At a glance
KHYB charges 0.69% a year, above the 0.37% average of the 7 funds most like it (the 7th cheapest of 8). It has $15.6M in assets, the 8th largest of that group; it paid 8.69% of its price in distributions over the past 12 months, monthly. Over the past year it returned +3.5% with distributions reinvested, 3rd of those 8 funds; over three years it returned +9.9% a year. At its worst it fell 18.9% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 21 months after the low. Its ten largest positions make up 20.7% of the fund, out of 69 in all.
The short version
KraneShares Asia Pacific High Income USD Bond ETF (KHYB) is an actively managed fund of US dollar bonds from Asia-Pacific borrowers, mostly below investment grade ("junk") or unrated. Its main draw is income, paid monthly: the past 12 months of payouts equaled an 8.69% yield as of October 27, 2026. The trade-offs: a 0.69% annual expense ratio, well above the 0.37% comparison-fund average, and just $15.6 million in assets as of June 30, 2026.
Price history
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KHYB +3.5% 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 | |
|---|---|---|---|---|---|---|
| KHYB official prospectus, to Dec 31, 2025 | — | +9.83% | — | -0.10% | — | +1.70% |
| JP Morgan Asia Credit Index (JACI) Diversified (Reflects no deduction for fees, expenses or taxes) index, same period | — | +8.22% | — | +1.23% | — | +3.33% |
| JP Morgan Asia Credit Index (JACI) Non-Investment Grade Corporate Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +9.43% | — | -1.33% | — | +1.66% |
| KHYB price data to Oct 27, 2026 | +2.8% | +3.5% | +9.9% | +2.6% | — | +0.6% |
- Over the year to Oct 27, 2026, KHYB returned +3.5%, 3rd of 8 among similar funds.
- Its 5-year annualized return was +2.6%.
- Its worst full calendar year was 2022 (-10.1%); its best was 2024 (+10.8%).
- The deepest fall in its price history was 32.4% (Aug 31, 2021 to Nov 2, 2022), recovered by Jan 26, 2026.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +2.8% | — |
| 2025 | +9.6% | +9.83% |
| 2024 | +10.8% | +10.53% |
| 2023 | +3.5% | +3.72% |
| 2022 | -10.1% | -9.36% |
| 2021 | — | -12.83% |
| 2020 | — | +4.09% |
| 2019 | — | +9.19% |
| 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 | Not in the price data, which starts Aug 3, 2021 |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 18.8% over that stretch · deepest drop along the way 18.9%, back to its old high 20.8 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.7000 | |
| 2025 | $1.8600 | -23.8% |
| 2024 | $2.4400 | -34.8% |
| 2023 | $3.7400 | +43.3% |
| 2022 | $2.6100 |
What's inside
As of Jun 30, 2026, the fund held 69 securities; the ten largest made up 20.67% of assets.
| Holding | Weight | |
|---|---|---|
| Trade and Development Bank of Mongolia JSC Bonds and notes | 2.58% | |
| Golomt Bank JSC Bonds and notes | 2.57% | |
| Fortune Star (BVI) Limited Bonds and notes | 2.53% | |
| CS Treasury Management Services (P) Limited Bonds and notes | 2.53% | |
| STANDARD CHARTERED PLC Bonds and notes | 2.26% | |
| MEDCO CYPRESS TREE PTE. LTD. Bonds and notes | 1.67% | |
| SAMMAAN CAPITAL LIMITED Bonds and notes | 1.66% | |
| MUANGTHAI CAPITAL PUBLIC COMPANY LIMITED Bonds and notes | 1.63% | |
| PIRAMAL FINANCE LIMITED Bonds and notes | 1.63% | |
| PT Indika Energy Tbk Bonds and notes | 1.62% | |
| STATE BANK JSC Bonds and notes | 1.61% | |
| Wynn Macau, Limited Bonds and notes | 1.59% | |
| VEDANTA RESOURCES FINANCE II PLC Bonds and notes | 1.36% | |
| HON HAI PRECISION INDUSTRY CO., LTD. Bonds and notes | 1.35% | |
| STANDARD CHARTERED PLC Bonds and notes | 1.35% |
By country
China 18.45%India 17.39%Hong Kong 12.33%MN 8.06%Indonesia 5.76%By issuer
Foreign governments 91.86%Companies 3.64%The bonds mature in 39.6 years on average (weighted by size), with an average coupon of 7.12%.
