Looking for Exposure to Alibaba Stock (BABA) Post Q1 earnings? Try These Two ETFs

Alibaba (BABA) (HK:9988) has risen more than 38% so far this year. The company is focusing heavily on artificial intelligence to revolutionize online shopping and cloud services. It is integrating AI throughout its apps and cloud platform to streamline operations and maintain a competitive edge. In the recent Q4 FY25 earnings call, Alibaba’s Cloud division stood out, with revenue increasing 18% year-over-year to RMB30.1 billion, driven by strong sales of AI-related products. Investors looking for exposure to BABA stock may consider investing in these two ETFs: Invesco Golden Dragon China ETF (PGJ) and KraneShares CSI China Internet ETF (KWEB).

Let’s take a deeper look at these two ETFs.

Invesco Golden Dragon China ETF

The PGJ ETF focuses on U.S.-listed Chinese companies, offering exposure to China’s technology, consumer, and communication sectors. It tracks the NASDAQ Golden Dragon China Index. Importantly, BABA accounts for 7.55% of PGJ’s total holdings.

Some of the top holdings in PGJ ETF include Yum China (YUMC), JD.com (JD), and Baidu (BIDU). Overall, the ETF has $144.28 million in assets under management (AUM) and an expense ratio of 0.67%. Over the past year, the PGJ ETF has generated a return of 6.88%.

On TipRanks, PGJ has a Moderate Buy consensus rating based on 40 Buys, 29 Holds, and one Sell assigned in the last three months. At $35.73, the average PGJ ETF price target implies 286.80% upside potential.

KraneShares CSI China Internet ETF

The KWEB ETF is one of the most widely used options for investors wanting exposure to China’s internet and tech sectors. It includes companies involved in online shopping, search platforms, video games, social media, and other digital services. Importantly, BABA accounts for 11.38% of KWEB’s total holdings.

Some of the top holdings in KWEB ETF include Tencent Holdings (TCEHY)(HK:0700), JD.com (JD), and PDD Holdings (PDD). Overall, the ETF has $6.38 billion in assets under management (AUM) and an expense ratio of 0.70%. Over the past year, the KWEB ETF has generated a return of 11.44%.

On TipRanks, KWEB has a Strong Buy consensus rating based on 22 Buys and eight Holds assigned in the last three months. At $40.30, the average KWEB ETF price target implies 19.59% upside potential.

Concluding Thoughts

ETFs provide indirect exposure to BABA stock, reducing risk compared to investing directly in the stock. Furthermore, ETFs are a liquid and transparent way to participate in the market. Investors seeking ETF recommendations might consider PGJ and KWEB, as these ETFs offer exposure to Alibaba stock.