Invesco Golden Dragon China ETF

Invesco Golden Dragon China ETF (PGJ) is an index fund that tracks the Nasdaq Golden Dragon China Index, which holds Chinese companies whose shares trade on US exchanges. As of July 31, 2026, its largest holdings included JD.com, Yum China and Alibaba. It holds fewer, more concentrated positions than broad China funds and has had very large swings. Its 0.70% expense ratio is above the 0.65% average of similar funds.

• Over the year to Oct 27, 2026, PGJ returned -34.1%, 5th of 7 among similar funds.
• Its 5-year annualized return was -11.9% and its 10-year -2.7%.
• In the 2020 COVID crash it fell 24.6% and regained its old high 2.5 months after the low.
• Its worst full calendar year was 2008 (-56.2%); its best was 2007 (+64.6%).
• The deepest fall in its price history was 78.4% (Feb 16, 2021 to Oct 24, 2022), not yet recovered.

As of Jul 31, 2026, the fund held 68 securities; the ten largest made up 58.16% of assets. It also reported 21.16% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jul 31, 2026, investors withdrew a net $10.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -4.79%, -11.10%, +12.99%.

Nasdaq, Inc. builds and maintains the Nasdaq Golden Dragon China Index. The index includes only companies that are based or incorporated in mainland China, not Hong Kong or Taiwan, and whose shares are listed on a US exchange. Many are held as American depositary receipts (ADRs), which are US-traded certificates that stand for shares of a foreign company. As of June 30, 2026, the index had 68 securities, ranging in market value from $73.8 million to $230 billion.

Invesco uses "full replication." This means the fund generally owns every security in the index, in the same proportions the index gives them. It does not try to beat the index. It would not normally sell a weak stock unless that stock leaves the index. At least 80% of net assets must be in index components or similar investments. Portfolio turnover was 23%.

The fund is "non-diversified." That means it can put more money into a few companies than a diversified fund can. As of July 31, 2026, the top 10 holdings made up about 58% of assets, and JD.com and Yum China each had about 9%. The fund concentrates in an industry only when the index does. As of April 30, 2026, it had heavy exposure to consumer discretionary companies. The holdings report also shows a large cash line, about 21%. This appears to be collateral from lending shares, not uninvested money.

• PGJ charges 0.7% a year, versus an average of 0.65% for the similar funds below (5th of 7, cheapest first).
• Of that, 0.5% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $72 in the first year and $871 over 10 years (assuming a 5% annual return).

PGJ is a concentrated, single-country fund that has had very deep losses, so it fits at most as a small slice next to broader holdings.

PGJ could add exposure to large Chinese consumer and internet companies that a US-focused portfolio may lack. That exposure has come with severe swings. In the 2008 crisis it fell 71% and took until June 2015 to recover. In the 2020 COVID crash it lost about 25% but recovered within three months. In early 2022 it fell 44% and did not recover until September 2025. Its deepest drop was 78%, from February 2021 to October 2022, and it had not regained that peak as of October 27, 2026. Its worst calendar year was 2008, when it lost 56%. Anyone who had to sell during those stretches would have locked in large losses. The trailing yield was 2.03% as of October 27, 2026, paid quarterly. In the SEC's $10,000 example, costs come to $72 after one year. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).