Source: N-PORT holdings report as of Jun 30, 2026. Cash, money-market funds and derivatives are shown separately from the securities list.What changed recently
- Over the three months to Jun 30, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +0.43%, +1.01%, +2.68%.
How it works
KHYB is actively managed, not an index fund. Its sub-adviser (the firm picking the bonds), Amova Asset Management Americas, aims to beat the JP Morgan Asia Credit Index (JACI) Non-Investment Grade Corporate Index, before fees, over a full market cycle. At least 80% of assets go into US dollar bonds from Asia-Pacific companies, government-linked agencies and governments. It focuses on junk bonds (rated Ba1/BB+ or lower, with higher default risk) and unrated bonds. It may also hold convertibles, which can turn into stock, and Regulation S bonds, which are offered outside the US and may be harder to trade.
The sub-adviser combines top-down views of each economy with bottom-up research into each borrower's ability to pay. It also compares each bond's value with similar bonds. Turnover was 198%, which means the fund roughly replaced its whole portfolio twice in a year. The fund expects to keep more than 25% of its assets in real estate. Its broad definition of "Asia-Pacific" covers issuers such as UK-based Standard Chartered. The fund may use derivatives such as swaps, but it held none on June 30, 2026.
As of June 30, 2026, it held 69 bonds, and the 10 largest made up about 21% of the fund. China (18.5%), India (17.4%), Hong Kong (12.3%) and Mongolia (8.1%) were the largest country weights. The four largest holdings were each about 2.5% of the fund. They were bonds from Trade and Development Bank of Mongolia, Golomt Bank, Fortune Star and CS Treasury Management Services.
What it really costs
- KHYB charges 0.69% a year, versus an average of 0.37% for the similar funds below (7th of 8, cheapest first).
- Of that, 0.68% is the management fee; the rest covers other fund expenses.
- Using the prospectus's standard example, $10,000 invested would cost about $70 in the first year and $859 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| KHYB | $70 | $221 | $384 | $859 |
Structure and tax notes
- Bond prices move opposite to interest rates; the longer the maturities it holds, the more its price reacts to rate changes.
In a retirement portfolio
It pays high monthly income, but its junk-rated Asian bonds have fallen as much as 32.4%, so it fits better as a small add-on than as a core bond holding.
KHYB could add monthly income. Its payouts over the past 12 months equaled an 8.69% yield as of October 27, 2026. That income has come with real risk. The fund lost 12.83% in 2021 and 9.36% in 2022, according to its prospectus. In the 2022 bear market it fell 18.9% and took about 21 months to recover. Its deepest drop was 32.4%, from August 2021 to November 2022, and it took about 39 months to recover, in January 2026. The fund launched in 2018, so it has no 2008 record. It returned 4.09% for 2020 as a whole.
Someone drawing money from the fund during two losing years in a row would be cashing out shares at low prices. Costs add up too. The fee is 0.69% a year, or $859 over 10 years on $10,000 in the SEC's standard example, which assumes a 5% yearly return. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income seekers who are comfortable with junk bonds and want monthly payouts; the trailing 12-month yield was 8.69% as of October 27, 2026.
- Investors wanting US dollar bonds from Asian borrowers; China, India, Hong Kong and Mongolia were the largest country weights as of June 30, 2026.
- Investors seeking a small, actively managed position that aims to beat the JACI Non-Investment Grade Corporate Index over a full market cycle.
Look elsewhere if
- Cost-focused investors: KHYB's 0.69% expense ratio is the second-highest of eight comparison funds, versus 0.05% for SPHY and 0.08% for USHY.
