ETF Evaluator: KraneShares KWEB Covered Call Strat ETF () Follow This ETF

KraneShares KWEB Covered Call Strat ETF Overview

KraneShares KWEB Covered Call Strat ETF (KLIP) is a passively managed Nontraditional Equity Derivative Income exchange-traded fund (ETF). KraneShares launched the ETF in 2023.

The investment seeks to provide current income. Under normal circumstances, the fund invests at least 80% of its net assets in the component securities of the CSI Overseas China Internet Index or in instruments that have economic characteristics similar to those in the index and writes covered call options on the index or in instruments that have economic characteristics similar to writing covered call options on the index. Currently, the adviser intends to invest in KraneShares CSI China Internet ETF (“underlying fund”) and to write (sell) covered call options on the underlying fund. The fund is non-diversified.

About KraneShares KWEB Covered Call Strat ETF (KLIP)

There are 2 members of the management team with an average tenure of 3.55 years: James Maund (2023) and Jonathan Shelon (2023). 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 KWEB Covered Call Strat ETF has 7 securities in its portfolio. The top 10 holdings constitute 117.7% 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 KWEB Covered Call Strat ETF is part of the Equity global asset class and is within the Nontraditional Equity ETF group. KraneShares KWEB Covered Call Strat ETF has 107.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is -10.0% There is 107.5% 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 KWEB Covered Call Strat ETF has 2.5% of the portfolio in cash.

Assets Under Management

The fund has $101 million in total assets, which is below the $727 million average for the Derivative Income 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.

KLIP 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 KWEB Covered Call Strat ETF expense ratio is high compared to funds in the Derivative Income category. KraneShares KWEB Covered Call Strat ETF has an expense ratio of 0.95%, which is 14% 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 KWEB Covered Call Strat ETF has a portfolio turnover rate of 397%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 69% for the Derivative Income category.

Recently, in the month of July 2026, KraneShares KWEB Covered Call Strat ETF returned 8.5%, which earned it a grade of A, as the Derivative Income category had an average return of -1.5%. 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 KWEB Covered Call Strat ETF has a trailing yield of 15.73%, which is below the 19.96% category average. The fund normally distributes its income monthly 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 KWEB Covered Call Strat ETF Grades

Year to date, the ETF has returned -6.9%, 9.4 percentage points worse than the category, which translates into a grade of D. The fund has returned -3.2% over the past year (grade of F) and 6.5% over the past three years (grade of F).

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