“Domestic investors can also enjoy the dividend of interest rate cuts in the US stock market”
With the news of interest rate cuts in September, small and medium-sized stocks that were previously struggling to catch their breath can finally feel relieved. So we must seize the dividends brought by interest rate cuts!
Huabao Overseas Technology QDII-LOF (501312)
Huabao Overseas Technology QDII-LOF (Class A: 501312/C: 017204): This fund specializes in investing in overseas innovative technology and small and medium-sized technology stocks. It invests in multiple ARK series ETFs and other technology related ETFs.
Its fund manager and team have a special understanding of the technology industry, rich research experience, and seasoned investment techniques. The goal is to bring long-term stable profit returns to investors!
Huabao Overseas Technology Fund adopts a combination of top-down and bottom-up stock selection methods.
Top down, determine the overall investment direction and industry allocation through macroeconomic analysis, industry trend research, etc; Priority should be given to technology fields with high growth potential, such as artificial intelligence, financial technology, genetic technology, etc.
Bottom up, selecting specific investment targets through fundamental analysis of individual stocks or ETFs; Pay attention to the financial condition, growth potential, and market performance of individual stocks or ETFs.
Starting from April 11, 2023, the performance of this fund is similar to that of the Nasdaq 100 index, with good growth potential, high elasticity, and better performance in overseas markets compared to the CSI 300.
When investing in this fund, it is important to note that technology stocks have significant fluctuations, and changes in market sentiment can lead to significant fluctuations in the fund’s net asset value. It should also be noted that funds may face significant drawdown risks during market adjustments or declines.
Why have you performed exceptionally well recently?
Why is it necessary to allocate a biotechnology index during the interest rate cut cycle?
As a typical long-term asset, biotechnology companies generally have long research and development cycles and large investments. They are sensitive to interest rates, so when the Federal Reserve cuts interest rates, it is cheaper for them to borrow money to continue research and development.
Recently, due to the unexpected drop in US CPI in June and the dovish stance of Federal Reserve Chairman Powell, market expectations for interest rate cuts have further rebounded.
Once the interest rate cut cycle begins, small and medium-sized technology enterprises that are particularly sensitive to interest rates may usher in new investment opportunities. These enterprises generally have high flexibility and are easy to attract investors’ attention.
Driven by disruptive innovation factors such as intelligent driving, artificial intelligence, and genetic innovation, the ARK series funds have performed strongly since July, driving the overall performance of Huabao Overseas Technology QDII-LOF.
ARKQ has accumulated an increase of 8.66% within the month, ARKK has accumulated an increase of 8.53%, ARKG has accumulated an increase of 8.35%, ARKW has accumulated an increase of 7.18%, and ARKF has accumulated an increase of 4.24%.
Katherine Wood, founder and CEO of ARK Investment Management, stated that many stocks related to truly disruptive innovation have entered rare areas of deep value, meaning that these stocks may currently be undervalued, but they have enormous growth potential.
On July 16, 2024, Huabao Overseas Technology QDII-LOF performed outstandingly, hitting the daily limit up in the morning session and reaching a high of 1.596 yuan on the market, indicating strong market demand for it.
Approaching 14:00, there was another surge in volume, with an increase of over 5% within the market, setting a new historical high!
The amplitude exceeded 10% throughout the day, indicating that the fund was very active in trading on that day, with a turnover of 145 million yuan, setting a new high in daily volume and a month on month increase of 125%.
For those who are optimistic about the development of the technology field, they can consider holding it for the long term to obtain returns from high growth.
Due to the high volatility of the fund, overall risk can be reduced by diversifying investments.
Regularly adjust the investment portfolio, optimize returns, and balance risks based on market conditions and one’s own risk tolerance.
Disclaimer: The content of this article is for reference only and does not constitute investment advice. Investment carries risks, and caution is necessary when entering the market.
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