News / Media

KraneShares Launches S&P Pan Asia Dividend Aristocrats ETF on NYSE (Ticker: KDIV)

NEW YORK, NY, September 15, 2022 -- Krane Funds Advisors, LLC ("KraneShares"), an asset management firm known for its global exchange-traded funds (ETFs) and innovative investment strategies, announced the launch of the KraneShares S&P Pan Asia Dividend Aristocrats ETF (Ticker: KDIV) on the New York Stock Exchange today.

KDIV tracks the S&P Pan Asia Dividend Aristocrats Index, which provides exposure to companies in China, Japan, Australia, and other Asian countries that have paid and increased their dividends over a sustained period. Studies by S&P Dow Jones Indices have shown that over the long-term, dividend-paying companies have outperformed their corresponding broad market indexes on a risk-adjusted basis1. KDIV gives investors access to the S&P Dividend Aristocrats methodology applied to the Pan Asia region, one of the fastest-growing areas in the world. The International Monetary Fund forecasts gross domestic product (GDP) growth in the region to be 4.9% in 2022 and 5.1% in 20232.

"KDIV is a timely expansion of KraneShares’ China and global ETF suite, which includes the $6.7bn KraneShares CSI China Internet ETF (KWEB)3. KDIV is also the first US-listed ETF to apply the S&P Dividend Aristocrats methodology to the Pan Asia region4," said Jonathan Krane, Chief Executive Officer at KraneShares. "We are pleased to offer KDIV as a compelling addition to our global ETF suite."

“KDIV gives investors access to S&P’s widely popular Dividend Aristocrats® Index Series, which is tracked by billions of dollars in ETF assets5. KDIV applies this methodology to the Pan Asia region, an area we are particularly focused on at KraneShares,” said Brendan Ahern, KraneShares Chief Investment Officer. “As markets remain volatile in 2022, we believe dividend growers could continue to outperform the broader market. Adding dividend growers to an investment portfolio may result in lower volatility, compounded growth on dividend reinvestment, and reduced drawdown in declining markets.”

"We're excited that KraneShares has selected our S&P Pan Asia Dividend Aristocrats Index as the underlying benchmark for its exchange-traded fund," said Pavel Vaynshtok, Head of Strategy Indices at S&P Dow Jones Indices (S&P DJI). "The Pan Asia index represents a key member of the Dividend Aristocrats® Index Series, which helps investors and fund managers track companies that have consistently increased dividend payments on an annual basis across the globe."

For additional information on the KraneShares S&P Pan Asia Dividend Aristocrats ETF (Ticker: KDIV), contact your financial advisor or visit kraneshares.com/kdiv.

About Krane Funds Advisors, LLC
Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. KraneShares is a premier platform for developing differentiated, high-conviction investment strategies for global investors. KraneShares strives to deliver innovative first-to-market strategies based on strong partnerships and deep investing knowledge. Since 2013, KraneShares has become one of the largest China ETF providers. This focus continues with product launches worldwide and a constant stream of China-focused research.

KraneShares continues to provide investors new ways to access markets as it did with China. In recent years, the Firm launched the first ETFs giving access to carbon markets via futures contracts. KraneShares is now one of the largest global carbon/climate ETF providers. KraneShares helps investors stay current on global market trends and provides funds offering 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). Citations:

Carefully consider the Fund's investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund's full and summary prospectus, which may be obtained by visiting www.kraneshares.com Read the prospectus carefully before investing.

Risk Disclosures:

Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. Indices are unmanaged and do not include the effect of fees. One cannot invest directly in an index.

This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change. Certain content represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results; material is as of the dates noted and is subject to change without notice.

The Fund is subject to the legal, regulatory, political and economic instability associated with investing in Asia-Pacific countries including China and Japan which may cause a decline in value. Japan has also experienced natural disasters of varying degrees of severity, which could negatively affect the Fund. Emerging markets involve heightened risk related to the same factors as well as increase volatility and lower trading volume. Fluctuations in currency of foreign countries may have an adverse effect to domestic currency values.

Narrowly focused investments typically exhibit higher volatility. The Fund's assets are expected to be concentrated in a sector, industry, market, or group of concentrations to the extent that the Underlying Index has such concentrations. The securities or futures in that concentration could react similarly to market developments. Thus, the Fund is subject to loss due to adverse occurrences that affect that concentration. The Fund is non-diversified.

The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Funds' gains or losses. A derivative (i.e., futures/forward contracts, swaps, and options) is a contract that derives its value from the performance of an underlying asset. The primary risk of derivatives is that changes in the asset's market value and the derivative may not be proportionate, and some derivatives can have the potential for unlimited losses. Derivatives are also subject to liquidity and counterparty risk. The Fund is subject to liquidity risk, meaning that certain investments may become difficult to purchase or sell at a reasonable time and price. If a transaction for these securities is large, it may not be possible to initiate which may cause the Fund to suffer losses. Counterparty risk is the risk of loss in the event that the counterparty to an agreement fails to make required payments or otherwise comply with the terms of derivative.

In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility. The Fund is new and does not yet have a significant number of shares outstanding. If the Fund does not grow in size, it will be at greater risk than larger funds of wider bid-ask spreads for its shares, trading at a greater premium or discount to NAV, liquidation and/or a trading halt.

ETF shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the Fund. However, shares may be redeemed at NAV directly by certain authorized broker-dealers (Authorized Participants) in very large creation/redemption units. The returns shown do not represent the returns you would receive if you traded shares at other times. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Beginning 12/23/2020, market price returns are based on the official closing price of an ETF share or, if the official closing price isn't available, the midpoint between the national best bid and national best offer ("NBBO") as of the time the ETF calculates the current NAV per share. Prior to that date, market price returns were based on the midpoint between the Bid and Ask price. NAVs are calculated using prices as of 4:00 PM Eastern Time.

The KraneShares ETFs, KFA Funds ETFs, and KraneShares Mutual Funds are distributed by SEI Investments Distribution Company (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456, which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Fund.

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Citations:

  1. “S&P 500® Dividend Aristocrats®: The Importance of Stable Dividend Income”, S&P Dow Jones Indices, Sep 23, 2021.
  2. “The Case for Dividend Aristocrats in Pan Asia”, S&P Dow Jones Indices, Aug 29, 2022. Gross domestic product (GDP) is a monetary measure of the market value of all the final goods and services produced in a specific time period by a country.
  3. Data from KraneShares as of 8/31/2022
  4. Data from Bloomberg as of 8/31/2022
  5. Data from Bloomberg as of 8/31/2022