China's equity market offers multiple ways to access the country's growth story, but not all ETFs are created equal. CHHK, listed on ADX, provides Shariah-compliant exposure to Hong Kong-listed Chinese companies across consumer, technology, healthcare, and selected industrial sectors. KWEB, listed on the NYSE, focuses on China's internet and digital platform leaders listed primarily in Hong Kong and the United States. For GCC investors, understanding how these funds differ in their benchmarks, portfolio construction and sector exposure is just as important as recognising the companies they have in common.
Overview of CHHK
The Lunate S&P China Hong Kong Shariah ETF, listed on ADX under the ticker CHHK, tracks the S&P China Hong Kong-Listed Shariah Liquid 35/20 Capped Index. Domiciled in the UAE under the Lunate Umbrella Fund and managed by Lunate Capital LLC, the fund is Shariah-compliant, uses full physical replication with in-kind settlement, and distributes income. It launched on 5 June 2023 and holds approximately HKD 38.3 million in assets under management, with a total expense ratio of 1%.
As of 31 March 2026, the fund held 100 constituents, with a weighted-average P/E of 33.19, a weighted-average P/B of 2.85, and a weighted-average ROE of 11.24%. Because the fund follows a Shariah-screened benchmark, its portfolio is concentrated in consumer-oriented, technology, healthcare, and industrial companies while excluding conventional financial institutions and companies that do not meet the index's Shariah screening criteria.
Overview of KWEB
The KraneShares CSI China Internet ETF, listed on the NYSE under the ticker KWEB, tracks the CSI Overseas China Internet Index, a free-float market-cap-weighted benchmark covering China-based internet, e-commerce, and digital platform companies listed primarily on the Hong Kong Stock Exchange, Nasdaq, and the New York Stock Exchange. Launched on 31 July 2013, KWEB is a far larger and more established fund, with net assets of $5.70 billion as of 5 August 2026 and an expense ratio of 0.69%. It distributes annually and is not Shariah-screened, so its holdings span internet and digital platform companies across e-commerce, gaming, logistics, cloud computing and AI-related businesses without Shariah screening constraints.
Fund Snapshot at a Glance
Top Holdings Comparison
CHHK holdings and index data as of 5 August 2026; KWEB holdings as of 5 August 2026.
Alibaba, JD.com, and Trip.com appear in both funds, but their weightings differ sharply: Alibaba alone is a third of CHHK versus under 9% of KWEB. Tencent, one of KWEB's largest holdings, is not included in CHHK because the fund tracks a different Shariah-screened benchmark with its own constituent selection methodology, rather than KWEB's internet-focused index. CHHK also includes companies that sit outside KWEB's internet-focused investment universe, including BYD, Xiaomi, Wuxi Biologics and BeOne Medicines. These holdings reflect CHHK's broader Hong Kong-listed benchmark, whereas KWEB is designed specifically to capture China's internet and digital platform companies.
Although both funds provide exposure to Chinese growth companies, they track fundamentally different benchmarks. CHHK follows a Shariah-screened Hong Kong equity index spanning consumer, technology, healthcare and industrial companies, whereas KWEB tracks a dedicated internet-sector index focused on e-commerce, online platforms, gaming, cloud computing and digital services. As a result, differences in portfolio composition reflect the objectives of their underlying indices as much as their screening methodologies.
Concentration also differs markedly between the two funds. CHHK's top 10 holdings account for approximately 82.4% of assets, compared with 60.1% for KWEB, highlighting CHHK's greater reliance on a smaller number of companies.
Sector Allocation
The sector split illustrates the structural difference between the two funds. KWEB is concentrated in communication services and consumer cyclical names tied specifically to internet platforms and e-commerce. CHHK is more heavily weighted toward consumer-oriented businesses, including autos (BYD), consumer electronics (Xiaomi), travel (Trip.com), and healthcare companies, while KWEB remains concentrated in communication services and internet platform businesses.
Performance Comparison (Fund Returns)
CHHK data are as of 5 August 2026. KWEB figures marked with an asterisk (*) are as of 31 July 2026.
Both funds have posted negative year-to-date returns in 2026, though CHHK's decline has been shallower. Over the past three years, CHHK has generated a positive annualised return, while KWEB's broader internet-focused portfolio has been broadly flat over the same period. The since-inception comparison should be read with caution: KWEB has a 13-year history dating to 2013, while CHHK has only traded since June 2023, so the two track records span very different market cycles.
Fundamental and Structural Differences
CHHK's smaller AUM base (~HKD 38.3 million) reflects its recent 2023 listing and its role as a targeted, Shariah-compliant regional access point on ADX. KWEB's $5.70 billion AUM, longer operating history and more active secondary-market trading generally provide deeper liquidity and a longer track record, but its NYSE listing means GCC investors typically need international brokerage access rather than a regional exchange. CHHK's TER of 1.00% is higher than KWEB's 0.69%, partly reflecting its smaller scale and Shariah-screening requirements.
Risk Considerations
CHHK carries concentration risk given its 33.97% single-stock weighting in Alibaba and its 66.40% consumer discretionary tilt, alongside the standard risks of a shorter operating history that limits the reliability of longer-term risk metrics. KWEB carries exposure to regulatory risk affecting Chinese internet platforms specifically, alongside broader China equity market and currency risk, and a portfolio construction that is not screened for Shariah compliance.
Bottomline
CHHK and KWEB both provide China equity exposure but through different structures, screens, and listings. CHHK offers Shariah-compliant, ADX-listed exposure to Hong Kong-listed Chinese companies across consumer, technology, healthcare, and selected industrial sectors, anchored by a significant Alibaba position. KWEB offers NYSE-listed, non-screened access to a broader internet and platform-economy universe with substantially greater scale and a longer track record. GCC investors evaluating the two should weigh Shariah compliance, listing venue, expense ratio, and sector concentration against their own exposure objectives within China equities.
