Fund info

The Roundhill China Magnificent Seven ETF is an actively managed exchange-traded fund designed to provide targeted exposure to a concentrated portfolio of seven of China’s largest and most innovative publicly listed companies. The ETF utilizes a proprietary selection process to identify these top-tier firms from an initial universe of the 100 largest Chinese companies, focusing on those exhibiting significant market capitalization, liquidity, and technological advancement. To implement its investment strategy, the fund holds American Depositary Receipts (ADRs) or uses derivative instruments such as swaps and forward contracts on ADRs, enabling both direct and synthetic exposure to the underlying Chinese issuers. Sectors prominently represented within the fund’s holdings typically include consumer discretionary, communication services, and information technology. The ETF’s portfolio is equally weighted across its seven constituents and rebalanced quarterly to maintain balanced sector and issuer exposure. Distinctly, some holdings may involve Variable Interest Entity (VIE) structures, which provide access to Chinese companies subject to regulatory restrictions. This fund plays a specialized role in the market by offering investors focused access to the key drivers of China’s economic and technological growth through a single, efficient vehicle.