Roundhill Investments is gearing up to replicate the success of its popular Magnificent Seven ETF (MAGS) in the Chinese market. The firm, led by CEO Dave Mazza, is planning to introduce the Lucky Eight ETF, which aims to be China's equivalent of Wall Street’s big tech stock triumphs.

“There’s a lot of question marks about the Chinese economy and the potential for growth of the consumer in China,” Mazza said during an appearance on CNBC’s “ETF Edge” on Monday. “But at the end of the day, we believe that investors are looking for exposures that give them precision, just like we found with MAGS.”

The Lucky Eight ETF, trading under the ticker “LCKY,” will provide equal-weighted exposure to some of China’s leading technology companies. These include Tencent Holdings, Alibaba, Meituan, BYD, Xiaomi, PDD Holdings, JD.com, and Baidu. According to Roundhill’s SEC filing on May 17, these companies were selected for their “market dominance in technological innovation.”

Mazza emphasized that the timing could be advantageous for investors. “Particularly if they’re coming out of an economic slowdown, that could be an opportunity for investors to step into China and do so in just really the names that matter,” he said.

Currently, several existing exchange-traded funds, such as the KraneShares CSI China Internet ETF, offer broad exposure to Chinese tech stocks. However, Mazza believes that investors may prefer the option to focus on a curated selection of influential companies.

“I firmly believe in broad-based diversification for big parts of a portfolio,” Mazza explained. “But if you just want those names, it’s hard to get with some traditional Chinese ETFs. And this is going to do that.”

Pending SEC approval, the Lucky Eight ETF is set to launch this summer, providing a new avenue for investors seeking targeted exposure to China's tech sector. This move comes as Roundhill continues to innovate in the ETF space, seeking to meet the evolving needs of investors with precision-targeted investment options.

The Lucky Eight ETF’s introduction marks a significant step in providing U.S. investors with easier access to China’s burgeoning tech giants. By focusing on companies renowned for their technological advancements and market leadership, Roundhill aims to capture the growth potential of China’s dynamic tech landscape.

Tencent Holdings, a powerhouse in social media, gaming, and digital payments, stands out as one of the central components of the ETF. Alibaba, known for its e-commerce dominance and cloud computing services, further bolsters the fund's portfolio. Meituan, a leader in food delivery and local services, and BYD, a prominent electric vehicle manufacturer, add to the diverse technological reach of the ETF. Xiaomi, recognized for its innovative consumer electronics, PDD Holdings, which operates the popular Pinduoduo e-commerce platform, JD.com, another e-commerce titan, and Baidu, a leader in internet services and AI, round out the ETF's holdings.

The inclusion of these companies reflects a strategic approach to capturing the core drivers of China’s tech industry. Investors looking to capitalize on the growth of these sectors can benefit from the targeted exposure provided by the Lucky Eight ETF.

As Roundhill Investments expands its offerings, it continues to demonstrate a commitment to meeting investor demand for precision-focused investment products. The success of the Magnificent Seven ETF (MAGS) has set a high bar, and the Lucky Eight ETF aims to follow suit by delivering targeted exposure to China’s most influential tech companies.

In conclusion, the forthcoming launch of the Lucky Eight ETF represents a significant opportunity for investors to gain focused exposure to China’s top tech companies. With its strategic selection of market-leading firms and pending SEC approval, the ETF is poised to provide a valuable investment tool for those seeking to tap into China’s technological innovation and economic growth.