At a glance
KTEC charges 0.69% a year, above the 0.68% average of the 3 funds most like it (the 2nd cheapest of 4). It has $49.9M in assets, the 4th largest of that group; it paid 4.89% of its price in distributions over the past 12 months, annual. Over the past year it returned −39.0% with distributions reinvested (S&P 500: +11.5%), 3rd of those 4 funds; over three years it returned −0.3% a year. Its ten largest positions make up 65.3% of the fund, out of 29 in all.
The short version
KraneShares Hang Seng TECH Index ETF (KTEC) tracks the Hang Seng TECH Index: 30 large technology-related companies listed in Hong Kong, such as NetEase, Tencent, Meituan, BYD and Xiaomi. It is a concentrated bet on Chinese internet, e-commerce and electric-vehicle firms, not broad Chinese stocks. Its 0.69% expense ratio is close to the 0.68% peer average. With about $49.9 million in assets as of June 30, 2026, it is much smaller than its rivals.
Price history
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KTEC -39.0% 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 | |
|---|---|---|---|---|---|---|
| KTEC official prospectus, to Dec 31, 2025 | — | +19.78% | — | — | — | -8.69% |
| MSCI China All Shares Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +28.94% | — | — | — | -3.07% |
| Hang Seng TECH Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +24.37% | — | — | — | -7.12% |
| KTEC price data to Oct 27, 2026 | -30.8% | -39.0% | -0.3% | — | — | -7.1% |
- Over the year to Oct 27, 2026, KTEC returned -39.0%, 3rd of 4 among similar funds.
- Its worst full calendar year was 2023 (-10.4%); its best was 2025 (+21.0%).
- The deepest fall in its price history was 46.3% (Feb 25, 2022 to Oct 24, 2022), recovered by Oct 2, 2024.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -30.8% | — |
| 2025 | +21.0% | +19.78% |
| 2024 | +16.2% | +18.46% |
| 2023 | -10.4% | -11.21% |
| 2022 | — | -25.01% |
| 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 | Not in the price data, which starts Feb 25, 2022 |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $0.5300 | +1225.0% |
| 2024 | $0.0400 | -55.6% |
| 2023 | $0.0900 |
What's inside
As of Jun 30, 2026, the fund held 29 securities; the ten largest made up 65.25% of assets.
| Holding | Weight | |
|---|---|---|
| NETEASE, INC. | 10.56% | |
| Tencent Holdings Limited | 9.18% | |
| MEITUAN | 8.25% | |
| BYD COMPANY LIMITED | 7.71% | |
| XIAOMI CORPORATION | 7.52% | |
| Hua Hong Grace Semiconductor Limited | 4.73% | |
| BAIDU, INC. | 4.57% | |
| Alibaba Group Holding Limited | 4.27% | |
| JD.COM, INC. | 4.26% | |
| KUAISHOU TECHNOLOGY | 4.20% | |
| Lenovo Group Limited | 4.05% | |
| TRIP.COM GROUP LIMITED | 3.91% | |
| XPENG INC. | 3.72% | |
| Li Auto Inc. | 3.34% | |
| Midea Group Co., Ltd. | 2.95% |
By country
Hong Kong 98.9%By asset type
Stocks 98.9%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $4.2M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -9.92%, -1.17%, +2.40%.
How it works
The fund follows the Hang Seng TECH Index. To qualify, a company must be listed on the Hong Kong Stock Exchange and count as a Greater China company. That means it is incorporated in Hong Kong, gets at least half its revenue from mainland China, or is headquartered in Hong Kong, Macau or mainland China. It must also sit in one of five sectors: industrials, consumer discretionary, healthcare, financials or information technology. Then it has to pass one tech test: it runs mainly on an internet or mobile platform, spends at least 5% of revenue on research and development, or grows revenue at least 10% a year. The 30 largest qualifiers by free float market capitalization (the value of shares the public can trade) make up the index.
The index weights holdings by that free float value and caps each company at 8% at every quarterly rebalance. Between rebalances, holdings that rise can grow past the cap. As of June 30, 2026, NetEase made up 10.6% of the fund, and the top 10 holdings made up 65%. A large new listing that would rank in the top 10 joins about ten trading days after its IPO.
