Investors looking to diversify their portfolios geographically have a range of options, and getting into China — the world's second-largest economy — can be particularly appealing. If so, one route is to buy China exchange-traded funds.
Best-performing China ETFs
Below is our list of best-performing China equity ETFs.
The best-performing China ETF by one-year return is Matthews China Innovators Active ETF (MCHS), which is up 13.77%. | ||||
|---|---|---|---|---|
Ticker | Company | Performance (Year) | ||
MCHS | Matthews China Innovators Active ETF | 13.77% | ||
KCAI | KraneShares China Alpha Index ETF | 13.51% | ||
NBCE | Neuberger China Equity ETF | 10.31% | ||
KSTR | KraneShares China Technology & Semiconductor STAR 50 Index ETF | 10.11% | ||
ASHS | Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF | 6.60% | ||
EWH | iShares MSCI Hong Kong ETF | 2.77% | ||
KBA | KraneSharesBosera MSCI China A 50 Connect Index ETF | 2.43% | ||
Source: Finviz. Data is current as of October 1, 2026, and is intended for informational purposes only. | ||||
» To see brokerages with a broad ETF selection, check out our full list of the best brokers for ETF investing.
What are China ETFs?
China ETFs are funds that track publicly listed Chinese companies and give investors exposure to Chinese markets without having to directly purchase those stocks. Instead, the issuing company purchases the underlying asset (such as stocks, bonds or currency), and investors purchase shares in the fund. As the underlying assets rise and fall, so does the value of your fund investment.
Researchers say investors often suffer from “home bias” — the tendency to purchase domestic stocks for their portfolio. And while U.S. stocks do make up about 64% of global equities, exposure to international markets (especially a large player such as China) gives investors the benefit of diversification.
Investing in China ETFs carries risks, such as trade tensions with the U.S. and other geopolitical factors. Still, many investors are placing long-term bets on the world’s second-largest economy.
How to invest in China ETFs
It only takes three steps to buy shares in a China ETF: Find, analyze and buy the fund. Here's a full breakdown.
Step 1: Find a China ETF
Search for China ETFs on your broker's website.
Step 2: Analyze the ETF
Some things to check before purchasing shares in a China ETF:
Type of China ETF. There are many China ETFs available to U.S. investors, including equity, fixed income and currency asset classes. Some focus on the total China market, while others focus on company size or a particular sector, such as technology, health care or real estate.
Expense ratio. This annual fee is paid out of your investments in the fund, so the lower the expense ratio, the better. The average expense ratio for China ETFs is 0.81%.
Important note: Leveraged China ETFs use financial derivatives and borrowed cash to make predictions on future prices. These types of ETFs are riskier than traditional ETFs and should be approached with caution. This is also true of China exchange-traded notes, or ETNs, which are secured debt obligations. Unlike ETFs, these funds don’t actually own the underlying asset and have a higher risk of default. These investments are less appropriate for a buy-and-hold strategy favored by many investors saving for the long term.
Step 3: Buy the China ETF
You can purchase ETFs just like you’d buy a company stock — for both, you need an online brokerage account to buy and sell shares.
Article sources
- 1.Morgan Stanley. The International Rebalance. Accessed Mar 19, 2026.
- 2.ETF.com. China ETFs. Accessed Mar 19, 2026.
