FLCH vs KTEC

FLCHAFranklin FTSE China ETF

KTECDKraneShares Hang Seng TECH Index ETF

In short

FLCH Cheap and wide, in the best way. FLCH holds roughly a thousand Chinese stocks and charges 0.19% a year, a fraction of what most single-country China funds ask. Whole market, small toll.

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

FLCH The Fund seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE China RIC Capped 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

• FLCH 0.19% a year, against a roughly 0.70% median for China funds. It also undercuts the category stalwarts MCHI and GXC, both at 0.59%.
• About 1,000 holdings, so you own the long tail of Chinese listings rather than a short list of mega-cap headline names.
• One job, done tightly: mirror the FTSE China RIC Capped Index before fees. On tracking it ranks among the strongest builds in its China peer group.sec.gov

• 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

• FLCH It is China or nothing. Policy shifts, regulatory news and the currency drive the ride, with no other market in the basket to cushion it.
• Mid-sized and only moderately traded next to the category's giants, so bid-ask spreads can bite more on larger orders.
• Cash comes once or twice a year, not monthly. This is an equity index vehicle, not an income schedule.

• 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 FLCH profile⁠

Full KTEC profile⁠