A pioneer in the China ETF market for over a decade, KraneShares provides innovative exposure to internet, AI, healthcare, technology, and more through our comprehensive list of US-listed China ETFs.
Top Performing KraneShares China ETFs YTD
Data as of Apr/07/2026
| Ticker | Name | NAV | Net Assets | Fact Sheet | Pitchbook |
*Fee waivers are contractual and in effect until August 1, 2026
What are China ETFs?
China index-based exchange traded funds (ETFs) offer investors a way to gain exposure to China's economy by tracking a tailored basket of Chinese securities. This allows investors to gain investment exposure to China on US or international stock exchanges. China ETFs provide an opportunity to gain exposure to China's various onshore and offshore themes while leveraging the flexibility, liquidity, and transparency of an ETF structure. KraneShares is a leader in China ETF investing, having launched our flagship China internet ETF (KWEB) on the New York Stock Exchange in 2013 — the first of its kind1. Today, KWEB is one of the largest China ETFs globally1. See our comprehensive guide to China ETF investing for more information on China ETFs. To learn more about the basics of ETF trading, please see our ETF Trading 101 article here.
Why Invest in China ETFs?
As the world’s second-largest economy, China remains a critical component of global portfolios, and China's transition toward high-tech manufacturing, digital innovation, and domestic consumption exhibits a differentiated market exposure compared to developed markets. The commitment of China to developing innovative growth sectors such as Artificial Intelligence (AI), E-Commerce, and semiconductors is reflected in its "New Quality Productive Forces"—a key pillar of China’s 15th Five-Year Plan2. Investing in China ETFs allows investors ways to gain exposure to AI and other strategically important, fast-developing sectors in China and broader Emerging Markets. Moreover, many China ETFs currently trade at a valuation discount relative to US equities. KWEB's holdings currently trade at an average price-to-earnings (P/E) ratio of 17.7 versus 34.4 for the Nasdaq 100 Index3. China ETFs offer exposure to long-term structural themes at a favorable entry point, depending on market conditions.
Understanding the Different Types of China ETFs
Not all China ETFs are created equal, and understanding the underlying share classes is essential for targeted exposure. China equity markets are separated into different share classes: onshore-listed A-shares (mainland China in Shanghai and Shenzhen), offshore-listed H-shares (Hong Kong), and offshore US-listed ADRs. Investors can invest in one share class for specialized exposure or pursue an "all shares" approach that combines both onshore and offshore equities, offering the broadest opportunity set for investing in China. Our China ETFs provide access to all Chinese share classes and give investors the tools to tailor their China ETF exposure. For example, our Hang Seng Tech ETF (KTEC) focuses specifically on Hong Kong's technology sector (H-shares), our STAR Market ETF (KSTR) focuses on companies listed on Shanghai's STAR Market, often called the "Nasdaq of China"4 (A-shares), and our China Internet ETF (KWEB) focuses on China's broader AI & digital economy with exposure to both Hong Kong and US-listed companies.
Frequently Asked Questions About China ETFs
Are China ETFs US-listed?
Yes, our China ETFs are US-listed, trading on major exchanges like the NYSE and NASDAQ. This provides investors with daily liquidity, US dollar pricing, and the ability to trade through a standard brokerage account while gaining direct international exposure.
Can non-US investors allocate to US-listed China ETFs?
Yes, non-US investors may have opportunities to purchase US-listed ETFs through international brokerage accounts. However, there are often significant tax considerations, such as dividend withholding taxes, for non-US residents. For investors based in Europe or outside the United States, we also offer a dedicated suite of UCITS China ETFs, which may provide tax advantages for non-US investors.
This information is for educational purposes only and does not constitute financial or tax advice; please consult with a qualified financial advisor or tax professional before making any investment decisions.
How does China’s 15th Five-Year Plan impact China ETFs?
China's Five-Year Plan can serve as the blueprint for future investment and development in China. The latest 15th Five-Year Plan (2026–2030) emphasizes "technological self-reliance" and "green development" which we believe could create a significant tailwind for Chinese ETFs with exposure to Chinese AI, humanoid robotics, and renewable energy markets.
Why should I consider a thematic China ETF over a broad index?
Broad China indexes often carry heavier weightings to traditional sectors like banking and manufacturing5. Thematic China ETFs, such as those focused on Internet, AI, Clean Tech, or the Digital Economy, prioritize companies operating in faster‑developing or innovation‑driven segments that are more closely aligned with China's developmental goals in the 15th Five-Year Plan.
Where can China fit in an investment portfolio?
Every investor's investment profile is unique, and how an investor chooses to allocate to China should depend on factors including the investor's specific risk tolerance, existing China exposure, long-term objectives, and more. Please consult a financial advisor or tax professional for advice relevant to your particular situation.
