Transcript

Hi, I'm Kevin Orr, and I head up Strategic Partnerships at KraneShares.

Hi, I'm Nathan Eigerman from Value Line®. We're here today to discuss the KraneShares Value Line® Dynamic Dividend Equity Index ETF, Ticker: KVLE.

What is the Value Line® Dynamic Dividend Equity Index?

The Value Line® Index* represents a higher dividend yield core U.S. equity portfolio. Some investors are income investors and invest in dividend-paying stocks because they need the check. There's nothing wrong with that, but most investors are total return investors. They tend to ignore dividends. This is a mistake.

Dividends are an important signal that companies are sending to the investment world. Dividends tell you a couple of great things about a company: First of all, it implies that management believes that good times are going to continue and they can continue to pay high dividends. Secondly, it tells us that they’re running a tight ship, a shareholder-oriented ship. Instead of returning their earnings, they're sending it back to the company’s owners. Thirdly, it implies that maybe they think the stock price is undervalued. A company that has a high dividend rate may believe that the stock price should be higher; companies with a low dividend rate may be signaling they think the stock price could be lower.

Constructing the Value Line® Dynamic Dividend Equity Index

One way to create a dividend index would be to simply take the highest-yielding stocks. Our index balances the need for a higher yield with the desire to have a broad-based index that looks more like the S&P 500 than a sector fund. At the same time, it has a higher yield than the S&P 500 or the Russell 1000. Value Line® issues rankings both for safety** and timeliness.

KVLE: KraneShares Value Line® Dynamic Dividend Equity Index ETF

KVLE is the KraneShares ETF that tracks the Value Line® Dynamic Dividend Equity Index. The fund emphasizes the highest Value Line® safety and timeliness rankings. KVLE’s distinguishing feature is that it's able to provide higher income while maintaining core exposure to the U.S. equity market. The portfolio does not rely on any one sector to deliver its income, but rather it maintains diverse exposure to multiple sectors of the economy.

KVLE rebalances on a monthly basis and distributes its income on a quarterly basis. KVLE is ideal for investors seeking high dividend income via core exposure to the U.S. equity market.

We believe that the Value Line® Dynamic Dividend Equity Index brings investors three great things. You've got the stock-picking insights from Value Line®, broad-based market exposure, and a higher dividend yield.

To learn more about KVLE and other KraneShares ETFs, please visit www.KraneShares.com.

Thanks for watching.

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*All mentions of "the Value Line® Index" or any Value Line® Index in the context of this video are in reference to the Value Line® Dynamic Dividend Equity Index.

**The Value Line® Safety Ranking is based on historical data and applies to the underlying securities of the fund, and not the fund itself. Past performance is no guarantee of future results. Safety does not imply stocks cannot lose value. All investing involves risk including the potential loss of principal.

For KVLE standard performance, top 10 holdings, risks, and other fund information, please click here.

This material contains the speakers' opinions. It should not be regarded as investment advice or a recommendation of specific securities.