- Anyone who may need cash during slumps: it fell 32.4% from August 2021 to November 2022 and took about 39 months to recover.
- Investors wary of tiny or concentrated funds: assets were $15.6 million as of June 30, 2026, and the fund expects over 25% in real estate.
Close alternatives
Matched by bond funds with the closest average maturity and issuer mix (N-PORT).
| Fund | Avg. maturity | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| KHYB this fund | 39.6 yrs | 0.69% | $15.6M | +3.5% | +9.9% |
| ANGL VanEck Fallen Angel High Yield Bond ETF | 8.7 yrs | 0.25% | $3.05B | -0.3% | +8.2% |
| JNK SPDR Bloomberg High Yield Bond ETF | 5.8 yrs | 0.4% | $7.35B | +1.6% | +8.7% |
| HYG iShares iBoxx $ High Yield Corporate Bond E… | 5.4 yrs | 0.49% | $16.19B | +0.9% | +7.4% |
| USHY iShares Broad USD High Yield Corporate Bond… | 5.4 yrs | 0.08% | $28.59B | +1.2% | +7.7% |
| SPHY SPDR Portfolio High Yield Bond ETF | 5.4 yrs | 0.05% | $11.33B | +1.8% | +8.9% |
| BKLN Invesco Senior Loan ETF | 4.8 yrs | 0.65% | $6.74B | +3.9% | +6.9% |
| SRLN SPDR Blackstone Senior Loan ETF | 5.2 yrs | 0.7% | $5.21B | +3.7% | +7.0% |
Questions investors ask
Does KHYB pay monthly dividends?
Yes. KHYB makes monthly payouts, which come mainly from the interest on its bonds. Over the 12 months to October 27, 2026, it paid $2.04 per share, a trailing yield of 8.69%. Its bonds carried an average coupon, or interest rate, of 7.12% as of June 30, 2026. The payout isn't fixed. It can fall if borrowers default or if the fund moves into lower-paying bonds.
Is KHYB a junk bond fund?
Mostly, yes. Its prospectus says it aims to invest mainly in unrated bonds or bonds rated below investment grade (Ba1/BB+ or lower), which are commonly called junk bonds. These borrowers are more likely to default, which is why they pay higher interest. The fund can also hold higher-rated and government-linked bonds. As of June 30, 2026, its largest holdings included bonds from Trade and Development Bank of Mongolia (8.5% coupon), Golomt Bank (7.95%) and Fortune Star (5.05%).
What's the difference between KHYB and HYG?
The main differences are region, management style and cost. HYG, the iShares iBoxx $ High Yield Corporate Bond ETF, is an index fund of US dollar high-yield corporate bonds. KHYB is actively managed and focuses on Asia-Pacific issuers. KHYB charges 0.69% a year, versus 0.49% for HYG. KHYB had $15.6 million in assets as of June 30, 2026. HYG had $16.2 billion as of August 31, 2026. Over three years, KHYB returned 9.9% a year to October 27, 2026, and HYG returned 8.5% to October 30, 2026.
Is KHYB good for retirement income?
It can provide high monthly income, but with sizable risk. Its trailing yield was 8.69% as of October 27, 2026. However, it lost 12.83% in 2021 and 9.36% in 2022, according to its prospectus. Its deepest drop, 32.4%, took about 39 months to recover, ending in January 2026. Its 0.69% expense ratio is well above the 0.37% average for comparison funds. It may suit retirees as a small, higher-risk income holding rather than a core bond holding.
Has KHYB beaten its benchmark?
Narrowly, against the index it aims to beat. As of December 31, 2025, KHYB's average annual return over five years was -0.1%, versus -1.33% for the JACI Non-Investment Grade Corporate Index. Over one year it returned 9.83%, versus 9.43% for the index. Since its 2018 launch it returned 1.7% a year, about level with the index's 1.66%. It trailed the broader JACI Diversified index, which returned 1.23% a year over five years and 3.33% a year since the fund's inception. Index figures exclude fees.