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KraneShares Launches KSPY Tracking an Index Powered by Hedgeye Research Designed to Reduce Volatility and Provide a Downside Hedge on S&P 500®

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New York, NY – July 16th, 2024 – Today, Krane Funds Advisors, LLC (“KraneShares”), an asset management firm known for its global exchange-traded funds (ETFs) announced the launch of the KraneShares Hedgeye Hedged Equity Index ETF (Ticker: KSPY) on the New York Stock Exchange (NYSE). KraneShares has an exclusive license to the Hedgeye Hedged Equity Index provided by Hedgeye Asset Management, LLC (“HAM”), a subsidiary of Hedgeye Risk Management, LLC (“Hedgeye”), a leading independent provider of real-time investment research and online financial media headquartered in Stamford, CT.

KSPY tracks the Hedgeye Hedged Equity Index. The Index provides exposure to the S&P 500 while seeking to reduce volatility and to provide downside risk management. The Index utilizes a model based on Hedgeye’s proprietary Risk Range™ Signals that analyze the daily trading range of the S&P 500. The Index toggles between three options strategies based on where the S&P 500 falls within these ranges. These options strategies are intended to provide downside risk management, option income, and potential compensation for the loss of upside. Depending on market conditions, the Index can change options strategies as frequently as daily.

“With equities reaching record valuations, volatility is becoming a significant concern for investors,” said Brendan Ahern, KraneShares CIO. “The top 10 stocks in the S&P 500 currently account for over 35% of the index's market value, which is higher than the 27% share they had during the tech bubble in 2000.1 This concentration could potentially increase risk by skewing performance towards certain sectors or companies. We believe now may be an opportune time for investors to consider a strategy that aims to reduce volatility and provide a downside hedge like KSPY.”

“Hedgeye’s proprietary Risk Range™ Signals provide us with the indicators we need to effectively manage S&P 500 volatility in a systematic manner.” Said John S. McNamara III, CIO at HAM.

“We believe Hedgeye’s Risk Range™ Signals are a valuable tool for determining S&P 500 levels in the immediate term,” said Hedgeye CEO Keith McCullough regarding the Hedgeye Risk Range™ Signals. “Since Hedgeye began publishing daily trading ranges in 2015, we’ve grown a considerable subscriber base, with investors utilizing these reliable trading ranges daily in their own strategies.”

“We are thrilled to partner with Hedgeye, an innovative research firm, to deliver a differentiated solution for investors seeking equity exposure with enhanced risk management,” said Jonathan Krane, KraneShares CEO. “Combining KraneShares' ETF expertise with select partners like Hedgeye underscores our commitment to bringing sophisticated options-based strategies to our investors.”

An option hedged equity ETF uses a strategy involving the buying and selling of options in addition to investing in equities. Its goal is to provide investors with lower-risk alternatives to traditional index ETFs. KraneShares manages the options exposure on behalf of investors, which can be more economical and time-efficient than buying individual stock options.

For more information on the KraneShares Hedgeye Hedged Equity Index ETF (Ticker: KSPY), please visit or consult your financial advisor. For more information regarding Hedgeye research or Hedgeye Risk Range™ Signals, please visit

About KraneShares

KraneShares is a specialist investment manager focused on China, Climate, and Uncorrelated Assets. KraneShares seeks to provide innovative, high-conviction, and first-to-market strategies based on the firm and its partners' deep investing knowledge. KraneShares identifies and delivers groundbreaking capital market opportunities and believes investors should have cost-effective and transparent tools for attaining exposure to various asset classes. The firm was founded in 2013 and serves institutions and financial professionals globally. The firm is a signatory of the United Nations-supported Principles for Responsible Investment (UN PRI).

  1. Data from Bloomberg as of 6/30/2024