Two exchange-traded funds (ETFs) are targeting profits in China with two different strategies.
While the Rayliant Quantamental China Stock ETF invests in specific regions, the newly launched Round Hill China Dragons ETF buys China's largest stocks.
”[It’s] Dave Mazza, CEO of Round Hill Investments, said this week on CNBC's “ETF Edge.”
The Round Hill China Dragon ETF is down nearly 5% since its inception on Oct. 3, as of Friday's close.
Meanwhile, Jason Su of Rayliant Global Advisors is behind the hyper-local Rayliant Quantamental China Equity ETF. It has been in existence since 2020.
“These are local stocks, local names, and you wouldn't be able to easily buy them if you weren't a local Chinese person,” the company's chairman and chief investment officer told CNBC. “China is at a different part of the growth curve, so it paints a very different picture.”
Hsu wants to give U.S. investors access to stocks that are less familiar to them but have the potential to deliver big returns on par with recent Big Tech stocks.
“Technology is important, but many of the high-growth stocks are actually people selling water.” [and] A person who runs a restaurant chain. As such, they often actually have higher growth than many tech stocks,” he said. It may represent that.” ”
As of Friday's close, the Rayliant Quantamental China Stock ETF is up more than 24% since the beginning of the year.
