SMHC vs. KCAI

Last updated Jul 18, 2026

SMHC (VanEck China Semiconductor ETF) and KCAI (KraneShares China Alpha Index ETF) are both China Equities funds - SMHC tracks the MarketVector China Semiconductor 25 Index while KCAI tracks the Qi China Alpha Index. Both are passively managed. A 0.55 correlation means they provide meaningful diversification when combined. SMHC charges 0.65%/yr vs 0.79%/yr for KCAI.

Performance

SMHC vs. KCAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in VanEck China Semiconductor ETF (SMHC) and KraneShares China Alpha Index ETF (KCAI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

SMHC

• 1D: -6.17%
• 1M: —
• 6M: —
• YTD: —
• 1Y: —
• 3Y*: —
• 5Y*: —
• 10Y*: —

KCAI

• 1D: -0.91%
• 1M: -1.76%
• 6M: 4.05%
• YTD: 3.43%
• 1Y: 34.72%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

SMHC vs. KCAI - Yearly Performance Comparison

	2026 (YTD)
SMHC VanEck China Semiconductor ETF	-15.04%
KCAI KraneShares China Alpha Index ETF	-2.57%

Correlation

The correlation between SMHC and KCAI is 0.55, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (All Time) Calculated using the full available price history since Jun 24, 2026	0.55

Return for Risk

SMHC vs. KCAI — Risk / Return Rank

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

SMHC

Risk / return metrics aren't available yet — we need at least 12 months of trading data to calculate them.

KCAI

KCAI Risk / Return Rank: 93
KCAI Sharpe Ratio Rank: 93
KCAI Sortino Ratio Rank: 93
KCAI Omega Ratio Rank: 90
KCAI Calmar Ratio Rank: 95
KCAI Martin Ratio Rank: 94

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.

SMHC vs. KCAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for VanEck China Semiconductor ETF (SMHC) 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.

	SMHC	KCAI	Difference
Sharpe ratio: Return per unit of total volatility	—	2.55	—
Sortino ratio: Return per unit of downside risk	—	3.70	—
Omega ratio: Gain probability vs. loss probability	—	1.45	—
Calmar ratio: Return relative to maximum drawdown	—	6.05	—
Martin ratio: Return relative to average drawdown	—	18.70	—

Drawdowns

SMHC vs. KCAI - Drawdown Comparison

The maximum SMHC drawdown since its inception was -24.16%, smaller than the maximum KCAI drawdown of -25.48%. Use the drawdown chart below to compare losses from any high point for SMHC and KCAI.

Drawdown Indicators

	SMHC	KCAI	Difference
Max Drawdown Largest peak-to-trough decline	-24.16%	-25.48%	+1.32%
Max Drawdown (1Y) Largest decline over 1 year	—	-5.90%	—
Current Drawdown Current decline from peak	-24.16%	-5.19%	-18.97%
Average Drawdown Average peak-to-trough decline	-9.02%	-6.92%	-2.10%
Ulcer Index Depth and duration of drawdowns from previous peaks	—	1.90%	—

Volatility

Volatility by Period

	SMHC	KCAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	—	5.42%	—
Volatility (6M) Calculated over the trailing 6-month period	—	9.61%	—
Volatility (1Y) Calculated over the trailing 1-year period	80.83%	14.06%	+66.77%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	80.83%	20.92%	+59.91%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	80.83%	20.92%	+59.91%

SMHC vs. KCAI - Expense Ratio Comparison

SMHC has a 0.65% expense ratio, which is lower than KCAI's 0.79% expense ratio.

Dividends

SMHC vs. KCAI - Dividend Comparison

SMHC has not paid dividends to shareholders, while KCAI's dividend yield for the trailing twelve months is around 34.25%.

Position	TTM	2025	2024
KCAI KraneShares China Alpha Index ETF	34.25%	35.42%	2.19%
SMHC VanEck China Semiconductor ETF	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both SMHC and KCAI in my portfolio?

SMHC and KCAI have a correlation of 0.55, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which ETF is better, SMHC or KCAI?

On fees, SMHC is cheaper at 0.65% per year. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF is cheaper, SMHC or KCAI?

SMHC is cheaper with a 0.65% expense ratio, compared with 0.79% for KCAI.

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

KCAI has the higher dividend yield at 34.25%, compared with 0.00% for SMHC.

What is the main difference between SMHC and KCAI?

SMHC tracks MarketVector China Semiconductor 25 Index, while KCAI tracks Qi China Alpha Index. They also come from different issuers: VanEck and KraneShares. Their fees differ too: 0.65% for SMHC and 0.79% for KCAI.