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

Ukraine attack on Russian nuclear bombers overshadows peace talks in Turkey
World

Ukraine attack on Russian nuclear bombers overshadows peace talks in Turkey

The Russian and Ukrainian delegations leave after the second round of Ukraine-Russia peace talks at Ciragan Palace on June 2, 2025 at in Istanbul, Turkey. Chris Mcgrath | Getty Images News | Getty Images Peace talks between Russia and Ukraine in Istanbul ended barely an hour after they began on Monday, a day after a […]

Read More
UK put on a war footing with defense overhaul — but is it too little, too late?
World

UK put on a war footing with defense overhaul — but is it too little, too late?

Britain’s Prime Minister Keir Starmer (C), Britain’s Defence Secretary John Healey (2nd R) and managing director of BAE Systems’ naval ships business Simon Lister (R) visit the BAE Systems’Govan facility, in Glasgow, on June 2, 2025. Britain announced it will build 12 new attack submarines as it unveiled a major defense review to deal with […]

Read More
European autos stocks fall 2% as Trump’s 50% steel tariffs inflate EU trade tensions
World

European autos stocks fall 2% as Trump’s 50% steel tariffs inflate EU trade tensions

Mid-morning market moves The mood in equities remains downbeat in Europe, with the regional Stoxx 600 index 0.25% lower at 10:30 a.m. U.K. time as investors eye the potential for escalating U.S.-EU tariffs. Autos stocks on the index are down 1.75%, technology stocks are down 1.2% and household goods are down 1%. Oil and gas […]

Read More