CHAU vs. KCAI

Last updated Jul 14, 2026

CHAU (Direxion Daily CSI 300 China A Share Bull 2x Shares) and KCAI (KraneShares China Alpha Index ETF) are both China Equities funds - CHAU tracks the CSI 300 Index (200%) while KCAI tracks the Qi China Alpha Index. Both are passively managed. Over the past year, CHAU returned 46.02% vs 39.53% for KCAI. A 0.79 correlation means they provide meaningful diversification when combined. CHAU charges 1.21%/yr vs 0.79%/yr for KCAI.

Performance

CHAU vs. KCAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Direxion Daily CSI 300 China A Share Bull 2x Shares (CHAU) and KraneShares China Alpha Index ETF (KCAI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CHAU achieves a 5.90% return, which is significantly higher than KCAI's 3.23% return.

CHAU

• 1D: -4.96%
• 1M: -5.32%
• 6M: -2.77%
• YTD: 5.90%
• 1Y: 46.02%
• 3Y*: 8.70%
• 5Y*: -9.88%
• 10Y*: 3.13%

KCAI

• 1D: -0.65%
• 1M: -4.13%
• 6M: 2.63%
• YTD: 3.23%
• 1Y: 39.53%
• 3Y*: —
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

CHAU vs. KCAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
CHAU Direxion Daily CSI 300 China A Share Bull 2x Shares	5.90%	47.73%	17.43%
KCAI KraneShares China Alpha Index ETF	3.23%	53.29%	11.36%

Correlation

The correlation between CHAU and KCAI is 0.74, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.74
Correlation (All Time) Calculated using the full available price history since Aug 28, 2024	0.79

The correlation between CHAU and KCAI has been stable across timeframes, ranging from 0.74 to 0.79 - a consistent structural relationship.

CHAU vs. KCAI - Sectors Allocation Comparison

Sectors	CHAU	KCAI
Technology	31.1%	13.2%
Financial Services	19.1%	39.0%
Industrials	16.1%	23.6%
Basic Materials	9.4%	11.3%
Consumer Defensive	6.7%	-
Consumer Cyclical	6.4%	11.5%
Healthcare	4.4%	1.3%
Utilities	3.1%	-
Energy	2.5%	-
Communication Services	0.8%	-
Real Estate	0.4%	-

Return for Risk

CHAU vs. KCAI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

CHAU

CHAU Risk / Return Rank: 52
CHAU Sharpe Ratio Rank: 44
CHAU Sortino Ratio Rank: 43
CHAU Omega Ratio Rank: 42
CHAU Calmar Ratio Rank: 74
CHAU Martin Ratio Rank: 58

KCAI

KCAI Risk / Return Rank: 94
KCAI Sharpe Ratio Rank: 95
KCAI Sortino Ratio Rank: 95
KCAI Omega Ratio Rank: 93
KCAI Calmar Ratio Rank: 96
KCAI Martin Ratio Rank: 94

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

CHAU vs. KCAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Direxion Daily CSI 300 China A Share Bull 2x Shares (CHAU) and KraneShares China Alpha Index ETF (KCAI). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	CHAU	KCAI	Difference
Sharpe ratio: Return per unit of total volatility	1.23	2.88	-1.65
Sortino ratio: Return per unit of downside risk	1.79	4.15	-2.37
Omega ratio: Gain probability vs. loss probability	1.22	1.50	-0.28
Calmar ratio: Return relative to maximum drawdown	3.03	6.74	-3.71
Martin ratio: Return relative to average drawdown	7.95	21.56	-13.61

CHAU vs. KCAI - Sharpe Ratio Comparison

The current CHAU Sharpe Ratio is 1.23, which is lower than the KCAI Sharpe Ratio of 2.88. The chart below compares the historical Sharpe Ratios of CHAU and KCAI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

CHAU vs. KCAI - Drawdown Comparison

The maximum CHAU drawdown since its inception was -79.21%, which is greater than KCAI's maximum drawdown of -25.48%. Use the drawdown chart below to compare losses from any high point for CHAU and KCAI.

Drawdown Indicators

	CHAU	KCAI	Difference
Max Drawdown Largest peak-to-trough decline	-79.21%	-25.48%	-53.73%
Max Drawdown (1Y) Largest decline over 1 year	-15.27%	-5.90%	-9.37%
Max Drawdown (3Y) Largest decline over 3 years	-59.88%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-71.97%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-78.58%	—	—
Current Drawdown Current decline from peak	-57.26%	-5.37%	-51.89%
Average Drawdown Average peak-to-trough decline	-58.83%	-6.95%	-51.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.81%	1.84%	+3.97%

Volatility

CHAU vs. KCAI - Volatility Comparison

Direxion Daily CSI 300 China A Share Bull 2x Shares (CHAU) has a higher volatility of 17.36% compared to KraneShares China Alpha Index ETF (KCAI) at 4.63%. This indicates that CHAU's price experiences larger fluctuations and is considered to be riskier than KCAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	CHAU	KCAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	17.36%	4.63%	+12.73%
Volatility (6M) Calculated over the trailing 6-month period	28.48%	9.15%	+19.33%
Volatility (1Y) Calculated over the trailing 1-year period	37.60%	13.81%	+23.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	47.52%	20.88%	+26.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	47.35%	20.88%	+26.47%

CHAU vs. KCAI - Expense Ratio Comparison

CHAU has a 1.21% expense ratio, which is higher than KCAI's 0.79% expense ratio.

Dividends

CHAU vs. KCAI - Dividend Comparison

CHAU's dividend yield for the trailing twelve months is around 2.04%, less than KCAI's 34.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018
CHAU Direxion Daily CSI 300 China A Share Bull 2x Shares	2.04%	1.97%	2.25%	3.97%	0.77%	1.73%	0.09%	0.58%	0.83%
KCAI KraneShares China Alpha Index ETF	34.31%	35.42%	2.19%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both CHAU and KCAI in my portfolio?

CHAU and KCAI have a correlation of 0.74, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CHAU or KCAI?

CHAU has higher volatility (17.36%) compared to KCAI (4.63%). In terms of maximum drawdown, CHAU dropped -79.21% vs KCAI's -25.48%.

Which ETF is better, CHAU or KCAI?

On 1-year performance, CHAU leads with 46.02% vs 39.53% for KCAI. On fees, KCAI is cheaper at 0.79% per year. On volatility, KCAI has been the lower-risk option at 4.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CHAU or KCAI?

Over the 1-year period, CHAU has performed better with a 46.02% return vs 39.53%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CHAU or KCAI?

KCAI is cheaper with a 0.79% expense ratio, compared with 1.21% for CHAU.

Which ETF pays a higher dividend yield, CHAU or KCAI?

KCAI has the higher dividend yield at 34.31%, compared with 2.04% for CHAU.

What is the main difference between CHAU and KCAI?

CHAU tracks CSI 300 Index (200%), while KCAI tracks Qi China Alpha Index. They also come from different issuers: Direxion and KraneShares. Their fees differ too: 1.21% for CHAU and 0.79% for KCAI.

Which has better risk-adjusted returns?

KCAI currently has the higher Sharpe Ratio (2.88 vs 1.23), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.