DRAG, a newly launched ETF that provides exposure to China

The Chinese market and economy has been front and center of late, ever since the People’s Bank of China (PBOC) announced its latest stimulus package. Riding the catalyst is Roundhill Investments, as the ETF provider launched a new thematic exchange traded fund that targets the Chinese market.

Roundhill Investments launched the Roundhill China Dragons ETF (DRAG). According to Roundhill Investments, DRAG aims to provide equal weight exposure to a concentrated group of five to ten of the largest and most innovative Chinese companies.

Currently, DRAG comes with a total of just nine holdings. See each of the nine holdings below, along with each stock’s portfolio allocation:

• Meituan (OTCPK:MPNGF), 11.93% weighting.
• NetEase, Inc (NTES), 11.33% weighting.
• Tencent Holdings (OTCPK:TCEHY), 11.15% weighting.
• Xiaomi Corp (OTCPK:XIACF), 11.08% weighting.
• PDD Holdings (PDD), 10.99% weighting.
• JD.com (JD), 10.98% weighting.
• Baidu Inc (BIDU), 10.92% weighting.
• BYD Co (OTCPK:BYDDF), 10.78% weighting.
• Alibaba Group Holding (BABA), 10.71% weighting.

“With China currently offering historically attractive valuations and the recent significant government stimulus package aimed at boosting its economy, DRAG provides investors with a timely opportunity to gain targeted exposure to China’s top tech innovators,” Dave Mazza, Chief Executive Officer at Roundhill Investments stated.

Mazza went on to add: “These companies are not only industry leaders in China but are also playing a crucial role in driving global innovation.”

Furthermore, DRAG comes attached with a 0.59% expense ratio and is actively managed.

DRAG will also at some level be competing for market share against other exchange traded funds that offer investors exposure to the world’s second-largest economy. Some funds DRAG may find itself competing alongside include: (FXI), (KWEB), (CQQQ), (MCHI), (PGJ), (CHIQ), (GXC), (CWEB), (CNYA), (ASHR), (CXSE), (KBA), (KLIP), and (YINN).