KESG

KraneShares MSCI China ESG Leaders ETF

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Investment Strategy:

KESG seeks to track the MSCI China ESG Leaders 10/40 Index, designed to provide exposure to companies with high Environmental, Social and Governance (ESG) ratings relative to their sector peers. The Index consists of large and mid-cap companies in China. In order to ensure diversification, the Index limits individual constituent weights to 10% and sector weights to 40% of its composition.

China’s ESG Highlights:

  • Chinese domestic investors and issuers are moving fast to incorporate ESG considerations in their decision making, driven by strong regulatory initiatives to promote ESG practices and disclosures.
  • China’s commitment to stricter environmental mandates and conservation efforts is necessary to achieve national goals of sustained economic growth. Consequently, China now is the world leader in total renewable energy capacity, at approximately 31% of total global capacity1.
  • China’s economic and technological transformation drives demand for a more educated workforce. In recent years, many Chinese companies in knowledge-intensive sectors have improved their talent programs, which has in turn upgraded their MSCI ESG Rating.
  • Greater inclusion of China’s capital markets internationally creates more of an incentive to align shareholder rights and governance policies with global standards, paving the way for Chinese companies to develop a more diversified shareholder structure.

KESG Features:

  • MSCI China ESG Leaders 10/40 Index inclusion criteria has a track record of effectively identifying growth companies within China’s new economy.
  • As companies with high ESG scores have proven to consistently outperform their peers in China, investors do not necessarily have to compromise returns for investing based on beliefs.
  • Benchmarked to an MSCI ESG Index: MSCI is the #1 index provider for ESG, Socially Responsible Investment (SRI), and Corporate governance indexes according to a 2018 survey of 1,300 participants conducted by SRI Connect and Extel.

1. REN21’s Renewables 2019 Global Status Report (GSR)

Fund Details

Data as of 06/18/2021
TickerKESG
Primary ExchangeNYSE
CUSIP500767660
ISINUS5007676605
Net Assets$13,528,514
Total Annual Fund Operating Expense0.59%
Inception Date7/29/2020
Distribution FrequencyAnnual

Daily Performance

Data as of 06/18/2021
Premium Discount Chart
NAV
Net Asset Value$33.82 
Daily Change1.18%
Price
Market Price$33.70 
Daily Change0.19%
30 Day Median Bid/Ask Spread
Value0.46%

The ETF’s 30 Day Median Bid-Ask Spread is calculated by identifying the ETF’s national best bid and national best offer ("NBBO") as of the end of each 10 second interval during each trading day of the last 30 calendar days and dividing the difference between each such bid and offer by the midpoint of the NBBO. The median of those values is identified and that value is expressed as a percentage rounded to the nearest hundredth.

Performance History

Distributions
Cumulative %
Data as of: 05/31/2021
Fund NAVClosing PriceIndex
1 Month0.83%1.31%3.18%
3 Month-0.45%-1.31%1.91%
6 Month10.67%10.54%13.20%
Since Inception32.59%33.31%36.15%
Cumulative %
Data as of quarter end: 03/31/2021
Fund NAVClosing PriceIndex
Since Inception29.05% 31.05%29.46%
Growth of $10,000
Data as of 06/18/2021

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted.

The Growth of $10,000 chart reflects an initial investment of $10,000 on the day prior to the selected time period and assumes reinvestment of dividends and capital gains. For the growth of $10,000 chart since inception, the initial investment of $10,000 is instead made on the inception date of the Fund. Fund expenses, including management fees and other expenses were deducted. The growth of a $10,000 investment in the fund is hypothetical and for illustration purposes only.

Top 10 Holdings

Data as of 06/18/2021
Full Holdings .CSV
RankCompany Name% of Net AssetsTickerIdentifierShares HeldMarket Value($)
1MEITUAN-CLASS B8.79%3690KYG59669104130,7001,188,754
2ALIBABA GROUP HOLDING LTD8.44%9988KYG01719114242,8361,142,205
3TENCENT HOLDINGS LTD8.44%700KYG87572163414,7001,141,825
4CHINA CONSTRUCTION BANK-H6.94%939CNE1000002H11,176,000939,212
5NIO INC - ADR5.01%NIOUS62914V106114,458678,225
6WUXI BIOLOGICS CAYMAN INC4.91%2269KYG97008117339,000663,640
7PING AN3.65%2318CNE1000003X649,500493,846
8CHINA MERCHANTS BANK-H3.00%3968CNE1000002M147,500405,975
9YUM CHINA HOLDINGS INC2.49%YUMCUS98850P10935,120336,947
10BYD CO LTD-H2.10%1211CNE1000002969,500284,397

Holdings are subject to change.