KTEC vs. KCAI

Last updated Jun 24, 2026

KTEC (KraneShares Hang Seng TECH Index ETF) and KCAI (KraneShares China Alpha Index ETF) are both China Equities funds from KraneShares - KTEC tracks the Hang Seng Tech Index while KCAI tracks the Qi China Alpha Index. Both are passively managed. Over the past year, KTEC returned -19.03% vs 48.99% for KCAI. A 0.52 correlation means they provide meaningful diversification when combined. KTEC charges 0.69%/yr vs 0.79%/yr for KCAI.

Performance

KTEC vs. KCAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KraneShares Hang Seng TECH Index ETF (KTEC) 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, KTEC achieves a -21.33% return, which is significantly lower than KCAI's 6.15% return.

KTEC

• 1D: -2.22%
• 1M: -7.85%
• YTD: -21.33%
• 6M: -21.98%
• 1Y: -19.03%
• 3Y*: 3.17%
• 5Y*: -12.60%
• 10Y*: —

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)

KTEC vs. KCAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
KTEC KraneShares Hang Seng TECH Index ETF	-21.33%	21.01%	23.96%
KCAI KraneShares China Alpha Index ETF	6.15%	53.29%	11.36%

Correlation

The correlation between KTEC and KCAI is 0.43, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.43
Correlation (All Time) Calculated using the full available price history since Aug 28, 2024	0.52

The correlation between KTEC and KCAI has been stable across timeframes, ranging from 0.43 to 0.52 - a consistent structural relationship.

KTEC vs. KCAI - Sectors Allocation Comparison

Sectors	KTEC	KCAI
Consumer Cyclical	45.1%	11.5%
Communication Services	28.2%	-
Technology	24.5%	13.2%
Healthcare	2.2%	1.3%
Basic Materials	-	11.3%
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	39.0%
Industrials	-	23.6%
Real Estate	-	-
Utilities	-	-

Return for Risk

KTEC vs. KCAI — Risk / Return Rank

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

KTEC

KTEC Risk / Return Rank: 4
KTEC Sharpe Ratio Rank: 4
KTEC Sortino Ratio Rank: 4
KTEC Omega Ratio Rank: 4
KTEC Calmar Ratio Rank: 4
KTEC Martin Ratio Rank: 4

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.

KTEC vs. KCAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for KraneShares Hang Seng TECH Index ETF (KTEC) 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.

	KTEC	KCAI	Difference
Sharpe ratio: Return per unit of total volatility	-0.69	3.65	-4.33
Sortino ratio: Return per unit of downside risk	-0.88	5.19	-6.07
Omega ratio: Gain probability vs. loss probability	0.90	1.64	-0.74
Calmar ratio: Return relative to maximum drawdown	-0.55	11.65	-12.20
Martin ratio: Return relative to average drawdown	-1.08	32.95	-34.03

KTEC vs. KCAI - Sharpe Ratio Comparison

The current KTEC Sharpe Ratio is -0.69, which is lower than the KCAI Sharpe Ratio of 3.65. The chart below compares the historical Sharpe Ratios of KTEC 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

KTEC vs. KCAI - Drawdown Comparison

The maximum KTEC drawdown since its inception was -66.90%, which is greater than KCAI's maximum drawdown of -25.48%. Use the drawdown chart below to compare losses from any high point for KTEC and KCAI.

Drawdown Indicators

	KTEC	KCAI	Difference
Max Drawdown Largest peak-to-trough decline	-66.90%	-25.48%	-41.42%
Max Drawdown (1Y) Largest decline over 1 year	-34.76%	-4.23%	-30.53%
Max Drawdown (3Y) Largest decline over 3 years	-34.76%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-66.90%	—	—
Current Drawdown Current decline from peak	-50.35%	-2.69%	-47.66%
Average Drawdown Average peak-to-trough decline	-43.97%	-7.01%	-36.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	17.67%	1.49%	+16.18%

Volatility

KTEC vs. KCAI - Volatility Comparison

KraneShares Hang Seng TECH Index ETF (KTEC) has a higher volatility of 8.17% compared to KraneShares China Alpha Index ETF (KCAI) at 4.27%. This indicates that KTEC'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

	KTEC	KCAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.17%	4.27%	+3.90%
Volatility (6M) Calculated over the trailing 6-month period	20.90%	8.73%	+12.17%
Volatility (1Y) Calculated over the trailing 1-year period	27.88%	13.50%	+14.38%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	43.21%	21.01%	+22.20%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	43.05%	21.01%	+22.04%

KTEC vs. KCAI - Expense Ratio Comparison

KTEC has a 0.69% expense ratio, which is lower than KCAI's 0.79% expense ratio.

Dividends

KTEC vs. KCAI - Dividend Comparison

KTEC's dividend yield for the trailing twelve months is around 4.26%, less than KCAI's 33.37% yield.

Position	TTM	2025	2024	2023	2022
KCAI KraneShares China Alpha Index ETF	33.37%	35.42%	2.19%	0.00%	0.00%
KTEC KraneShares Hang Seng TECH Index ETF	4.26%	3.36%	0.27%	0.81%	0.16%

Frequently Asked Questions

Can I hold both KTEC and KCAI in my portfolio?

KTEC and KCAI have a correlation of 0.43, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KTEC or KCAI?

KTEC has higher volatility (8.17%) compared to KCAI (4.27%). In terms of maximum drawdown, KTEC dropped -66.90% vs KCAI's -25.48%.

Which ETF is better, KTEC or KCAI?

On 1-year performance, KCAI leads with 48.99% vs -19.03% for KTEC. On fees, KTEC is cheaper at 0.69% 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, KTEC or KCAI?

Over the 1-year period, KCAI has performed better with a 48.99% return vs -19.03%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KTEC or KCAI?

KTEC is cheaper with a 0.69% expense ratio, compared with 0.79% for KCAI.

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

KCAI has the higher dividend yield at 33.37%, compared with 4.26% for KTEC.

What is the main difference between KTEC and KCAI?

KTEC tracks Hang Seng Tech Index, while KCAI tracks Qi China Alpha Index. Their fees differ too: 0.69% for KTEC and 0.79% for KCAI.

Which has better risk-adjusted returns?

KCAI currently has the higher Sharpe Ratio (3.65 vs -0.69), 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.