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 01/25/2021
TickerKESG
Primary ExchangeNYSE
CUSIP500767660
ISINUS5007676605
Net Assets$7,228,240
Total Annual Fund Operating Expense0.59%
Inception Date7/29/2020
Distribution FrequencyAnnual

Daily Performance

Data as of 01/25/2021
Premium Discount Chart
NAV
Net Asset Value$36.14 
Daily Change2.36%
Price
Market Price$36.05 
Daily Change1.65%
30 Day Median Bid/Ask Spread0.49%

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: 12/31/2020
Fund NAVClosing PriceIndex
1 Month4.23%4.00%4.18%
3 Month21.42%21.21%21.55%
6 Month36.35%
Since Inception24.87%25.43%25.30%
Cumulative %
Data as of quarter end: 12/31/2020
Fund NAVClosing PriceIndex
Since Inception24.87% 25.43%25.30%
Growth of $10,000
Data as of 01/25/2021

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.

Top 10 Holdings

Data as of 01/25/2021
Full Holdings .CSV
RankCompany Name% of Net AssetsTickerIdentifierShares HeldMarket Value($)
1MEITUAN-CLASS B9.92%3690KYG59669104113,900716,885
2TENCENT HOLDINGS LTD9.85%700KYG8757216347,200711,929
3CHINA CONSTRUCTION BANK-H7.70%939CNE1000002H1704,000556,705
4ALIBABA GRP-ADR7.52%BABAUS01609W10272,079543,409
5WUXI BIOLOGICS CAYMAN INC4.53%2269KYG97008117321,000327,520
6NIO INC - ADR4.35%NIOUS62914V10615,241314,408
7CHINA MERCHANTS BANK-H4.09%3968CNE1000002M138,000295,347
8GEELY AUTOMOBILE3.44%175KYG3777B103257,000248,533
9BYD CO LTD-H3.23%1211CNE1000002966,500233,440
10CHINA MENGNIU DAIRY CO2.30%2319KYG21096105127,000165,966

Holdings are subject to change.