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ETFs 101

Brendan Ahern Gives 2 Minute KSTR Overview to NYSE’s Judy Shaw


Introduction

Judy: I’m Judy Shaw for What’s the Fund? Joining me today is Brendan Ahern. Brendan is Chief Investment Officer at KraneShares! Hi Brendan – it’s great to see you!

Brendan: Likewise, Judy!

Judy: Thanks, Brendan! Quick note to our viewers: this interview is for informational purposes only. The NYSE doesn’t recommend any investments or investment strategies. So Brendan, tell me – what’s the fund you’re talking about today?

KraneShares SSE STAR Market 50 Index ETF (Ticker: KSTR)

Brendan: So today Judy, we’re talking about the KraneShares SSE STAR Market 50 Index ETF (Ticker: KSTR). The SSE stands for the Shanghai Stock Exchange. So this is the Shanghai Stock Exchange STAR Board Science and Technology Innovation Board ETF.

Judy: Well that ETF sounds really interesting. Tell me about this ETF, tell me about the strategy.

Strategy

Brendan: Private companies in China have a hard time accessing capital, so many growth companies like here in the United States receive private equity or they can get loans from banks. In China, they’ve had a hard time, so the Shanghai Stock Exchange created a board – the STAR Board – that is really geared to growth innovative companies. Unlike other boards like the Shanghai and broader Shenzhen Stock Exchanges, there’s actually no profitability requirement to be listed. For that reason, the STAR Board is predominantly comprised of semi-conductor, biotech, software, again – leading-edge innovation companies that need capital by coming to market via an IPO in order to grow their companies and in fact nearly 50% of all IPOs in China last year took place on STAR Board1.

Judy: Oh ok. So now tell me where can we learn more about this fund?

Learn More

Brendan: So right on kraneshares.com/kstr will get you to the KSTR fund detail page, which provides a powerpoint as well as a wealth of information on the strategy and the rationale on why we listed the first STAR Board ETF outside of China on the New York Stock Exchange.

Closing Remarks

Judy: Alright, great. Well Brendan, always great to see you. Thanks for joining me on What’s the Fund.

Brendan: Alright, thank you, Judy!


1. The Asset, “A bumper IPO year despite Covid-19”, December 14, 2020.