KraneShares CSI China Internet ETF (KWEB) Covered Calls

The KraneShares CSI China Internet ETF seeks to provide investment results that correspond to the price and yield performance of the CSI Overseas China Internet Index. The fund provides targeted exposure to Chinese companies whose primary businesses are in the internet and internet-related sectors. By holding publicly traded assets listed in the U.S. and Hong Kong, KWEB offers investors a liquid vehicle to participate in the growth of China’s digital economy and domestic consumption.

You can sell covered calls on KraneShares CSI China Internet ETF to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for KWEB (prices last updated Thu 4:16 PM ET):

KraneShares CSI China Internet ETF (KWEB) Stock Quote
Last Change Bid Ask Volume P/E Market Cap
32.79 -1.31 32.82 32.85 31.6M - 0.0
Covered Calls For KraneShares CSI China Internet ETF (KWEB)
Expiration Strike Call Bid Net Debit Return
If Flat		 Annualized
Return If Flat
Feb 20 33 0.20 32.65 0.6% 24.3%
Mar 20 33 1.13 31.72 3.6% 35.5%
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KraneShares CSI China Internet ETF is an exchange-traded fund designed to track the CSI Overseas China Internet Index. The fund focuses on the China internet sector, which has become a cornerstone of the global digital economy. KWEB provides investors with access to a diversified basket of companies that provide services similar to major Western tech giants, including e-commerce, social media, search engines, and cloud computing, specifically tailored for the Chinese market.

Core Investment Strategy and Features

  1. Targeted Sector Exposure: The fund invests in China-based companies whose primary business is internet-related technology. This includes leaders in online retail, digital payments, gaming, and artificial intelligence.
  2. Cross-Border Listing Access: KWEB holds securities listed on several global exchanges, including the New York Stock Exchange (NYSE), NASDAQ, and the Hong Kong Stock Exchange (HKEX). This allows it to capture a wide array of "N-Shares" and ADRs.
  3. Market Capitalization Weighting: The underlying index utilizes a modified free-float market capitalization weighting methodology, ensuring that the largest and most liquid tech companies represent the core of the portfolio.

Competitive Landscape

KWEB operates as a leading vehicle for China-specific tech exposure, competing with other emerging market and China-focused ETFs. Direct competitors in the ETF space include Invesco China Technology ETF and iShares MSCI China ETF, which provide broader or more hardware-focused exposure. It is also frequently compared to the iShares China Large-Cap ETF. The fund’s top individual holdings represent the "FAANG" equivalents of China, including Alibaba Group Holding Ltd, PDD Holdings Inc (Pinduoduo), and Baidu Inc. Other major internet players in its portfolio include JD.com Inc and NetEase Inc. International investors use KWEB to hedge or diversify against U.S. tech concentration.

Strategic Outlook and Innovation

The fund’s outlook is closely tied to the regulatory environment and economic policy shifts within China. A primary strategic focus is the integration of artificial intelligence (AI) across its core holdings, as many Chinese internet firms are pivoting toward generative AI and industrial cloud services. The fund is positioned to benefit from the ongoing expansion of the Chinese middle class and the increasing penetration of mobile-first services in lower-tier cities. Future growth is expected to be driven by the "globalization" of Chinese internet firms, as companies within the portfolio expand their e-commerce and gaming footprints into international markets. By providing a consolidated entry point into this volatile yet high-growth sector, KWEB seeks to remain the benchmark for investors tracking the evolution of the Chinese digital landscape and its role in the global technology supply chain.