KraneShares Launches China 5G and Semiconductor ETF (Ticker: KFVG); Surpasses $100 Million AUM
New York, N.Y. December 1, 2020 – 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 the launch of the KraneShares CICC China 5G & Semiconductor ETF (Ticker: KFVG) on the New York Stock Exchange. Since KFVG’s inception on November 24, the Fund has surpassed $100 Million in assets under management (AUM).
KFVG tracks the CICC China 5G and Semiconductor Leaders Index, which is designed to capture the performance of China-domiciled companies engaged in 5G and semiconductor-related businesses, including 5G equipment, semiconductors, electronic components, and data centers.
China has quickly emerged as a world leader in 5G spending and adoption. By 2025, China is projected to have over 400 million 5G users, accounting for 40% of total global use.1 At the same time, China is cultivating its domestic semiconductor production capacity through government policies and funding specifically for the industry. As part of the “Made in China 2025” initiative, China aims to produce 70% of the semiconductors used domestically by 2025 and achieve complete import substitution by 2030.2
Unlike previous generations of wireless technology, 5G represents a giant leap forward in potential applications — enabling data-intensive processes to be implemented anywhere at broadband speeds. Such functions include real-time communication among autonomous vehicles, AI integrated robotic devices for remote surgeries, smart cities, and sensors optimized for energy conservation within homes.
“The advent of 5G is fundamentally changing the way people interact with technology and the world in which we live. China is the world leader in 5G adoption, which is providing a tremendous catalyst across various sectors and industries in China,” said Jonathan Krane, CEO of KraneShares. “We are proud to partner with the top-ranked research team at China International Capital Corporation (CICC) for KFVG’s index.”
For more information about KFVG, visit https://www.kraneshares.com/kfvg, or talk to your financial advisor.
Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. The firm focuses on providing investors with strategies to capture China’s importance as an essential element of a well-designed investment portfolio. KraneShares ETFs represent innovative, first-to-market strategies developed based on the firm and its partners’ in-depth knowledge of investing. These strategies allow investors to stay current on global market trends and provide meaningful diversification.* Krane Funds Advisors, LLC is majority-owned by China International Capital Corporation (CICC).
About China International Capital Corporation (CICC)
KFVG tracks an index developed by CICC Research. CICC is a leading, publicly-traded, Chinese financial services company with expertise in research, asset management, investment banking, private equity, and wealth management. In 2019, the CICC Research Team ranked #1 in Institutional Investor’s All-China Research Category for the eighth year in a row.3
- UBS, “The China 5G Opportunity”, retrieved 9/30/2020
- US Chamber of Commerce, “Made in China 2025: Global Ambitions Built on Local Protections”, 2017.
- Alexandra DeLuca, "The Firms Helping Investors Navigate a Trade War in China", Institutional Investor 11/1/2018.
*Diversification does not ensure profit or guarantee against a loss.