China is the only country capable of producing tech giants that can rival American ones—perhaps not as global, but massively influential within China itself. Especially after the DeepSeek moment, it’s clear that Chinese tech is edging closer to the global technology frontier.
If you’re thinking of investing in Chinese tech, you’re not short on options. But for those less familiar with the landscape, this post is for you. We’ll compare four prominent China tech ETFs to help you decide which best suits your needs:
| iShares Hang Seng TECH ETF | KraneShares Hang Seng TECH Index ETF | KraneShares CSI China Internet ETF (NYSE:KWEB) | Invesco China Technology ETF | |
| Exchange | SEHK | NYSE | NYSE | NYSE |
| Ticker | 3067 | KTEC | KWEB | CQQQ |
| Inception Date | 14 Sep 2020 | 8 Jun 2021 | 31 Jul 2013 | 8 Dec 2009 |
| Fund Size | HKD 17.8 billion (US$2.3 billion) | US$44 million | US$6.4 billion | US$1.1 billion |
| Expense Ratio | 0.25% | 0.69% | 0.7% | 0.65% |
| No. of Holdings | 30 | 30 | 29 | 157 |
| Top 10 holdings | 1. Xiaomi 8.44% 2. NetEase 8.03% 3. Tencent 7.76% 4. Alibaba 7.3% 5. BYD 7.06% 6. Meituan 6.93% 7. JD.com 6.63% 8. SMIC 6.46% 9. Kuaishou 6.09% 10. Li Auto 4.8% Top 10: 69.5% | 1. Xiaomi 8.99% 2. NetEase 8.54% 3. Tencent 8.27% 4. Alibaba 7.77% 5. BYD 7.52% 6. Kuaishou 4.8% 7. Li Auto 4.5% 8. Trip.com 4.4% 9. JD.com 4.27% 10. Meituan 4.22% Top 10: 63.28% | 1. Tencent 9.92% 2. Alibaba 8.39% 3. PDD 7.12% 4. Meituan 6.73% 5. JD.com 5.65% 6. Kuaishou 4.5% 7. Tencent Music 4.46% 8. Trip.com 4.09% 9. Kanzhun 4.05% 10. KE Holdings 4.04% Top 10: 58.95% | 1. Tencent 9.41% 2. PDD 8.08% 3. Meituan 7.51% 4. Baidu 6.8% 5. Kuaishou 6.3% 6. Horizon Robotics 3.66% 7. Sunny Optical 3.62% 8. Bilibili 3.54% 9. Kingdee 3.14% 10. SenseTime 2.88% Top 10: 54.94% |
iShares Hang Seng TECH ETF (3067) and KraneShares Hang Seng TECH Index ETF (KTEC) – Same Index, Different Wrappers
At first glance, 3067 and KTEC look identical—they both track the Hang Seng TECH Index. But here are the key differences:
- Cost: 3067 is significantly cheaper at 0.25% vs KTEC’s 0.69%.
- Listing: 3067 trades in Hong Kong, while KTEC trades on the NYSE.
So why would anyone choose KTEC? If you’re a U.S.-based investor and prefer to stick with U.S.-listed ETFs for tax simplicity and brokerage compatibility, KTEC might make more sense. However, if you’re outside the U.S., 3067 is almost always the better choice.
Why? Because KTEC is U.S.-domiciled, meaning non-U.S. investors are subject to 30% withholding tax on dividends—on top of the 10% China dividend tax that applies to both ETFs. You’re effectively paying two layers of tax and a higher fee. Unless you’re based in the U.S., KTEC is simply less efficient.
KraneShares CSI China Internet ETF (NYSE:KWEB) – The OG China Tech ETF
Before the Hang Seng TECH Index existed, KWEB was the go-to ETF for Chinese tech exposure. With US$6.4 billion in AUM, it remains hugely popular.
Its main advantage? Access to U.S.-listed Chinese tech companies.
For example, Pinduoduo (PDD) is a fast-growing giant that rivals Alibaba and JD.com. But it isn’t listed in Hong Kong—so you won’t find it in HSTECH or 3067. KWEB includes PDD, Kanzhun, KE Holdings, and others not found in HSTECH.
But that comes at a price—KWEB is the most expensive ETF of the four at 0.70%. And again, U.S. dividend withholding tax applies to non-U.S. investors.
If you want PDD exposure but want to avoid KWEB’s costs, one workaround is to buy 3067 for core exposure and add PDD separately as a stock. There’s enough overlap between 3067 and KWEB that this combo gets you the same core exposure with lower fees and taxes.
Invesco China Technology ETF (CQQQ) – The “QQQ of China”
QQQ is the gold standard when it comes to the Nasdaq 100 ETF, having delivered exceptional returns of over 15% per year, compounded. Naturally, some investors might ask: what’s the Chinese equivalent of QQQ? The closest answer is likely CQQQ.
But here’s the catch—China doesn’t have a true equivalent of the Nasdaq 100. So instead, Invesco built CQQQ around the FTSE China Incl A 25% Technology Capped Index. This index casts a much wider net, with 157 holdings, compared to the ~30 in other China tech ETFs. It’s five times larger in stock count, but not in popularity—CQQQ only has US$1.1 billion in assets, despite launching back in 2009, much earlier than KWEB.
And while it may look more diversified on the surface, that’s not really the case. Over 54% of the fund is concentrated in its top 10 holdings, which isn’t too far off from the other ETFs. So the breadth doesn’t translate into meaningful diversification.
Another issue? CQQQ’s top holdings include lesser-known names like Horizon Robotics and Kingdee, which don’t have the same investor following or market leadership as Tencent, Alibaba, or Meituan. That might explain why CQQQ hasn’t caught on as much as its peers—despite its longer track record.
So, Which One Should You Buy?
If you’re a non-U.S. investor: Go with 3067. It’s cheaper, avoids U.S. dividend taxes, and gives solid exposure to top-tier Chinese tech.
If you’re a U.S. investor: KWEB is the most accessible and offers broader coverage, including U.S.-listed names like PDD. It trades on NYSE and avoids PFIC complications.
Hopefully, this breakdown helps you differentiate the ETFs and choose one that matches your investment objectives and location.
You’re welcome.
