tencent, is it logical to sell my CQQQ since the ETF going to drop in price?

Discussion (4)

What are your thoughts?

It's quite a volatile fund with major up and downswings. This fund was incepted in 2009 and has a total of 43 quarters (including current) worth of historical data. 25 quarters (including current) are positive while 18 quarters are negative. Therefore, historical statistics have hinted you that you have a 58.14% and 41.86% probabilities to make and lose money respectively on a quarterly horizon. Not very good, so you got to increase your investment horizon to multi-years to stand a chance.

You can find a number of useful charts and a checklist on this fund to help you, via this link: https://dl.orangedox.com/fund-analysis-pdfs.

The charts aim to answer the following questions:

  • How has the NAV been trending since inception?

  • How has the fund been performing quarter on quarter since inception?

  • How has the dividend been trending since inception?

  • How has the fund size been growing?

  • What are your probabilities to make/lose money?

  • What are your average (+) and (-) returns?

  • Is your fund outperforming or underperforming the benchmark? (For Actively Managed Funds)

File Name: INVESCO CHINA TECHNOLOGY ETF (CQQQ US Equity)_updated_070820

CQQQ is an interesting ETF because it invests in Chinese Tech. Yet, Chinese Tech is so heavily concentrated in two huge companies, Alibaba (NYSE: BABA) and Tencent (HKEX:700).

Tencent has some stake in many companies in the world. So, nobody really knows how the ban will pan out. For example, Tencent has a small stake in Blizzard Entertainment. Will Blizzard Games be banned? Although not likely, you are never certain.

With this uncertainty, share price will definitely drop in the short run. Investors hate uncertainty. However, if you are confident of Chinese Tech, and them continue to grow in prevelance in the Chinese way of life, then continue to stay invested. In fact, you might even want to average down your cost when the drop comes.

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No, hold ultra-longterm.

one of the best ETFs ever....

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