5 Best Performing Growth ETFs in 2022

3. KraneShares CSI China Internet ETF (NYSEARCA:KWEB)

YTD Return as of December 8: -15.68%

The KraneShares CSI China Internet ETF (NYSEARCA:KWEB) invests in Chinese growth stocks that belong to the IT services, internet services and infrastructure, software, application software, and internet software sectors. The fund uses a representative sampling technique to mirror the returns of the CSI Overseas China Internet Index. As of December 8, the fund has lost 15.68% year to date but has outperformed the Nasdaq by roughly 14.5%. This justifies its inclusion in our rankings of the best performing growth ETFs in 2022.

The KraneShares CSI China Internet ETF (NYSEARCA:KWEB) has an expense ratio of 0.69% and is yielding 8.70%. The fund’s assets under management, as of December 8, are valued at $5.78 billion. The fund has 43 holdings and a top ten holdings concentration of 63.50%.

One of the top holdings of the KraneShares CSI China Internet ETF (NYSEARCA:KWEB) is Chinese e-commerce giant, Alibaba Group Holding Limited (NYSE:BABA). As of September 30, Generation Investment Management is the dominant shareholder in Alibaba Group Holding Limited (NYSE:BABA) and has disclosed a position worth $360.74 million.

On November 18, UBS analyst Jerry Liu updated his price target on Alibaba Group Holding Limited (NYSE:BABA) to $135 from $140 and reiterated a Buy rating on the shares.

Here is what Polen Capital had to say about Alibaba Group Holding Limited (NYSE:BABA) in its third-quarter 2022 investor letter:

“Alibaba Group Holding Limited (NYSE:BABA) is the leading e-commerce company in China. The stock was weak over the quarter as they reported a quarterly revenue decline. The company has been heavily impacted by the continued covid-19 lockdowns throughout China and the aggressive rate increases and deteriorating outlook for China’s economy have weighed heavily on the stock. The share price has also been under pressure due to the U.S. Securities and Exchange Commission’s plans to delist Chinese tech stocks in 2024 if they do not provide access to audit files.”