PGJ: INVESCO GOLDEN DRAGON CHINA ETF
Understanding the Invesco Golden Dragon China ETF (PGJ)
The Invesco Golden Dragon China ETF (ticker: PGJ) is an exchange-traded fund designed to provide exposure to Chinese companies. This ETF focuses on large companies that are often traded on international exchanges.
What this ETF is trying to do
PGJ seeks to track the performance of major Chinese companies. It holds a variety of stocks, including many well-known names in technology, retail, and electric vehicles. According to the provided data, the fund holds 68 total companies.
Top Holdings:
• Alibaba Group Holding Ltd ADR (8.17%)
• JD.com Inc ADR (8.04%)
• Yum China Holdings Inc (7.89%)
• NetEase Inc ADR (6.82%)
• Baidu Inc ADR (6.03%)
*Note: This list is partial and only shows the largest holdings. Holdings can change over time.*
What the numbers show
The recent performance data shows a decline in both share price and total return.
• Price Return: This measures only the change in the share price. The one-year price return was approximately -32.41%. The year-to-date (YTD) price return was approximately -23.02%.
• Total Return: This includes the change in share price plus any distributions paid out. The one-year total return was approximately -31.27%, and the YTD total return was approximately -22.24%.
For comparison, an estimated price from roughly one year ago was $32.82, while the current price is $22.18.
Income and distribution explanation
PGJ provides some cash distributions to investors. The distribution yield is approximately 1.94%. This means the amount of cash paid out is about 1.94% of the current share price. The fund usually pays these distributions quarterly, with 4 payments recorded over the last 12 months.
It is important to remember that a distribution yield is not the same as total return. While distributions provide cash, they do not guarantee that your original investment will stay the same value.
NAV erosion explanation
The fund has a severe erosion-risk flag. This means that StockValueFinder's screening rules detected significant price deterioration. The fund has an erosion score of 30, which is labeled as "Significant price erosion."
The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion. While the market price of the shares has fallen significantly, we cannot use this alone to prove that the Net Asset Value (NAV) itself has declined.
Pros
• Provides access to a large group of major Chinese companies through a single investment.
• Offers a modest distribution yield for those seeking some cash income.
Cons
• The fund has experienced significant share-price declines over the one-year and year-to-date periods.
• The severe erosion-risk flag indicates a history of significant price deterioration.
Beginner takeaway
When looking at PGJ, it is important to distinguish between the cash income (distribution yield) and the actual change in your investment value (total return). In this case, both the share price and the total return have trended downward. High distribution yields can sometimes exist even when the share price is falling, so investors should look at the total return to see the full picture.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | ALIBABA GROUP HOLDING LTD ADR | BABA | 8.17% |
| 2 | JD.COM INC ADR | JD | 8.04% |
| 3 | YUM CHINA HOLDINGS INC | YUMC | 7.89% |
| 4 | NETEASE INC ADR | NTES | 6.82% |
| 5 | BAIDU INC ADR | BIDU | 6.03% |
| 6 | n/a | EDU | 4.23% |
| 7 | FULL TRUCK ALLIANCE CO LTD ADR | YMM | 4.10% |
| 8 | H WORLD GROUP LTD ADR | HTHT | 3.89% |
| 9 | VIPSHOP HOLDINGS LTD ADR | VIPS | 3.89% |
| 10 | KANZHUN LTD ADR | BZ | 3.76% |