KTEC vs MCHI

KTECDKraneShares Hang Seng TECH Index ETF

MCHIAiShares MSCI China ETF

In short

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.

MCHI The default one-ticker way to own China. MCHI has tracked the MSCI China Index since 2011, holding roughly 600 stocks open to international investors, and it stays actively traded.

Stated mandate

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

MCHI The fund seeks to track an index of Chinese equities available to international investors.

Why people hold it

• 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.

• MCHI One ticker, roughly 600 Chinese stocks. Instead of picking among share classes and listings, you get the MSCI China Index (Net) in a single line item.ishares.com
• 0.59% expense ratio, below the middle of the single-country China pack, and the fund has hewed closely to its stated index mandate.
• Running since 2011 and now a multi-billion-dollar fund that trades actively, which is why it turns up as the reference China holding in so many portfolios.
• One of the stronger implementations in its peer group on tradability and staying power, both scored in the top tier of the China cohort.

Worth knowing

• 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.

• MCHI Cheaper broad-China options exist: FLCH charges 0.19% and JPMorgan's active JCHI 0.15%. You are paying up for MCHI's depth and liquidity.
• Single-country equity risk, undiluted. Chinese regulation, currency and policy swings hit the whole basket at once, and the index leans heavily on its biggest names.
• Distributions come once or twice a year, not monthly, so cash flow arrives in lumps.

Full KTEC profile⁠

Full MCHI profile⁠