KCAI vs QQQ
KraneShares China Alpha Index ETF vs Invesco QQQ Trust, Series 1
Which is better, KCAI or QQQ?
Large Cap Blend against Large Cap Growth.
QQQ has a lower expense ratio. KCAI led over the full window, QQQ over 1Y. KCAI is less concentrated, with 31.7% of the fund in its ten largest positions against 46.5%.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | KCAI | QQQ |
|---|---|---|
| Expense Ratio | 0.79% | 0.18%Best |
| AUM | $3M | $483.5B |
| Dividend Yield | 32.26% | 0.44% |
| Holdings | 42 | 107 |
| YTD Return | +7.49% | +16.87%Best |
| 1Y Return | +20.03% | +22.98%Best |
| 3Y Return (annualized) | - | +24.98% |
| 5Y Return (annualized) | - | +14.39% |
| Volatility (annualized) | 16.7%Best | 18.2% |
| Max Drawdown | -26.6% | -22.8%Best |
| $10,000 over 2 years | $18,090Best | $15,208 |
| Top 10 Weight | 31.7%Best | 46.5% |
| Fund Family | KraneShares | Invesco (US) |
| Category | Equity | Equity |
| Style | Large Cap Blend | Large Cap Growth |
| Inception | Aug 28, 2024 | Mar 10, 1999 |
Volatility and max drawdown, and the $10,000 over 2 years row, are measured over the window both funds cover: Aug 28, 2024 to Sep 11, 2026 (2 years).
KCAI vs QQQ growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 2 years both funds cover.
KCAI vs QQQ Performance
KraneShares China Alpha Index ETF (KCAI) is an ETF from KraneShares and Invesco QQQ Trust, Series 1 (QQQ) is an ETF from Invesco (US). Over the past year KCAI returned +20.03% while QQQ returned +22.98%. Year to date, KCAI is up 7.49% versus a gain of 16.87% for QQQ.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 18.2% compared with 16.7% for KCAI. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -26.6% for KCAI and -22.8% for QQQ. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.12. They move largely independently of each other.
Fees and Cost Over Time
KCAI charges 0.79% per year while QQQ charges 0.18%. On a $10,000 position that is $79 vs $18 annually, a gap of $61 per year that compounds over a long holding period. On income, KCAI currently yields 32.26% against 0.44% for QQQ.
Holdings Overlap
We hold position weights for 39 holdings in KCAI and 102 in QQQ, totalling 99.8% and 99.9% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 39 positions we hold weights for in KCAI and 102 in QQQ, against full books of 42 and 107.
What only one of them owns
Our book lists 95 positions for QQQ that do not appear in our book for KCAI (97.0% of the fund), and 0 for KCAI that do not appear in QQQ (0.0%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
You are not choosing between two funds in isolation.
Whichever of KCAI and QQQ you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, KCAI or QQQ?
KCAI has an expense ratio of 0.79% while QQQ charges 0.18%. QQQ is the cheaper option, by $61 a year on a $10,000 investment.
Which performed better, KCAI or QQQ?
Over the past year KCAI returned +20.03% vs +22.98% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (2 years), KCAI annualized +34.50% vs +23.32% for QQQ. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, KCAI or QQQ?
QQQ has been the more volatile fund at 18.2% annualized versus 16.7% for KCAI. Worst drawdown: KCAI -26.6% vs QQQ -22.8%.
Should I hold both KCAI and QQQ?
KCAI and QQQ have a monthly-return correlation of 0.12, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, KCAI or QQQ?
KCAI yields 32.26% while QQQ yields 0.44%, so KCAI currently pays the higher dividend yield.
Is QQQ better than KCAI?
QQQ has a lower expense ratio. KCAI led over the full window, QQQ over 1Y. KCAI is less concentrated, with 31.7% of the fund in its ten largest positions against 46.5%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.