KraneShares China internet ETF reports high double digit returns
China focused ETF provider Krane Funds Advisors reports that its flagship KraneShares CSI China Internet ETF (NYSE: KWEB) achieved an annualised five-year return of 18.14 per cent and a cumulative five-year return of 130.26 per cent as of July 31, 2018. During the same time period the S&P 500 Index returned 13.11 per cent annualised and 85.18 per cent cumulative.
Over the past five years the China internet sector has achieved many significant milestones, KraneShares writes. In 2013 e-commerce sales in China reached USD296.57 billion surpassing e-commerce sales in the US of USD262.51 billion for the first time.
By the end of 2017, China's annual e-commerce sales had nearly quadrupled to USD1.14 trillion compared to USD453.5 billion in the United States. The current percentage of China's population with internet access is only 52.2 per cent compared to 88.5 per cent in the United States, indicating there is significant room for growth in China's internet sector.
"KWEB is the number one performing US-listed China ETF for the five year period according to Bloomberg," says Brendan Ahern, Chief Investment Officer of KraneShares. "KWEB is also the number one performer out of seventy-nine China region mutual funds with five-year track records, according to Morningstar. The Morningstar China region category is comprised of both ETFs and actively managed mutual funds."
"KraneShares was founded with the goal of providing US investors opportunities to realise meaningful long term returns from China's capital markets," says Jonathan Krane, Chief Executive Officer of KraneShares. "We believe KWEB's strong five-year track record is a testament to the long-term investment opportunities available in China's capital markets."