Two China ETFs diverge in their approaches.

Two exchange-traded funds are looking for profits in China with two different strategies.

The Rayliant Quantamental China Equity ETF focuses on specific regions, while the Roundhill China Dragons ETF invests in the country's largest stocks.

Dave Mazza, CEO of Roundhill Investments, stated on CNBC's "ETF Edge" that the fund's focus is on nine companies, which have similar characteristics to magnitude in the U.S.

The Roundhill China Dragon ETF has experienced a nearly 5% decline since its launch on Oct. 3, as of Friday's closing price.

The Rayliant Quantamental China Equity ETF, which has been in existence since 2020, was created by Jason Hsu of Rayliant Global Advisors.

"The chairman and chief investment officer of the firm stated to CNBC that these are local shares and names that can only be easily purchased by a local Chinese person. This contrasts with the growth curve of China, which is unique."

Hsu seeks to provide access to lesser-known names that have the potential to generate significant returns, similar to recent Big Tech stocks.

"While technology is crucial, many of the top-performing stocks are companies that sell water and run restaurants. These companies often experience higher growth rates than many tech companies. There is limited research on this topic outside of China, and these stocks may represent a thematic trade within the Chinese market."

The Rayliant Quantamental China Equity ETF has gained over 24% in value as of Friday's closing.