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

Published On Oct 12, 2024, 11:00 AM

The article discusses two China-focused ETFs with different investment strategies: the Rayliant Quantamental China Equity ETF, which targets local Chinese companies and has seen a 24% increase this year, and the Roundhill China Dragons ETF, which invests in nine large Chinese companies but has declined almost 5% since its launch. The Rayliant ETF aims to provide access to lesser-known high-growth stocks, while the Roundhill ETF seeks to mirror the characteristics of significant U.S. companies.

Stock Forecasts

The Roundhill China Dragons ETF may struggle as its focus on just nine large companies, which have not performed well since inception, could lead to continued losses.

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