At a glance
KWEB charges 0.69% a year, above the 0.61% average of the 8 funds most like it (the 7th cheapest of 9). It has $4.91B in assets, the 2nd largest of that group; it paid 9.08% of its price in distributions over the past 12 months, annual. Over the past year it returned −40.7% with distributions reinvested (S&P 500: +11.5%), the weakest of those 9 funds; over three years it returned −0.9% a year. At its worst it fell 23.2% in the 2020 crash (S&P 500: 33.7%) and 45.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 2 months and 31 months after the lows. Its ten largest positions make up 60.0% of the fund, out of 33 in all.
The short version
KraneShares CSI China Internet ETF (KWEB) tracks the CSI Overseas China Internet Index. The index holds 33 Chinese internet companies listed in Hong Kong and the US, led by Tencent, PDD Holdings and Alibaba. It is a concentrated bet on one sector in one country. Its 0.69% expense ratio is above the 0.61% average of similar China funds, and its swings have been severe: it fell 80.9% between February 2021 and October 2022.
Price history
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KWEB -40.7% 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 | |
|---|---|---|---|---|---|---|
| KWEB official prospectus, to Dec 31, 2025 | — | +23.48% | — | -11.90% | +1.23% | — |
| MSCI China All Shares Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +28.94% | — | -2.45% | +4.14% | — |
| CSI Overseas China Internet Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +23.29% | — | -11.93% | +1.28% | — |
| KWEB price data to Oct 27, 2026 | -32.1% | -40.7% | -0.9% | -11.0% | -3.2% | +1.0% |
- Over the year to Oct 27, 2026, KWEB returned -40.7%, 9th of 9 among similar funds.
- Its 5-year annualized return was -11.0% and its 10-year -3.2%.
- In the 2020 COVID crash it fell 23.2% and regained its old high 2.1 months after the low.
- Its worst full calendar year was 2021 (-48.9%); its best was 2017 (+69.7%).
- The deepest fall in its price history was 80.9% (Feb 17, 2021 to Oct 24, 2022), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -32.1% | — |
| 2025 | +23.5% | +23.48% |
| 2024 | +12.0% | +13.25% |
| 2023 | -9.0% | -9.93% |
| 2022 | -17.2% | -16.85% |
| 2021 | -48.9% | -49.33% |
| 2020 | +58.2% | +59.66% |
| 2019 | +29.9% | +29.28% |
| 2018 | -33.9% | -33.51% |
| 2017 | +69.7% | +69.40% |
| 2016 | -8.6% | -8.45% |
| 2015 | +18.4% | — |
| 2014 | -1.5% | — |
| 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 | Lost 20.3% over that stretch · deepest drop along the way 23.2%, back to its old high 2.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 37.8% over that stretch · deepest drop along the way 45.5%, back to its old high 30.7 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $2.1000 | +103.9% |
| 2024 | $1.0300 | +123.9% |
| 2023 | $0.4600 | -82.2% |
| 2021 | $2.5800 | +1072.7% |
| 2020 | $0.2200 | +450.0% |
| 2019 | $0.0400 | -96.9% |
| 2018 | $1.2700 | +273.5% |
| 2017 | $0.3400 | -17.1% |
| 2016 | $0.4100 | +127.8% |
| 2015 | $0.1800 | -37.9% |
| 2014 | $0.2900 |
What's inside
As of Jun 30, 2026, the fund held 33 securities; the ten largest made up 60.04% of assets. It also reported 4.63% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.
| Holding | Weight | |
|---|---|---|
| Tencent Holdings Limited | 10.44% | |
| PDD Holdings Inc. | 7.92% | |
| Alibaba Group Holding Limited | 7.70% | |
| NETEASE, INC. | 6.97% | |
| MEITUAN | 6.83% | |
| BAIDU, INC. | 4.19% | |
| Full Truck Alliance Co Ltd | 4.15% | |
| KUAISHOU TECHNOLOGY | 4.08% | |
| KE Holdings Inc. | 3.89% | |
| JD.COM, INC. | 3.87% | |
| TRIP.COM GROUP LIMITED | 3.69% | |
| BILIBILI INC. | 3.65% | |
| JD Health International Inc | 3.50% | |
| TENCENT MUSIC ENTERTAINMENT GROUP | 3.39% | |
| Kanzhun Ltd | 3.21% |
By country
Hong Kong 72.05%United States 27.67%By asset type
Stocks 99.72%What changed recently
- Over the three months to Jun 30, 2026, investors withdrew a net $282.4M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -8.91%, -5.42%, +1.47%.
How it works
KWEB is an index fund. It aims to match the CSI Overseas China Internet Index, which is built by China Securities Index Co., Ltd. To qualify, a company must be China-based, meaning it is incorporated or headquartered in mainland China or earns at least half its revenue there. Its main business must be internet-related, such as online services, e-commerce, gaming or mobile software. It must also be listed outside mainland China. The index drops stocks that averaged under $3 million in daily trading or under $2 billion in market value over the past year.
Stocks are weighted by free-float market value, which counts only the shares available to the public. At each rebalance, no stock can exceed 10%, and the top five together are capped at 40%. The index is rebalanced and reconstituted twice a year. Between rebalances, weights can drift past the caps: Tencent made up 10.4% of the fund as of June 30, 2026. KraneShares expects to hold every index stock, but it may hold a representative sample instead. At least 80% of the fund must track the index. Up to 20% can go into other stocks, derivatives, other ETFs or cash.
