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KCAI ETF — Holdings & Analysis

The KraneShares China Alpha Index ETF (KCAI) is an actively managed equity ETF with $0.01 billion in assets under management and an expense ratio of 0.79%.

KCAI aims to outperform the CSI 300 Index by using artificial intelligence to select and weight up to 50 China A-Shares. The fund's AI-driven approach differentiates it from passive China equity ETFs, potentially offering enhanced returns through active stock selection within the Chinese market.

KraneShares China Alpha Index ETF (KCAI) ETF — Price, Holdings & Analysis

The KraneShares China Alpha Index ETF (KCAI) is an actively managed equity ETF with $0.01 billion in assets under management and an expense ratio of 0.79%. KCAI aims to outperform the CSI 300 Index by using artificial intelligence to select and weight up to 50 China A-Shares. The fund's AI-driven approach differentiates it from passive China equity ETFs, potentially offering enhanced returns through active stock selection within the Chinese market.

ETF Overview

KCAI seeks to outperform the CSI 300 Index by applying AI to a quantitative process in selecting and weighting securities. The index universe begins with CSI 300 China A-Shares, not subject to US sanctions. The fund filters index components based on historical prices, financial indicators, market trends, mathematical parameters, market capitalization, and sector classification, among other data inputs. The algorithm optimizes the holdings and weights that are most likely to provide a total return exceeding the benchmark. The fund selects up to 50 China A-Shares, capped at 5%, through the Stock Connect Programs. Up to 20% of assets may be invested in other equities not part of the underlying index, as well as derivatives, other investment companies or ETFs, and cash or cash equivalents. The fund may also engage in securities lending. The index is reconstituted and rebalanced monthly.
KCAI seeks to outperform the CSI 300 Index by employing an AI-driven quantitative process to select and weight securities within the China A-Shares market. The fund's investment universe consists of CSI 300 China A-Shares, excluding those subject to US sanctions. The AI algorithm filters index components based on factors such as historical prices, financial indicators, market trends, mathematical parameters, market capitalization, and sector classification. The algorithm optimizes holdings and weights to maximize total return above the benchmark. KCAI invests in up to 50 China A-Shares, capped at 5% each, through the Stock Connect Programs. Up to 20% of the fund's assets may be allocated to other equities outside the underlying index, derivatives, other investment companies or ETFs, and cash or cash equivalents. The fund's sector allocation is heavily weighted towards Financial Services (38.3%), followed by Industrials (25.4%) and Basic Materials (15.4%). The index is reconstituted and rebalanced monthly.

Risk Metrics

KCAI presents several risks. Its concentrated portfolio of approximately 37 holdings increases stock-specific risk. The fund's significant allocation to Financial Services (38.3%) and Industrials (25.4%) exposes it to sector-specific downturns. The 0.79% expense ratio can create a drag on performance, especially if the AI strategy does not consistently outperform its benchmark. The fund's focus on China A-Shares introduces geopolitical and regulatory risks specific to the Chinese market. As a relatively new ETF launched in August 2024, KCAI has a limited track record, making it difficult to assess its long-term performance and risk characteristics. The fund's small AUM of $0.01B may raise concerns about liquidity and potential fund closure.

Expense Ratio

0.79%

How Is the Fund Allocated?

SectorWeight
Financial Services38.3%
Industrials25.4%
Basic Materials15.4%
Technology12.3%
Consumer Cyclical8.6%
CountryWeight
China99.9%
Other0.1%

Dividend Yield

0.00%

Questions & Answers

What is KCAI and what does it track?

The KraneShares China Alpha Index ETF (KCAI) is an actively managed equity ETF that seeks to outperform the CSI 300 Index by using artificial intelligence to select and weight securities.

The fund invests primarily in China A-Shares, utilizing an AI algorithm to filter and optimize holdings based on various factors, including historical prices, financial indicators, and market trends.

What is the expense ratio for KCAI?

The expense ratio for KCAI is 0.79%. This means that for every $10,000 invested in the fund, $79 is deducted annually to cover operating expenses.

While this expense ratio is higher than some passively managed China equity ETFs, it is typical for actively managed ETFs that employ specialized strategies like AI-driven stock selection. Investors should consider the expense ratio as a factor when evaluating KCAI's potential returns.

What are the top holdings in KCAI?

As an actively managed ETF, KCAI's holdings are subject to change. As of 2026-03-15, the ETF's top holdings are concentrated in the financial and industrial sectors.

While specific holdings data is not available, the fund selects up to 50 China A-Shares, capped at 5% each, through the Stock Connect Programs. The fund's sector allocation is heavily weighted towards Financial Services (38.3%), followed by Industrials (25.4%) and Basic Materials (15.4%).

Is KCAI a good long-term investment?

Evaluating KCAI as a long-term investment requires careful consideration. The fund's AI-driven strategy offers the potential for outperformance, but its success depends on the effectiveness of the algorithm and the expertise of the fund managers.

The fund's 0.79% expense ratio will impact long-term returns. Investors should consider their risk tolerance, investment goals, and the fund's historical performance (if available) before making a decision. Past performance does not guarantee future results.

How does KCAI compare to similar ETFs?

KCAI differentiates itself from other China equity ETFs through its active management and AI-driven stock selection process. Many China ETFs passively track broad market indices.

KCAI's expense ratio of 0.79% is higher than passively managed ETFs but typical for actively managed funds.

Does KCAI pay dividends?

According to the provided data, KCAI has a dividend yield of 0.00% as of 2026-03-15. This indicates that the fund is not currently distributing any dividends to its shareholders.

Investors seeking income from their investments may want to consider other ETFs with a history of dividend payments. However, it's important to note that dividend yields can fluctuate over time and are not guaranteed.