KraneShares MSCI China ESG Leaders ETF (Ticker: KESG) Lists on the New York Stock Exchange
New York, N.Y. July 29, 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 MSCI China ESG Leaders ETF (Ticker: KESG) on the New York Stock Exchange.
KESG tracks the MSCI China ESG Leaders 10/40 Index, a capitalization-weighted index that provides exposure to large and mid-cap companies in China with high Environmental, Social, and Governance ratings relative to their sector peers. KESG’s index provider, MSCI, is the number one provider of ESG, Socially Responsible Investment (SRI) and, corporate governance indexes based on a survey of global institutions.1
Over the past decade, a “New China” economy has developed with services surpassing manufacturing as the most significant contributor to China’s GDP.2 Typically, companies aligned with the “New China” economy experience higher growth than companies from China’s legacy sectors. MSCI’s ESG methodology not only identifies more socially responsible investment opportunities, but it can also be an effective filter for capturing companies aligned with the “New China” economy.
Since its inception in July 2013, the MSCI China ESG Leaders Index has outperformed the MSCI China Index by 76%. The 5-year annualized return of the MSCI China ESG Leaders Index was 10.51% as compared to just 5.32% from the MSCI China Index.3
“Across markets and strategies, investments with high ESG ratings have become a priority to many investors – China is no exception,” said Jonathan Krane, CEO of KraneShares. “We are proud to partner with MSCI, a global leader in ESG indexing, to deliver a China-focused ESG strategy to our clients with the US-listing of the KraneShares MSCI China ESG Leaders ETF (Ticker: KESG).”
For more information about KESG, visit kraneshares.com/kesg, or talk to your financial advisor.
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 provide innovative, first to market strategies that have been developed based on our strong partnerships and our deep knowledge of investing. We help investors stay current on global market trends and aim to provide meaningful diversification. Krane Funds Advisors, LLC is majority-owned by China International Capital Corporation (CICC).
- Data from MSCI as voted by 1,300 participants of the SRI Connect and Extel Survey in 2018
- Bloomberg as of June 21, 2019
- Data from Bloomberg as of June 30, 2020. Note: The MSCI China ESG Leaders Index is highlighted to display a longer performance track record of ESG in China and is for illustrative purposes only. KESG’s benchmark is the MSCI China ESG Leaders 10/40 Index, incepted November 8, 2019, which is different than the MSCI China ESG Leaders Index. Since its inception, the net return for the MSCI China ESG Leaders 10/40 Index performance was 18.14% as of 7/17/20. The two indexes may perform differently.
Index returns are for illustrative purposes only and do not represent actual Fund performance. Index returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.