Alibaba Group Holding Inc.’s (NYSE: BABA) U.S.-listed shares have been on a tear throughout 2025, more than doubling so far this year and reaching their highest since October 2021. The rally gained momentum this week following CEO Eddie Wu’s commitment to increase AI spending beyond the already staggering $53 billion over three years. The agenda involves growing data centers globally, deploying Alibaba’s Qwen large language models, and integrating Nvidia’s AI tools into its cloud unit.
BABA stock is up in three digits this year. Track its prices live here.
The action solidifies Alibaba as a leader in the international AI race, much like Oracle has recently surged ahead in AI cloud demand. For investors not inclined to accept single-stock risk, there are several ETFs that offer exposure to Alibaba’s recovery and the broader China tech boom.
ETFs With Significant Alibaba Exposure
KraneShares CSI China Internet ETF (NYSE: KWEB): This lead China tech ETF provides U.S. investors with leveraged access to online behemoths. Alibaba is one of the largest holdings, joined by its peers Baidu Inc (NASDAQ: BIDU), JD.com Inc (NASDAQ: JD), and Tencent Holdings (OTCPK: TCEHY). The fund has exploded by more than 45% in 2025 as Chinese tech sentiment shifted dramatically into positive territory.
Invesco Golden Dragon China ETF (NASDAQ: PGJ): With a focus on U.S.-listed Chinese ADRs, PGJ tracks Alibaba’s Nasdaq-listed stock. Its focus makes it one of the most straightforward means of playing BABA’s recovery without selecting individual stocks.
iShares MSCI China ETF (NASDAQ: MCHI): A general China equity fund, but with Alibaba tending to come in at 10% or more. The 108% YTD jump in the stock has been the primary contributor to the fund’s outperformance against the larger emerging-market universe. The fund has increased in value by more than 30% so far this year.
Invesco China Technology ETF (NYSE: CQQQ): A cleaner tech play that holds Alibaba along with Baidu and Tencent, presenting investors with a basket of Chinese companies that are driving the AI arms race. The fund has returned almost 40% this year to date.
Why ETFs Instead Of Individual Stocks?
Alibaba’s jump also reflects opportunity and risk. Alibaba is facing headwinds from U.S. restrictions on chip exports to China and Beijing’s regulatory tightening, even as it doubles down on developing homegrown semiconductors and expanding internationally. ETFs can be used to soften those risks, providing diversified exposure to other China tech names and consumer growth themes.
New interest from high-profile investors such as Cathie Wood, who recently restarted a stake in Alibaba, highlights the stock’s comeback story. For ETF investors, that means Alibaba is no longer strictly a China story; it’s now a global AI story.
Alibaba’s AI spending spree has set its shares on fire, but the greatest beneficiaries might be BABA-heavy ETFs. For investors seeking to benefit from the upside of China’s AI race without incurring single-stock volatility, KWEB, PGJ, and CQQQ may be the best options.
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