KWEB vs. XBI

Last updated Jun 26, 2026

KWEB (KraneShares CSI China Internet ETF) and XBI (SPDR S&P Biotech ETF) are both exchange-traded funds - KWEB is a China Equities fund tracking the CSI Overseas China Internet Index, while XBI is a Health & Biotech Equities fund tracking the S&P Biotechnology Select Industry Index. Both are passively managed. Over the past 10 years, KWEB returned -0.63%/yr vs 11.96%/yr for XBI. At a 0.42 correlation, their price movements are largely independent. KWEB charges 0.70%/yr vs 0.35%/yr for XBI.

Performance

KWEB vs. XBI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KraneShares CSI China Internet ETF (KWEB) and SPDR S&P Biotech ETF (XBI). 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 XBI's 24.45% return. Over the past 10 years, KWEB has underperformed XBI with an annualized return of -0.63%, while XBI has yielded a comparatively higher 11.96% annualized 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%

XBI

• 1D: 1.26%
• 1M: 13.79%
• YTD: 24.45%
• 6M: 20.14%
• 1Y: 82.88%
• 3Y*: 22.41%
• 5Y*: 1.92%
• 10Y*: 11.96%

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

KWEB vs. XBI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KWEB KraneShares CSI China Internet ETF	-30.60%	23.55%	12.01%	-9.06%	-17.24%	-49.01%	58.23%	29.92%	-33.80%	69.73%
XBI SPDR S&P Biotech ETF	24.45%	35.89%	1.01%	7.60%	-25.87%	-20.45%	48.33%	32.56%	-15.28%	43.77%

Correlation

The correlation between KWEB and XBI is 0.25, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.25
Correlation (3Y) Calculated over the trailing 3-year period	0.31
Correlation (5Y) Calculated over the trailing 5-year period	0.38
Correlation (10Y) Calculated over the trailing 10-year period	0.41
Correlation (All Time) Calculated using the full available price history since Aug 1, 2013	0.42

The correlation between KWEB and XBI shifts across timeframes, from 0.25 (1 year) to 0.42 (all time), reflecting how their relationship changes across market environments.

KWEB vs. XBI - Sectors Allocation Comparison

Sectors	KWEB	XBI
Consumer Cyclical	36.0%	-
Communication Services	28.4%	-
Technology	17.5%	-
Healthcare	6.0%	99.7%
Real Estate	3.9%	-
Industrials	3.3%	-
Consumer Defensive	2.7%	-
Financial Services	2.0%	0.3%
Basic Materials	-	0.2%
Energy	-	-
Utilities	-	-

Return for Risk

KWEB vs. XBI — 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

XBI

XBI Risk / Return Rank: 94
XBI Sharpe Ratio Rank: 95
XBI Sortino Ratio Rank: 93
XBI Omega Ratio Rank: 89
XBI Calmar Ratio Rank: 97
XBI Martin Ratio Rank: 95

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. XBI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for KraneShares CSI China Internet ETF (KWEB) and SPDR S&P Biotech ETF (XBI). 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	XBI	Difference
Sharpe ratio: Return per unit of total volatility	-1.01	3.15	-4.15
Sortino ratio: Return per unit of downside risk	-1.44	4.01	-5.44
Omega ratio: Gain probability vs. loss probability	0.84	1.48	-0.64
Calmar ratio: Return relative to maximum drawdown	-0.66	8.57	-9.23
Martin ratio: Return relative to average drawdown	-1.43	25.32	-26.75

KWEB vs. XBI - Sharpe Ratio Comparison

The current KWEB Sharpe Ratio is -1.01, which is lower than the XBI Sharpe Ratio of 3.15. The chart below compares the historical Sharpe Ratios of KWEB and XBI, 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. XBI - Drawdown Comparison

The maximum KWEB drawdown since its inception was -80.92%, which is greater than XBI's maximum drawdown of -63.89%. Use the drawdown chart below to compare losses from any high point for KWEB and XBI.

Drawdown Indicators

	KWEB	XBI	Difference
Max Drawdown Largest peak-to-trough decline	-80.92%	-63.89%	-17.03%
Max Drawdown (1Y) Largest decline over 1 year	-41.62%	-9.72%	-31.90%
Max Drawdown (3Y) Largest decline over 3 years	-41.62%	-32.99%	-8.63%
Max Drawdown (5Y) Largest decline over 5 years	-72.17%	-54.71%	-17.46%
Max Drawdown (10Y) Largest decline over 10 years	-80.92%	-63.89%	-17.03%
Current Drawdown Current decline from peak	-72.67%	-12.30%	-60.37%
Average Drawdown Average peak-to-trough decline	-35.39%	-20.93%	-14.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	19.04%	3.28%	+15.76%

Volatility

KWEB vs. XBI - Volatility Comparison

The current volatility for KraneShares CSI China Internet ETF (KWEB) is 8.14%, while SPDR S&P Biotech ETF (XBI) has a volatility of 9.94%. This indicates that KWEB experiences smaller price fluctuations and is considered to be less risky than XBI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KWEB	XBI	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.14%	9.94%	-1.80%
Volatility (6M) Calculated over the trailing 6-month period	20.56%	21.13%	-0.57%
Volatility (1Y) Calculated over the trailing 1-year period	27.10%	26.48%	+0.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	47.70%	32.30%	+15.40%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	40.00%	32.00%	+8.00%

KWEB vs. XBI - Expense Ratio Comparison

KWEB has a 0.70% expense ratio, which is higher than XBI's 0.35% expense ratio.

Dividends

KWEB vs. XBI - Dividend Comparison

KWEB's dividend yield for the trailing twelve months is around 8.87%, more than XBI's 0.38% 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%
XBI SPDR S&P Biotech ETF	0.38%	0.37%	0.15%	0.02%	0.00%	0.04%	0.20%	0.00%	0.28%	0.24%	0.26%	0.61%

Frequently Asked Questions

Can I hold both KWEB and XBI in my portfolio?

KWEB and XBI have a correlation of 0.25, 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 XBI?

XBI has higher volatility (9.94%) compared to KWEB (8.14%). In terms of maximum drawdown, KWEB dropped -80.92% vs XBI's -63.89%.

Which ETF is better, KWEB or XBI?

On 10-year performance, XBI leads with 11.96% vs -0.63% for KWEB. On fees, XBI is cheaper at 0.35% 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 XBI?

Over the 10-year period, XBI has performed better with a 11.96% return vs -0.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KWEB or XBI?

XBI is cheaper with a 0.35% expense ratio, compared with 0.70% for KWEB.

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

KWEB has the higher dividend yield at 8.87%, compared with 0.38% for XBI.

What is the main difference between KWEB and XBI?

KWEB is categorized as China Equities, while XBI is Health & Biotech Equities. KWEB tracks CSI Overseas China Internet Index, while XBI tracks S&P Biotechnology Select Industry Index. They also come from different issuers: KraneShares and State Street. Their fees differ too: 0.70% for KWEB and 0.35% for XBI.

Which has better risk-adjusted returns?

XBI currently has the higher Sharpe Ratio (3.15 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.