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In this episode of ETF Spotlight, I speak with Kevin Carter, Founder and CIO of EMQQ Global, about investing in Chinese AI companies and the China AI Tigers LLM ETF (TGRZ - Free Report).
The market has been surprised by how capital-efficient and powerful China’s open-weight models, including Moonshot AI’s Kimi and DeepSeek, have become. These models could threaten the profitability of US AI companies in the coming years.
Many leading Chinese models are open-weight, meaning users can download and customize them, while models from OpenAI and Anthropic are closed. US companies are increasingly using open-weight models from China because they want powerful AI as well as greater control over their data, the ability to customize models, and lower costs.
NVIDIA (NVDA - Free Report) CEO Jensen Huang is among the strongest supporters of open-source technology. The AI giant recently launched the Open Secure AI Alliance with other major technology companies, including Microsoft (MSFT - Free Report) and SpaceX (SPCX - Free Report), following hacking incidents involving OpenAI’s autonomous AI agents on Hugging Face. After the attack, Hugging Face had to use an open-weight Chinese AI model from Z.ai to protect its systems.
TGRZ’s portfolio is currently highly concentrated in Z.ai, which went public in January 2026. The fund may also include pre-IPO exposure to Moonshot AI and DeepSeek.
EMQQ is also planning to introduce a Mag 3 EM ETF. TSMC (TSM- Free Report), Samsung (SSNLF), and SK Hynix (SKHY - Free Report) have come to dominate emerging markets investing and have effectively rewritten the asset class.
Video Length: 00:36:48
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