KTEC - ETF AI Analysis

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KraneShares Hang Seng TECH Index ETF (KTEC)

Rating:68Neutral

Price Target:―

KTEC, the KraneShares Hang Seng TECH Index ETF, has a solid overall rating driven mainly by strong Chinese tech leaders like Tencent and Netease, which benefit from robust financial performance, profitable gaming businesses, and strategic investments in new technologies and international growth. However, several major holdings such as Alibaba, Baidu, and XPeng face issues like bearish price trends, profitability and cash flow pressures, and less attractive valuations, which weigh on the fund’s rating. The main risk is its heavy concentration in Chinese technology and internet companies, meaning regulatory changes, competition, or market weakness in this sector and region can significantly impact the ETF.

Positive Factors

Improving Year-to-Date Performance

The ETF has delivered positive results so far this year, showing a recovery despite recent short-term volatility.

Several Strong Top Holdings

Key positions like Alibaba, Kuaishou, Baidu, and others have shown strong or steady performance, helping support the fund’s overall returns.

Focused Exposure to Leading China Tech Names

The fund concentrates on major Hong Kong–listed technology and internet companies, giving investors targeted access to a key growth area in China’s market.

Negative Factors

High Expense Ratio

The fund’s fee is relatively high for an ETF, which can eat into long-term returns compared with lower-cost alternatives.

Heavy Concentration in a Few Stocks and Sectors

A large share of assets is in a small group of tech, consumer, and communication services companies, increasing the impact if these areas struggle.

Single-Market and Short-Term Performance Risk

With all exposure in Hong Kong and a recent period of weak three-month performance, the ETF is sensitive to swings in the local tech market and investor sentiment.

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

AUM58.80M

RegionAsia-Pacific

Expense Ratio0.69%

Beta0.95

IssuerKraneShares

Inception DateJun 09, 2021

Dividend Yield3.39%

Asset ClassEquity

Index TrackedHang Seng Tech Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume66,734

30 Day Avg. Volume59,531

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

20.96

Price Target Upside― Downside

Rating ConsensusStrong Buy

Number of Analyst Covering29

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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 Chinese tech names like Alibaba and Tencent, along with firms in e-commerce, online services, and digital technology. Someone might invest in KTEC to get growth-focused exposure to Asia’s fast-growing tech sector in a single, diversified investment. However, this ETF is heavily concentrated in Chinese technology and internet-related stocks, so its price can be quite volatile and can go up or down sharply with changes in the Chinese tech market and regulations.

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 essentially a Hong Kong tech and consumer-internet play, with names like Alibaba and Baidu starting to pull their weight as their shares have been rising on improving sentiment around profits and AI. Kuaishou has been another bright spot, helping to power the fund higher. On the flip side, Xiaomi has been losing steam, and heavyweights Meituan and Tencent have been more of a drag than a driver lately. With most of its muscle in Chinese platforms and e-commerce, the ETF is highly concentrated in China’s tech ecosystem.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
9988	Alibaba Group Holding Ltd.	9.07%	$5.33M	HK$2.70T	41.04%	70 Outperform
1211	BYD Co	8.53%	$5.01M	HK$897.50B	-18.07%	66 Neutral
3690	Meituan	8.31%	$4.88M	HK$542.74B	-43.26%	74 Outperform
0700	Tencent Holdings	8.06%	$4.74M	HK$4.97T	22.16%	75 Outperform
1810	Xiaomi	7.88%	$4.64M	HK$930.00B	-16.97%	71 Outperform
9999	Netease Inc	7.76%	$4.56M	HK$592.57B	16.06%	80 Outperform
1024	Kuaishou Technology Class B	6.20%	$3.64M	HK$307.33B	50.59%	71 Outperform
9618	JD.com, Inc. Class A	5.65%	$3.32M	HK$319.38B	-29.53%	74 Outperform
9888	Baidu, Inc. Class A	5.13%	$3.01M	HK$394.37B	61.30%	63 Neutral
9868	XPeng, Inc. Class A	3.23%	$1.90M	HK$131.74B	10.74%	53 Neutral

KTEC Technical Analysis

Technical Analysis Sentiment

Negative

Last Price―

Price Trends

50DMA

16.06

Negative

100DMA

16.68

Negative

200DMA

16.31

Negative

Market Momentum

MACD

-0.24

Positive

RSI

41.52

Neutral

STOCH

37.95

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For KTEC, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 16.02, equal to the 50-day MA of 16.06, and equal to the 200-day MA of 16.31, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 41.52 is Neutral, neither overbought nor oversold. The STOCH value of 37.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KTEC.

KTEC Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
KTEC	―	―	$58.80M	0.69%	―
KWEB	―	―	$8.01B	0.70%	―
INCO	―	―	$248.42M	0.75%	―
CHIQ	―	―	$193.89M	0.65%	―
DGIN	―	―	$17.34M	0.74%	―
TMH	―	―	$647.09K	0.19%	―

Performance Comparison

KTEC

KraneShares Hang Seng TECH Index ETF

15.49

-0.56

-3.49%

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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