Golden Dragon Index ETF Overview and Insights

The Golden Dragon Index ETF is a popular investment option for those looking to tap into the growth of China's economy. This ETF tracks the Nasdaq Golden Dragon China Index, which is composed of 50 of the largest and most liquid Chinese companies listed on US exchanges.

The index has a market capitalization of over $1.5 trillion, giving investors a broad exposure to the Chinese market.

The Golden Dragon Index ETF is listed on the NYSE Arca exchange under the ticker symbol PGJ.

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The NASDAQ Golden Dragon China Index has seen a 5.89% return year-to-date, which is also its 1-year return.

The index has had a tumultuous 3-year and 5-year performance, with returns of -7.93% and -7.11% respectively. However, its 10-year return is a positive 0.99%.

Here are the specific performance metrics for the NASDAQ Golden Dragon China Index and the FTSE China 50 Index, as well as the fund's history:

Fund performance is a crucial metric to consider when evaluating the success of an investment. It's essential to understand that market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET.

The NASDAQ Golden Dragon China Index has a 5.89% YTD return, which is the same as its 1Yr return. Over the 3Yr, 5Yr, and 10Yr periods, it has returned -7.93%, -7.11%, and 0.99%, respectively.

The FTSE China 50 Index has a 32.41% YTD return, matching its 1Yr return. Over the 3Yr, 5Yr, and 10Yr periods, it has returned -2.28%, -3.56%, and 0.53%, respectively.

Fund NAV has a 5.88% YTD return, matching its 1Yr return. Over the 3Yr, 5Yr, and 10Yr periods, it has returned -7.90%, -7.24%, and 0.74%, respectively.

After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. Fund performance reflects applicable fee waivers, absent which, performance data quoted would have been lower.

Here's a summary of the fund performance metrics:

Capital Gain Distribution Analysis is a crucial aspect of a fund's performance. It's a measure of how often the fund distributes capital gains to its shareholders.

The frequency of capital gain distributions can vary, but in our analysis, we've found that many funds distribute capital gains annually. This means that shareholders can expect to receive a distribution of capital gains at the end of each year.

Let's take a look at some specific examples of capital gain distribution frequencies:

As you can see, the frequency of capital gain distributions is consistent across these funds. This can be a useful metric for investors to consider when evaluating a fund's performance.

The amount of capital gains distributed can also be an important factor to consider. For example, if a fund has a high capital gain distribution, it may indicate that the fund has experienced significant gains in the past year.

The Invesco Golden Dragon China ETF is based on the NASDAQ Golden Dragon China Index, which tracks the performance of US exchange-listed companies that are headquartered or incorporated in the People's Republic of China.

The fund invests at least 90% of its total assets in equity securities of companies deriving a majority of their revenues from the People's Republic of China. This means that a significant portion of the fund's holdings are likely to be from Chinese companies.

Here are some key details about the fund's performance:

The Invesco Golden Dragon China ETF is a solid investment option for those looking to tap into the growing Chinese market. It's based on the NASDAQ Golden Dragon China Index, which tracks the performance of US-listed companies with majority revenue from China.

The fund invests at least 90% of its assets in these companies, ensuring a high degree of exposure to the Chinese market. This is done quarterly, when the fund and the index are rebalanced and reconstituted.

Here are some key details about the fund's investment strategy:

The fund's investment approach is straightforward and focused on capturing the performance of the Chinese market. By tracking the NASDAQ Golden Dragon China Index, investors can benefit from the growth and development of China's economy.

Distributions are an essential aspect of investing, and understanding how they work can help you make informed decisions about your portfolio. The frequency of distributions varies, but some investments offer more frequent payouts than others.

For example, a fund may distribute dividends quarterly, providing regular income to shareholders. On the other hand, some investments may only distribute capital gains annually.

If you're considering an investment that distributes capital gains, it's essential to understand the frequency of these distributions. Some funds may distribute capital gains annually, while others may do so more frequently.

Here are some key distribution facts to keep in mind:

Net income ratio is another important distribution metric to consider, as it can impact the overall return on your investment. A low net income ratio may indicate that the investment is not generating significant income from dividends or interest.

The operating fees associated with the Golden Dragon Index ETF are quite straightforward. The expense ratio is a significant 0.71% of the fund's assets under management (AUM).

This fee is comprised of various components, including the management fee, which is a relatively low 0.50% of AUM. This suggests that the fund's management team is efficient and effective in their operations.

The 12b-1 fee is not applicable to this fund, which is a positive aspect for investors. This means that a portion of the fund's revenue is not being diverted towards marketing and distribution expenses.

Administrative fees are also not applicable, which further reduces the overall operating expenses of the fund. This is a good sign for investors, as it indicates that the fund is well-managed and has low overhead costs.

Here's a summary of the operating fees associated with the Golden Dragon Index ETF:

The Morningstar Rating for the Golden Dragon Index ETF is based on its historical risk-adjusted performance, and as of 12/31/24, it reflects a rating that takes into account its 3, 5, and 10-year metrics.

The rating is not a guarantee of future results, but it does give us a sense of how the fund has performed in the past. I've seen this before with other ETFs, where the rating is a weighted average of its past performance.

Here are the fund's rankings in its category over the past few years:

The fund's returns have varied significantly over the years, with some years showing impressive growth and others showing significant losses.

Total Return Ranking is a way to measure how well a fund has performed over time. It's calculated based on the fund's total return, which takes into account both income and capital gains.

The total return ranking is often compared to other funds in the same category. This is done to provide a sense of how a fund stacks up against its peers.

In the example, the fund's return for 2024 was 5.8%, which ranked 62.92% in its category. This means it performed better than 62.92% of other funds in the same category that year.

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Here's a breakdown of the fund's performance over the past few years:

As you can see, the fund's performance varied significantly from year to year. In 2020, it had a strong year with a return of 54.2%, while in 2021 it had a difficult year with a return of -42.9%.

ETFs are so popular among investors because of their low expense ratios, which can save you a significant amount of money in the long run.

One of the main reasons ETFs have gained favor is their tax efficiency. This means you can keep more of your hard-earned money, rather than handing it over to the taxman.

ETFs offer a unique combination of diversification and trading flexibility, allowing you to spread your investments across various asset classes and sectors.

Their trading flexibility also means you can easily buy or sell ETFs throughout the day, giving you more control over your investments.

Discounts and Premiums Distribution is an essential aspect of understanding how shareholders interact with a Fund. The data shows that in the past year, there were no instances of discounts or premiums above or below 0.50%.

In fact, the majority of days had no discounts or premiums at all. This suggests that the Fund's shares are often traded at or very close to their net asset value (NAV). For example, in the quarter ending 12/31/2024, 24 days had a bid/ask midpoint above NAV, ranging from 0.00-0.25%.