KraneShares Launches China Internet Covered Call ETF (Ticker: KLIP) on the New York Stock Exchange
NEW YORK, NY, January, 12 2023 -- Krane Funds Advisors, LLC ("KraneShares"), an asset management firm known for its China-focused exchange-traded funds (ETFs) and innovative investment strategies, announced the launch of the KraneShares China Internet & Covered Call Strategy ETF (ticker: KLIP) on the New York Stock Exchange.
KLIP seeks to provide current income by following a “covered call” or “buy-write” strategy. KLIP buys shares of the KraneShares CSI China Internet ETF (ticker: KWEB) and “writes” or “sells” corresponding call options on KWEB. KWEB is one of the world’s leading China region ETFs with more than nine years of track record and over $7.5 billion in assets under management.1 KWEB offers exposure to companies within China’s rapidly growing internet sector. Top holdings include, Alibaba, Tencent, Meituan, and JD.com.2
A covered call ETF is an exchange-traded fund that generates option income by writing options on stocks or ETFs. Covered call ETFs manage the options exposure for investors, which can be more economical and time efficient than buying individual stock options.
Since the China internet sector has historically been more volatile than the US internet / technology sector, KLIP has the potential to provide higher yields than covered call strategies based on those markets.
“We are excited to launch KLIP and bring a covered call KWEB strategy to investors,” said Jonathan Shelon, Chief Operating Officer at KraneShares and KLIP portfolio manager. “We believe combining allocations to both KWEB and KLIP can help produce an even more attractive growth and option income strategy. KLIP allows investors to trade performance uncertainty for more stable distributions.”
“We are thrilled to add a covered call strategy to our suite of China ETFs,” said Jonathan Krane, CEO of KraneShares. “By writing covered calls on KWEB, an established ETF with a deep options market, KLIP provides investors the opportunity to generate additional option income while potentially reducing volatility in their portfolio. This strategy can be a valuable tool for those looking to enhance their income portfolios and manage risk in China-focused investments.”
For additional information on the KraneShares China Internet & Covered Call Strategy ETF (ticker: KLIP), visit kraneshares.com/klip contact your financial advisor.
About Krane Funds Advisors, LLC
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 investing knowledge. We help investors stay current 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).
Revised in June 2024.
Please note that all mention of income with regards to KLIP in this content refers to option income, unless otherwise specified.
Citations:
- As of Jan 10, 2023
- % of KWEB net assets of holdings mentioned: Alibaba 9.25%, Tencent 10.05%, Meituan 7.77%, JD.com 6.26% as of Jan 10, 2023. Holdings are subject to change.
