One of the key reasons behind retail investors’ growing appetite for IGV is its diversified portfolio, which provides exposure to a wide range of Chinese companies across different industries. This diversification can help reduce risk and increase potential returns, making it an attractive option for cautious investors. Additionally, the fund’s focus on new economy sectors such as e-commerce, online finance, and digital entertainment provides exposure to rapidly growing areas of the Chinese economy, which could potentially offer higher returns than traditional sectors.

Another factor driving retail interest in IGV is its relatively low cost compared to other ETFs. With an expense ratio of 0.65%, IGV offers investors a more affordable option for gaining exposure to the Chinese market, particularly when compared to actively managed funds with higher fees. This lower cost can make it more accessible to retail investors who may have limited budgets or are looking to allocate a larger portion of their portfolio to international investments.