Beyond DeepSeek: 4 Chinese ETFs for AI & Tech Exposure

As Chinese artificial intelligence company DeepSeek continues to challenge American chip manufacturer NVIDIA for chip dominance, investors are looking to China for their next tech investments. Billionaire investor and founder of Appaloosa Management recently increased his firm’s holdings in companies like Alibaba Group (NYSE: BABA) while drastically decreasing holdings in American companies like Meta Platforms (NASDAQ: META). 

If you’re interested in exploring cutting-edge tech from China as an investor, you’re not alone. These four Chinese ETFs trade on major American stock exchanges, offering you a convenient way to diversify across this growing international area of interest. 

KWEB Provides Exposure to China’s Expanding Internet Sector

The KraneShares CSI China Internet ETF (NYSEARCA: KWEB) is made up of investments in China-based companies whose primary businesses are focused on Internet and Internet-related technology. Investors looking for stocks that provide services similar to Facebook and eBay to China’s middle class will appreciate this fund’s selection of holdings, as well as its exposure to the Hong Kong market. 

KWEB recently made social media headlines when it was added to hedge fund Appaloosa Management’s list of major holdings, with manager David Tepper increasing holdings by 21.5%. Major holdings in the fund include Alibaba, Tencent Holdings (OTC: TCTZF), and PDD Holdings (NASDAQ: PDD), which make up about 28% of the fund’s holdings.  

FXI Sees Strong Gains in 2025 Despite Tariff Concerns

Another favorite of Tepper that received a holding boost at the beginning of 2025, the iShares China Large-Cap ETF (NYSEARCA: FXI), is a general large-cap fund covering a variety of Chinese industry sectors. Major holdings include Alibaba, Tencent Holdings, and tech retail service provider Meituan (OTCMKTS: MPNGF), which make up about 26.4% of the fund’s holdings. 

FXI has seen a sharp increase in share prices since early January 2025, despite the ongoing threat of tariffs on Chinese imports. It maintains a competitive 0.74% expense ratio, competitive with other international large-cap ETFs. 30% of the fund’s assets are held in financial services assets, which can also provide a convenient entry route to international fintech development. 

This fund also offers an impressive 2.11% dividend yield, as well as a near 50-50 split between assets headquartered in China and the Cayman Islands. This additional layer of diversification can be an extra appealing benefit for investors interested in broad exposure to the Chinese market. 

CQQQ Surges 54% Year-Over-Year as Chinese Tech Stocks Rebound

A high-tech offering from Invesco, the Invesco China Technology ETF (NYSEARCA: CQQQ), has seen a 54% increase in share prices from this time last year. With $734 million in assets under management held in companies like Tencent, PDD Holdings, and Meituan, CQQQ holds 148 stocks classified as “emerging tech sector” assets. 

Investors looking for a more specialized portfolio may want to opt for CQQQ over more broad Chinese ETFs due to its heavy software weighting. 19.0% of assets are held in software service providers, while an additional 8.7% is invested in electronics equipment. Analysts give this fund a Moderate Buy rating, though its 0.06% dividend yield makes it more suited to growth investors. 

TCHI Offers a Competitive 0.59% Expense Ratio

The iShares MSCI China Multisector Tech ETF (NASDAQ: TCHI) is a well-rounded tech ETF, with no more than 5.4% of assets concentrated in a single holding. Major components of this ETF include NetEase, Inc. (NASDAQ: NTES), Xiaomi Corporation (OTCMKTS: XIACF), and investor favorite JD.com, Inc. (NASDAQ: JD), which make up about 15% of the fund’s $6.97 million assets under management.  

TCHI is also an affordably priced choice in addition to being a diverse one. It offers a competitive 0.59% expense ratio combined with a 2.16% dividend yield. Analysts give this ETF a Moderate Buy rating, though short interest has drastically increased since January 2025. 

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

The article "Beyond DeepSeek: 4 Chinese ETFs for AI & Tech Exposure" first appeared on MarketBeat.