GuruFocusยท2024-10-03 23:50Group 1: ETF Launch and Performance - The Roundhill China Dragons ETF (DRAG) has been launched to track an equal-weight basket of 5 to 10 of China's largest tech companies, including Tencent, Pinduoduo, Alibaba, and others [1] - At market close, DRAG rose by 0.6%, ending at $25.14, indicating strong initial performance [1] - Roundhill Investments highlighted the strong fundamentals and growth advantages of the nine tech companies included in the ETF [1] Group 2: Market Trends and Inflows - This week, $2.5 billion flowed into the four largest China-related ETFs, with KraneShares' KWEB experiencing its largest single-day inflow on record [2] - The surge in inflows follows economic stimulus measures from Beijing, leading to the best single-day performance for Chinese stocks since 2008 [2] - Fund managers are increasingly investing in Chinese equities after years of underinvestment, indicating a shift in market sentiment [2] Group 3: Comparison with Other ETFs - DRAG is noted to have a higher concentration compared to other China-focused ETFs like the $7.9 billion KraneShares CSI China Internet ETF (KWEB) and the $6.4 billion iShares China Large-Cap ETF (FXI) [1] - Among Roundhill's ETFs, the Roundhill Magnificent Seven ETF (MAGS) has performed well, rising 40% since its launch in April 2023 [2] - MAGS is considered the U.S. counterpart to DRAG, showcasing the potential for DRAG's performance if confidence in China's market remains strong [2]