3 Best China ETFs amid AI Fears: KWEB, ISVBF, XTTRF in Focus

Amid the rising U.S.-China AI race, investors need to navigate the complex landscape where innovation fears clash with untapped growth potential. Having said that, China’s tech sector is still strong, powered by leaders in e-commerce, semiconductors, and AI. Despite export limits, three top China ETFs, namely KWEB, ISVBF, and XTTRF give smart access to this market’s growth.

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This comparison breaks down how these ETFs differ in exposure, costs, and risk, helping readers decide which ETF may fit best in a diversified portfolio during uncertain times.

**Kraneshares CSI China Internet ETF **KWEB -0.64% ▼

Kraneshares CSI China Internet ETF targets China’s internet sector, including leaders and innovators in e-commerce, social media, online entertainment, and cloud computing. KWEB mirrors the CSI Overseas China Internet Index. Investors can also earn regular income through KWEB’s annual dividend payments of $2.096 per share, reflecting a 6.6% yield.

KWEB holds about 32 of China’s leading internet companies. Its top five holdings include Alibaba BABA -2.20% ▼ (9988), Tencent Holdings TCEHY +0.75% ▲ 0700 +1.17% ▲ , PDD Holdings PDD -1.18% ▼ , Meituan 3690 +0.87% ▲ , and NetEase NTES -0.69% ▼ 9999 +2.40% ▲ .

According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, KWEB is a Moderate Buy. The Street’s average price target of $44.89 implies an upside of 43.5%.

**iShares MSCI China UCITS ETF **ISVBF -1.50% ▼

iShares MSCI China UCITS ETF tracks the MSCI China Index, giving broad exposure to Chinese equities in a single, accumulating share class. It combines a wide market footprint with reinvested dividends, aiming for long-term growth through diversification across sectors and company sizes.

ISVBF holds 560 stocks encompassing a broad range of China’s sectors. Its top five holdings include Tencent Holdings, Alibaba, China Construction Bank Corporation 0939 -0.13% ▼ , Xiaomi Corp. 1810 -0.80% ▼ , and PDD Holdings.

TipRanks’ ETF analyst consensus, based on a weighted average of ratings for its holdings, rates ISVBF as a Moderate Buy. The Street’s average price target of $7.77 implies an upside of 27.8%.

**Xtrackers MSCI CHINA UCITS ETF **XTTRF -2.38% ▼

Xtrackers MSCI CHINA UCITS ETF is a total market ETF that also tracks the performance of the MSCI China Index. It offers a broad exposure to Chinese companies of all sizes, from small-cap innovators to established large-cap leaders. It reinvests dividends to boost long-term growth while keeping things diversified.

XTTRF holds 563 stocks spanning a broad array of sectors from the world’s fast-growing economy. Its top five holdings include Tencent Holdings, Alibaba, China Construction Bank Corporation, Xiaomi Corp., and PDD Holdings.

According to TipRanks’ unique ETF analyst consensus, determined based on a weighted average of analyst ratings on its holdings, XTTRF is a Moderate Buy. The Street’s average price target of $25.33 implies an upside of 28.9%.

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