KWEB vs. BNDD

Last updated Jun 6, 2026

KWEB (KraneShares CSI China Internet ETF) and BNDD (Quadratic Deflation ETF) are both exchange-traded funds - KWEB is a China Equities fund tracking the CSI Overseas China Internet Index, while BNDD is a Government Bonds fund actively managed by KraneShares. KWEB is passively managed, while BNDD is actively managed. Over the past 3 years, KWEB returned 2.02%/yr vs -3.93%/yr for BNDD. At a correlation of -0.02, they often move in opposite directions. KWEB charges 0.70%/yr vs 1.02%/yr for BNDD.

Performance

KWEB vs. BNDD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KraneShares CSI China Internet ETF (KWEB) and Quadratic Deflation ETF (BNDD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KWEB achieves a -22.53% return, which is significantly lower than BNDD's 4.87% return.

KWEB

• 1D: -2.76%
• 1M: -11.36%
• YTD: -22.53%
• 6M: -25.55%
• 1Y: -18.21%
• 3Y*: 2.02%
• 5Y*: -14.81%
• 10Y*: -0.39%

BNDD

• 1D: 0.47%
• 1M: 0.96%
• YTD: 4.87%
• 6M: 3.12%
• 1Y: 2.19%
• 3Y*: -3.93%
• 5Y*: —
• 10Y*: —

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

KWEB vs. BNDD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
KWEB KraneShares CSI China Internet ETF	-22.53%	23.55%	12.01%	-9.06%	-17.24%	-16.82%
BNDD Quadratic Deflation ETF	4.87%	-8.17%	-6.65%	4.02%	-17.48%	5.54%

Correlation

The correlation between KWEB and BNDD is 0.02, meaning there is essentially no relationship between their price movements. Each responds to its own set of market drivers, making them strong candidates for combining in a diversified portfolio.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.02
Correlation (3Y) Calculated over the trailing 3-year period	0.03
Correlation (All Time) Calculated using the full available price history since Sep 22, 2021	-0.02

KWEB vs. BNDD - Sectors Allocation Comparison

Sectors	KWEB	BNDD
Consumer Cyclical	37.7%	-
Communication Services	24.8%	-
Technology	17.6%	-
Healthcare	6.0%	-
Real Estate	5.2%	-
Industrials	3.1%	-
Consumer Defensive	3.1%	-
Financial Services	2.2%	77.7%
Basic Materials	-	-
Energy	-	-
Utilities	-	-

Return for Risk

KWEB vs. BNDD — Risk / Return Rank

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

KWEB

KWEB Risk / Return Rank: 4
KWEB Sharpe Ratio Rank: 4
KWEB Sortino Ratio Rank: 4
KWEB Omega Ratio Rank: 4
KWEB Calmar Ratio Rank: 5
KWEB Martin Ratio Rank: 4

BNDD

BNDD Risk / Return Rank: 12
BNDD Sharpe Ratio Rank: 12
BNDD Sortino Ratio Rank: 12
BNDD Omega Ratio Rank: 11
BNDD Calmar Ratio Rank: 14
BNDD Martin Ratio Rank: 13

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.

KWEB vs. BNDD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for KraneShares CSI China Internet ETF (KWEB) and Quadratic Deflation ETF (BNDD). 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.

	KWEB	BNDD	Difference
Sharpe ratio: Return per unit of total volatility	-0.67	0.21	-0.88
Sortino ratio: Return per unit of downside risk	-0.85	0.37	-1.22
Omega ratio: Gain probability vs. loss probability	0.90	1.04	-0.14
Calmar ratio: Return relative to maximum drawdown	-0.52	0.36	-0.89
Martin ratio: Return relative to average drawdown	-1.07	0.78	-1.84
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KWEB vs. BNDD - Sharpe Ratio Comparison

The current KWEB Sharpe Ratio is -0.67, which is lower than the BNDD Sharpe Ratio of 0.21. The chart below compares the historical Sharpe Ratios of KWEB and BNDD, 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

	KWEB	BNDD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.67	0.21	-0.88
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.31	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	-0.01	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.05	-0.32	+0.37

Drawdowns

KWEB vs. BNDD - Drawdown Comparison

The maximum KWEB drawdown since its inception was -80.92%, which is greater than BNDD's maximum drawdown of -30.87%. Use the drawdown chart below to compare losses from any high point for KWEB and BNDD.

Drawdown Indicators

	KWEB	BNDD	Difference
Max Drawdown Largest peak-to-trough decline	-80.92%	-30.87%	-50.05%
Max Drawdown (1Y) Largest decline over 1 year	-34.82%	-6.09%	-28.73%
Max Drawdown (3Y) Largest decline over 3 years	-34.82%	-20.75%	-14.07%
Max Drawdown (5Y) Largest decline over 5 years	-72.17%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-80.92%	—	—
Current Drawdown Current decline from peak	-69.49%	-26.12%	-43.37%
Average Drawdown Average peak-to-trough decline	-35.26%	-19.35%	-15.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	17.12%	2.83%	+14.29%

Volatility

KWEB vs. BNDD - Volatility Comparison

KraneShares CSI China Internet ETF (KWEB) has a higher volatility of 10.79% compared to Quadratic Deflation ETF (BNDD) at 2.17%. This indicates that KWEB's price experiences larger fluctuations and is considered to be riskier than BNDD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KWEB	BNDD	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.79%	2.17%	+8.62%
Volatility (6M) Calculated over the trailing 6-month period	20.23%	8.08%	+12.15%
Volatility (1Y) Calculated over the trailing 1-year period	27.27%	10.55%	+16.72%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	47.66%	13.37%	+34.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	39.99%	13.37%	+26.62%

KWEB vs. BNDD - Expense Ratio Comparison

KWEB has a 0.70% expense ratio, which is lower than BNDD's 1.02% expense ratio.

Dividends

KWEB vs. BNDD - Dividend Comparison

KWEB's dividend yield for the trailing twelve months is around 7.95%, more than BNDD's 3.59% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BNDD Quadratic Deflation ETF	3.59%	3.82%	3.85%	4.30%	43.17%	1.04%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
KWEB KraneShares CSI China Internet ETF	7.95%	6.16%	3.51%	1.71%	0.00%	7.07%	0.29%	0.08%	3.40%	0.58%	1.19%	0.46%

Frequently Asked Questions

Can I hold both KWEB and BNDD in my portfolio?

KWEB and BNDD have a correlation of 0.02, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KWEB or BNDD?

KWEB has higher volatility (10.79%) compared to BNDD (2.17%). In terms of maximum drawdown, KWEB dropped -80.92% vs BNDD's -30.87%.

Which ETF is better, KWEB or BNDD?

On 3-year performance, KWEB leads with 2.02% vs -3.93% for BNDD. On fees, KWEB is cheaper at 0.70% per year. On volatility, BNDD has been the lower-risk option at 2.17%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KWEB or BNDD?

Over the 3-year period, KWEB has performed better with a 2.02% return vs -3.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KWEB or BNDD?

KWEB is cheaper with a 0.70% expense ratio, compared with 1.02% for BNDD.

Which ETF pays a higher dividend yield, KWEB or BNDD?

KWEB has the higher dividend yield at 7.95%, compared with 3.59% for BNDD.

What is the main difference between KWEB and BNDD?

KWEB is categorized as China Equities, while BNDD is Government Bonds. Their fees differ too: 0.70% for KWEB and 1.02% for BNDD.

Which has better risk-adjusted returns?

BNDD currently has the higher Sharpe Ratio (0.21 vs -0.67), 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.