The KraneShares CSI China Internet ETF (NYSE: KWEB) is an exchange-traded fund designed to offer investors targeted exposure to China’s rapidly evolving internet sector. Launched in May 2013, the fund seeks to track the CSI China Overseas Internet Index, which captures the performance of Chinese companies primarily engaged in internet and internet-related activities. KWEB provides access to companies operating across e-commerce, online gaming, social media, internet search, online entertainment and education, and related services.
The fund holds a diversified portfolio of equities that includes American depositary receipts (ADRs), Hong Kong–listed H-shares and companies trading on Chinese mainland exchanges. It typically invests in well-established names such as Tencent Holdings Ltd., Alibaba Group Holding Ltd. and Baidu Inc., alongside emerging internet firms, offering a blend of market leaders and growth-oriented challengers. The ETF is physically replicated, meaning it holds the underlying securities in proportion to their weight in the benchmark index, and distributes dividends on a periodic basis.
KWEB is managed by KraneShares, a New York-based asset management firm specializing in China investment strategies, in collaboration with Harvest Global Investments, a China-focused investment adviser with local market expertise. The fund aims to serve both institutional and retail investors seeking to participate in the long-term growth potential of Chinese internet companies while benefitting from the liquidity and transparency of an ETF structure.
As with any emerging-market equity investment, the KraneShares CSI China Internet ETF is subject to country-specific risks, including regulatory changes, currency fluctuations and evolving market conditions. Investors should consider these factors alongside their own investment objectives and risk tolerance when evaluating the ETF as part of a diversified portfolio.
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