Even if Alibaba entered KWEB at only a modestly higher weight than Baidu (that data will update later Friday), say at 11.5%, KWEB would feature a significantly larger Alibaba allocation than the aforementioned ETFs. For example, IPO currently sports a 9.6% weight to the stock while FPX’s Alibaba weight is just 2.8%.
The KraneShares CSI New China ETF (NYSEArca: KFYP), KWEB’s stablemate, is expected to add Alibaba when that ETF rebalances in December. Alibaba makes for a logical addition to KFYP because the ETF allocates 58.6% of its combined weight to technology and consumer discretionary names while featuring a combined 34.7% weight to Tencent and Baidu. [This ETF Will Add Alibaba]
KraneShares CSI China Internet Fund
ETF Trends editorial team contributed to this post.