KWEB vs. TCHI

Last updated Jun 26, 2026

KWEB (KraneShares CSI China Internet ETF) and TCHI (iShares MSCI China Multisector Tech ETF) are both exchange-traded funds - KWEB is a China Equities fund tracking the CSI Overseas China Internet 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, KWEB returned -0.64%/yr vs 17.59%/yr for TCHI. Their correlation of 0.88 suggests significant overlap in exposure. KWEB charges 0.70%/yr vs 0.59%/yr for TCHI.

Performance

KWEB vs. TCHI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KraneShares CSI China Internet ETF (KWEB) 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, KWEB achieves a -30.60% return, which is significantly lower than TCHI's 11.66% return.

KWEB

• 1D: -2.76%
• 1M: -13.32%
• YTD: -30.60%
• 6M: -31.53%
• 1Y: -27.19%
• 3Y*: -0.64%
• 5Y*: -16.73%
• 10Y*: -0.63%

TCHI

• 1D: 1.60%
• 1M: 3.04%
• YTD: 11.66%
• 6M: 10.98%
• 1Y: 35.59%
• 3Y*: 17.59%
• 5Y*: —
• 10Y*: —

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

KWEB vs. TCHI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
KWEB KraneShares CSI China Internet ETF	-30.60%	23.55%	12.01%	-9.06%	-19.27%
TCHI iShares MSCI China Multisector Tech ETF	11.66%	33.13%	9.09%	-5.61%	-24.30%

Correlation

The correlation between KWEB and TCHI is 0.78, 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	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.86
Correlation (All Time) Calculated using the full available price history since Feb 1, 2022	0.88

The correlation between KWEB and TCHI shifts across timeframes, from 0.78 (1 year) to 0.88 (all time), reflecting how their relationship changes across market environments.

KWEB vs. TCHI - Sectors Allocation Comparison

Sectors	KWEB	TCHI
Consumer Cyclical	36.0%	13.9%
Communication Services	28.4%	10.5%
Technology	17.5%	59.3%
Healthcare	6.0%	-
Real Estate	3.9%	-
Industrials	3.3%	11.8%
Consumer Defensive	2.7%	2.0%
Financial Services	2.0%	0.5%
Basic Materials	-	0.3%
Energy	-	0.8%
Utilities	-	-

Return for Risk

KWEB vs. TCHI — Risk / Return Rank

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

KWEB

KWEB Risk / Return Rank: 2
KWEB Sharpe Ratio Rank: 1
KWEB Sortino Ratio Rank: 2
KWEB Omega Ratio Rank: 2
KWEB Calmar Ratio Rank: 4
KWEB Martin Ratio Rank: 2

TCHI

TCHI Risk / Return Rank: 39
TCHI Sharpe Ratio Rank: 44
TCHI Sortino Ratio Rank: 43
TCHI Omega Ratio Rank: 41
TCHI Calmar Ratio Rank: 39
TCHI Martin Ratio Rank: 29

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. TCHI - Risk-Adjusted Trends Comparison

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

	KWEB	TCHI	Difference
Sharpe ratio: Return per unit of total volatility	-1.01	1.36	-2.36
Sortino ratio: Return per unit of downside risk	-1.44	1.93	-3.37
Omega ratio: Gain probability vs. loss probability	0.84	1.24	-0.40
Calmar ratio: Return relative to maximum drawdown	-0.66	1.72	-2.38
Martin ratio: Return relative to average drawdown	-1.43	3.76	-5.19

KWEB vs. TCHI - Sharpe Ratio Comparison

The current KWEB Sharpe Ratio is -1.01, which is lower than the TCHI Sharpe Ratio of 1.36. The chart below compares the historical Sharpe Ratios of KWEB 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

KWEB vs. TCHI - Drawdown Comparison

The maximum KWEB drawdown since its inception was -80.92%, which is greater than TCHI's maximum drawdown of -43.96%. Use the drawdown chart below to compare losses from any high point for KWEB and TCHI.

Drawdown Indicators

	KWEB	TCHI	Difference
Max Drawdown Largest peak-to-trough decline	-80.92%	-43.96%	-36.96%
Max Drawdown (1Y) Largest decline over 1 year	-41.62%	-20.73%	-20.89%
Max Drawdown (3Y) Largest decline over 3 years	-41.62%	-27.78%	-13.84%
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	-72.67%	-2.30%	-70.37%
Average Drawdown Average peak-to-trough decline	-35.39%	-21.25%	-14.14%
Ulcer Index Depth and duration of drawdowns from previous peaks	19.04%	9.48%	+9.56%

Volatility

KWEB vs. TCHI - Volatility Comparison

The current volatility for KraneShares CSI China Internet ETF (KWEB) is 8.14%, while iShares MSCI China Multisector Tech ETF (TCHI) has a volatility of 9.09%. This indicates that KWEB 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

	KWEB	TCHI	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.14%	9.09%	-0.95%
Volatility (6M) Calculated over the trailing 6-month period	20.56%	19.26%	+1.30%
Volatility (1Y) Calculated over the trailing 1-year period	27.10%	26.35%	+0.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	47.70%	34.84%	+12.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	40.00%	34.84%	+5.16%

KWEB vs. TCHI - Expense Ratio Comparison

KWEB has a 0.70% expense ratio, which is higher than TCHI's 0.59% expense ratio.

Dividends

KWEB vs. TCHI - Dividend Comparison

KWEB's dividend yield for the trailing twelve months is around 8.87%, more than TCHI's 2.08% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KWEB KraneShares CSI China Internet ETF	8.87%	6.16%	3.51%	1.71%	0.00%	7.07%	0.29%	0.08%	3.40%	0.58%	1.19%	0.46%
TCHI iShares MSCI China Multisector Tech ETF	2.08%	2.44%	2.49%	4.28%	1.07%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both KWEB and TCHI in my portfolio?

KWEB and TCHI have a correlation of 0.78, 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 TCHI?

TCHI has higher volatility (9.09%) compared to KWEB (8.14%). In terms of maximum drawdown, KWEB dropped -80.92% vs TCHI's -43.96%.

Which ETF is better, KWEB or TCHI?

On 3-year performance, TCHI leads with 17.59% vs -0.64% for KWEB. On fees, TCHI is cheaper at 0.59% per year. On volatility, KWEB has been the lower-risk option at 8.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KWEB or TCHI?

Over the 3-year period, TCHI has performed better with a 17.59% return vs -0.64%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KWEB or TCHI?

TCHI is cheaper with a 0.59% expense ratio, compared with 0.70% for KWEB.

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

KWEB has the higher dividend yield at 8.87%, compared with 2.08% for TCHI.

What is the main difference between KWEB and TCHI?

KWEB is categorized as China Equities, while TCHI is Technology Equities. KWEB tracks CSI Overseas China Internet 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: 0.70% for KWEB and 0.59% for TCHI.

Which has better risk-adjusted returns?

TCHI currently has the higher Sharpe Ratio (1.36 vs -1.01), 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.