FCA vs. KLIP

Last updated Jun 3, 2026

FCA (First Trust China AlphaDEX Fund) and KLIP (KraneShares China Internet and Covered Call Strategy ETF) are both exchange-traded funds - FCA is a China Equities fund tracking the NASDAQ AlphaDEX China Index, while KLIP is a Options Trading fund managed by CICC. Over the past 3 years, FCA returned 20.06%/yr vs 9.17%/yr for KLIP. A 0.55 correlation means they provide meaningful diversification when combined. FCA charges 0.80%/yr vs 0.95%/yr for KLIP.

Performance

FCA vs. KLIP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust China AlphaDEX Fund (FCA) and KraneShares China Internet and Covered Call Strategy ETF (KLIP). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FCA achieves a 11.53% return, which is significantly higher than KLIP's -5.93% return.

FCA

• 1D: 2.01%
• 1M: -4.08%
• YTD: 11.53%
• 6M: 9.85%
• 1Y: 44.90%
• 3Y*: 20.06%
• 5Y*: 5.02%
• 10Y*: 9.89%

KLIP

• 1D: 2.16%
• 1M: -0.26%
• YTD: -5.93%
• 6M: -8.29%
• 1Y: 3.54%
• 3Y*: 9.17%
• 5Y*: —
• 10Y*: —

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

FCA vs. KLIP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
FCA First Trust China AlphaDEX Fund	11.53%	45.20%	14.07%	-14.65%
KLIP KraneShares China Internet and Covered Call Strategy ETF	-5.93%	16.92%	3.37%	10.67%

Correlation

The correlation between FCA and KLIP is 0.47, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.47
Correlation (3Y) Calculated over the trailing 3-year period	0.54
Correlation (All Time) Calculated using the full available price history since Jan 13, 2023	0.55

The correlation between FCA and KLIP has been stable across timeframes, ranging from 0.47 to 0.55 - a consistent structural relationship.

FCA vs. KLIP - Sectors Allocation Comparison

Sectors	FCA	KLIP
Industrials	25.2%	-
Financial Services	19.7%	2.0%
Basic Materials	19.1%	-
Energy	14.8%	-
Technology	10.3%	3.6%
Healthcare	3.0%	6.9%
Communication Services	2.9%	40.1%
Utilities	2.4%	-
Real Estate	1.1%	4.8%
Consumer Cyclical	1.1%	38.4%
Consumer Defensive	0.5%	4.3%

Return for Risk

FCA vs. KLIP — Risk / Return Rank

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

FCA

FCA Risk / Return Rank: 62
FCA Sharpe Ratio Rank: 59
FCA Sortino Ratio Rank: 53
FCA Omega Ratio Rank: 55
FCA Calmar Ratio Rank: 80
FCA Martin Ratio Rank: 65

KLIP

KLIP Risk / Return Rank: 12
KLIP Sharpe Ratio Rank: 12
KLIP Sortino Ratio Rank: 11
KLIP Omega Ratio Rank: 12
KLIP Calmar Ratio Rank: 12
KLIP Martin Ratio Rank: 11

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.

FCA vs. KLIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust China AlphaDEX Fund (FCA) and KraneShares China Internet and Covered Call Strategy ETF (KLIP). 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.

	FCA	KLIP	Difference
Sharpe ratio Return per unit of total volatility	2.02	0.23	+1.80
Sortino ratio Return per unit of downside risk	2.58	0.42	+2.16
Omega ratio Gain probability vs. loss probability	1.34	1.06	+0.29
Calmar ratio Return relative to maximum drawdown	4.19	0.25	+3.94
Martin ratio Return relative to average drawdown	12.06	0.61	+11.45
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FCA vs. KLIP - Sharpe Ratio Comparison

The current FCA Sharpe Ratio is 2.02, which is higher than the KLIP Sharpe Ratio of 0.23. The chart below compares the historical Sharpe Ratios of FCA and KLIP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FCA	KLIP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.02	0.23	+1.80
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.18	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.37	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.13	0.39	-0.26

Drawdowns

FCA vs. KLIP - Drawdown Comparison

The maximum FCA drawdown since its inception was -45.56%, which is greater than KLIP's maximum drawdown of -18.61%. Use the drawdown chart below to compare losses from any high point for FCA and KLIP.

Drawdown Indicators

	FCA	KLIP	Difference
Max Drawdown Largest peak-to-trough decline	-45.56%	-18.61%	-26.95%
Max Drawdown (1Y) Largest decline over 1 year	-11.13%	-15.97%	+4.84%
Max Drawdown (3Y) Largest decline over 3 years	-26.13%	-18.61%	-7.52%
Max Drawdown (5Y) Largest decline over 5 years	-42.47%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-42.47%	—	—
Current Drawdown Current decline from peak	-8.87%	-11.33%	+2.46%
Average Drawdown Average peak-to-trough decline	-21.62%	-3.78%	-17.84%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.87%	6.65%	-2.78%

Volatility

FCA vs. KLIP - Volatility Comparison

First Trust China AlphaDEX Fund (FCA) has a higher volatility of 8.36% compared to KraneShares China Internet and Covered Call Strategy ETF (KLIP) at 5.30%. This indicates that FCA's price experiences larger fluctuations and is considered to be riskier than KLIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FCA	KLIP	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.36%	5.30%	+3.06%
Volatility (6M) Calculated over the trailing 6-month period	16.57%	12.74%	+3.83%
Volatility (1Y) Calculated over the trailing 1-year period	22.31%	15.70%	+6.61%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	27.59%	18.10%	+9.49%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.63%	18.10%	+8.53%

FCA vs. KLIP - Expense Ratio Comparison

FCA has a 0.80% expense ratio, which is lower than KLIP's 0.95% expense ratio.

Dividends

FCA vs. KLIP - Dividend Comparison

FCA's dividend yield for the trailing twelve months is around 2.31%, less than KLIP's 27.57% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FCA First Trust China AlphaDEX Fund	2.31%	2.67%	5.17%	5.70%	6.00%	4.91%	4.12%	3.73%	3.10%	2.30%	2.51%	4.13%
KLIP KraneShares China Internet and Covered Call Strategy ETF	27.57%	25.14%	54.26%	61.22%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FCA and KLIP in my portfolio?

FCA and KLIP have a correlation of 0.47, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FCA or KLIP?

FCA has higher volatility (8.36%) compared to KLIP (5.30%). In terms of maximum drawdown, FCA dropped -45.56% vs KLIP's -18.61%.

Which ETF is better, FCA or KLIP?

On 3-year performance, FCA leads with 20.06% vs 9.17% for KLIP. On fees, FCA is cheaper at 0.80% per year. On volatility, KLIP has been the lower-risk option at 5.30%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FCA or KLIP?

Over the 3-year period, FCA has performed better with a 20.06% return vs 9.17%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FCA or KLIP?

FCA is cheaper with a 0.80% expense ratio, compared with 0.95% for KLIP.

Which ETF pays a higher dividend yield, FCA or KLIP?

KLIP has the higher dividend yield at 27.57%, compared with 2.31% for FCA.

What is the main difference between FCA and KLIP?

FCA is categorized as China Equities, while KLIP is Options Trading. They also come from different issuers: First Trust and CICC. Their fees differ too: 0.80% for FCA and 0.95% for KLIP.

Which has better risk-adjusted returns?

FCA currently has the higher Sharpe Ratio (2.02 vs 0.23), 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.