Krane expects to hold every stock in the index, but it may use a representative sample instead. It can also put up to 20% of assets in other stocks, derivatives or funds. The fund is non-diversified, meaning it can hold big stakes in a few companies. Its portfolio turnover was 71%.
What it really costs
- KTEC charges 0.69% a year, versus an average of 0.68% for the similar funds below (2nd of 4, 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 |
|---|---|---|---|---|
| KTEC | $70 | $221 | $384 | $859 |
In a retirement portfolio
KTEC is a concentrated, volatile bet on one country's tech sector, so it fits better as a small add-on than as a foundation.
KTEC could add Chinese tech companies that most US-focused portfolios lack, but its price swings hard. The fund launched in June 2021, so it has no record from the 2008 or 2020 crashes. It lost 25.01% in 2022, its worst full calendar year. In price data starting February 25, 2022, it fell 46.3% by October 24, 2022, and took about 23 months to recover, until October 2, 2024. It was down 30.8% for 2026 through October 27. Anyone who has to sell during a drop like that locks in deep losses. The trailing yield was 4.89% as of October 27, 2026. The fund pays once a year, so it is not a steady income source. In the SEC's standard example, $10,000 invested would cost $70 in fees over one year and $859 over 10 years. 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
- Investors who want a focused slice of Hong Kong-listed Chinese tech, such as NetEase, Tencent and Meituan, as a small part of a broader portfolio.
- People who can sit through big swings, like the 46.3% drop in 2022 and the 30.8% fall in 2026 through October 27.
- Investors comparing China tech funds who want a 0.69% fee, slightly below KWEB's 0.70% and FXI's 0.74%.
Look elsewhere if
- Retirees who may need to sell in a downturn. After the 2022 low, the fund took about 23 months to get back to its earlier peak.
- Investors who want cheaper, broader China exposure. MCHI charges 0.59%, and only 29% of its holdings overlap with KTEC's.
- Investors who prefer large, heavily traded funds. KTEC held about $49.9 million, compared with about $4.9 billion for KWEB, as of June 30, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
Is KTEC a good investment for retirement?
KTEC is a high-risk fund that fits better as a small satellite holding than as a retirement core. It holds 30 Hong Kong-listed Chinese tech companies and lost 25.01% in 2022. In its available price history, it fell 46.3% from February to October 2022 and needed about 23 months to recover. It also fell 30.8% in 2026 through October 27. Retirees who may need to sell shares in a bad year would face those swings directly.
What's the difference between KTEC and KWEB?
Both come from KraneShares, but they track different indexes. KTEC follows the Hang Seng TECH Index, while KWEB follows a CSI China internet index. About 47% of their holdings overlap. KTEC also holds electric-vehicle makers BYD, XPeng and Li Auto, plus chipmaker Hua Hong. KTEC charges 0.69% and KWEB charges 0.70%. KWEB is far larger, at about $4.9 billion versus $49.9 million. As of October 27, 2026, KTEC returned -39% over one year and KWEB returned -40.7%.
Does KTEC pay dividends?
Yes, but only once a year. Over the 12 months to October 27, 2026, the fund paid $0.53 per share, a trailing yield of 4.89%. Because there is a single annual payment, the amount can change a lot from one year to the next. The payments come from Chinese tech companies, many of which put profits back into growth, so the fund is not built as a steady income source.
What are KTEC's top holdings?
As of June 30, 2026, the five largest holdings were NetEase (10.6%), Tencent (9.2%), Meituan (8.2%), BYD (7.7%) and Xiaomi (7.5%). Next came Hua Hong Semiconductor, Baidu, Alibaba, JD.com and Kuaishou, each at about 4% to 5%. The top 10 made up 65% of the fund. As of March 31, 2026, the index was 45.8% consumer discretionary and 26.0% communication services.
How has KTEC performed since launch?
KTEC has lost money since its June 2021 launch. Its official average annual return was -8.69% from launch through December 31, 2025, compared with -7.12% for the Hang Seng TECH Index. Results by calendar year were -25.01% in 2022, -11.21% in 2023, 18.46% in 2024 and 19.78% in 2025. Based on share price, it was down 30.8% in 2026 through October 27 and down 39% over the year to that date.