NIO’s shares surged over 70% in 2025, driven by strong delivery results, a $1 billion capital raise, and announcements regarding new ES8 SUVs, alongside budget-friendly brands like Onvo and Firefly. Although profitability remains a challenge amidst fierce competition in China’s electric vehicle market, interest from investors continues, particularly due to NIO’s battery swapping technology and its expansion into the European market. This might suggest a potential buying opportunity, especially through ETFs that offer diversified exposure to NIO without the direct risk of holding the stock.
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For those interested in NIO, the Investco Golden Dragon China ETF (PGJ) and the Vaneck Low Carbon Energy ETF (SMOG) are worth considering. Let’s dive into these ETFs a bit more.
Investco Golden Dragon China ETF
The PGJ ETF includes Chinese companies that are listed in the US, a solid option for those wanting to benefit from China’s growth without committing capital directly to the mainland. It tracks the Nasdaq Golden Dragon China Index.
NIO represents about 4.58% of the ETF’s holdings. Other prominent stocks in the PGJ ETF include Baidu, JD.com, and Alibaba. Overall, the ETF manages $162.99 million in assets, with an expense ratio of 0.7%. It has produced a return of 16.2% in the last three months.
The PGJ ETF has garnered a moderate buying consensus on Wall Street. Out of the 75 stocks it holds, 47 have a buy rating, 27 are rated hold, and just one is rated sell. With an average target price of $36.58, there’s an upside potential of 11.4%.
Vaneck Low Carbon Energy ETF
SMOG ETF invests in companies that are pivotal in the transition to renewable energy and low-carbon technologies. It tracks the MVIS Global Low Carbon Energy Index, incorporating businesses that work in solar, wind, hydropower, hydrogen, biofuels, electric vehicles, and battery tech.
NIO makes up about 2.8% of the total holdings in this ETF. Prominent stocks within the SMOG ETF include NextEra Energy, Tesla, and First Solar. The ETF currently has $125.86 million in assets and an expense ratio of 0.61%. Over the past three months, it has yielded a 14.09% return.
In Tipranks, the SMOG ETF has a moderate buy consensus rating based on 35 purchases, 25 holds, and one sale over the previous quarter. The average price target is around $134.19, indicating an upside of 7.17%.
Wrapping Up
ETFs present a way to gain indirect exposure to NIO, typically lowering the risk compared to buying individual stocks. They also offer liquidity, providing a straightforward means to engage with the market. Investors interested in ETFs might consider SMOG and PGJ since they involve NIO stocks.
