ETF Evaluator: KraneShares CSI China Internet ETF (KWEB) Follow This ETF

KraneShares CSI China Internet ETF Overview

KraneShares CSI China Internet ETF (KWEB) is a passively managed International Equity Greater China Region exchange-traded fund (ETF). KraneShares launched the ETF in 2013.

The investment seeks to provide investment results that correspond generally to the price and yield performance of the CSI Overseas China Internet Index. The fund will invest at least 80% of its net assets in instruments in its underlying index or in instruments that have economic characteristics similar to those in the underlying index. The index is designed to measure the equity market performance of investable publicly traded "China-based companies" whose primary business or businesses are in the Internet and Internet-related sectors, and are listed outside of Mainland China, as determined by the index provider. The fund is non-diversified.

About KraneShares CSI China Internet ETF (KWEB)

There are 2 members of the management team with an average tenure of 7.19 years: James Maund (2020) and Jonathan Shelon (2018). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: MSCI China All Shares NR USD index with a weighting of 100% and CSI Overseas China Internet PR USD index with a weighting of 100%. KraneShares CSI China Internet ETF has 34 securities in its portfolio. The top 10 holdings constitute 60.1% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

KraneShares CSI China Internet ETF is part of the Equity global asset class and is within the International Equity ETF group. KraneShares CSI China Internet ETF has 99.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 99.9% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). KraneShares CSI China Internet ETF has 0.1% of the portfolio in cash.

Assets Under Management

The fund has $4 billion in total assets, which is above the $1 billion average for the Greater China Region category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

KWEB Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The KraneShares CSI China Internet ETF expense ratio is above average compared to funds in the Greater China Region category. KraneShares CSI China Internet ETF has an expense ratio of 0.70%, which is 5% higher than its category average, making the fund expense ratio grade a C. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. KraneShares CSI China Internet ETF has a portfolio turnover rate of 45%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 57% for the Greater China Region category.

Recently, in the month of June 2026, KraneShares CSI China Internet ETF returned -8.9%, which earned it a grade of D, as the Greater China Region category had an average return of -1.6%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

KraneShares CSI China Internet ETF has a trailing yield of 8.61%, which is above the 3.30% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

KraneShares CSI China Internet ETF Grades

Year to date, the ETF has returned -29.0%, 35.1 percentage points worse than the category, which translates into a grade of F. The fund has returned -24.4% over the past year (grade of F), 0.4% over the past three years (grade of F) and -16.0% per year over the past five years (grade of F) and -0.8% per year over the past 10 years (grade of F).

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