The KraneShares CSI China Internet ETF (NYSEArca: KWEB), one of the first exchange traded funds to focus on Internet stocks in an emerging market, now has a five-year performance record for investors to consider.
The $1.18 billion KWEB debuted on July 31, 2013. KWEB tracks the CSI Overseas China Internet Index and was home to 43 stocks at the end of the second quarter.
The fund “achieved an annualized five year return of 18.14% and a cumulative five year return of 130.26% as of July 31, 2018. During the same time period the S&P 500 Index returned 13.11% annualized and 85.18% cumulative,” according to a statement from KraneShares.
Based purely on sheer size, China’s Internet and mobile phone markets are substantially larger than those in the U.S. Additionally, brick-and-mortar infrastructure is slack in China, a sign that up-and-coming Chinese consumers are adept at and prefer to buy online.
Emerging market investors are also focusing on the boom in consumer spending and technological growth. That theme could be a boon for KWEB, which is home to such well-known Chinese stocks as Tencent, Alibaba (NYSE: BABA), Baidu (NASDAQ: BIDU) and JD.com (NASDAQ: JD), among others.