## [# Roundhill Unveils China Dragons ETF Focused on Tech](/sections/news/roundhill-unveils-china-dragons-etf-focused-tech)
# Roundhill Unveils China Dragons ETF Focused on Tech
The new DRAG ETF zeros in on Tencent, Alibaba and seven other tech giants.
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[By DJ Shaw ](/authors/dj-shaw)
Oct 04, 2024
Edited by: James Rubin
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Roundhill Investments debuted its [**China Dragons ETF (DRAG)**](https://www.roundhillinvestments.com/etf/drag/) on Thursday, offering investors equal-weight exposure to nine of China’s largest tech innovators.
The fund began trading on the Cboe BZX exchange with an expense ratio of 0.59%, according to a Roundhill [press release](https://www.prnewswire.com/news-releases/roundhill-investments-launches-china-dragons-etf-drag-302266788.html) announcing the fund.
DRAG targets a concentrated basket of five to 10 Chinese companies dubbed the “China Dragons,” including tech giants [Tencent](/stock/TME), [Alibaba](/stock/BABA), and [Baidu](/stock/BIDU), the release said.
The debut comes as Chinese equities have risen following the Chinese central bank's announcement of a stimulus package late last month to stimulate the country's sagging economy. The People's Bank of China initiative will lower the benchmark interest rate and reduce the amount of money banks must allocate for reserves as it aims to boost lending. It will also offer about $70 billion in loans to brokers, funds and other financial services organizations to purchase Chinese stocks.
The $5.9 billion [**iShares MSCI China ETF (MCHI)**](/mchi) increased 35% over the last month, according to etf.com data.
**Read More:** [***ETF Spotlight: MCHI Rises After China Stimulus Package***](/sections/features/etf-spotlight-mchi-rises-after-china-stimulus-package)
"With China currently offering historically attractive valuations and the recent significant government stimulus package aimed at boosting its economy, DRAG provides investors with a timely opportunity to gain targeted exposure to China's top tech innovators," said Dave Mazza, Roundhill Investments CEO, in the press release.
## DRAG's Holdings Include Tencent, Alibaba
DRAG’s initial holdings include nine companies: [Tencent](/stock/TME), [PDD Holdings](/stock/PDD), [Alibaba](/stock/BABA), Meituan, BYD Company Limited, Xiaomi, [JD.com](/stock/JD), [Baidu](/stock/BIDU), and [NetEase](/stock/NTES), according to the fund’s fact sheet.
The fund uses an equal-weight strategy and will rebalance quarterly, Roundhill stated.
DRAG enters a competitive landscape for China-focused ETFs, with established funds like the $7.4 billion [**KraneShares CSI China Internet ETF (KWEB)**](/kweb) and the $5.5 billion [**iShares Trust - China Large-Cap ETF (FXI)**](/fxi) generating gains of 42.2% and 48.1% year-to-date, respectively.
Roundhill noted that DRAG is structured similarly to its [**Roundhill Magnificent Seven ETF (MAGS)**](/mags), which offers targeted exposure to leading U.S. tech stocks.
**Read More:** [***China ETFs Retrench After Historic Rally***](/sections/news/china-etfs-retrench-after-historic-rally)
The firm cautioned that DRAG's risk includes potential economic and political instability, as well as regulatory concerns for Chinese companies listed on U.S. exchanges.
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