KTEC vs. TCHI

Last updated Jul 14, 2026

KTEC (KraneShares Hang Seng TECH Index ETF) and TCHI (iShares MSCI China Multisector Tech ETF) are both exchange-traded funds - KTEC is a China Equities fund tracking the Hang Seng Tech Index, while TCHI is a Technology Equities fund tracking the MSCI China Technology Sub-Industries Select Capped Index - Benchmark TR Net. Both are passively managed. Over the past 3 years, KTEC returned 1.41%/yr vs 12.86%/yr for TCHI. Their correlation of 0.89 suggests significant overlap in exposure. KTEC charges 0.69%/yr vs 0.59%/yr for TCHI.

Performance

KTEC vs. TCHI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KraneShares Hang Seng TECH Index ETF (KTEC) and iShares MSCI China Multisector Tech ETF (TCHI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KTEC achieves a -17.62% return, which is significantly lower than TCHI's 4.35% return.

KTEC

• 1D: -1.07%
• 1M: -1.75%
• 6M: -25.13%
• YTD: -17.62%
• 1Y: -15.81%
• 3Y*: 1.41%
• 5Y*: -10.84%
• 10Y*: —

TCHI

• 1D: -3.24%
• 1M: -0.71%
• 6M: -4.47%
• YTD: 4.35%
• 1Y: 24.24%
• 3Y*: 12.86%
• 5Y*: —
• 10Y*: —

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

KTEC vs. TCHI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
KTEC KraneShares Hang Seng TECH Index ETF	-17.62%	21.01%	16.13%	-10.41%	-25.89%
TCHI iShares MSCI China Multisector Tech ETF	4.35%	33.13%	9.09%	-5.61%	-24.30%

Correlation

The correlation between KTEC and TCHI is 0.80, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.80
Correlation (3Y) Calculated over the trailing 3-year period	0.87
Correlation (All Time) Calculated using the full available price history since Feb 1, 2022	0.89

The correlation between KTEC and TCHI has been stable across timeframes, ranging from 0.80 to 0.89 - a consistent structural relationship.

KTEC vs. TCHI - Sectors Allocation Comparison

Sectors	KTEC	TCHI
Consumer Cyclical	35.3%	13.4%
Technology	35.3%	57.9%
Communication Services	18.0%	10.0%
Industrials	8.3%	14.2%
Healthcare	1.9%	-
Basic Materials	-	0.2%
Consumer Defensive	-	2.0%
Energy	-	0.9%
Financial Services	-	0.6%
Real Estate	-	-
Utilities	-	-

Return for Risk

KTEC vs. TCHI — Risk / Return Rank

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

KTEC

KTEC Risk / Return Rank: 5
KTEC Sharpe Ratio Rank: 5
KTEC Sortino Ratio Rank: 5
KTEC Omega Ratio Rank: 5
KTEC Calmar Ratio Rank: 5
KTEC Martin Ratio Rank: 5

TCHI

TCHI Risk / Return Rank: 29
TCHI Sharpe Ratio Rank: 30
TCHI Sortino Ratio Rank: 30
TCHI Omega Ratio Rank: 30
TCHI Calmar Ratio Rank: 29
TCHI Martin Ratio Rank: 25

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. TCHI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for KraneShares Hang Seng TECH Index ETF (KTEC) and iShares MSCI China Multisector Tech ETF (TCHI). 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	TCHI	Difference
Sharpe ratio: Return per unit of total volatility	-0.57	0.88	-1.45
Sortino ratio: Return per unit of downside risk	-0.68	1.35	-2.03
Omega ratio: Gain probability vs. loss probability	0.92	1.17	-0.24
Calmar ratio: Return relative to maximum drawdown	-0.43	1.17	-1.61
Martin ratio: Return relative to average drawdown	-0.82	2.54	-3.36

KTEC vs. TCHI - Sharpe Ratio Comparison

The current KTEC Sharpe Ratio is -0.57, which is lower than the TCHI Sharpe Ratio of 0.88. The chart below compares the historical Sharpe Ratios of KTEC and TCHI, 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. TCHI - Drawdown Comparison

The maximum KTEC drawdown since its inception was -66.90%, which is greater than TCHI's maximum drawdown of -43.96%. Use the drawdown chart below to compare losses from any high point for KTEC and TCHI.

Drawdown Indicators

	KTEC	TCHI	Difference
Max Drawdown Largest peak-to-trough decline	-66.90%	-43.96%	-22.94%
Max Drawdown (1Y) Largest decline over 1 year	-36.49%	-20.73%	-15.76%
Max Drawdown (3Y) Largest decline over 3 years	-36.49%	-27.78%	-8.71%
Max Drawdown (5Y) Largest decline over 5 years	-64.03%	—	—
Current Drawdown Current decline from peak	-48.02%	-8.70%	-39.32%
Average Drawdown Average peak-to-trough decline	-44.03%	-21.09%	-22.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	19.26%	9.56%	+9.70%

Volatility

KTEC vs. TCHI - Volatility Comparison

The current volatility for KraneShares Hang Seng TECH Index ETF (KTEC) is 6.94%, while iShares MSCI China Multisector Tech ETF (TCHI) has a volatility of 11.12%. This indicates that KTEC experiences smaller price fluctuations and is considered to be less risky than TCHI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KTEC	TCHI	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.94%	11.12%	-4.18%
Volatility (6M) Calculated over the trailing 6-month period	20.53%	20.78%	-0.25%
Volatility (1Y) Calculated over the trailing 1-year period	28.05%	27.74%	+0.31%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	43.14%	34.93%	+8.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	42.89%	34.93%	+7.96%

KTEC vs. TCHI - Expense Ratio Comparison

KTEC has a 0.69% expense ratio, which is higher than TCHI's 0.59% expense ratio.

Dividends

KTEC vs. TCHI - Dividend Comparison

KTEC's dividend yield for the trailing twelve months is around 4.07%, more than TCHI's 2.22% yield.

Position	TTM	2025	2024	2023	2022
KTEC KraneShares Hang Seng TECH Index ETF	4.07%	3.36%	0.27%	0.81%	0.16%
TCHI iShares MSCI China Multisector Tech ETF	2.22%	2.44%	2.49%	4.28%	1.07%

Frequently Asked Questions

Can I hold both KTEC and TCHI in my portfolio?

KTEC and TCHI have a correlation of 0.80, 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 TCHI?

TCHI has higher volatility (11.12%) compared to KTEC (6.94%). In terms of maximum drawdown, KTEC dropped -66.90% vs TCHI's -43.96%.

Which ETF is better, KTEC or TCHI?

On 3-year performance, TCHI leads with 12.86% vs 1.41% for KTEC. On fees, TCHI is cheaper at 0.59% per year. On volatility, KTEC has been the lower-risk option at 6.94%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KTEC or TCHI?

Over the 3-year period, TCHI has performed better with a 12.86% return vs 1.41%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KTEC or TCHI?

TCHI is cheaper with a 0.59% expense ratio, compared with 0.69% for KTEC.

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

KTEC has the higher dividend yield at 4.07%, compared with 2.22% for TCHI.

What is the main difference between KTEC and TCHI?

KTEC is categorized as China Equities, while TCHI is Technology Equities. KTEC tracks Hang Seng Tech Index, while TCHI tracks MSCI China Technology Sub-Industries Select Capped Index - Benchmark TR Net. They also come from different issuers: KraneShares and iShares. Their fees differ too: 0.69% for KTEC and 0.59% for TCHI.

Which has better risk-adjusted returns?

TCHI currently has the higher Sharpe Ratio (0.88 vs -0.57), 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.