The Roundhill China Dragons ETF (DRAG, Financial) has been introduced to the U.S. stock market just as China's stock market enters a bull phase, driven by a broad stimulus package. This ETF tracks the performance of major Chinese companies, referred to by the issuer as "China Dragons."
The ETF includes prominent tech giants such as Tencent, Pinduoduo, Alibaba, Meituan, BYD, Xiaomi, JD.com, Baidu, and NetEase. Roundhill Investments highlights that these nine leading tech firms demonstrate competitive advantages, including economies of scale, robust fundamentals, and growth that outpaces their peers. The ETF will undergo quarterly rebalancing.
According to Roundhill CEO Dave Mazza, DRAG differentiates itself from other China-focused ETFs, like the $7.9 billion KraneShares CSI China Internet ETF (KWEB) and the $6.4 billion iShares China Large-Cap ETF (FXI), through its concentrated holdings.
