As at end-October, the information technology sector had the...

As at end-October, the information technology sector had the highest weightage in the CGS Fullgoal CSI 1000 ETF at about 25 per cent. Other top sectors in the fund include industrials and materials with weightages of 21.5 per cent and 15.9 per cent, respectively.

In an interview with The Business Times, CGS-CIMB’s group head of investment management Ademola Olopade said China’s small-cap sector showcases “high-growth stocks” – or the future Tencent or Alibaba stocks – in sectors such as pharmaceuticals or innovative technology.

Year to date, the CSI 1000 index is down 4.9 per cent. It fell 21.6 per cent last year as China slowly reopened its borders after the pandemic. In 2020 and 2021, the index was up 19.4 per cent and 20.5 per cent, respectively.

Olopade said interest in ETFs notably picked up after the pandemic. He noted that there has been a shift in investment behaviour globally from trading to investing.