However, global investors are underweight Chinese securities. A 2025 survey by Copley Fund Research indicated that active emerging markets managers are, on average, 3% underweight China compared to their chosen benchmark indexes6,7. Many investors use China ETFs to bolster an Emerging Markets (EM) or global growth allocation. Investors can also customize their Emerging Markets exposure by combining China ETFs with EM ex-China ETFs. For example, a hypothetical portfolio consisting of our China internet ETF (KWEB), mainland China ETF (KBA), and EM ex-China ETF (KEMX) could provide broad exposure to Emerging Markets with a more growth-oriented China allocation. To assist with fitting China into investment portfolios, we develop China and Global Model Portfolios that demonstrate how various China strategies can potentially be integrated into a balanced investment framework.
Access to our China and Global Model Portfolios is intended for institutional investors only and is not intended for retail distribution.
Where can I get daily updates on China's financial markets?
The Chinese market moves quickly, especially regarding policy shifts and "New Quality Productive Forces." To stay informed, we recommend following our daily market commentary blog, China Last Night. Our experienced team of China experts provide institutional-grade analysis of overnight price action, regulatory news, and economic data on China every day.
Are distributions common in China ETFs?
Yes, many Chinese companies pay dividends, which China ETFs then largely pass on to investors. Multiple factors influence the amount of distribution that a China ETF can pay. These factors can include capital gains, dividends, and unrealized gains in passive foreign investment corporations (PFICs). Learn more about China ETF distributions by reading our capital gains FAQ or by visiting our KWEB FAQ for more details about our flagship China internet ETF. Please consult a financial advisor or tax professional for distribution advice relevant to your particular situation.
What is the difference between China A-Shares and H-Shares?
China A-Shares are stocks of mainland companies listed in Shanghai or Shenzhen, representing the domestic "onshore" economy. H-Shares are Chinese companies listed on the Hong Kong Stock Exchange, offering "offshore" access.
Can I invest in China A-Shares directly from the US?
Yes, US investors can invest in China A-Shares easily via US-listed ETFs. While US investors once faced high barriers to investing in mainland China, these funds utilize Stock Connect and specialized licenses to buy mainland stocks directly, handling all the currency conversion and regulatory requirements on behalf of the investor.
What are Northbound and Southbound Stock Connect?
Stock Connect is a program that serves as the primary bridge between mainland Chinese stock exchanges and international markets, enabling foreign buyers and sellers to trade mainland China equities.
Northbound Stock Connect: Refers to international and Hong Kong investors using the Hong Kong exchange to buy/sell shares on the Shanghai or Shenzhen Stock Exchanges. An example could be an international investor buying electric vehicle stocks listed on the Shenzhen Stock Exchange via the Hong Kong exchange.
Southbound Stock Connect: Refers to mainland Chinese investors trading eligible stocks on the Hong Kong Exchange. An example would be a qualified mainland Chinese investor buying Tencent or Alibaba shares listed in Hong Kong.
This does not constitute investment advice or a recommendation to buy or sell any security.
What are the risks associated with China ETFs?
Investing always involves risk. However, there are risks specific to investing in China ETFs. China is an emerging market that is vulnerable to domestic and regional economic and political changes. Regulatory changes in China can be rapid and sweeping. Such changes may have adverse impacts on the value of investments within the country. A-shares, in particular, are subject to various regulations and restrictions, including limits on asset repatriation and the possibility of closure of the Stock Connect program without prior notice. An ETF may also be unable to achieve its stated goal due to the limited availability of additional quota for onshore A-shares if it is not purchasing shares through Stock Connect. Also, government plans such as those suggested in China’s 15th Five-Year Plan may not be implemented as described, which could impact markets.
Citations:
1. Data from Bloomberg as of 12/31/2025.
2. "China's new quality productive forces gather steam to turbocharge future growth", Xinhua, November 1, 2025.
3. Data from FactSet as of 2/3/2026. Price-to-Earnings Ratio (P/E ratio) is a ratio for valuing a company that measures its current share price relative to its per-share earnings. The Nasdaq-100 Index tracks 100 of the largest non-financial companies listed on the NASDAQ stock market, including major tech, retail, and healthcare firms, and was launched on January 31, 1985, as a benchmark for innovation-driven growth, not including financial firms.
4. "Shanghai Stock Exchange STAR Market", Wikipedia, as of 12/31/2025.
5. Data from MSCI as of 1/30/2026 based on the constituents of the MSCI China Index. The MSCI China Index captures large and mid cap representation across China A shares, H shares, B shares, Red chips, P chips and foreign listings (e.g. ADRs). With 559 constituents, the index covers about 85% of this China equity universe. Currently, the index includes Large Cap A and Mid Cap A shares represented at 20% of their free float adjusted market capitalization. As of 1/30/2026, traditional sectors such as Financials, Materials, Industrials, Energy, Utilities, and Real Estate consisted of 34.17% of the Index.
6. Data from Bloomberg as of 1/28/2026.
7. Data from Copley Fund Research as of 12/31/2025.
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