KCAI vs QQQ
KraneShares China Alpha Index ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. KCAI delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | KCAI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.18% | |
| AUM | $3M | $496.3B | |
| Dividend Yield | 32.81% | 0.44% | |
| Holdings | 42 | 108 | |
| YTD Return | +7.01% | +16.64% | |
| 1Y Return | +32.07% | +27.27% | |
| 3Y Return (annualized) | - | +25.96% | |
| 5Y Return (annualized) | - | +14.54% | |
| Volatility (annualized) | 17.0% | 30.6% | |
| Max Drawdown | -26.6% | -83.0% | |
| Fund Family | KraneShares | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Aug 28, 2024 | Mar 10, 1999 |
KCAI vs QQQ Performance
KraneShares China Alpha Index ETF (KCAI) is a ETF from KraneShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KCAI returned +32.07% while QQQ returned +27.27%. Year to date, KCAI is up 7.01% versus a gain of 16.64% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 17.0% 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 -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.11. They move independently enough that combining them can meaningfully diversify a portfolio.
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 32.81% against 0.44% for QQQ.
Holdings Overlap
KCAI and QQQ share 0 holdings out of 142 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
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. On a $10,000 investment, that is $61 per year of difference.
Which performed better, KCAI or QQQ?
Over the past year KCAI returned +32.07% vs +27.27% for QQQ, so KCAI leads on 1-year performance. Over the longest common window we track (2 years), KCAI annualized +35.35% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, KCAI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 17.0% for KCAI. Worst drawdown: KCAI -26.6% vs QQQ -83.0%.
Should I hold both KCAI and QQQ?
KCAI and QQQ have a monthly-return correlation of 0.11, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KCAI and QQQ?
KCAI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 142 unique securities.
Which pays a higher dividend, KCAI or QQQ?
KCAI yields 32.81% while QQQ yields 0.44%, so KCAI currently pays the higher dividend yield.
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