KTEC vs QQQ
KraneShares Hang Seng TECH Index ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | KTEC | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.18% | |
| AUM | $58M | $496.3B | |
| Dividend Yield | 3.88% | 0.44% | |
| Holdings | 31 | 108 | |
| YTD Return | -19.73% | +19.52% | |
| 1Y Return | -17.33% | +26.68% | |
| 3Y Return (annualized) | +2.71% | +26.64% | |
| 5Y Return (annualized) | -6.63% | +15.36% | |
| Volatility (annualized) | 36.6% | 30.6% | |
| Max Drawdown | -66.9% | -83.0% | |
| Fund Family | KraneShares | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jun 8, 2021 | Mar 10, 1999 |
KTEC vs QQQ Performance
KraneShares Hang Seng TECH Index ETF (KTEC) is a ETF from KraneShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KTEC returned -17.33% while QQQ returned +26.68%. Year to date, KTEC is down 19.73% versus a gain of 19.52% for QQQ.
Over three years, KTEC compounded at +2.71% per year against +26.64% for QQQ; over five years the annualized figures are -6.63% and +15.36% respectively. Across the full 5-year window we track, QQQ has the edge at +13.14% annualized vs -10.74%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KTEC has been the more volatile fund, with annualized monthly volatility of 36.6% compared with 30.6% for QQQ. 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 -66.9% for KTEC 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 0.14. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KTEC charges 0.69% per year while QQQ charges 0.18%. On a $10,000 position that is $69 vs $18 annually, a gap of $51 per year that compounds over a long holding period. On income, KTEC currently yields 3.88% against 0.44% for QQQ.
Holdings Overlap
KTEC and QQQ share 0 holdings out of 106 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, KTEC or QQQ?
KTEC has an expense ratio of 0.69% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $51 per year of difference.
Which performed better, KTEC or QQQ?
Over the past year KTEC returned -17.33% vs +26.68% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (5 years), KTEC annualized -10.74% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, KTEC or QQQ?
KTEC has been the more volatile fund at 36.6% annualized versus 30.6% for QQQ. Worst drawdown: KTEC -66.9% vs QQQ -83.0%.
Should I hold both KTEC and QQQ?
KTEC and QQQ have a monthly-return correlation of 0.14, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KTEC and QQQ?
KTEC and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 106 unique securities.
Which pays a higher dividend, KTEC or QQQ?
KTEC yields 3.88% while QQQ yields 0.44%, so KTEC currently pays the higher dividend yield.
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