Two ETFs are looking for profits in China using two different strategies.
Although Reliant Quantitative China Equity ETF Dive into specific areas and launch new ones Roundhill China Dragon ETF Buy the country’s largest stocks.
“(It) only looked at nine companies that we believe have similar characteristics in terms of size in the U.S.,” Dave Mazza, CEO of Roundhill Investments, told CNBC.ETF Edge“This week.
Since its inception on October 3, the Roundhill China Dragon ETF closed down nearly 5% on Friday.
Meanwhile, Jason Hsu of Rayliant Global Advisors is the man behind the hyperlocal Rayliant Quantamental China Equity ETF. Has been around since 2020.
“These are local stocks, local names that only locals in China can easily buy,” the company’s chairman and chief investment officer told CNBC. “It paints a very different picture because China is at a different part of its growth curve. “
Hsu hopes to be a name that is less familiar to U.S. investors but could deliver huge gains comparable to those seen in recent times among large-cap tech stocks.
“Technology is important, but a lot of high-growth stocks are really people selling water (and) people running restaurant chains. So they actually tend to grow at a higher rate than a lot of technology companies,” he said. “There are few studies at least outside China, and they may represent a theme in current domestic trade within China.”
As of Friday’s close, the Reliance Quantitative China Equity ETF was up more than 24% so far this year.
