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DRAG (Roundhill China Dragons ETF) — A Focused Bet on China’s Tech Champions from Tencent to BYD

In a previous post, I shared my thoughts after reading “Minimum Economic Topics” by Hong Chun-Wook. While the book paints a cautious picture of China’s economic slowdown and structural challenges, I came away believing that Chinese equities remain undervalued compared to markets like the US and India. In particular, China's major technology companies still offer compelling valuations and play a significant role in the global economy.

The previous post is linked below ⬇️

Book Review : Hong Chun-Wook 

China Stock Market Valuation


That said, I’ve set some criteria for investing in Chinese stocks:

  1. Companies benefiting from government policy support
  2. Participation in AI and next-generation technologies
  3. Global competitiveness in their respective industries

While searching for an ETF that matches these standards, I discovered the DRAG ETF, listed on the U.S. stock market. This fund provides a concentrated portfolio of a few of China’s leading tech firms, aligning perfectly with the strategy I had in mind. In this post, I’ll introduce what DRAG ETF is and why it deserves attention.


ETF Overview

  • Fund Name: Roundhill China Dragons ETF
  • Ticker: DRAG
  • Assets Under Management: $30.06 million (approx. KRW 41.3 billion as of 2025/6/19)
  • NAV: $25.01 (as of 2025/6/19)
  • Volume: 2,293 shares (as of 2025/6/12)
  • Expense Ratio (annual): 0.59%

Investment Strategy

  • A concentrated portfolio of 5–10 large-cap Chinese tech companies
    → Includes Tencent, Alibaba, Xiaomi, and BYD—companies shaping not only China’s economy but also the global tech landscape
    → As the portfolio is centered around a handful of names, it carries elevated risks related to individual company performance, policy shifts, and market sentiment
    → Helps avoid small-cap risk; particularly useful for Korean investors who may have limited access to reliable information on smaller Chinese firms, or concerns over accounting transparency
  • Focused on companies with high innovation and long-term growth potential
  • Designed to give U.S. investors exposure to leading Chinese tech firms via ADRs

Top 6 Holdings

Ticker Company Name Industry Business Weight
XIACY Xiaomi Corporation Technology Smartphones (Mi, Redmi),
IoT devices (Mi Band, air purifiers),
smart appliances (Mi TV, robot vacuums)		 18.91%
TCEHY Tencent Holdings Ltd Technology Messaging app (WeChat),
online gaming (Honor of Kings, PUBG), cloud services (Tencent Cloud),
fintech (WeBank)		 18.04%
BYDDY BYD Co Ltd Automotive Electric vehicles (BYD Han, Dolphin),
Blade Battery, semiconductors,
energy storage systems (BESS)		 17.00%
BABA Alibaba Group Holding E-commerce Taobao, Tmall,
cloud computing (AliCloud),
fintech (Ant Group, Alipay)		 15.53%
MPNGY Meituan Platform Services Food delivery (Meituan Waimai),
hotel & travel booking,
local services platform,
livestream commerce		 14.77%
PDD PDD Holdings Inc E-commerce Social commerce (Pinduoduo),
AI-powered agricultural marketplace, discount e-commerce,
global platform (Temu)		 15.26%


DRAG ETF stands out for its high-conviction approach—selecting only the few giants at the center of China’s tech ecosystem. With names like Tencent, Alibaba, Xiaomi, and BYD leading the portfolio, DRAG offers investors a focused bet on firms that wield influence not only in China but across the global tech landscape. For those looking to invest in long-term innovation and avoid the noise of broader markets, DRAG could be a compelling addition to the portfolio.


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