KraneShares Electric Vehicles & Future Mobility ETF (Ticker: KARS) Adopts Bloomberg Thematic Index
New York, N.Y. June 16, 2021 – Krane Funds Advisors, LLC, (“KraneShares”), a global asset management firm known for its China-focused exchange-traded funds (ETFs) and innovative China investment strategies, today announced that the KraneShares Electric Vehicles & Future Mobility ETF (Ticker: KARS) now tracks the Bloomberg Electric Vehicles Index. KARS currently has over $200 million in assets under management (AUM).1 The Bloomberg Electric Vehicles Index is Bloomberg Index Services’ first-ever thematic equity index.2
Bloomberg is a leader in indexing and financial data services. The Bloomberg Electric Vehicles Index encompasses the entire electric vehicles ecosystem, including car manufacturers, battery makers, raw materials, vehicle connectivity suppliers, alternative renewable energy sources including hydrogen, and more.
The Bloomberg Electric Vehicles Index is constructed through a rigorous basket identification process powered by Bloomberg Intelligence (BI), which includes over 350 research professionals. The index construction process employs both quantitative and qualitative analysis as well as research from Bloomberg New Energy Finance (BNEF) in an attempt to build the best possible representation of the electric vehicles industry. The index is reevaluated on a quarterly basis.3
“We are proud to become the first asset manager to track a Bloomberg thematic equity index through our KARS ETF,” said Jonathan Krane. “We have partnered with Bloomberg in the past on fixed income funds. Due to Bloomberg’s strong equity research capabilities, we believe their index is the best suited to capture the complex and rapidly changing electric vehicles industry.”
“With the launch of our global equity benchmarks, we are meeting demand for thematic indices that are backed by independent research and driven off transparent processes,” said Alan Campbell, Head of Product Management for Bloomberg’s Multi-Asset Index business. “Integrated with Bloomberg’s data and distribution channels, our thematic indices are positioned to be leading benchmarks for ETFs and we’re proud that KraneShares has adopted our electric vehicles index for KARS.”
The Bloomberg Electric Vehicles Index was launched on June 2, 2021. Approximately 38% of the index was comprised of stocks in the consumer discretionary sector, 22% in the materials sector, 20% in the information technology sector, and 20% in the industrials sector as of June 10, 2021. The top three country weights in the index were China, the United States, and Germany as of the same date.
Previously, the KARS ETF tracked the Solactive Electric Vehicles and Future Mobility Index.
Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. Our suite of China-focused ETFs provides investors with solutions to capture China’s importance as an essential element of a well-designed investment portfolio. We strive to deliver innovative, first-to-market strategies developed based on our strong partnerships and deep knowledge of investing. We help investors stay up to date on global market trends and aim to provide meaningful diversification. Krane Funds Advisors, LLC, is a signatory of the United Nations-supported Principles for Responsible Investing (UN PRI). The firm is majority-owned by China International Capital Corporation (CICC).
- AUM as of 5/31/2021.
- “Press Announcement – Bloomberg Expands Equity Indices with Emerging Markets and Thematic Benchmarks,” Bloomberg. June 8, 2021.
- Bloomberg Index Services.
Carefully consider the Funds’ investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Funds’ full and summary prospectus, which may be obtained by visiting www.kraneshares.com/kars. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. The Funds are subject to political, social, or economic instability within China which may cause a decline in value. Fluctuations in the currencies of foreign countries may have an adverse effect on domestic currency values. Emerging markets involve heightened risk related to the same factors as well as increased volatility and lower trading volume.
The ability of the KraneShares Electric Vehicles & Future Mobility ETF to achieve its respective investment objectives is dependent, in part, on the continuous availability of A Shares and the ability to obtain, if necessary, an additional A Shares quota. If the Fund is unable to obtain sufficient exposure due to the limited availability of A Share quota, the Fund could seek exposure to the component securities of the Underlying Index by investment in other types of securities. The fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund’s gains or losses.
The Fund is subject to industry concentration risk and is non-diversified. Narrowly focused investments typically exhibit higher volatility.
The KraneShares ETFs are distributed by SEI Investments Distribution Company (SIDCO), which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Fund, any sub-advisers for the Funds, or Bloomberg Index Services Limited.