KraneShares MSCI China Clean Technology ETF (KGRN)

Overview

The KraneShares MSCI China Clean Technology ETF (KGRN) seeks to track the performance of the MSCI China IMI Environment 10/40 Index, providing exposure to companies in China that are contributing to clean technology solutions.

Reputation and Reliability

KraneShares is a well-regarded issuer known for its China-focused ETFs and expertise in the Chinese market.

Management Expertise

KraneShares has a dedicated team with experience in managing and analyzing Chinese equities and thematic investments.

Goal

To provide investment results that closely correspond, before fees and expenses, to the performance of the MSCI China IMI Environment 10/40 Index.

Investment Approach and Strategy

Strategy: Tracks the MSCI China IMI Environment 10/40 Index, a market capitalization weighted index designed to represent the performance of companies that are engaged in activities that contribute to a cleaner environment.

Composition Primarily holds stocks of Chinese companies involved in clean energy, pollution control, sustainable water management, and other environmental solutions.

Market Share: KGRN's market share in the China clean technology ETF space is substantial, but it faces competition from other clean energy and China-focused ETFs.

Total Net Assets (AUM): 124100000

Key Competitors

• TAN
• ICLN
• CQQQ
• CHNA

Competitive Landscape

The China clean technology ETF space is competitive, with KGRN holding a significant share. Competing ETFs may offer broader global exposure (ICLN, TAN) or focus on general China technology (CQQQ, CHNA). KGRN's advantage lies in its pure-play focus on Chinese clean technology companies. A potential disadvantage is its geographic concentration in China and its dependence on the Chinese regulatory environment.

Historical Performance: Historical performance data needs to be sourced directly from financial data providers and is subject to change.

Benchmark Comparison: Comparison with the MSCI China IMI Environment 10/40 Index needs to be sourced directly from financial data providers.

Expense Ratio: 0.78

Average Trading Volume

KGRN exhibits moderate liquidity, suitable for many investors, but larger trades may experience some price impact.

Bid-Ask Spread

The bid-ask spread is typically reasonable, though it can widen during periods of market volatility.

Market Environment Factors

Government policies supporting clean energy, growing environmental awareness in China, and technological advancements in renewable energy are positive factors. Regulatory risks and geopolitical tensions create headwinds.

Growth Trajectory

Growth depends on continued government support for clean technology, successful implementation of environmental policies, and the overall economic growth of China. Changes to strategy and holdings are determined by the underlying index methodology.

Competitive Edge

KGRN offers targeted exposure to China's rapidly growing clean technology sector, a space with significant government backing. KraneShares' expertise in Chinese markets provides an advantage in identifying and accessing relevant companies. The ETF's specialized index offers a more focused approach compared to broader China ETFs. Investors looking for specific exposure to Chinese clean technology may prefer KGRN's specialized focus over broader investment vehicles. It provides a unique and highly targeted investment opportunity.

Volatility

KGRN's volatility is generally correlated with the broader Chinese equity market, but may be amplified due to the focus on a specific sector.

Market Risk

Specific risks include regulatory changes in China, fluctuations in the Chinese Yuan, and geopolitical risks related to China.

Ideal Investor Profile

Investors seeking targeted exposure to the Chinese clean technology sector and who are comfortable with the risks associated with emerging markets and sector-specific investments.

Market Risk

Suitable for long-term investors who believe in the growth potential of China's clean technology sector. Not ideal for risk-averse investors or those seeking broad diversification.

KGRN provides focused exposure to Chinese companies involved in clean technology. It carries higher risks due to its geographic and sector concentration, but it can be a valuable addition to a diversified portfolio for investors seeking to capitalize on China's clean energy initiatives. KraneShares' expertise in the Chinese market enhances the ETF's appeal. The ETF aims to replicate the returns of the MSCI China IMI Environment 10/40 Index, providing investors the option to invest in a fast-growing sector in China.

Data Sources:

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

Disclaimers:

This analysis is based on available information and is not financial advice. Investment decisions should be based on individual circumstances and consultation with a financial advisor. Data is subject to change.