Can You Invest in Huawei in 2025? Details and Alternatives to Consider

By Frank Bass – Updated Dec 1, 2025 at 1:17 PM EST | Fact-checked by Robin Hartill, CFP

Key Points

Huawei, under scrutiny for security risks, is banned in several countries including the U.S. and U.K.
The company is not publicly traded and does not currently plan an IPO, limiting direct investment options.
Investors can alternatively consider bonds or shares in competing firms like Ericsson or Nokia for telecom exposure.
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Huawei is the largest manufacturer of telecommunications equipment in the world. The company has been in the news lately -- and not for great reasons. Amid fears that its products could be used by China's military and intelligence communities, sales by Huawei have been totally or partially blocked in the United States, European Union, Japan, Australia, New Zealand, and Canada.

Person using a tablet to look at the performance of stocks. — Image source: Getty Images.

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ETFs with exposure to Huawei

An exchange-traded fund (ETF) can be a safer investment than individual stocks since it's an asset that distributes risk across several assets. ETFs also tend to have lower fees than mutual funds and can be easier to buy and trade.

Since Huawei isn't publicly traded, it's not included in any ETFs. Investors who want exposure to the Chinese company, however, may benefit from putting money into funds that follow the same trends as Huawei. Since there's a broad array of ETFs, investors have multiple pathways, including ETFs that are focused on China, telecommunications, or 5G networks, among others. Here are three that might be worth considering:

The iShares MSCI China ETF (MCHI -0.10%) has taken note of the country's expanding middle class, putting almost 30% of its holdings into consumer discretionary stocks, followed by communications (21.9%) and financials (18.4%). As of mid-2025, the fund had more than $6.4 billion in assets under management (AUM). It reported 552 holdings and a reasonable 0.59% expense ratio, meaning that $5.90 in fees are assessed annually for every $1,000 invested.

The First Trust Indxx NextG ETF (NXTG +0.16%) focuses on companies with market caps of $500 million or more that are developing and deploying 5G technology. The fund has $374.6 million in assets and an expense ratio of 0.7%. Almost 22% of the fund's holdings are in semiconductor stocks, followed by integrated telecommunications services (20%) and communications equipment (10.9%).

For investors interested in a broad range of telecom stocks, the SPDR S&P Telecom ETF (XTL -0.32%) is a reasonable option. The fund only has about $108.3 million under management but boasts a low 0.35% expense ratio. Top holdings include AT&T (T +0.82%) at 4.2%, and Cisco with 4.1% of shares. In mid-2025, it had returned 33.95% over the year, closely tracking its benchmark S&P Telecom Select Industry index return of 34.2%.

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Should you invest in Huawei?

Since Huawei isn't publicly traded, it's not possible to buy shares in it. And even if and when the company launches an IPO, investors would need to be aware of potential pitfalls. Because of concerns about the potential for Chinese spying, the company's growth for the foreseeable future may be limited to China, the Middle East, and Africa.

In addition, Huawei has been operating in an extremely competitive environment -- even before its venture into a self-driving car market that's been dominated by titans like Alphabet (GOOG -0.07%)(GOOGL -0.08%), Nvidia, and Tesla (TSLA -0.03%). All things considered, Huawei likely carries more risks than rewards for investors.

The bottom line

Weak consumer consumption and slowing property investment have caused problems for the Chinese economy, and a trade war with the United States isn't helping. Increasingly, China is viewed as a competitor rather than a customer. The economic woes of the world's second-most-populous country combined with suspicion over Huawei's motives make the company an extremely risky bet if and when the company goes public.

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About the Author

Frank Bass is a contributing Motley Fool stock market analyst and editor covering energy, healthcare, consumer, and financial sectors. Frank has decades of experience in financial journalism, holding reporting and editing roles at The Wall Street Journal, The Associated Press, and Bloomberg. He also currently edits research on the global energy transition. He holds a bachelor’s degree in journalism from Texas Tech University and is a graduate student at the University of Alaska Fairbanks. Fun Facts: Frank has hiked The Long Trail in Vermont from end to end, and currently lives in a semi-dry cabin in Interior Alaska.

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Frank Bass has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, Berkshire Hathaway, Cisco Systems, Nvidia, Tencent, and Tesla. The Motley Fool recommends Alibaba Group. The Motley Fool has a disclosure policy.