公司首席执行官Dave Mazza表示，DRAG与其他提供中国敞口的ETF，例如管理规模为79亿美元的金瑞基金中证海外中国互联网基金（KWEB）和管理规模为64亿美元的iShares安硕中国大盘股ETF（FXI）的不同之处在于——集中度。A new ETF DRAG “China Dragon” that tracks the performance of major Chinese companies has landed on US stocks. Its constituent stocks currently include Tencent, Pinduoduo, Alibaba, Meituan, BYD, Xiaomi, JD, Baidu, and NetEase. DRAG aims to track an equally weighted basket of stocks made up of 5 to 10 of the largest and most innovative Chinese technology companies. This ETF will be rebalanced on a quarterly basis.
At a time when the Chinese stock market is soaring, a new ETF “China Dragon” tracking the performance of major Chinese companies landed on US stocks on Thursday. The full name of the ETF is The Roundhill China Dragons ETF (DRAG), and its constituent stocks currently include Tencent, Pinduoduo, Alibaba, Meituan, BYD, Xiaomi, JD, Baidu, and NetEase. The issuer collectively refers to these companies as “China Dragon.”
DRAG aims to track an equally weighted basket of stocks made up of 5 to 10 of the largest and most innovative Chinese technology companies. Roundhill Investments said that at the time of launch, the nine mega-tech companies had generally shown competitive advantages in terms of economies of scale, solid fundamentals, and clearly stronger growth than their peers. This ETF will be rebalanced on a quarterly basis.
The company's CEO Dave Mazza said that the difference between DRAG and other ETFs that provide exposure to China, such as the 7.9 billion dollar Jinrui Fund China Securities Overseas China Internet Fund (KWEB) and the 6.4 billion dollar iShares China Large Cap ETF (FXI), is the degree of concentration.
DRAG's rate is 0.59%, which is a slightly lower fee compared to most similar ETFs.
This week alone, the four largest ETFs linked to the Chinese stock market listed in the US have inflows of 2.5 billion dollars. Among them, Kweb by Kraneshares recorded the largest single-day capital inflow in history on Tuesday. Fund managers and hedge funds are pouring into the Chinese stock market at record speed.
Of the nearly 20 ETFs launched by Roundhill, the best performer was the $0.78 billion RoundHill Magnificent Seven ETF (MAGS). The ETF tracks seven US sister stocks, was launched in April 2023, and has risen 40% this year. Mazza sees it as the US version of DRAG.