One of the defining characteristics of the last few years has been increasing trade tensions between the U.S. and China.
Whether it’s the opening up of previously insular financial markets or the race for AI, many business leaders and politicians are wondering how the world will change as this emerging economic superpower comes into its own.
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However you see the balance of trade shaking out, the global economy is sure to see Chinese companies as major players in the years ahead. After all, with more than 1.4 billion citizens and a command-and-control government that can promptly roll out sweeping actions with little resistance, it stands to reason that the nation can thrive regardless of trade policies in Washington.
The following seven China ETFs offer diversified ways to play the region. All have significant assets under management and reasonable expense ratios, and provide access to locally listed stocks that can be difficult for U.S. investors to buy in traditional investment accounts:
| ETF | Assets under management | Expense ratio |
| iShares Core MSCI Emerging Markets ETF (ticker: IEMG) | $130.8 billion | 0.09% |
| iShares MSCI All Country Asia ex Japan ETF (AAXJ) | $3.3 billion | 0.72% |
| iShares MSCI China ETF (MCHI) | $6.5 billion | 0.59% |
| KraneShares CSI China Internet ETF (KWEB) | $6.1 billion | 0.70% |
| Invesco China Technology ETF (CQQQ) | $2.5 billion | 0.65% |
| Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR) | $1.5 billion | 0.65% |
| WisdomTree China ex-State-Owned Enterprises Fund (CXSE) | $501 million | 0.32% |
iShares Core MSCI Emerging Markets ETF (IEMG)
China is riding international growth opportunities related to the broader continent of Asia. Though this massive iShares fund includes regions outside of China’s borders, it does provide perhaps the most comprehensive option to play the upside of this emerging economic superpower. The fund boasts about 3,000 stocks in its portfolio, with 22% of allocations in China itself, closely followed by Taiwan (21%), South Korea (17%) and India (14%) — all major partners on both imports and exports alike. Leading stocks in this diversified fund include Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) and Chinese tech giant Tencent Holdings Ltd. (0700.HK).
iShares MSCI All Country Asia ex Japan ETF (AAXJ)
A similarly diversified iShares fund that is not specific to China itself, AAXJ is focused on emerging markets in Asia. It cuts out the developed market of Japan, as the name implies, and more importantly focuses on local economies instead of layering in markets in distant areas like Latin America. The nearly 1,000 stocks in this regional ETF have a similar weighting by country, with China leading the portfolio at 26%, followed by Taiwan (25%), South Korea (20%) and India (14%). If you want to play Asia as a whole as a proxy for China’s growth, this is one of the best ETFs to buy now.
iShares MSCI China ETF (MCHI)
The largest fund dedicated to this country, MCHI offers direct exposure to stocks like Tencent Holdings, Alibaba Group Holding Ltd. (BABA) and China Construction Bank Corp. (0939.HK). There are a handful of Taiwan-domiciled stocks that make up the portfolio of about 500 individual holdings, but the focus on mainland China is clear. Consumer discretionary stocks lead this fund at about 27%, with communication services (20%) and financial services (18%) rounding out the top three sectors. A “who’s who” of the biggest companies in China, MCHI is a simple way to tap into this region via a single holding.
KraneShares CSI China Internet ETF (KWEB)
Another flavor of Chinese investment to consider, KWEB is laser-focused on the fast-growing digital sector in this region. Though very tactical, with just 30 leading stocks on its list — with old favorites Alibaba and Tencent again on top — the focus on internet technology companies is appealing to investors who don’t mind the risk of putting their eggs in one basket. The fund is in the red over the last 12 months, so recent performance is worth noting before you dive in, but investors looking to tap into the biggest global growth stories, such as artificial intelligence, may want to consider KWEB all the same.
[Read: 6 of the Best AI ETFs to Buy for 2026]
Invesco China Technology ETF (CQQQ)
CQQQ takes a slightly broader approach for investors who want a direct way to play the biggest tech companies in the nation, with a longer list of holdings. While tech giants Alibaba and Tencent still predictably lead the way thanks to their size, you’ll also find e-commerce company Meituan (3690.HK) and social media platform Kuaishou Technology (1024.HK). What’s more, many of the 150 stocks in the portfolio are not available on U.S. exchanges, providing inroads to lesser-known and hard-to-access China stocks that many growth investors might see as the largest opportunities in the region.
Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR)
Historically, so-called “A shares” in China were limited to mainland China-based companies listed on two major domestic exchanges — the Shanghai Stock Exchange (SSE) and the Shenzhen Stock Exchange (SZSE). These A shares are available to Chinese citizens and to qualified institutional investors that meet certain requirements in Beijing. That makes them more direct (and more exclusive) investments in China than stocks like Alibaba that you can purchase directly on the New York Stock Exchange. This China A-Shares ETF features firms like high-end spirits company Kweichow Moutai Co. (600519.SS) and lithium battery specialist Contemporary Amperex Technology Co. (300750.SZ).
WisdomTree China ex-State-Owned Enterprises Fund (CXSE)
Of course, one of the stumbling blocks for some investors who are interested in the growth of China is the nation’s government-sponsored approach to traditional capitalism. In short, if you buy the biggest China stocks, you are making your investment alongside the government in Beijing. CXSE offers an alternative by excluding state-run companies that are publicly traded. That gives you a list of about 260 total holdings, led by those familiar favorites Tencent and Alibaba. Notably, financial services represent just 7% of the portfolio, as state-owned megabanks are left off the list. That exclusion makes CXSE an attractive option for some investors who want to invest in China’s growth, but not necessarily its government.
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7 Best China ETFs to Buy Now originally appeared on usnews.com
Update 03/31/26: This story was published at an earlier date and has been updated with new information.
