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Alibaba Group (BABA - Free Report) seemed to spread cheer among investors after its third-quarter fiscal 2025 results. The Chinese e-commerce giant recorded its fastest pace of revenue growth in more than a year. Though it missed estimates on the earnings front, revenues came in ahead of expectations. 

Shares of Alibaba's stock jumped to a three-year high following the results and closed 8.1% higher on the day. Investors seeking to tap the growth should consider investing in ETFs with the largest allocation to this Chinese e-commerce giant.

Such funds include Roundhill China Dragons ETF (DRAG - Free Report), Invesco Golden Dragon China ETF (PGJ - Free Report), CoreValues Alpha Greater China Growth ETF (CGRO - Free Report), ProShares Online Retail ETF (ONLN - Free Report), and The Nightview Fund (NITE - Free Report). 

Earnings of $2.93 per ADS missed the Zacks Consensus Estimate of $3.08, but were higher than the year-ago earnings of $2.67. Revenues grew 7.6% year-over-year to $38.5 billion and edged past the consensus mark of $38.2 billion. The revenue growth marks the fastest pace since the September quarter of 2023.

AI-driven strategies have reaccelerated growth in Alibaba’s core businesses. AI-related product revenues achieved triple-digit growth for the sixth consecutive quarter. The solid trend is likely to continue in the coming quarters.

Alibaba is "aggressively investing in AI infrastructure" over the next three years, according to a FactSet transcript. On the conference call, it said it expects its international e-commerce unit to turn profitable next fiscal year and looks to invest more in Cloud and AI over the next three years than in the past decade.

Alibaba stock has soared nearly 60% since the start of the year, driven by optimism surrounding future demand for its AI cloud products after Chinese firm DeepSeek unveiled a new AI model. Reports also suggest that Alibaba is exploring a direct investment in DeepSeek. The recent reports also reveal that the company will partner with Apple (AAPL - Free Report) to provide AI features for iPhones in China.

ETFs in Focus

Below is a brief overview of the previously-mentioned ETFs to consider.

Roundhill China Dragons ETF (DRAG - Free Report)

The Roundhill China Dragons ETF is the first-ever ETF to provide precise exposure to China’s tech leaders. It offers equal-weight exposure to a concentrated basket of the largest and most innovative Chinese companies (the “China Dragons”). The fund currently holds nine stocks in its basket, with Alibaba occupying the top spot at 14%.

The ETF has AUM of $37.4 million, and it charges 59 bps in annual fees. It trades in an average daily volume of 41,000 shares.

Invesco Golden Dragon China ETF (PGJ - Free Report)

The Invesco Golden Dragon China ETF follows the NASDAQ Golden Dragon China Index, which offers exposure to companies deriving the majority of their revenues from the People’s Republic of China. The ETF holds a basket of 65 stocks, with Alibaba occupying the top position at 10% of assets. Consumer discretionary and communication services sectors take the largest positions at 54% and 21%, respectively.

The ETF has AUM of $155.2 million, and it charges 67 bps in annual fees. It trades in an average daily volume of 62,000 shares, and it has a Zacks ETF Rank #3 (Hold) rating with a High risk outlook.

CoreValues Alpha Greater China Growth ETF (CGRO - Free Report)

The CoreValues Alpha Greater China Growth ETF is an actively managed fund that seeks to capitalize on Greater China's growth potential by investing primarily in equity securities of companies positioned in high-growth industries. It holds 30 stocks in its basket, with Alibaba occupying the third position at 7.90%.

The ETF has amassed $8.6 million in its asset base, and it trades in an average daily volume of under 1,000 shares. It also charges 85 bps in annual fees.

ProShares Online Retail ETF (ONLN - Free Report)

The ProShares Online Retail ETF offers exposure to companies deemed to be "Online Retailers." It tracks the ProShares Online Retail Index, holding 19 stocks in its basket. Alibaba is the fourth firm, accounting for 6.4% of the portfolio. 

The ETF has amassed $80.1 million in its asset base, and it currently trades in a moderate volume of around 18,000 shares a day, on average. It charges 58 bps in annual fees from investors. 

The Nightview Fund (NITE - Free Report)

The Nightview Fund is an actively managed fund seeking long-term capital appreciation with the goal of outperforming the S&P 500 Total Return Index over a rolling five-year period. It holds 20 stocks in its basket, with Alibaba occupying the fourth position at 6.1% of its assets.

The fund charges 1.25% in annual fees, and it trades in an average daily volume of 5,000 shares. It has accumulated $27 million in its asset base since its launch in June of last year.

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