The US, China And One Internet ETF

The United States and China are the world's two largest economies and dominant players on the global e-commerce and Internet stages. A new exchange traded fund seizes on those themes.

The TigerShares China-U.S. Internet Titans ETF TTTN, the first U.S.-listed ETF from TigerShares, debuted Wednesday.

What Happened

TTTN follows the Nasdaq China US Internet Tiger Index. That index is home to the 10 largest publicly traded U.S.-based Internet companies and the 10 largest Chinese publicly traded Internet firms. The new ETF debuted just a day after another international Internet ETF came to market, adding to the growing lineup of China-heavy Internet funds currently on the market.

“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.

Why It's Important

TTTN's top 10 holdings feature six U.S. and four Chinese companies. Alphabet Inc. GOOG and Facebook Inc. FB are the new fund's largest U.S. holdings while Tencent Holdings Ltd. TCEHY and Alibaba Group Holding Ltd. BABA are TTTN's biggest Chinese holdings. Those four stocks combine for over 31 percent of the new ETF's roster.

Earlier this year, China reached 800 million Internet users, a massive percentage of which access the web and shop online via mobile devices. To be precise, China has 802 million Internet users compared with 300 million in the U.S.

“The most successful internet titans enjoy first-mover advantages, scale economies, and brand dominance across multiple, high-growth categories worldwide,” said Yang in the statement. “Investors can now invest in these market leading firms through TTTN, in a low-cost, concentrated ETF format.”

What's Next

Speaking of fees, TTTN charges 0.59 percent per year, or $59 on a $10,000 investment. That compares favorably with the universe of international Internet ETFs.

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