There are Internet ETFs dedicated to U.S. companies and there are Internet ETFs focusing on Chinese firms. A new ETF marries those two concepts. The TigerShares China-U.S. Internet Titans ETF (TTTN) debuted Wednesday.
The new ETF tracks the Nasdaq China US Internet Tiger Index and holds 20 stocks. The index is split between the 10 largest US-based Internet companies and the 10 largest Chinese public Internet companies.
“Today, China and the U.S. are homes to a handful of so-called ‘internet titans,’ which are the leading companies involved in a variety of rapidly growing internet-based industries that increasingly impact people’s daily lives across the globe, including e-commerce, cloud, search, social media, artificial intelligence, travel services, streaming media, online gaming, and more,” said TigerShares CEO Yang Xu in a statement. “The most successful internet titans enjoy first-mover advantages, scale economies, and brand dominance across multiple, high-growth categories worldwide.”
Inside TTTN ETF
TTTN’s top five holdings each have weights of 7.49% or more. That group includes Google parent Alphabet Inc. (GOOG, GOOGL), Facebook Inc. (NASDAQ:FB), Alibaba Group Holding Ltd. (NYSE:BABA) and Amazon.com Inc. (NASDAQ:AMZN).
Over 52% of the new ETF’s holdings are considered Internet companies, while over 26% combined are classified as consumer services providers or broadline retailers.
“These top-tier internet technology powerhouses reflect not only the success they have achieved in their domestic markets, but also the ongoing innovation that we believe shall keep them at the forefront of global growth in the future,” said Yang. “If you believe in the continued growth of the internet and the new technologies and business models that support it, China and the U.S. are, in our opinion, where you will find the most successful market participants in the coming decades.”
TTTN charges 0.59% per year, or $59 on a $10,000 investment.