7 Best China ETFs for July 2026

These are the top performing China ETFs, which can provide U.S. investors with international diversification in their portfolios.

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Updated Jul 1, 2026 · 1 min read Written by Contributing Writer + more + more Edited by Head of Content, New Verticals Co-written by Editor & Content Strategist 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 KraneShares SSE STAR Market 50 Index ETF (KSTR), which is up 125.30%. Ticker Company Performance (Year) KSTR KraneShares SSE STAR Market 50 Index ETF 125.30% CNXT VanEck ChiNext Innovators ETF 111.20% MCHS Matthews China Innovators Active ETF 79.51% NBCE Neuberger China Equity ETF 66.23% ASHS Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF 62.59% KBA KraneSharesBosera MSCI China A 50 Connect Index ETF 39.14% KCAI KraneShares China Alpha Index ETF 36.26% Source: Finviz. Data is current as of July 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. » To see brokerages with a broad ETF selection, check out our full list of the

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. » Explore the full landscape of international ETFs » Make sense of the markets with The Nerdy Investor A weekly wrap on what's moving markets, plus two monthly deep-dives on how to improve your investing, straight to your inbox. Subscribe for free

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. Type of China ETF. 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%. Expense ratio. 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. Important note: » Check out the best U.S.-based ETFs »

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. Neither the author nor editor held positions in the aforementioned investments at the time of publication. Neither the author nor editor held positions in the aforementioned investments at the time of publication. Article sources NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines. Morgan Stanley. The International Rebalance. Accessed Mar 19, 2026. ETF.com. China ETFs. Accessed Mar 19, 2026. About the authors Kevin Voigt Kevin Voigt is a former investing writer for NerdWallet. He has covered financial issues for more than 20 years, including for The Wall Street Journal and CNN.com. See full bio. Alana Benson Alana Benson is an investing writer who covers socially responsible and ESG investing, financial advice and beginner investing topics. Her work has appeared in The New York Times, The Washington Post, MSN, Yahoo Finance, MarketWatch and others. See full bio. Helpful resources Index Funds vs. Mutual Funds: The Differences That Matter Best Mutual Funds for July and How to Invest The Best ETFs and How to Start Investing 14 Best-Performing and Affordable ESG ETFs for 2026 More like this Best Brokerage Accounts for Online Investing and Stock Trading in 2026 By Chris Davis Best Robo-Advisors for Automated Investing: Top Picks for 2026 By Alana Benson, Sabrina Parys Investing in Dividend Stocks: Guide, Calculator and Top 7 Yields for July 2026 By Chris Davis, Sam Taube Best Brokers for Beginner Investors: Top Picks for 2026 By Alana Benson, Bella Avila Best Investments: Where to Invest in 2026 By Chris Davis, Alieza Durana