In the fast-evolving ETF (exchange-traded fund) landscape, China-focused funds are heating up thanks to shifting trade dynamics and fresh stimulus signs. China’s markets are surging on government backing, tech recoveries, and relaxed regulations pulling in global cash. Using the TipRanks Compare ETFs Tool, we discovered PGJ and CHIQ, two standout China ETFs poised for more than 35% returns over the next twelve months.
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Invesco Golden Dragon China ETF (PGJ)
Invesco Golden Dragon China ETF gives investors exposure to U.S.-listed companies that earn most of their revenue from China. This size-and-style ETF covers a broad mix of large, mid, and small-cap firms across sectors, from tech innovators to traditional industries. It captures China’s fast growth and diverse economy in one diversified package.
PGJ has a higher expense ratio of 0.70%, but a relatively smaller AUM of $124.55 million. Yet, it carries a higher dividend yield of 3.66%, through its quarterly dividends of $0.203 per share.
Its top five holdings include Yum China (YUMC), Baidu (BIDU), Alibaba (BABA), JD.com (JD), and NetEase (NTES).
According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, PGJ is a Moderate Buy. The Street’s average price target of $37.11 implies an upside of 39.4%.
Global X MSCI China Consumer Discretionary ETF (CHIQ)
Global X MSCI China Consumer Discretionary ETF allows investors to tap into China’s growing consumer spending boom. It tracks the MSCI China Consumer Discretionary 10/50 Index, focusing on companies in autos, apparel, textiles, services, and leisure. As China’s middle class expands and demands lifestyle upgrades, CHIQ offers targeted exposure to these trends in the world’s largest population.
CHIQ has an expense ratio of 0.65% and an AUM of $179.04 million. It pays a semi-annual dividend of $0.191 per share, reflecting a comparatively lower dividend yield of 1.61%.
CHIQ’s top five holdings include Alibaba, PDD Holdings (PDD), Meituan (HK:3690), BYD Co. (BYDDF), and JD.com.
TipRanks’ ETF analyst consensus, based on a weighted average of ratings for its holdings, rates CHIQ also as a Moderate Buy. The Street’s average price target of $26.80 implies an upside of 37.4%.
