China Internet ETF KWEB sees record inflows even as the fund's price sinks
Aug. 20, 2021 1:35 PM ET KraneShares CSI China Internet ETF (KWEB) Tencent Holdings Limited (TCEHY) Alibaba Group Holding Limited (BABA) JD.com, Inc. (JD) By: Jason Capul, SA News Editor 42 Comments
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KraneShares CSI China Internet ETF (NYSEARCA: KWEB) has dropped more than 27% over the past month, but interestingly enough, the fund has attracted its most significant capital inflows in its lifetime over the same period.
The ETF has been under fire with the tech crackdowns out of Beijing, plummeting in price. However, KWEB actually gained $1.3B in net capital inflows over the period as investors poured money into the fund, per data from etfdb.com.
Aside from the record inflows, KWEB has also had record volumes traded. Over the past month, the ETF has had seven of its all-time highest-volume days ever, with Thursday being its new record with 37.8M shares traded.
To put that in perspective, the fund usually exchanges 7.5M shares per day, as this volume chart shows: 
Recent price action for KWEB is -42.8% YTD, -35.1% over one year, -27.1% since July 20 and +0.35% so far in Friday’s trading session.
KWEB has an expense ratio of 0.70% and 52 holdings that include names like Tencent Holdings ( OTCPK:TCEHY), Alibaba (NYSE: BABA) and JD.com (NASDAQ: JD).
How should investors react to the recent price action, and what should they do? That all depends on an investor's timeframe.
Seeking Alpha recently spoke with Robert Cantwell, founder and chief investment officer of UPHOLDINGS on a podcast, where he stated: "I'd say that the increase in regulations coming out of the Chinese Communist Party over the last handful of months, it's been an absolute nightmare for short-term investors. But it's a gift to long-term investors." |
