Hyper-local vs. hyper-focused: Two China ETFs go on different paths

Hyper-local vs. hyper-focused: Two China ETFs go on different paths


New approaches to China: Hyper-local or hyper-specific

Two exchange-traded funds are looking for profits in China with two different strategies.

While the Rayliant Quantamental China Equity ETF dives into specific regions, the newly launched Roundhill China Dragons ETF buys the country’s biggest stocks.

“[It’s] focused just on nine companies, and these companies are the companies that we identified as having similar characteristics to magnitude in the U.S.,” Roundhill Investments CEO Dave Mazza told CNBC’s “ETF Edge” this week.

Since its inception on Oct. 3, the Roundhill China Dragon ETF is down almost 5% as of Friday’s close.

Meanwhile, Jason Hsu of Rayliant Global Advisors is behind the hyper-local Rayliant Quantamental China Equity ETF. It has been around since 2020.

“These are local shares, local names that you would have to be a local Chinese person to buy easily,” the firm’s chairman and chief investment officer told CNBC. “It paints a very different picture because China is sort of a different part of its growth curve.”

Hsu wants to give access to names that are less familiar to U.S. investors, but can deliver big gains on par with recent Big Tech stocks.

“Technology is important, but a lot of the higher growth stocks are actually people who sell water [and] people who run restaurant chains. So, often they actually have a higher growth than even many of the tech names,” he said. “There’s very little research, at least outside of China, and they may represent what is more of a thematic in the moment trade inside China.”

 As of Friday’s close, the Rayliant Quantamental China Equity ETF is up more than 24% so far this year.



Source

CNBC Daily Open: Keep calm and carry on, investors
World

CNBC Daily Open: Keep calm and carry on, investors

What a first half of the year it has been. In the first six months, the world saw a (not so) new U.S. president in the Oval Office, said president upend the global trade landscape, and a president in South Korea removed from office.  Conflicts also broke out between India and Pakistan, as well as […]

Read More
Asia-Pacific markets poised for cautious open as investors assess gains on Wall Street and Trump’s tariff plans
World

Asia-Pacific markets poised for cautious open as investors assess gains on Wall Street and Trump’s tariff plans

Shanghai Bund skyline panorama Yangna | E+ | Getty Images Asia-Pacific markets are set to have a cautious open Tuesday, with investors assessing the record gains on Wall Street and the global impact of U.S. President Donald Trump’s tariff policies as his 90-day tariff reprieve is set to expire next week. U.S. Treasury Secretary Scott Bessent said […]

Read More
NATO members just committed to hike defense spending – and these companies could reap the rewards
World

NATO members just committed to hike defense spending – and these companies could reap the rewards

With NATO members committing to a much higher defense spending target, certain companies are expected to see huge boosts to their bottom lines – particularly those headquartered in Europe. NATO announced at its annual summit last week that its members had agreed to drastically ramp up defense spending, with the majority of its 32 member […]

Read More