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, including manufacturers, component suppliers, and related technology companies.

Reputation and Reliability

KraneShares is a well-regarded ETF provider known for its China-focused and thematic investment strategies. They have a proven track record of offering innovative ETFs.

Management Expertise

KraneShares has a dedicated investment team with experience in managing thematic ETFs and understanding global markets, especially the Chinese market, which is significant in the EV sector.

Goal

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

Investment Approach and Strategy

Strategy: The ETF tracks a specific index, the Bloomberg Electric Vehicles Index, which focuses on companies involved in the electric vehicle and future mobility ecosystem.

Composition The ETF primarily holds stocks of companies involved in the electric vehicle industry, including manufacturers, component suppliers, and related technology providers. The holdings are weighted based on market capitalization and adjusted for float and trading volume.

Market Share: KARS holds a moderate market share within the electric vehicle and future mobility ETF landscape.

Total Net Assets (AUM): 172400000

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 the sector. KARS differentiates itself by focusing on companies involved in the electric vehicle and future mobility ecosystem, including Chinese companies. A disadvantage is its higher expense ratio compared to some competitors. DRIV, IDRV and FIVG offer broader exposure to autonomous vehicles and related technology, while KARS is more EV focused.

Historical Performance: Past performance does not guarantee future results. Refer to official fund documents for accurate historical performance data.

Benchmark Comparison: Performance should be compared to the Bloomberg Electric Vehicles Index to gauge its tracking effectiveness.

Expense Ratio: 0.68

Average Trading Volume

The ETF exhibits moderate liquidity, with average trading volume allowing for relatively easy entry and exit for most investors.

Bid-Ask Spread

The bid-ask spread is typically reasonable, indicating relatively efficient trading.

Market Environment Factors

Economic growth, government regulations supporting EVs, technological advancements in battery technology, and consumer adoption rates are key market factors impacting KARS.

Growth Trajectory

KARS' growth trajectory is tied to the increasing adoption of electric vehicles globally and the expansion of the future mobility sector. Changes in holdings may reflect shifts in the underlying index and the evolving EV landscape.

Competitive Edge

KARS's competitive edge lies in its focused exposure to the electric vehicle and future mobility ecosystem, with a significant weighting towards Chinese companies. This provides investors access to the rapidly growing Chinese EV market, which is the largest in the world. KraneShares' expertise in China-focused ETFs gives them an advantage in navigating the complexities of the Chinese market. However, its higher expense ratio and geographically concentrated holdings may be considered drawbacks for some investors. It stands out by offering exposure to companies in emerging EV markets.

Volatility

The ETF's volatility is expected to be moderate to high, reflecting the growth-oriented nature of the electric vehicle sector.

Market Risk

The ETF is subject to market risk, including fluctuations in stock prices and changes in investor sentiment towards the electric vehicle sector. Specific risks include regulatory changes, technological disruptions, and competition within the EV industry.

Ideal Investor Profile

The ideal investor is someone who believes in the long-term growth potential of the electric vehicle and future mobility sector, is comfortable with moderate to high volatility, and seeks exposure to the Chinese EV market.

Market Risk

KARS is suitable for long-term investors with a growth-oriented investment strategy. It may not be suitable for risk-averse investors or those seeking stable income.

The KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) offers targeted exposure to the electric vehicle and future mobility ecosystem, with a focus on Chinese companies. It tracks the Bloomberg Electric Vehicles Index, providing investors access to manufacturers, component suppliers, and related technology companies. While KARS has a higher expense ratio than some competitors, its specialized focus on the Chinese EV market and KraneShares' expertise in the region can be attractive to investors seeking exposure to this rapidly growing sector. Its growth trajectory is reliant on the continued expansion of the EV market and its growth in China.

Data Sources:

• KraneShares official website
• ETF.com
• Bloomberg
• Morningstar

Disclaimers:

This analysis is for informational purposes only and does not constitute investment advice. Investment decisions should be based on individual circumstances and a thorough understanding of the risks involved. Past performance is not indicative of future results. Market share data is estimated and may vary. Expense ratios are subject to change.