KTEC - ETF AI Analysis

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KraneShares Hang Seng TECH Index ETF (KTEC)

Rating:68Neutral

Price Target:―

The KraneShares Hang Seng TECH Index ETF (KTEC) has a solid overall rating, reflecting a mix of strong performers and some challenges among its top holdings. Netease Inc. stands out as a key contributor, driven by its robust profitability, efficient operations, and successful game launches, which bolster the fund's rating. However, holdings like Baidu and BYD Co. face challenges such as weak momentum and operational difficulties, which slightly weigh on the ETF's overall performance. A notable risk is the ETF's concentration in the tech sector, which may expose it to sector-specific volatility.

Positive Factors

Strong Top Holdings

Several key holdings, including Alibaba and Netease, have delivered strong year-to-date performance, supporting the ETF’s overall returns.

Sector Focus on Growth Industries

The ETF is heavily invested in high-growth sectors like Consumer Cyclical, Communication Services, and Technology, which have strong long-term potential.

Focused Geographic Exposure

The ETF’s concentration in Hong Kong provides targeted access to innovative companies in one of Asia’s leading markets.

Negative Factors

High Sector Concentration

The ETF is heavily weighted toward Consumer Cyclical and Communication Services, which could increase vulnerability to sector-specific downturns.

Underperforming Holdings

Some top holdings, such as Meituan and JD.com, have lagged in year-to-date performance, potentially dragging on overall returns.

Relatively High Expense Ratio

The ETF’s expense ratio is higher than many broad-market ETFs, which could eat into investor returns over time.

KTEC vs. SPDR S&P 500 ETF (SPY)

AUM60.35M

RegionAsia-Pacific

Expense Ratio0.69%

Beta0.90

IssuerKraneShares

Inception DateJun 09, 2021

Dividend Yield3.12%

Asset ClassEquity

Index TrackedHang Seng Tech Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume73,569

30 Day Avg. Volume57,986

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

20.92

Price Target Upside― Downside

Rating ConsensusStrong Buy

Number of Analyst Covering29

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

KTEC Summary

The KraneShares Hang Seng TECH Index ETF (KTEC) is an investment fund that focuses on the technology sector in Asia, specifically companies listed in Hong Kong. It tracks the Hang Seng TECH Index, which includes 30 of the largest tech companies in areas like e-commerce, cloud computing, and digital services. Well-known companies in the ETF include Alibaba and Tencent. This ETF could be appealing for investors looking to benefit from the growth of innovative tech firms in Asia. However, it’s important to note that the ETF is heavily tied to the tech sector, meaning its value can fluctuate significantly based on how the tech industry performs.

How much will it cost me?The KraneShares Hang Seng TECH Index ETF (KTEC) has an expense ratio of 0.69%, which means you’ll pay $6.90 per year for every $1,000 invested. This is higher than average because it is a sector-focused ETF that requires active management to track the Hang Seng TECH Index and its specialized portfolio of technology companies in Asia.

What would affect this ETF?KTEC's focus on leading Asian technology companies positions it to benefit from continued digital innovation and growth in e-commerce, fintech, and cloud services within China and the broader Asia-Pacific region. However, potential risks include regulatory changes in China, geopolitical tensions, and economic slowdowns that could impact consumer spending or technology sector growth. Additionally, shifts in global interest rates may affect investor sentiment toward growth-oriented investments like KTEC.

KTEC Top 10 Holdings

The KraneShares Hang Seng TECH Index ETF (KTEC) is heavily tilted toward Asian tech giants, with a notable concentration in consumer cyclical and communication services sectors. Alibaba is rising on strong revenue growth but faces headwinds from investment-related declines, while Tencent’s gaming and AI initiatives are steady contributors despite bearish momentum. Netease is a bright spot, driven by successful game launches and profitability, while JD.com and Xiaomi are lagging due to weaker technical trends. Overall, the fund’s Hong Kong-based holdings reflect a mixed bag of growth potential and near-term challenges in the region’s tech landscape.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
3690	Meituan	8.33%	$5.14M	HK$641.72B	-29.65%	74 Outperform
0700	Tencent Holdings	8.09%	$4.99M	HK$5.63T	69.16%	75 Outperform
9999	Netease Inc	7.89%	$4.86M	HK$685.29B	49.73%	80 Outperform
1211	BYD Co	7.71%	$4.75M	HK$918.78B	12.35%	66 Neutral
1810	Xiaomi	7.58%	$4.67M	HK$1.01T	11.65%	71 Outperform
9988	Alibaba Group Holding Ltd.	7.48%	$4.61M	HK$2.95T	100.00%	70 Outperform
1024	Kuaishou Technology Class B	5.95%	$3.67M	HK$350.35B	92.75%	71 Outperform
9618	JD.com, Inc. Class A	5.33%	$3.28M	HK$339.41B	-14.37%	74 Outperform
9888	Baidu, Inc. Class A	4.44%	$2.74M	HK$397.95B	83.62%	63 Neutral
9961	Trip.com Group Ltd.	3.76%	$2.32M	HK$400.17B	20.71%	74 Outperform

KTEC Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

16.24

Positive

100DMA

16.88

Negative

200DMA

16.16

Positive

Market Momentum

MACD

0.17

Negative

RSI

57.79

Neutral

STOCH

77.83

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For KTEC, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 16.15, equal to the 50-day MA of 16.24, and equal to the 200-day MA of 16.16, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 57.79 is Neutral, neither overbought nor oversold. The STOCH value of 77.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KTEC.

KTEC Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
KTEC	―	―	$60.35M	0.69%	―
KWEB	―	―	$8.37B	0.70%	―
INCO	―	―	$263.96M	0.75%	―
CHIQ	―	―	$208.84M	0.65%	―
DGIN	―	―	$18.18M	0.74%	―
TMH	―	―	$1.21M	0.19%	―

Performance Comparison

KTEC

KraneShares Hang Seng TECH Index ETF

16.77

4.01

31.43%

KWEB

Kraneshares Csi China Internet Etf

―

INCO

Columbia India Consumer ETF

―

CHIQ

Global X MSCI China Consumer Discretionary ETF

―

DGIN

VanEck Digital India ETF

―

TMH

Toyota Motor Corporation ADRhedged

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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