KraneShares Global Carbon Transformation ETF

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KGHG Investment Case

Investment Strategy:

KGHG is an actively managed ETF that aims to capture the low-carbon leaders of the future. KGHG focuses on companies in traditionally high emissions industries that are on the cusp of the transition away from fossil fuels to renewable technology. Companies in high impact industries that have a stated commitment and demonstrated action towards decarbonization may see superior growth compared to their peers as well as potentially benefit from a reevaluation and improved environmental, social and corporate governance (ESG) score.

Decarbonization Highlights

  • Global energy demand will grow 50% by 20501 and 80% of the world’s energy use is still fossil fuels.2 If we continue on this track scientists predict we could see catastrophic flooding and extreme weather events that could make large portions of the earth uninhabitable.
  • Decarbonizing operations is becoming increasingly important as pressure for companies to address climate change intensifies.
  • Three core drivers of decarbonization include: greater policy reforms around regulating emissions, increasing inflows into ESG and impact investments, and technological advancements driving down costs for renewables.
  • Sectors with high emissions will face substantial impact on demand, production cost, employment and cost of capital as the cost of CO2 emissions rises.
  • Green capital expenditure is an emerging multi-decade secular theme that is crucial in facilitating the decarbonization transition across industries. This significant increase in infrastructure spending will create investment opportunities.

KGHG Features

  • Provides access to the emerging decarbonization leaders disrupting their industries
  • Can provide potential portfolio diversification, as climate-focused investments may act as a differentiated and non-correlated source of return that are not driven by the economic cycle3
  • A liquid global thematic ESG strategy, diversified by sector, geography, and market cap3
  • Active management allows for dynamic exposure in an evolving investible universe
  • Tax efficiency – portfolio rebalancing does not incur tax impact from capital gains in actively managed portfolio

1. US Energy Information Administration, 2021.
2. Environmental and Energy Study Institute, 2021.
3. Diversification does not ensure a profit or guarantee against a loss.

Fund Details

Data as of 08/09/2022
Ticker KGHG
Primary Exchange NYSE
CUSIP 500767520
ISIN US5007675201
Net Assets $2,450,577
Total Annual Fund Operating Expense 0.89%
Inception Date 3/16/2022
Distribution Frequency Annual

Daily Performance

Data as of 08/09/2022
Premium Discount Chart
Net Asset Value$24.51 
Daily Change -0.07%
Market Price $24.44 
Daily Change 1.10%
30 Day Median Bid/Ask Spread

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

Cumulative %
Data as of: 07/31/2022
Fund NAV Closing Price Index
1 Month 8.25% 8.46% 7.97%
3 Month -5.09% -3.73% -1.19%
6 Month
Since Inception -4.52% -4.12% -3.28%
Cumulative %
Data as of quarter end: 06/30/2022
Fund NAV Closing Price Index
Since Inception -11.80% -11.60% -10.42%
Growth of $10,000
Data as of 08/09/2022

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 08/09/2022
Full Holdings .CSV
Rank Name % of Net Assets Ticker Identifier Shares Held Market Value($)
1 NEW FORTRESS ENERGY INC 4.20% NFE US6443931000 1,875 102,975
2 SK INNOVATION CO LTD 3.61% 096770 KR7096770003 592 88,490
3 Cash 3.48% 85,322 85,322
4 RELIANC-GDR 144A 3.46% RIGD US7594701077 1,323 84,804
5 AES CORP 3.43% AES US00130H1059 3,524 84,012
6 RWE AG 3.10% RWE DE0007037129 1,756 75,971
7 QUANTA SERVICES INC 3.05% PWR US74762E1029 551 74,848
8 DRAX GROUP PLC 3.03% DRX GB00B1VNSX38 7,891 74,303
9 BP PLC 3.02% BP/ GB0007980591 14,500 74,060
10 EDP RENOVAVEIS SA 3.01% EDPR ES0127797019 2,719 73,799

Holdings are subject to change.