KraneShares Hang Seng TECH Index ETF (KTEC US) – Portfolio Construction Methodology

The underlying Hang Seng TECH Index targets 30 of the largest and most liquid technology-oriented companies listed on the Stock Exchange of Hong Kong. It draws its universe from the Hang Seng Composite Index and restricts eligibility to issuers whose primary businesses are technology or tech-enabled activities such as internet platforms, fintech, cloud computing and e-commerce, based on business exposure, research-and-development intensity and growth characteristics. Liquidity filters require minimum trading value and turnover, with insufficiently traded names removed. Eligible stocks are ranked by free-float-adjusted market cap and recent trading value; non-members generally need to rise into roughly the top 25 to enter, while existing members are retained provided they remain within about the top 35, limiting turnover. Constituents are weighted by free-float market cap with an 8% single-stock cap, and the index is reviewed and rebalanced quarterly.

To explore KTEC in more depth, visit our ETF analytics platform for institutional-grade insights — including performance and risk metrics, correlations, sensitivities, and factor exposure: https://www.etfstrategy.com/etf/KTEC_US