This ETF has only been listed since May, driven by market conditions and demand as they usually are. Its investment objective is to provide returns that track the Global X China Tech 20 Index – a benchmark comprised of 20 leading Chinese/Hong Kong technology companies i.e. a Chinese-focused tech/AI ETF.
DRGN gives investors exposure to ~20 leading Chinese technology companies listed in both Mainland China (A-shares) and Hong Kong (H-shares) across ~15 innovation-/technology-linked sectors. Liquidity is still modest, but it provides good exposure to a basket of stocks that many retail investors find challenging at a very reasonable fee.
- Its 5 largest positions currently; Hygon 8.5%, Tencent 8%, Meituan 7.5%, Zhongi 7.2%, and East Money 6.6%.
- From a regional perspective, it has 89.5% exposure to China and 10.5% Hong Kong.
- It has a small market cap of $53mn, while its fees are reasonable 0.45%.
- Its performance has been good over the last year, advancing +24.5%.
China tech, like its Western peers, has surged higher in 2025, and we believe it’s the start of a new structural bull market in both AI and China-facing names. We like the DRGN ETF over the coming years, but note its very concentrated and small.
- MM likes the DRGN ETF in the $13 area after its recent ~10% pullback.
