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KTEC - ETF AI Analysis

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KTEC

KraneShares Hang Seng TECH Index ETF (KTEC)

Rating:67Neutral
Price Target:
KTEC, the KraneShares Hang Seng TECH Index ETF, has a solid overall rating driven mainly by its large positions in strong, profitable tech leaders like NetEase and Tencent, which show robust growth and positive business trends. However, several holdings, such as Hua Hong Semiconductor and Baidu, face profitability, cash flow, or revenue challenges, which weigh on the fund’s quality. The main risk is the ETF’s heavy concentration in Chinese technology stocks, meaning sector and regional issues can significantly impact performance.
Positive Factors
Leading Chinese Tech Names
The ETF holds many of the largest and most well-known Chinese technology and internet companies, giving investors focused access to this growth theme.
Some Resilient Top Holdings
A few of the biggest positions, such as BYD and JD.com, have shown strong year-to-date performance, helping to offset weakness in other stocks.
Targeted Sector Exposure
The fund is heavily tilted toward consumer, communication, and technology companies, which can benefit if Chinese tech and online spending trends improve.
Negative Factors
Weak Recent Performance
The ETF’s returns over the year to date and recent three-month period have been negative, reflecting pressure on its underlying holdings.
High Concentration in a Few Stocks
The top ten holdings make up a large share of the portfolio, so poor performance from just a few companies can significantly drag down the fund.
Single-Market and Sector Risk
With almost all assets in Hong Kong–listed Chinese tech-related stocks and a relatively high expense ratio, investors face both geographic and industry-specific risk along with meaningful ongoing costs.

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

KTEC Summary

KTEC is an exchange-traded fund that follows the Hang Seng TECH Index, which tracks 30 major technology-focused companies listed in Hong Kong. It holds well-known names like Alibaba, Tencent, Xiaomi, and JD.com, covering areas such as e-commerce, online services, and digital technology. Someone might invest in KTEC to get growth exposure to leading Asian tech companies in a single, diversified investment. However, this ETF is heavily concentrated in Chinese and Hong Kong technology stocks, so its price can be quite volatile and can go up or down sharply with changes in the tech sector and regional markets.
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

KTEC is a pure play on Hong Kong–listed tech and consumer internet names, and lately the ride has been bumpy. Lenovo and Hua Hong Semiconductor are two bright spots, with their rising shares helping to cushion the blows elsewhere. Netease has been relatively steady to rising, but heavyweights like Tencent, Meituan, Alibaba, Xiaomi, and JD.com have been losing steam, dragging on overall returns. With all its big bets tied to Chinese tech and e-commerce, the fund is highly concentrated both thematically and geographically in China’s digital economy.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Netease Inc10.36%$5.20MHK$655.66B-0.19%
80
Outperform
Tencent Holdings 9.13%$4.59MHK$3.88T-7.80%
75
Outperform
Meituan8.47%$4.26MHK$442.11B-41.29%
74
Outperform
BYD Co8.28%$4.16MHK$830.40B-31.35%
66
Neutral
Xiaomi7.80%$3.92MHK$588.22B-59.27%
71
Outperform
Baidu, Inc. Class A4.56%$2.29MHK$306.54B28.64%
63
Neutral
JD.com, Inc. Class A4.38%$2.20MHK$285.70B-15.46%
74
Outperform
Alibaba Group Holding Ltd.4.32%$2.17MHK$1.81T-8.96%
70
Outperform
Kuaishou Technology Class B4.27%$2.15MHK$185.92B-38.93%
71
Outperform
Hua Hong Semiconductor Ltd.4.06%$2.04MHK$371.15B406.40%
50
Neutral

KTEC Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
13.38
Negative
100DMA
13.80
Negative
200DMA
15.24
Negative
Market Momentum
MACD
-0.25
Negative
RSI
52.92
Neutral
STOCH
78.18
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For KTEC, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 12.66, equal to the 50-day MA of 13.38, and equal to the 200-day MA of 15.24, indicating a neutral trend. The MACD of -0.25 indicates Negative momentum. The RSI at 52.92 is Neutral, neither overbought nor oversold. The STOCH value of 78.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for KTEC.

KTEC Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$57.14M0.69%
67
Neutral
$4.90B0.70%
70
Outperform
$113.94M0.65%
58
Neutral
$15.17M0.70%
55
Neutral
$7.17M0.73%
56
Neutral
$937.93K0.19%
78
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
KTEC
KraneShares Hang Seng TECH Index ETF
13.09
-2.18
-14.28%
KWEB
Kraneshares Csi China Internet Etf
CHIQ
Global X MSCI China Consumer Discretionary ETF
DGIN
VanEck Digital India ETF
IOPP
Simplify Tara India Opportunities 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.
DisclaimerThis 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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