While ETFs often stop and celebrate their three-year milestones, 10-year milestones by contrast are much rarer in a burgeoning ETF world. That makes the 10-year anniversary of the KraneShares CSI China Internet ETF (KWEB ), even more special than it already is.
Launching back in July 2013, the firm recently celebrated 10 years of the strategy operating on the New York Stock Exchange. That invites investors to take a closer look at the China ETF and its prospects ahead of 2024.
KWEB stands out as the largest ETF at KraneShares by far, with more than $5.3 billion in AUM. The China ETF has returned 19.9% since inception, per YCharts, a solid long-term return amid a very promising decade for China itself. In that time, while KraneShares has added other strategies, KWEB remains a flagship fund for the China-focused shop.
See more: KraneShares’ Ahern Optimistic on China
So, what are its prospects as it enters its second decade of operation? First off, it’s important to understand the noneconomic factors for China investing. The U.S. and China militaries recently restarted key connections intended to tamp down potential devastating conflict between the two.
China ETF KWEB's Prospects
What’s more, big technological advancements in electric vehicles and in drones could unlock significant growth for China. While the country’s real estate debt issues remain a challenge, investors are closely watching for more stimulus from the government. The right government support could unlock an ongoing savings glut in Chinese consumers’ pockets.
With those positives on its side, KWEB remains a key consideration for investors shopping for a China ETF. KWEB tracks the CSI Overseas China Internet for a 69 basis point fee. The strategy offers exposure to big names like Alibaba (BABA) but also underrated software-oriented stocks. Combining long-term tech growth with consumer-oriented names, KWEB remains a strong option for investors to consider as it aims for another successful decade.
For more news, information, and analysis, visit the China Insights Channel.
