Equity market uncertainty has re-emerged to start 2025, with volatility returning to levels not seen since last summer, a time when Tech & Magnificent 7 earnings, economic data (weaker ISM Manufacturing, Nonfarm payroll, and higher Jobless Claims) along with a Yen carry trade unwind, saw the S&P 500 drop 845 basis points from July 16th to August 5th.¹ According to Hedgeye Asset Management CIO John McNamara III, “the phenomena perpetuating this current increase in volatility have been well-telegraphed for many months in our client conversations. Inflation’s re-acceleration and uncertainty regarding the Federal Reserve’s policy trajectory have now become the topics du jour.”

Against this backdrop, KraneShares partnered with Hedgeye Asset Management to launch the KraneShares Hedgeye Hedged Equity Index ETF (Ticker: KSPY), which seeks to help investors navigate volatility while still participating in the upside potential of U.S. equity markets. KraneShares believes that KSPY is a potentially unique tool with a dynamic approach that differentiates the strategy when compared to incumbent “Hedged” or “Buffered” products.

For KSPY standard performance, top 10 holdings, and other fund information, please click here.

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Data from Bloomberg as of 1/31/2025.