Vipshop Holdings (NYSE: VIP) has been public over two years, returning over 3,600% and becoming a legendary stock over that time. Vipshop, KWEB’s sixth-largest holding at a weight of 5.3%, has more than doubled this year. [A VIP Internet Stock Helps These ETFs]
Speaking of new Chinese Internet stocks, some investors appear to be considering KWEB in advance of Alibaba’s upcoming IPO. The ETF has added $9.44 million since the start of the third quarter as investors have come to realize that KWEB is not only a logical landing spot for Alibaba, but that the ETF will also be one of the first to house the stock.
KWEB’s index gives it the flexibility to add Alibaba after the stock’s eleventh trading day. Based on the valuation talk surrounding Alibaba, the company could easily be a top-five, if not a top-three holding in KWEB right out of the gate. [Limited ETF Options for Alibaba]
KraneShares CSI China Internet Fund