At a glance
KBUF charges 0.97% a year, above the 0.86% average of the 7 funds most like it (the most expensive of 8). It has $9.1M in assets, the 8th largest of that group; it paid 9.16% of its price in distributions over the past 12 months, annual. Over the past year it returned −21.9% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds.
The short version
KraneShares 90% KWEB Defined Outcome January 2027 ETF (KBUF) owns the KraneShares CSI China Internet ETF (KWEB) plus options seeking, before fees, to cap gains at 40% and limit losses to 10% from January 27, 2025, to January 15, 2027. Both apply only to shares held for the whole period. It costs 0.97% a year, the highest of eight buffer ETFs compared, and had $9.08 million in assets as of June 30, 2026.
Price history
The interactive chart needs JavaScript.
KBUF -21.9% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| KBUF official prospectus, to Dec 31, 2025 | — | +18.12% | — | — | — | +17.50% |
| MSCI China All Shares Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +28.94% | — | — | — | +27.67% |
| CSI Overseas China Internet Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +23.29% | — | — | — | +24.47% |
| KBUF price data to Oct 27, 2026 | -18.0% | -21.9% | — | — | — | +4.6% |
- Over the year to Oct 27, 2026, KBUF returned -21.9%, 8th of 8 among similar funds.
- Its worst full calendar year was 2025 (+18.1%); its best was 2025 (+18.1%).
- The deepest fall in its price history was 22.8% (Oct 2, 2025 to Oct 27, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -18.0% | — |
| 2025 | +18.1% | +18.12% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $2.3000 |
What's inside
As of Jun 30, 2026, the fund held 1 securities; the ten largest made up 85.72% of assets.
| Fund held | Weight | |
|---|---|---|
| KRANESH CSI CHINA INTERNET MUTUAL FUND | 85.72% |
By country
United States 85.72%By asset type
Stocks 85.72%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $6.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -3.68%, -4.10%, -0.32%.
How it works
KBUF keeps at least 80% of net assets in the KraneShares CSI China Internet ETF (KWEB), also managed by Krane Funds Advisors, and in FLEX options on it: customizable exchange-traded options cleared by the Options Clearing Corporation (OCC). KWEB tracks the CSI Overseas China Internet Index of China-based internet companies listed outside mainland China. As of June 30, 2026, KWEB was about 85.7% of assets and a put option about 14.8%.
The put gains value if KWEB falls below a set (strike) price; a sold call gives away gains above a higher one. Over the outcome period, January 27, 2025, to January 15, 2027, the fund seeks to match KWEB's total return up to 40%, or about 39.32% after the 0.25% management fee. If KWEB falls more than 10%, the fund seeks to limit losses to 10% before fees, which the prospectus calls a buffer against 90% of declines. Other expenses shrink both, and neither is guaranteed.
These outcomes apply only to shares held for the whole period; investors who enter late or exit early may get different results. Day to day, the fund moves less than KWEB, since option values also depend on time to expiration. KWEB distributions can prompt the OCC to adjust the options' strike prices, which can alter the cap and buffer.
What it really costs
- KBUF charges 0.97% a year, versus an average of 0.86% for the similar funds below (8th of 8, cheapest first).
- Of that, 0.25% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $99 in the first year and $1,190 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| KBUF | $99 | $309 | $536 | $1,190 |
Structure and tax notes
- Generates much of its income from selling options (directly or through notes). That income is usually taxed as ordinary income rather than as qualified dividends, and the strategy gives up some upside in strong markets.
- Uses options to limit losses within a range (the buffer) in exchange for a cap on gains over each outcome period; results depend on when you buy relative to the period start.
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
It concentrates in one ETF of China-based internet companies, and its loss limit applies only to shares held through a fixed period ending January 15, 2027.
KBUF could add cushioned Chinese internet exposure, but it launched in 2024, missing the 2008, 2020 and 2022 downturns. In 2025, its only full calendar year, it returned 18.12%. Its deepest drop, 22.8% from October 2, 2025, through October 27, 2026, had not recovered. That exceeds the 10% loss limit because the limit is measured from the outcome period's start to its end. Someone who invested near the peak and needed cash in a bad year would have absorbed that drop.
