American investors now have a fresh opportunity to tap into China’s burgeoning artificial intelligence sector without the need for a VPN or language lessons. The Themes China Generative AI ETF, trading under the ticker DRGN, has been introduced as the first U.S.-listed fund dedicated solely to Chinese companies that are at the forefront of the generative AI movement. Launched on July 15, this ETF boasts a competitive expense ratio of 0.39%, making it one of the most cost-effective options in the AI-focused ETF space.
Moving beyond the usual focus on U.S. tech giants like Nvidia and Microsoft, DRGN offers exposure to a dynamic and often overlooked segment of the AI industry: China’s innovative talent pool. According to Paul Marino, Themes ETFs’ chief revenue officer, Chinese expertise in AI surpasses many expectations, with some of the world’s leading AI specialists emerging from the region. This ETF allows American investors to participate in this growth without leaving U.S. markets.
DRGN follows the BITA China Generative AI Select Index, which includes publicly traded Chinese companies in the U.S., Hong Kong, or those accessible via Stock Connect. These companies significantly engage in generative AI activities such as model training, application software development, and AI infrastructure.
This marks the 19th fund launched by Themes ETFs since its inception in December 2023. Known for its focus on niche technology and thematic investments, the firm also offers funds in areas like cybersecurity, defense, cloud computing, as well as sectors like gold mining, banking, and U.S. infrastructure.
