KWEB: World Class Tech Weighed By The China Discount

2026-06-29 20:03:18 ET

The KraneShares CSI China Internet ETF ( KWEB ) offers a focused, passive investment strategy in Chinese companies that mainly operate in the internet space and related technologies and are listed mainly on the Hong Kong Stock Exchange, NASDAQ, and NYSE. KWEB is managing $4.76 billion of net assets with an annual expense ratio of 0.70%. The index-tracking fund utilizes a modified free float market capitalization-weighting approach to track the performance of the CSI Overseas China Internet Index. KWEB is a concentrated ETF where the ten most significant positions consist of market leaders like PDD Holdings Inc. ( PDD ), Tencent Holdings Limited ( TCEHY ), Alibaba Group Holding Limited ( BABA ), Meituan ( MPNGF ), and NetEase, Inc. ( NTES ) represent about 64% of the portfolio. In terms of the sector allocations, KWEB is heavily weighted towards consumer cyclical (46%) and communication (39%). Therefore, KWEB is vulnerable to the developments in the domestic consumers' sentiment and regulatory changes. Currently trading close to its 52-week low, the ETF has been facing a lot of challenges, generating a negative total year-to-date return of about -28%....

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