Category Review
Index option income was not one bet this year
KraneShares KWEB Covered Call Strategy ETF
$22.05−0.01 (−0.05%)
- 0.94%
- $91M
- −10.2%
- 29.76%
- 0M sh
- $22.12
- low $21.41high $33.56
The ETF.net KLIP Grade
D
Score 34 out of 100
- 20 of 25
Score 34 of 100 falls in the D band. A is 70 or higher, B 55 to under 70, C 40 to under 55, D 25 to under 40, F under 25.
Cost
The fund’s net expense ratio, ranked against its category.D33 out of 100Rank 17 of 25Mission
Whether the fund did what it promised, tested against its stated mandate.A70 out of 100Rank 4 of 5Risk
How the fund held up when markets fell: downside volatility, drawdowns and tail loss.F24 out of 100Rank 23 of 25Tradability
How easy the fund is to trade: daily volume, and how far its price strays from net asset value.C40 out of 100Rank 18 of 25Holdings
How concentrated the fund is, and how complete and current its disclosed holdings are.D34 out of 100Rank 17 of 19Durability
Whether the fund is likely to stay open, judged by its age, its assets and its issuer’s assets.C52 out of 100Rank 15 of 25
Our read on KLIP
DCovered calls, pointed at China internet stocks. KLIP owns KWEB and sells calls on it, turning one of the world's jumpiest equity baskets into option premium, paid out monthly. Fat premiums are the draw; a lid on sharp rebounds is the trade.
KLIP uses a covered-call strategy by purchasing shares of KWEB and selling corresponding call options on that underlying ETF.
Why people hold it
- The mechanism is one sentence: hold KWEB, sell calls on it. No options account, no rolling contracts, no margin paperwork on your end.
- Volatile underlyings command richer option premiums, and China internet is about as volatile as equity baskets get. KLIP is built to sell that swing rather than sit through it.
- Distributions come monthly, and the exposure underneath is a single named ETF rather than a black-box basket, so you always know what the calls are written against.
- Running since 2023, so the strategy has been through a full cycle of China internet drawdowns and violent snapback rallies, not just a calm stretch.
Worth knowing
- At 0.94% a year, it costs more than the typical option-income fund in its group (median 0.75%). You are paying up for the overlay and the niche.
- Selling calls caps how much of a rebound you capture while leaving the downside of China internet stocks intact. In a market that moves in bursts, that asymmetry matters.
- It is a smaller fund that does not trade heavily, so bid-ask spreads can widen, especially outside the calmest parts of the session.
KLIP Holdings
- Stocks
- 2
- 102%
- KWEB
Sectors
- Communication36.9%
- Consumer Discretionary33.3%
- Technology17.5%
- Real Estate4.4%
- Health Care3.9%
- Consumer Staples3.0%
- Financials0.9%
Geography
- United States100.00%
KLIP Performance
Shows how $10,000 changes over the selected period, with cash distributions reinvested at the closing price on each ex-dividend date.
Not enough history yet.Not enough history yet.
KLIP$8,983
Returns run to the Oct 12, 2026 close, with cash distributions reinvested. Each period starts on the same date that many months or years earlier. Periods over one year show the average yearly return.
| Period | KLIP |
|---|---|
| Year to date | −11.8% |
| 1 month | +1.1% |
| 3 months | −2.1% |
| 1 year | −10.2% |
| 3 years | +4.1% |
| 5 years | — |
| 10 years | — |
Calendar-year total return with cash distributions hypothetically reinvested at the ex-dividend date’s closing price. The current year shows year to date.
| Year | Return bar | KLIP |
|---|---|---|
| 2026 YTD | −11.8% | |
| 2025 | +18.0% | |
| 2024 | +3.4% | |
| 2023 | +10.6% |
KLIP in the news
KLIP Dividends
- 29.76%
- $6.56
- $0.45 per share
- Monthly
Distribution history
KLIP Risk
- 14.5%
How it’s calculated: standard deviation
The sample standard deviation of monthly total returns, multiplied by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Total returns include reinvested distributions.
- 0.05
How it’s calculated: Sharpe ratio
Subtract each month’s Treasury-bill return from the fund’s monthly total return.
Divide the average of those excess returns by their sample standard deviation, then multiply by the square root of 12.
Uses up to 36 complete months, with at least 12 required. Each month uses the Treasury yield quoted at the end of the previous month.
- −21.4%
How it’s calculated: maximum drawdown
The largest percentage decline from an earlier peak, using total returns with reinvested distributions.
Uses up to five years through the last close, with at least 12 months required.
- 0.34
How it’s calculated: beta
The beta figure is supplied by FMP. The comparison index depends on the fund’s broad asset class.
KLIP Cost
0.94%
KLIP0.94%
- The middle half of Index Option Income funds
- Median 0.81%
16 of the 25 Index Option Income funds charge less.
Other funds in Index Option Income
- DSOXYYieldMax Target 12 Semiconductor Option Income ETFExpense ratio 1.06%1 year return +85.4%
- DGIAXNicholas Global Equity and Income ETFExpense ratio 1.03%1 year return +19.4%
- DYMAGYieldMax Magnificent 7 Fund of Option Income ETFExpense ratio 1.34%1 year return +15.6%
- DMAGYRoundhill Magnificent Seven Covered Call ETFExpense ratio 1.19%1 year return +7.5%
- DSEMYGraniteShares YieldBOOST Semiconductor ETFExpense ratio 1.07%1 year return —