Important Information
Investors should not base investment decisions solely on this material. Please refer to the Prospectus for details including product features and the risk factors. Investment involves risks. Past performance is not indicative of future performance. There is no guarantee of the repayment of the principal. Investors should note:
- Global X China Core TECH ETF (the “Fund”)’s investment objective is to provide investment results that closely correspond to the performance of the Mirae Asset China Tech Top 30 Index (the “Index”).
- The Fund is exposed to concentration risk by tracking a single region or country. It is potentially more volatile than a broad-based fund due to adverse conditions in the region.
- The Index constituents may be concentrated in a specific industry or sector, which may potentially more volatile than a fund with a diversified portfolio.
- The Fund may be exposed to risks associated with different technology sectors and themes. A downturn in these sectors or themes may have adverse effects on the Fund.
- Listed companies on the ChiNext market and/or STAR Board are usually of emerging nature with smaller operating scale. In particular, these companies are subject to higher fluctuation in stock prices and liquidity risks, over-valuation risk, differences in regulation, delisting risk, and concentration risk.
- The Fund may suffer from a losses or delays when recovering the securities lent out. This may potentially affect its ability to meet payment and redemption obligations. Collateral shortfalls due to inaccurate pricing or change of value of securities lent, may cause significant losses to the Fund.
- There are risks and uncertainties associated with the current Mainland China tax laws, regulations and practice in respect of capital gains realized via Stock Connect on the Fund’s investments in Mainland China. Any increased tax liabilities on the Fund may adversely affect the Fund’s value.
- Distributions paid out of capital, or effectively from capital, represent a return of an investor’s original investment or its gains and may potentially reduce the Fund’s Net Asset Value per Share as well as the capital available for future investment.
AI Podcast – Global X China Core TECH ETF (3448)
Audio Version
Video Version
Transcript
Host: Welcome to the Global X Podcast generated by AI, Today we’re taking a closer look a deep dive into Global X China Core TECH ETF (3448). Let’s start with latest news articles to explain about how China’s Tech competitiveness is growing and what that really means for their global technology leadership.
Speaker: Exactly! I mean, the sources we’ve looked at they paint a pretty clear picture China’s high-end technology industry has also made significant progress, and achieved remarkable accomplishments. Let me give you a few examples, China toped the Nature Index since 2024 (Nature Index, May 2025), which measures academic research capability. More sector-specifically China became no. 1 in Nature Cancer Research Index (Nature Cancer Research, 2025). Many expert agree that China already became a global leader in EV, Autonomous driving and robotics, BYD already became no.1 in global EV sales (Company data, July 2025).
Host: When you say core tech, what exactly does that cover? What kind of companies are we talking about?
Speaker: In simple terms, the Global X China Core TECH ETF focuses on sectors that are key to China’s strategic goals, such as high tech self-reliance global leadership. It covers a very broad range of sectors, Biotech, Semiconductors, Electric Vehicles, Batteries, Medical Technology, Robotics, Consumer Electronics among others. Importantly, the ETF excludes large internet platform companies.
Host: No Chinese internet giants in the index? Really?
Speaker: No! In fact, this is a key feature of this ETF and what differentiates it from other technology indices, such as the Hang Seng TECH Index. We believe that Chinese Internet companies are mainly operating domestically-focused business models, such as E-commerce and Food Delivery and in some ways they are less relevant to China’s technological independence and global competition. More importantly, the internet business model is maturing and it is difficult to achieve higher growth rates than other technology sectors. In addition, large cap internet platforms are already among the most well-owned Chinese assets for global investors. Through exclusion of these companies the ETF actually serves as a diversification tool for investors’ technology portfolio. On the other hand, the technology sectors that we value most such as Biotech, Batteries, Robotics and Semiconductors are likely to show higher growth rates. According to FactSet Consensus, the underlying assets of the index are expected to achieve EPS CAGR of 29% from 2024 to 2027, compared to 17% for Hang Seng TECH Index. (FactSet, MiraeAsset, 30 May 2025. Note : Based on weighted sum of revenue/Net profit for index constituents, using FactSet consensus estimates. Global X China Core TECH ETF tracks MiraeAsset China Tech Top 30 Index)
Host: What sectors does the ETF invest in the most?
Speaker: The top five sectors are very diverse, Biotech is about 22%, Semiconductors are about 17%. As a comparison, Hang Seng TECH Index has over 50% weightings related to Internet companies with no exposure to Biotech companies. (Hang Seng Index, July 2025)
Host: Are you saying this ETF is more diversified?
Speaker: Yes, Technology isn’t monolithic, right? Each sector has its own economic cycle. Therefore investing in seven or more technology sectors, such as Biotech, Semiconductors, and Electric Vehicles, can reduce the high volatility that often occurs in technology investing.
Host: Can you highlight any other features of this ETF compared to other Chinese indices?
Speaker: The average R&D spending of the index is 13%, while Hang Seng TECH stocks are 11%, and Hang Seng Index is 4%. (Mirae Asset, July 2025)
Host: Well, let me summarize. This ETF can provide investors with a good investment tool for the great potential of the emerging Chinese technology companies. If you are interested in Global X China Core TECH ETF (3448) please visit the official website for more information.
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