At a glance
KLIP charges 0.94% a year, above the 0.86% average of the 7 funds most like it (the 6th cheapest of 8). It has $99.3M in assets, the 8th largest of that group; it paid 29.37% of its price in distributions over the past 12 months, monthly. Over the past year it returned −19.0% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +3.3% a year.
The short version
KraneShares KWEB Covered Call Strategy ETF (KLIP) owns another fund, the KraneShares CSI China Internet ETF (KWEB). Each month it sells call options on its whole KWEB stake to earn income. That approach gave a trailing 12-month yield of 29.37%, paid monthly, as of October 27, 2026. The trade-off is that it gives up gains in strong rallies and still takes most of the losses when Chinese internet stocks fall. Its expense ratio is 0.94%.
Price history
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KLIP -19.0% 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 | |
|---|---|---|---|---|---|---|
| KLIP official prospectus, to Dec 31, 2025 | — | +17.45% | — | — | — | +10.17% |
| MSCI China All Shares Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +28.94% | — | — | — | +6.93% |
| CSI Overseas China Internet Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +23.29% | — | — | — | +3.07% |
| KLIP price data to Oct 27, 2026 | -14.3% | -19.0% | +3.3% | — | — | +4.8% |
- Over the year to Oct 27, 2026, KLIP returned -19.0%, 8th of 8 among similar funds.
- Its worst full calendar year was 2024 (+3.4%); its best was 2025 (+16.8%).
- The deepest fall in its price history was 21.4% (Jan 29, 2026 to Jun 25, 2026), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -14.3% | — |
| 2025 | +16.8% | +17.45% |
| 2024 | +3.4% | +4.06% |
| 2023 | +15.6% | — |
| 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 |
|---|---|---|
| 2026 (to date) | $4.6500 | |
| 2025 | $7.5400 | -57.2% |
| 2024 | $17.5976 | -45.8% |
| 2023 | $32.4925 |
What's inside
As of Jun 30, 2026, the fund held 1 securities; the ten largest made up 101.57% of assets.
| Fund held | Weight | |
|---|---|---|
| KRANESH CSI CHINA INTERNET MUTUAL FUND | 101.57% |
By country
United States 101.57%By asset type
Stocks 101.57%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $1.3M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -5.52%, -3.57%, +3.48%.
How it works
KLIP is a fund of funds. Instead of buying stocks directly, it holds a sister fund, the KraneShares CSI China Internet ETF (KWEB). KWEB tracks the CSI Overseas China Internet Index, which covers China-based internet companies listed outside mainland China. The index drops stocks averaging under $2 billion in market value or $3 million in daily trading. It weights the rest by free-float market value (shares available to the public), capping any one company at 10% and the top five combined at 40% at each rebalance.
Each month, KLIP sells (writes) call options on its entire KWEB stake. A call gives the buyer the right to buy shares at a set “strike” price. KLIP uses FLEX options, exchange-traded contracts with custom terms. They are struck near KWEB’s market price (“at the money”), usually run more than 30 days and can generally be exercised only at expiration. The buyer pays KLIP a premium up front. That cash softens losses a little, but KLIP gives up KWEB’s gains above the strike and still bears its declines.
KLIP aims to pay out option income monthly, keeping each payment at or below 2% of net asset value (the fund’s per-share worth); December’s may be larger to meet tax rules. Trading is heavy: the prospectus filed July 29, 2026, reports portfolio turnover of 397%.
What it really costs
- KLIP charges 0.94% a year, versus an average of 0.86% for the similar funds below (6th 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 $96 in the first year and $1,155 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| KLIP | $96 | $300 | $520 | $1,155 |
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.
- Invests in other funds rather than directly in stocks or bonds, so its holdings are those funds.
In a retirement portfolio
KLIP pays high monthly income, but it rests on a single, volatile sector in one emerging-market country, so it fits best as a small part of a broader mix.
KLIP launched on January 12, 2023, so it did not exist during the 2008, 2020 or 2022 sell-offs. Its deepest drop so far was 21.4%, from January 29 to June 25, 2026. It had not recovered as of October 27, 2026. Its weakest full calendar year in the prospectus was 2024, with a 4.06% gain. Anyone forced to sell during a slump like 2026's would lock in losses, because the option premiums soften declines only partly.
The trailing 12-month yield was 29.37% as of October 27, 2026, paid monthly. That income comes mainly from option premiums, which are usually taxed as ordinary income. A high payout can come with a falling share price: the fund lost 14.3% in 2026 through October 27. The 0.94% expense ratio is above the 0.86% average of the funds it was compared with. Past results don't predict the future, 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 comfortable with a large, variable monthly payout from option premiums: the trailing yield was 29.37% as of October 27, 2026.
- Investors who want China internet exposure through KWEB and will give up rally gains above each month's strike price in exchange for premium income.
- Those keeping a small, high-risk slice for income, ideally in accounts where option income taxed as ordinary income matters less.
Look elsewhere if
- Anyone needing broad diversification. KLIP is non-diversified and holds a single ETF focused on one sector in one emerging-market country.
- Investors seeking long-term growth. In 2025 KLIP returned 17.45%, versus 23.29% for its index, and its gains are capped in strong rallies.
- Cost-conscious investors. The 0.94% expense ratio works out to about $96 in the first year on $10,000 under the SEC example, and turnover was 397%.
Close alternatives
Matched by other buffer (defined-outcome) funds, largest first.
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| KLIP this fund | 0.94% | $99.3M | -19.0% | +3.3% |
| 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 KLIP pay monthly dividends?
Yes. KLIP pays distributions monthly. Over the 12 months to October 27, 2026, it paid $6.29 per share, a trailing yield of 29.37%. The fund aims to keep each monthly payout at or below 2% of net asset value, though December's can be higher for tax reasons. The money comes mainly from option premiums, not company dividends, and is usually taxed as ordinary income rather than as qualified dividends.
What's the difference between KLIP and KWEB?
KWEB tracks the CSI Overseas China Internet Index. KLIP owns KWEB and sells monthly call options on it for income. That caps KLIP's upside. In 2025, KLIP returned 17.45%, versus 23.29% for the index. Over the longer period, the premiums helped: since KLIP's launch through December 31, 2025, KLIP averaged 10.17% a year versus 3.07% for the index. Index returns don't deduct any fees.
Is KLIP good for retirement income?
KLIP can produce large monthly income, but with real risk to the money invested. Its trailing yield was 29.37% as of October 27, 2026. Even so, the fund fell 21.4% between January 29 and June 25, 2026, and had not recovered by October 27. All of its assets sit in Chinese internet stocks through KWEB, so it may suit a small part of a diversified portfolio rather than serve as the main source of income.
What is KLIP's expense ratio?
KLIP's expense ratio is 0.94%, according to its prospectus filed July 29, 2026. The management fee is 0.25%, and the fund also bears its share of KWEB's expenses. In the SEC's standard example, $10,000 earning 5% a year would cost about $96 after one year, $300 after three, $520 after five and $1,155 after ten. The funds it was compared with average 0.86%.
Is KLIP a buffer ETF?
No. KLIP has no built-in loss buffer. Its only cushion is the option premium it collects each month. It was compared with defined-outcome funds such as FT Vest Laddered Buffer ETF (BUFR) and Innovator U.S. Equity Power Buffer ETF (PJAN). Those funds are designed to absorb a set range of losses over a set period, so they work differently. As of October 27, 2026, BUFR returned 11.6% over one year, while KLIP lost 19%.