As of June 30, 2026, about 72% of assets were in Hong Kong listings and 28% in US-listed shares, mostly depositary receipts (US-traded certificates that stand for foreign shares). The fund is non-diversified, so a few stocks can move it a lot. It also lends out securities, and its 4.6% cash position was likely collateral from that lending.
What it really costs
- KWEB charges 0.69% a year, versus an average of 0.61% for the similar funds below (7th of 9, 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 |
|---|---|---|---|---|
| KWEB | $70 | $221 | $384 | $859 |
In a retirement portfolio
KWEB gives concentrated exposure to one sector in one emerging market, and it has had deep, long-lasting losses, so it fits better as a small add-on than as a core holding.
KWEB adds China's large internet companies, which many US-focused portfolios own little of or not at all. It launched in 2013, so it has no record from 2008. In the 2020 COVID crash it fell 23.2% and recovered in about two months. In early 2022 it dropped 45.5% and took about 31 months to recover. It lost 49.3% in 2021, its worst calendar year. Its deepest fall, 80.9% from February 2021 to October 2022, had not been made up as of October 27, 2026. Anyone forced to sell in a year like that would lock in heavy losses. It pays out once a year. The trailing yield was 9.08% as of October 27, 2026, but one annual payment can vary a lot. Costs total $859 over 10 years in the SEC's $10,000 example. 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 stake in Chinese internet leaders such as Tencent, PDD, Alibaba, NetEase and Meituan, held as a small slice.
- People who can stomach deep swings; the fund fell 80.9% from February 2021 to October 2022 and had not recovered by October 27, 2026.
- Those who prefer a large fund in this niche; at about $4.9 billion as of June 30, 2026, it ranked 2nd in size among 9 similar funds.
Look elsewhere if
- Cost-conscious investors: the 0.69% expense ratio is above the 0.61% similar-fund average, and Franklin FTSE China ETF (FLCH) charges 0.19%.
- Those wanting broad China exposure beyond internet stocks; KWEB held 33 stocks, with 60% in the top 10, as of June 30, 2026.
- Retirees who may need to sell during downturns: after falling 45.5% in early 2022, the fund took about 31 months to regain its peak.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| KWEB this fund | — | 0.69% | $4.91B | -40.7% | -0.9% |
| CQQQ Invesco China Technology ETF | 39% | 0.65% | $3.05B | -30.4% | +5.7% |
| EMQQ EMQQ The Emerging Markets Internet ETF | 38% | 0.86% | $259.1M | -33.9% | +3.2% |
| FXI iShares China Large-Cap ETF | 35% | 0.74% | $4.34B | -19.4% | +11.0% |
| CHIQ Global X MSCI China Consumer Discretionary … | 34% | 0.65% | $129.7M | -33.7% | -2.6% |
| MCHI iShares MSCI China ETF | 30% | 0.59% | $6.33B | -23.7% | +8.1% |
| FLCH Franklin FTSE China ETF | 30% | 0.19% | $248.7M | -22.9% | +8.8% |
| TCHI iShares MSCI China Multisector Tech ETF | 29% | 0.59% | $44.7M | -27.2% | +7.5% |
Questions investors ask
Is KWEB good for retirement?
KWEB is a high-risk fund, so in a retirement portfolio it would usually be a small satellite holding rather than a core one. It holds only China-based internet stocks. Its official average annual return was -11.9% over five years and 1.23% over ten years as of December 31, 2025. Its deepest decline, 80.9% from February 2021 to October 2022, had not been recovered as of October 27, 2026. A large position could make withdrawals in a bad year painful.
What are KWEB's top holdings?
As of June 30, 2026, KWEB's largest holdings were Tencent (10.4%), PDD Holdings (7.9%), Alibaba (7.7%), NetEase (7.0%) and Meituan (6.8%). Baidu, Full Truck Alliance, Kuaishou, KE Holdings and JD.com rounded out the top 10. The fund held 33 stocks, and its top 10 made up about 60% of assets. As of March 31, 2026, consumer discretionary stocks were 41.4% of the index and communication services were 37.4%.
What's the difference between KWEB and CQQQ?
KWEB and Invesco China Technology ETF (CQQQ) overlap by about 39% in holdings. KWEB sticks to China internet companies. CQQQ costs a little less, at 0.65% a year versus KWEB's 0.69%. As of October 27, 2026, KWEB returned -40.7% over one year against CQQQ's -30.4%. Over three years, KWEB averaged -0.9% a year and CQQQ averaged 5.7%. KWEB is the larger fund, with about $4.9 billion in net assets versus about $3.1 billion for CQQQ.
Does KWEB pay a dividend?
Yes, KWEB pays a distribution once a year. Over the 12 months to October 27, 2026, it paid $2.10 per share, a trailing yield of 9.08%. That figure can mislead. A single annual payment can change a lot from one year to the next. Yield is also measured against the share price, and the fund fell 40.7% over the same year, which pushes the percentage up. Income seekers may find the payments too unpredictable to rely on.
What is KWEB's expense ratio?
KWEB's expense ratio is 0.69% a year, according to its prospectus filed July 29, 2026. Of that, 0.68% is the management fee. In the SEC's standard example, $10,000 invested with a 5% annual return would pay about $70 in costs after one year, $221 after three, $384 after five and $859 after ten. That ranks 7th of 9 on cost among similar funds, above the 0.61% average.