Key Highlights

  • DRGN tracks the Global X China Tech 20 index and provides concentrated exposure to Chinese technology companies, with China representing 100 percent of geographic exposure.
  • The fund reported net Assets of $86.78 million, a management fee of 0.45 percent and 7,713,781 units on issue, having been admitted to ASX trading on 8 May 2025.
  • Technology dominates the sector allocation at 49.54 percent, well above the Equity Greater China category average of 15.08 percent, with the portfolio concentrated across 21 companies.

The Global X China Tech ETF (ASX:DRGN) seeks to track the performance, before fees and expenses, of the Global X China Tech 20 Index, offering investors exposure concentrated in Chinese technology-related companies. The fund was admitted to ASX trading on 8 May 2025 and is categorised under Equity Greater China, distinguishing it from broader Asia ex Japan funds that spread exposure across multiple countries. Its stated benchmark is the Global X China Tech 20 TR AUD index.

The fund reported net assets of $86.78 million and 7,713,781 units on issue, with a management fee of 0.45 percent per annum, comparatively low relative to actively managed peers in the broader Asian equity space. Risk metrics show a Beta of 1.14 and a Standard Deviation of 29.16, the latter figure notably elevated, consistent with the fund's single-country, single-sector concentration.

Sector Concentration and Country Exposure

By design, DRGN's sector allocation is heavily skewed toward Technology, which represents 49.54 percent of the portfolio compared with a category average of 15.08 percent. Communication Services follows at 13.78 percent, close to the category average of 12.92 percent, while Financial Services at 13.21 percent sits well below the 26.40 percent category figure. Consumer Cyclical exposure of 12.92 percent is also below the category average of 22.69 percent, while Industrials at 10.55 percent is above the category's 5.03 percent. The fund reported no exposure to Healthcare, Energy, Real Estate, Consumer Defensive or Utilities sectors.

Geographic exposure is entirely concentrated in China, at 100.00 percent, compared with a category average of 95.36 percent, reflecting the fund's explicit single-country mandate. Asset allocation shows 99.95 percent invested in equities and 0.05 percent in cash, with no bond exposure reported.

Holdings, Returns and Distributions

The portfolio's top ten holdings account for 77.33 percent of total assets across 21 companies, making DRGN one of the more concentrated funds within its broader peer set. Tencent Holdings is the largest position at 9.74 percent, followed by East Money Information at 9.36 percent, JD.com at 9.08 percent and Xiaomi Corp at 9.05 percent. Contemporary Amperex Technology, Cambricon Technologies, Eoptolink Technology, Zhongji Innolight, Victory Giant Technology and Zhejiang Century Huatong Group complete the remaining top ten names.

Key Takeaways

DRGN provides investors with a concentrated route into Chinese technology equities through an index-tracking structure, distinguished by its 100 percent China exposure and pronounced Technology sector weighting. The fund's elevated standard deviation and recent negative returns over the three-month and one-year periods reflect the Volatility typically associated with single-country, single-sector thematic exposure, a characteristic that separates it from more diversified regional Asian equity funds.