KWEB vs QQQ
KraneShares CSI China Internet 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 | KWEB | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.69% | 0.18% | |
| AUM | $5.4B | $496.3B | |
| Dividend Yield | 7.43% | 0.44% | |
| Holdings | 34 | 108 | |
| YTD Return | -24.84% | +17.30% | |
| 1Y Return | -24.26% | +24.93% | |
| 3Y Return (annualized) | +3.51% | +26.19% | |
| 5Y Return (annualized) | -6.84% | +15.34% | |
| Volatility (annualized) | 33.5% | 30.6% | |
| Max Drawdown | -80.9% | -83.0% | |
| Fund Family | KraneShares | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jul 31, 2013 | Mar 10, 1999 |
KWEB vs QQQ Performance
KraneShares CSI China Internet ETF (KWEB) is a ETF from KraneShares and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year KWEB returned -24.26% while QQQ returned +24.93%. Year to date, KWEB is down 24.84% versus a gain of 17.30% for QQQ.
Over three years, KWEB compounded at +3.51% per year against +26.19% for QQQ; over five years the annualized figures are -6.84% and +15.34% respectively. Across the full 13-year window we track, QQQ has the edge at +13.06% annualized vs +2.11%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
KWEB has been the more volatile fund, with annualized monthly volatility of 33.5% 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 -80.9% for KWEB 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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KWEB 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, KWEB currently yields 7.43% against 0.44% for QQQ.
Holdings Overlap
KWEB and QQQ share 1 holdings out of 132 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in KWEB | Weight in QQQ | Difference |
|---|---|---|---|
| PDD:IE | 8.17% | 0.27% | 7.90% |
Frequently Asked Questions
Which is cheaper, KWEB or QQQ?
KWEB 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, KWEB or QQQ?
Over the past year KWEB returned -24.26% vs +24.93% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (13 years), KWEB annualized +2.11% vs +13.06% for QQQ. Past performance does not guarantee future results.
Which is riskier, KWEB or QQQ?
KWEB has been the more volatile fund at 33.5% annualized versus 30.6% for QQQ. Worst drawdown: KWEB -80.9% vs QQQ -83.0%.
Should I hold both KWEB and QQQ?
KWEB and QQQ have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between KWEB and QQQ?
KWEB and QQQ share 1 common holdings with a 0.3% weight overlap. Combined, they hold 132 unique securities.
Which pays a higher dividend, KWEB or QQQ?
KWEB yields 7.43% while QQQ yields 0.44%, so KWEB currently pays the higher dividend yield.
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