The Invesco Golden Dragon China ETF stands out right with its over 20% returns YTD, ahead of the Shanghai Composite and the S&P 500. Despite this, it's hard to fully get behind the PGJ story right now, as tariff flip-flops between the U.S. and China create uncertainty. Additionally, the Chinese economy continues to struggle, which can cast a shadow on the impressive growth in the technology sector.
As the U.S. wrestles China for AI dominance, investors are playing both sides.
Count stocks from China among this year's international standouts. Widely observed gauges of equities in the world's second-largest economy are outpacing both the S&P 500 and the MSCI Emerging Markets Index by comfortable margins since the start of this year.
| XMEX Exchange | US Country |
The described company operates as an investment fund, dedicating a substantial portion, at least 90%, of its total assets towards securities that are part of its benchmark index. This underlying index is specifically designed to include securities from U.S. exchange-listed companies that either have their headquarters or are incorporated within the People's Republic of China. This fund sets itself apart by focusing almost exclusively on this niche sector, aiming to offer investors exposure to the Chinese market through U.S.-listed entities. It's important to note that this fund is characterized as non-diverse, implying a concentrated investment strategy in the selected index securities.
Securities Investment in U.S.-listed Chinese Companies: The main product offered by the fund involves investing in securities that are part of an underlying index comprised mostly of U.S. exchange-listed companies headquartered or incorporated in China. This offers a targeted investment avenue for those looking to tap into the growth potential of Chinese companies while mitigating risks associated with direct investment in foreign markets.
Non-diversified Fund Strategy: As a non-diversified fund, this service implies a focused investment strategy that might carry higher risks due to the concentration of assets in fewer securities. However, this approach can also offer higher rewards by targeting specific economic sectors or geographic regions, in this case, U.S.-listed companies that operate out of China.