CXSE vs KTEC

CXSEAWisdomTree China ex-State-Owned Enterprises Fund

KTECDKraneShares Hang Seng TECH Index ETF

In short

CXSE CXSE tracks an index that screens state-owned enterprises out of China, leaving the privately run companies. A tilt toward entrepreneurs rather than Beijing's balance sheet, at a fee well under the typical China fund.

KTEC KTEC buys the Hang Seng TECH Index: the 30 largest technology companies listed in Hong Kong, wrapped in one US-listed ticker. A narrow, high-conviction slice of Chinese tech rather than a diversified core holding.

Stated mandate

CXSE The Fund seeks to track, before fees and expenses, the price and yield performance of the WisdomTree China ex-State-Owned Enterprises Index.

KTEC KTEC seeks to track the Hang Seng TECH Index, representing the 30 largest companies in Hong Kong's technology sector.

Why people hold it

• CXSE The whole design is one screen: state-controlled companies out, privately run ones in, about 200 of them. Not a broad China index with a tweak.
• 0.32% a year, well under half the 0.70% median for single-country China funds.
• Trading since 2012, and one of the tighter, more faithful builds in a crowded China cohort.

• KTEC One ticker for the Hang Seng TECH Index, the 30 biggest tech names listed in Hong Kong. No overseas brokerage account, no ADR scavenger hunt.kraneshares.com
• Rules-based and transparent: it follows a published index instead of a manager's hunches, so the basket it aims to hold is always knowable.kraneshares.com
• A standard US fund wrapper trading on a US exchange in dollars, during US hours, while Hong Kong's market is closed.kraneshares.com
• Live since 2021, so it has traded through a full cycle of sentiment swings in Chinese tech rather than arriving as an untested launch.

Worth knowing

• CXSE Thinly traded next to China heavyweights like MCHI and GXC, so limit orders matter more here.
• One country, about 200 stocks, and none of the state-backed heavyweights as ballast. Swings run bigger than a diversified global fund's.
• Cheap for the group, not the cheapest: FLCH (0.19%) and JCHI (0.15%) undercut it with different mandates.

• KTEC The expense ratio is 0.69% a year, above what the typical broad index tracker in its peer group charges. Niche access carries a niche price.
• About 30 stocks, one sector, one market. A handful of giants steer the whole basket, and moves can be sharp in both directions.
• Structured for growth exposure, not a paycheck: distributions land at most a couple of times a year.

Full CXSE profile⁠

Full KTEC profile⁠