KraneShares Electric Vehicles and Future Mobility Index (KARS)

Overview

The KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) seeks to track the performance of the Bloomberg Electric Vehicles Index, providing exposure to companies involved in the electric vehicle and future mobility ecosystem globally.

Reputation and Reliability

KraneShares is a well-regarded ETF provider known for its focus on thematic and China-focused investments.

Management Expertise

KraneShares has a dedicated team with expertise in thematic investing and index tracking.

Goal

To provide investment results that, before fees and expenses, correspond to the price and yield performance of the Bloomberg Electric Vehicles Index.

Investment Approach and Strategy

Strategy: The ETF tracks the Bloomberg Electric Vehicles Index, which is designed to reflect the performance of companies engaged in the production or development of electric vehicles, electric vehicle components, or autonomous driving technology.

Composition The ETF primarily holds stocks of companies in the electric vehicle and future mobility sectors.

Market Share: KARS holds a sizable, though not dominant, market share within the electric vehicle ETF category.

Total Net Assets (AUM): 224822473

Key Competitors

• Global X Autonomous & Electric Vehicles ETF (DRIV)
• iShares Self-Driving EV and Tech ETF (IDRV)
• Defiance Next Gen Connectivity ETF (FIVG)

Competitive Landscape

The electric vehicle ETF market is competitive, with several ETFs offering exposure to similar themes. KARS benefits from KraneShares' expertise in China-related investments, but faces competition from larger ETFs like DRIV and IDRV, which have broader investment mandates. KARS's narrower focus allows for more targeted exposure but can also increase concentration risk.

Historical Performance: Historical performance data is influenced by the growth and volatility of the electric vehicle sector. Consult official fund resources for accurate values.

Benchmark Comparison: The ETF's performance should closely track the Bloomberg Electric Vehicles Index. Any deviations should be scrutinized for tracking error.

Expense Ratio: 0.7

Average Trading Volume

The ETF's average trading volume is generally moderate, allowing for relatively easy entry and exit for most investors.

Bid-Ask Spread

The bid-ask spread is typically tight, reflecting decent liquidity and efficient trading.

Market Environment Factors

Economic conditions, government regulations, technological advancements, and consumer adoption rates all significantly impact the electric vehicle market, which in turn affects KARS's performance.

Growth Trajectory

KARS' growth is closely tied to the increasing adoption of electric vehicles globally and the expansion of related industries. Changes to the underlying index or holdings could impact its performance trajectory.

Competitive Edge

KARS benefits from KraneShares' recognized brand and focus on China, which is a significant player in the electric vehicle market. Its targeted exposure to the EV and future mobility sector allows for more concentrated investment. The fund's index-tracking approach provides transparency and diversification within the sector, appealing to investors seeking exposure to key players in this industry. The specialization in both geographical region and technology could be seen as advantages compared to broader market ETFs.

Volatility

The ETF's volatility is likely to be higher than broader market ETFs due to its concentrated exposure to the electric vehicle sector.

Market Risk

Specific risks include technological obsolescence, regulatory changes affecting the EV industry, supply chain disruptions, and competition from traditional automakers.

Ideal Investor Profile

The ideal investor is someone with a high-risk tolerance who is bullish on the long-term prospects of the electric vehicle and future mobility industries.

Market Risk

The ETF is suitable for long-term investors seeking thematic exposure to the electric vehicle sector, but active traders may also utilize it for short-term opportunities.

The KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) offers focused exposure to the global electric vehicle and future mobility ecosystem by tracking the Bloomberg Electric Vehicles Index. It is managed by KraneShares, an issuer known for thematic and China-focused investments. Its performance is closely tied to the growth and adoption of electric vehicles and faces competition from other similar ETFs. KARS is best suited for investors with a long-term horizon and a high-risk tolerance due to the volatile nature of the technology sector.

Data Sources:

• KraneShares
• Bloomberg
• ETF.com
• Morningstar

Disclaimers:

This analysis is based on available information and should not be considered financial advice. Investment decisions should be made based on individual circumstances and consultation with a financial advisor. Market share data is approximate and subject to change.