CXSE vs. KCAI

Last updated Jun 24, 2026

CXSE (WisdomTree China ex-State-Owned Enterprises Fund) and KCAI (KraneShares China Alpha Index ETF) are both China Equities funds - CXSE tracks the WisdomTree China ex-State-Owned Enterprises Index while KCAI tracks the Qi China Alpha Index. Both are passively managed. Over the past year, CXSE returned 16.48% vs 48.99% for KCAI. A 0.64 correlation means they provide meaningful diversification when combined. CXSE charges 0.32%/yr vs 0.79%/yr for KCAI.

Performance

CXSE vs. KCAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree China ex-State-Owned Enterprises Fund (CXSE) 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, CXSE achieves a -3.88% return, which is significantly lower than KCAI's 6.15% return.

CXSE

• 1D: -2.89%
• 1M: -2.86%
• YTD: -3.88%
• 6M: -5.63%
• 1Y: 16.48%
• 3Y*: 10.13%
• 5Y*: -8.91%
• 10Y*: 7.05%

KCAI

• 1D: -1.05%
• 1M: 1.41%
• YTD: 6.15%
• 6M: 6.87%
• 1Y: 48.99%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

CXSE vs. KCAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
CXSE WisdomTree China ex-State-Owned Enterprises Fund	-3.88%	37.00%	16.46%
KCAI KraneShares China Alpha Index ETF	6.15%	53.29%	11.36%

Correlation

The correlation between CXSE and KCAI is 0.58, 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	0.58
Correlation (All Time) Calculated using the full available price history since Aug 28, 2024	0.64

The correlation between CXSE and KCAI has been stable across timeframes, ranging from 0.58 to 0.64 - a consistent structural relationship.

CXSE vs. KCAI - Sectors Allocation Comparison

Sectors	CXSE	KCAI
Technology	27.4%	13.2%
Consumer Cyclical	24.6%	11.5%
Industrials	12.7%	23.6%
Communication Services	12.1%	-
Healthcare	8.6%	1.3%
Financial Services	6.2%	39.0%
Consumer Defensive	4.0%	-
Basic Materials	3.2%	11.3%
Real Estate	0.8%	-
Energy	0.4%	-
Utilities	0.2%	-

Return for Risk

CXSE vs. KCAI — Risk / Return Rank

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

CXSE

CXSE Risk / Return Rank: 21
CXSE Sharpe Ratio Rank: 22
CXSE Sortino Ratio Rank: 22
CXSE Omega Ratio Rank: 22
CXSE Calmar Ratio Rank: 21
CXSE Martin Ratio Rank: 18

KCAI

KCAI Risk / Return Rank: 96
KCAI Sharpe Ratio Rank: 96
KCAI Sortino Ratio Rank: 96
KCAI Omega Ratio Rank: 95
KCAI Calmar Ratio Rank: 98
KCAI Martin Ratio Rank: 96

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.

CXSE vs. KCAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree China ex-State-Owned Enterprises Fund (CXSE) 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.

	CXSE	KCAI	Difference
Sharpe ratio: Return per unit of total volatility	0.76	3.65	-2.89
Sortino ratio: Return per unit of downside risk	1.17	5.19	-4.02
Omega ratio: Gain probability vs. loss probability	1.15	1.64	-0.50
Calmar ratio: Return relative to maximum drawdown	0.94	11.65	-10.72
Martin ratio: Return relative to average drawdown	1.85	32.95	-31.10

CXSE vs. KCAI - Sharpe Ratio Comparison

The current CXSE Sharpe Ratio is 0.76, which is lower than the KCAI Sharpe Ratio of 3.65. The chart below compares the historical Sharpe Ratios of CXSE 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

CXSE vs. KCAI - Drawdown Comparison

The maximum CXSE drawdown since its inception was -70.01%, which is greater than KCAI's maximum drawdown of -25.48%. Use the drawdown chart below to compare losses from any high point for CXSE and KCAI.

Drawdown Indicators

	CXSE	KCAI	Difference
Max Drawdown Largest peak-to-trough decline	-70.01%	-25.48%	-44.53%
Max Drawdown (1Y) Largest decline over 1 year	-17.70%	-4.23%	-13.47%
Max Drawdown (3Y) Largest decline over 3 years	-32.12%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-64.47%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-70.01%	—	—
Current Drawdown Current decline from peak	-48.58%	-2.69%	-45.89%
Average Drawdown Average peak-to-trough decline	-27.90%	-7.01%	-20.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.91%	1.49%	+7.42%

Volatility

CXSE vs. KCAI - Volatility Comparison

WisdomTree China ex-State-Owned Enterprises Fund (CXSE) has a higher volatility of 7.45% compared to KraneShares China Alpha Index ETF (KCAI) at 4.27%. This indicates that CXSE'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

	CXSE	KCAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.45%	4.27%	+3.18%
Volatility (6M) Calculated over the trailing 6-month period	15.60%	8.73%	+6.87%
Volatility (1Y) Calculated over the trailing 1-year period	21.87%	13.50%	+8.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	32.37%	21.01%	+11.36%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.74%	21.01%	+7.73%

CXSE vs. KCAI - Expense Ratio Comparison

CXSE has a 0.32% expense ratio, which is lower than KCAI's 0.79% expense ratio.

Dividends

CXSE vs. KCAI - Dividend Comparison

CXSE's dividend yield for the trailing twelve months is around 2.08%, less than KCAI's 33.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CXSE WisdomTree China ex-State-Owned Enterprises Fund	2.08%	1.95%	1.70%	1.71%	1.55%	0.86%	0.54%	0.96%	1.49%	1.24%	1.39%	2.50%
KCAI KraneShares China Alpha Index ETF	33.37%	35.42%	2.19%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both CXSE and KCAI in my portfolio?

CXSE and KCAI have a correlation of 0.58, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, CXSE or KCAI?

CXSE has higher volatility (7.45%) compared to KCAI (4.27%). In terms of maximum drawdown, CXSE dropped -70.01% vs KCAI's -25.48%.

Which ETF is better, CXSE or KCAI?

On 1-year performance, KCAI leads with 48.99% vs 16.48% for CXSE. On fees, CXSE is cheaper at 0.32% per year. On volatility, KCAI has been the lower-risk option at 4.27%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CXSE or KCAI?

Over the 1-year period, KCAI has performed better with a 48.99% return vs 16.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CXSE or KCAI?

CXSE is cheaper with a 0.32% expense ratio, compared with 0.79% for KCAI.

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

KCAI has the higher dividend yield at 33.37%, compared with 2.08% for CXSE.

What is the main difference between CXSE and KCAI?

CXSE tracks WisdomTree China ex-State-Owned Enterprises Index, while KCAI tracks Qi China Alpha Index. They also come from different issuers: WisdomTree and KraneShares. Their fees differ too: 0.32% for CXSE and 0.79% for KCAI.

Which has better risk-adjusted returns?

KCAI currently has the higher Sharpe Ratio (3.65 vs 0.76), 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.