Chinese Internet stocks have crashed over the past few months, and many investors are trying to sort through the rubble to find the best opportunities to capitalize on this growing market. The KraneShares CSI China Internet ETF (NASDAQ:KWEB) might be your best bet, as it gives investors balanced exposure to the likes of Qihoo 360 (NYSE:QIHU), Baidu (NASDAQ:BIDU), Vipshop (NYSE:VIPS), and the soon-to-be-public Alibaba.
Why take the risk?
The KraneShares China Internet ETF includes all of the biggest-growth names of China’s Internet in one balanced, diversified vehicle, with its top 10 holdings accounting for 61.6 percent of the fund. Currently, the KraneShares China Internet ETF is about 20 percent off its 52-week high, which bodes well in comparison to the losses in many of the country’s most popular stocks.
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The above companies are three of the most popular Chinese investments in the market, but they’re also among the most volatile. Luckily, an ETF can somewhat limit that downside risk while providing exposure to several high-growth industries.