What is the difference between CQQQ and KSTR?

CQQQ (Invesco China Technology ETF) and KSTR (Kraneshares China Tech & Semi Star 50 ETF) are both Greater China Region-focused exchange-traded funds. CQQQ launched in 2009, while KSTR started in 2021. Their core differences lie in their expense ratios, net asset size, dividend yield and concentration risk, as CQQQ has a higher dividend yield but also higher single-stock concentration.

What are ETFs, and how do CQQQ and KSTR work?

Exchange-traded funds (ETFs) like CQQQ and KSTR pool investor money to buy a basket of assets, tracking specific indices or sectors. Both are Greater China Region funds targeting technology and related industries. Investors buy or sell shares on stock exchanges throughout the trading day, similar to stocks, allowing them to gain diversified exposure to Chinese tech companies without purchasing individual shares.

How do the expense ratios compare between these funds?

CQQQ has a 0.65% expense ratio, while KSTR's is 0.89%, a difference of 0.24 percentage points. Over time, these annual fees directly reduce net returns. For a beginner, it is crucial to understand that lower costs, assuming similar performance and tracking, help preserve investment growth. However, fees are just one factor; the strategy and holdings must also be considered when comparing the funds.

Which fund might be better for investors seeking income?

CQQQ is more suitable for income-focused beginners as it provides a 2.35% dividend yield, whereas KSTR offers 0.00%. It is important to note that dividends are not guaranteed; they depend on the underlying companies' payouts and the fund's distribution policy. While CQQQ offers regular cash flow, investors should remember that this yield can fluctuate and is just one aspect of total return.

What does 'concentration risk' mean for these ETFs?

Concentration risk refers to heavy exposure to a single holding. CQQQ holds 10.64% in PDD, meaning its performance is significantly tied to one company. In contrast, KSTR's top holdings are not available, so its concentration cannot be assessed from the provided data. A beginner should understand that a high concentration increases volatility, as any negative event impacting that top stock will likely affect the entire fund's value.

How do CQQQ and KSTR differ in their market exposure?

Both funds target the Greater China Region, focusing on technology. CQQQ is a broader China technology fund, while KSTR is a dedicated China Tech & Semi Star 50 ETF, implying a specific focus on semiconductor and tech leaders. Their actual index tracked and sector weights are not available for both, which limits full understanding of their precise market exposure differences.

Which fund has better liquidity and why does it matter?

CQQQ has $2.7 billion in net assets, providing strong liquidity and potentially better pricing. KSTR has $408 million, which is smaller. Liquidity matters because it affects how easily you can buy or sell shares without impacting the price. Higher assets can mean tighter bid-ask spreads, which is important for beginners who might trade frequently or need to exit positions quickly.

How does the size of the fund affect my investment?

Fund size, or net assets, impacts stability and liquidity. CQQQ is significantly larger ($2.7 billion) than KSTR ($408 million). A larger fund like CQQQ can handle larger inflows or outflows more smoothly, potentially leading to more stable trading prices. While size alone does not dictate performance, it can influence your ability to trade the fund efficiently and at a fair price on the market.

What does each fund typically track and how do they differ?

The index tracked is not available for either fund. CQQQ provides general exposure to China technology, while KSTR is designed for the China Tech & Semi sector, focusing on 50 star companies. Without the exact index, investors should be cautious and note that the methodologies differ, especially with KSTR's dedicated semiconductor aim, making direct performance comparison difficult without further information.

How can I verify the holdings overlap between these ETFs?

There is no overlap between the provided top holdings for CQQQ and KSTR. CQQQ's top holdings include PDD at 10.64% and TME at 1.22%, while KSTR's are listed as 'not available'. Investors should check regular fund documents for complete holdings, as top holdings data alone does not show the full portfolio, limiting the understanding of how similar or different the actual investments are.

CQQQ vs KSTR

Two funds, one decision: we compare cost, performance and what each ETF actually holds in October 2026.

Compare Invesco China Technology ETF (CQQQ) and KraneShares China Tech & Semi Star 50 ETF (KSTR). This page analyses their 0.65% and 0.89% expense ratios, dividend yields of 2.35% and 0.00%, holdings and how each tracks its market. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

CQQQ

Metric

KSTR

0.65%

Expense Ratio

0.89%

2.35%

Dividend Yield

0.00%

$2.71B

Net Assets

$407.62M

188

Holdings

Dec 8, 2009

Inception Date

Jan 27, 2021

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Index Tracked

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Greater China Region

Fund Category

Greater China Region

CQQQ costs about $24.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

CQQQ

Pros

Invesco CQQQ manages $2.7 billion in assets, providing ample liquidity and stability for larger transactions
The fund's inception in 2009 allows for evaluation of long-term tracking and operational consistency
CQQQ pays a 2.35% dividend yield, offering a steady cash flow to investors

Considerations

CQQQ charges a 0.65% expense ratio, which is higher than many broad market ETFs
The fund has a very high concentration in PDD, holding 10.64% of its assets in this single company
The index tracked and sector weights are not available, making it difficult to assess the fund's methodology

KSTR

Pros

The Kraneshares China Tech & Semi Star 50 ETF is a dedicated fund for technology and semiconductor sectors
Investors can target the specific Chinese semiconductor industry with this fund
It is a Greater China Region focused fund, offering a direct route to the Chinese market

Considerations

The fund charges a high expense ratio of 0.89%
With only $408 million in net assets, liquidity may be lower compared to larger funds
It pays a 0.00% dividend yield, providing no regular income to investors

About CQQQ and KSTR

CQQQ (CQQQ)

The Invesco China Technology ETF offers investors exposure to companies involved in the technology sector within Greater China. Launched in December 2009, this fund has grown to hold assets worth approximately USD 2.71 billion, comprising around 188 holdings. It targets key areas such as internet services, software, and hardware, providing a diversified approach to some of the region's most dynamic tech firms. The fund operates with an expense ratio of 0.65% and currently reports a dividend yield of 2.35%. While the potential for growth in the Chinese tech sector is significant, investors should be aware that emerging market assets can experience substantial volatility. Values may fall as well as rise, and returns are not guaranteed. This ETF is suitable for those seeking general exposure to this specific sector, but it is important to consider your own risk tolerance and investment goals before investing. Always remember that this information is educational and does not constitute personalised financial advice.

KSTR (KSTR)

The Kraneshares China Technology & Semiconductor Star 50 Index ETF provides targeted exposure to leading Chinese technology and semiconductor companies. Designed to track the STAR 50 index, this fund captures the innovation-driven sectors within China’s rapidly evolving tech landscape. Investors gain access to key players in artificial intelligence, cloud computing, and semiconductor manufacturing. Launched in 2021, it offers a modern approach to China equity investing, with an expense ratio of 0.89% and net assets of USD 408 million across 53 holdings. While the ETF provides growth potential in high-technology industries, it also carries risks due to regulatory changes and geopolitical factors in China. It does not pay dividends, making it suitable for capital appreciation strategies. Always consider the sector volatility when allocating to this ETF.

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CQQQ vs KSTR

Fund Snapshot