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New exchange traded fund player KraneShares added another China-related fund strategy Thursday focused on the growing Chinese Internet industry.

According to a press release, the KraneShares CSI China Internet ETF (NASDAQ:KWEB) will track the performance of the CSI Overseas China Internet Index, which includes Chinese Internet and Internet-related companies. KWEB has a 0.68% expense ratio.

The underlying index will hold about 20 to 30 different securities. China Internet companies include those that develop and market internet software or provide Internet services; manufacture home entertainment and educational software for home use; provide retail or commercial services through the Internet; and develop and market mobile Internet software or provide mobile Internet services.

"KraneShares CSI China Internet ETF provides US investors with an opportunity to gain exposure to China's growing internet sector with the cost efficiencies of ETF investing," Brendan Ahern, Managing Director of KraneShares, said in the press release. "We see two powerful demographic trends driving China's internet sector: since 2000, internet spending by urban Chinese has increased 14% annually, and China's rural population continues to migrate to urban areas, further fueling internet usage."

The China Internet-themed ETF can help investors capitalize on the emerging middle class and growing Internet usage in mainland China.

"We believe the China Internet sector offers an excellent opportunity for US investors," Dr. Zhigang Ma, General Manager of China Securities Index Co., said in the press release. "There are approximately 600 million internet users in Mainland China. Chinese internet company market capitalizations now rival the largest US and global industry leaders, along with the potential for Chinese internet IPOs to come later this year, this is definitely a sector that warrants attention."

The KraneShares ETF could be competing against the Guggenheim China Technology ETF (NYSEARCA:CQQQ) and the Global X China Technology ETF (NASDAQ:QQQC).

KraneShares also has a number of other China sector-related ETFs filed with the SEC, including consumer staples, consumer discretionary and urbanization themes,

The company recently came out with the KraneShares CSI China Five-Year Plan ETF (NYSEARCA:KFYP) that focuses on companies in targeted sectors of China's 12th Five-Year Plan.

Max Chen contributed to this article.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Source: KraneShares Adds China Internet-Themed ETF