Global X China Robotics and AI ETF (HK 2807) $HK64.17

This Hong Kong traded ETF was launched in 2020 and has only started to look exciting in recent months, in line with the timing of today’s report. It is the largest ETF focused specifically on Chinese companies involved in artificial intelligence (AI) and robotics, aiming to track the FactSet China Robotics and Artificial Intelligence (AI) Index. It has a decent $HK410mn market cap, but it’s not cheap, attracting a 0.68% expense ratio. Plus, investors’ funds are held in Hong Kong Dollars, introducing extra FX risks.

• The 2807 HK ETF, the largest 5 holdings are currently Baidu, Horizon Robotics, SenseiTime Group, Huagong, and Zhejiang – not many household names there.
• The ETF has tracked its benchmark very well over time: Over the last three years, it has gained +12.3%, while its benchmark is up +12.7%.

Over the last three months, the ETF has surged well over 40% illustrating the renewed interest in the Chinese market.

• We are positive on the 2807 HKDRGN ETF over the coming years for those with access to trading in Hong Kong but prefer the ASX alternatives.