Big Alibaba Group Holding Ltd (BABA) Surge Helps These ETFs The Most

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June 8, 2017 11:51am NYSE:BABA

NYSE:BABA | News, Ratings, and Charts

We have spoken about BABA in this piece before as it has a considerable presence in several ETFs and today the stock is trading at a new all-time high thanks to a very bullish revenue outlook.


Chief Financial Officer Maggie Wu said overnight at the company’s investor day that fiscal 2018 revenue is expected to rise 45% to 49% over 2017 figures, which is well above the Wall Street consensus estimate.

We see BABA trading as high as $143.90 on an intraday basis today already, after paring back some of these gains to the $138 level presently, a leap of more than 10%. The ETF that has the largest weighting in BABA at 13.15% is ADRE (PowerShares BLDRS Emerging Markets 50 ADR, Expense Ratio 0.30%), and the company in fact is the number one holding in the fund ahead of TSM (13.03%).

ADRE is not a huge ETF at $138 million, although it debuted way back in 2002, although it is receiving a nice boost here on BABA’s short-term performance and may attract more attention given the urge to trade BABA today. BABA has traded more than 47 million shares today as of 10:45 AM EST, which several times higher than its average daily volume.

Other BABA-sensitive ETFs in terms of having significant weightings to the name are as follows:

  • MCHI (iShares MSCI China, Expense Ratio 0.64%, $2.4 billion in AUM, 10.78% weighting),
  • EEB (Guggenheim BRIC, Expense Ratio 0.64%, $80 million in AUM, 10.67% weighting),
  • FPXI (First Trust International IPO, Expense Ratio 0.70%, $1.6 million in AUM, 10.57% weighting),
  • CQQQ (Guggenheim China Technology, Expense Ratio 0.70%, $94 million in AUM, 9.79% weighting),
  • KWEB (KraneShares CSI China Internet, Expense Ratio 0.72%, $483 million in AUM, 9.49% weighting),
  • GXC (SPDR S&P China, Expense Ratio 0.59%, $887 million in AUM, 9.12% weighting), and
  • ADRA (PowerShares BLDRS Asia 50 ADR, Expense Ratio 0.30%, $21 million in AUM, 8.87% weighting).

The stock has a presence in dozens of other ETFs as well, but the aforementioned ones are where its weighting is the most prominent. In several instances, as we mentioned, the stock is the highest weighted single component inside these ETFs (even before today’s surge higher).

BABA-2017-06-08

Alibaba Group Holding Ltd (NYSE:BABA) was trading at $138.79 per share on Thursday morning, up $13.15 (+10.47%). Year-to-date, BABA has gained 58.06%, versus a 9.05% rise in the benchmark S&P 500 index during the same period.


Disclaimer: The content of this article is excerpted from a daily newsletter from Street One Financial. While ETF Daily News may edit the contents and add a relevant title to the piece, the author, Paul Weisbruch, does not endorse or recommend any issuer or security mentioned herein.

About the Author: Paul Weisbruch

paul-weisbruchPaul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial. Prior to joining the team at Street One, Paul served as the Director of RIA and Institutional ETF Sales at RevenueShares ETFs from December 2007 until November of 2009. Before RevenueShares, Paul was employed by Susquehanna International Group from 2000 until 2007 serving in roles including OTC/NYSE Institutional Block Trading, Nasdaq/OTC Market Making, ETF/Derivatives Intelligence and Strategy, Algorithmic Trading, as well as acting as the PHLX Floor Specialist in the ETFs, SPY and DIA.Paul has been actively involved in the ETF space from both a product and trading standpoint since 2000. Additionally, Paul has well forged relationships with national RIAs, institutional pension fund managers and consultants, mutual fund and hedge fund managers, and also the ETF media. Co-authoring the “S1F ETF Daily” since 2009, the daily piece has become a must for many portfolio managers in the ETF space, with segments regularly appearing in the likes of Barron’s, WSJ, and ETFTrends.com for instance.

He holds his Series 4 (Registered Options Principal), 6, 7, 55 (Equity Trader), 63, and 65 licenses. He graduated from the University of Pittsburgh (B.S. – Economics), graduating magna cum laude, and has an MBA from Villanova University.


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