It paid $2.30 per share in the year to October 27, 2026, a 9.16% trailing yield, but payments are annual and can vary. Its 0.97% expense ratio is the highest of eight buffer ETFs compared; the SEC's standard example puts costs at $1,190 over 10 years on $10,000. Past results don't predict the future; a plan needs to weigh the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors wanting China-based internet companies through KWEB who accept gains capped near 40% to cushion losses beyond 10% over the outcome period.
- Those who understand results depend on when they invest and can hold until the options expire on January 15, 2027.
- People seeking a small Chinese internet stake with smaller price swings; by design, the fund moves less than KWEB day to day.
Look elsewhere if
- Cost-focused investors: its 0.97% expense ratio ranks highest of eight buffer ETFs compared, while Innovator's PJAN and PDEC charge 0.79%.
- Anyone who may need cash before January 15, 2027: early exits may not get the buffer; the fund fell 22.8% from its October 2025 peak.
- Investors seeking broad diversification or regular income: it mainly holds a single ETF of China internet companies, and its distributions have been annual.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| KBUF this fund | 0.97% | $9.1M | -21.9% | — |
| BUFR FT Vest Laddered Buffer ETF | 0.95% | $10.49B | +11.6% | +16.8% |
| BUFD FT Vest Laddered Deep Buffer ETF | 0.95% | $2.04B | +9.5% | +13.9% |
| PJAN Innovator U.S. Equity Power Buffer ETF - Ja… | 0.79% | $1.44B | +10.5% | +14.8% |
| PDEC Innovator U.S. Equity Power Buffer ETF - De… | 0.79% | $984.1M | +11.6% | +14.9% |
| FDEC FT Vest US Equity Buffer ETF - December | 0.85% | $1.31B | +12.9% | +18.5% |
| FJAN FT Vest US Equity Buffer ETF - January | 0.85% | $1.47B | +12.3% | +17.4% |
| FFEB FT Vest U.S. Equity Buffer Fund - February | 0.85% | $1.42B | +12.9% | +18.6% |
Questions investors ask
Does KBUF protect against losses?
Partly. If the KraneShares CSI China Internet ETF (KWEB) falls more than 10% over the outcome period, January 27, 2025, to January 15, 2027, KBUF seeks to limit losses to 10% before fees. The prospectus calls this a buffer against 90% of declines, or about 89.31% after the 0.25% management fee. The protection isn't guaranteed and applies only to shares held for the whole period. The fund fell 22.8% from October 2, 2025, through October 27, 2026, showing the cushion doesn't limit losses measured from a mid-period high.
How much can KBUF gain?
KBUF's gains are capped at 40% over its outcome period, before fees, or about 39.32% after its 0.25% management fee, and other expenses lower that further. Up to the cap, it seeks to match the total return of the KraneShares CSI China Internet ETF (KWEB) from January 27, 2025, to January 15, 2027. Holders give up any gains above the cap, so the fund can trail KWEB in strong markets. Investors who enter mid-period get only whatever room to the cap remains.
What's the difference between KBUF and KWEB?
KWEB tracks the CSI Overseas China Internet Index of China-based internet companies listed outside mainland China; KBUF holds KWEB plus options that cap gains and cushion losses. As of June 30, 2026, KBUF had about 85.7% of assets in KWEB and the rest in options expiring January 15, 2027. By design, KBUF moves less than KWEB day to day. In 2025, KBUF returned 18.12% while the index gained 23.29%, though index figures include no fees.
Is KBUF expensive compared with other buffer ETFs?
Yes. KBUF's expense ratio, its annual fee as a share of assets, is 0.97%, per its prospectus filed July 29, 2026, the highest of eight buffer ETFs compared; the other seven average 0.86%. Innovator's PJAN and PDEC charge 0.79% and FT Vest's FJAN 0.85%, though those funds are built on U.S. stocks rather than Chinese internet companies. In the SEC's standard example, $10,000 earning 5% a year would incur $99 in costs after one year and $1,190 over 10 years.
Does KBUF pay dividends?
Yes, annually. KBUF paid $2.30 per share in the year to October 27, 2026, a trailing yield of 9.16%. One yearly payment can vary a lot, and each distribution lowers the fund's share value by the amount paid, so that yield isn't a guide to steady income. The prospectus says option income is generally classified as a return of capital, a payout treated as giving back part of the investment, for accounting purposes. The fund mainly targets a capped, buffered return.