Polen Capital China Growth ETF (PCCE) seeks to provide long-term capital appreciation by investing in Chinese companies with sustainable competitive advantages and strong growth potential. This actively managed ETF focuses on high-quality Chinese businesses across mainland China, Hong Kong, and U.S.-listed Chinese ADRs.

How It Works

PCCE employs an active management approach using Polen Capital's concentrated, high-conviction investment philosophy. The fund typically holds 20-40 Chinese companies selected through fundamental analysis focusing on businesses with durable competitive moats, strong management teams, and sustainable growth trajectories. Portfolio managers conduct extensive research to identify companies with pricing power, market leadership, and long-term earnings growth potential, with quarterly rebalancing based on conviction levels.

Key Features

  • Concentrated portfolio of 20-40 high-conviction Chinese growth companies versus broad-market China ETFs holding hundreds of stocks
  • Active management by Polen Capital's experienced team with proven track record in growth investing strategies
  • Recently launched in March 2024, offering exposure to China's evolving growth story with modern portfolio construction

Risks

  • This ETF can lose significant value during Chinese regulatory crackdowns or geopolitical tensions, as seen with 40-60% declines in Chinese stocks during 2021-2022
  • Currency risk from yuan fluctuations can impact returns for U.S. investors, with potential 10-20% swings from exchange rate movements alone
  • Concentrated portfolio means individual stock failures can severely impact performance, with top holdings potentially representing 5-10% each of total assets

Who Should Own This

Best suited as a satellite holding (5-15% of equity allocation) for aggressive growth investors with 5+ year time horizons and high risk tolerance. Appropriate for investors seeking targeted exposure to China's long-term growth potential while accepting significant volatility and geopolitical risks inherent in Chinese markets.

PCCE chart by TradingView