Krane Funds Advisors, LLC, begun trading the 1st Electric Car ETF , the KraneShares Electric Vehicles & Future Mobility ETF (NyseArca: KARS), on Thursday, January 18, 2018. Here is a synopsis of the new ETF:
FUND INFORMATION:
| Symbol: KARS | Exchange: NYSE ARCA |
| Name: KraneShares Electric Vehicles & Future Mobility ETF | Net Expense Ratio: 0.69% |
FUND OBJECTIVE:
The KraneShares Electric Vehicles & Future Mobility ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Solactive Electric Vehicles and Future Mobility Index.
REFERENCE INDEX:
The Solactive Electric Vehicles and Future Mobility Index is designed to track the equity market performance of companies engaged in the production of electric vehicles or their components or engaged in other initiatives that may change the future of mobility, as determined by Solactive AG, (Index Provider).
The securities eligible for inclusion in the Underlying Index generally must be issued by companies classified as being engaged in one or more of the sub industries selected by the Index Provider and the Underlying Index is expected to include, but is not limited to, issuers engaged in the electric vehicles production, autonomous driving, shared mobility, lithium and/or copper production, lithium-ion/lead acid batteries, hydrogen fuel cell manufacturing and/or electric infrastructure businesses. The issuers included in the Underlying Index may not necessarily derive a majority of their revenues or income from the electric vehicle business or other initiatives that may change the future of mobility, which may especially be true when an issuer is engaged in multiple lines of business. The issuers included in the Underlying Index may include small-cap, mid-cap and large-cap companies listed on stock exchanges in developed or emerging market countries.
The Index Provider applies various screens, including so that the securities included in the Underlying Index, at the time of each rebalance:
(1) are issued by companies with a minimum market capitalization of $500 million and
(2) have a minimum average daily trading volume of $5 million as measured over the last one-month and six-month periods.
Constituents of the Underlying Index are ranked by market capitalization and then, provided there are at least 30 constituents, weighted so that the largest 10 companies are weighted equally, the next 10 largest companies are weighted equally, and (where there are a sufficient number of Underlying Index components) the next 10 largest companies are weighted equally. The remaining constituents are then weighted equally so that the sum of the constituents in the Underlying Index equals 100%. If there are less than 30 constituents, the constituents are weighted equally so that the sum of the constituents in the Underlying Index equals 100%.
The Fund may invest up to 20% of its assets in instruments that are not included in the Underlying Index, but that Krane believes will help the Fund track the Underlying Index. These investments may include equity securities and depositary receipts of issuers whose securities are not components of the Underlying Index, derivative instruments (including swaps, futures, forwards, structured notes and options), other investment companies (including ETFs) and cash or cash equivalents (including money market funds). The other investment companies in which the Fund may invest may be advised, sponsored or otherwise serviced by Krane and/or its affiliates.
As of January 9, 2018, the Underlying Index included approximately 64 securities of companies with a market capitalization range of US $530 million to US $330 billion and an average market capitalization of US $26 billion and the largest markets represented in the Underlying Index were the United States (40.0%), China (23.3%) and Germany (15.7%). The Underlying Index is rebalanced quarterly.
FUND TOP 10 HOLDINGS (01/19/18):
| NVIDIA CORP | NVDA | 3.88% |
| BAIDU INC – SPON ADR | BIDU | 3.76% |
| TESLA INC | TSLA | 3.63% |
| VOLKSWAGEN AG-PREF | VOW3 GR | 3.59% |
| BAYERISCHE MOTOREN WERKE | BMW GR | 3.58% |
| DAIMLER AG-REGISTERED SHA | DAI GR | 3.57% |
| ALPHABET INC-CL A | GOOGL | 3.47% |
| TEXAS INSTRUMENTS INC | TXN | 3.44% |
| FORD MOTOR CO | F | 3.40% |
| GENERAL MOTORS CO | GM | 3.40% |
Useful Links:
KARS Home Page
ETFtrack comment:
KARS is the 1st U.S.-listed ETF which invests in electric vehicles.
Here is a comment from Jonathan Krane, CEO of KraneShares:
“China is currently the world’s largest electric vehicle market. Chinese companies like Baidu are developing Artificial Intelligence necessary for Autonomous Driving, and BYD is a world leader in electric vehicles and electric battery manufacturing. Global companies within the future mobility ecosystem such as Tesla, Nividia, and Albemarle Corporation are also capitalizing on strong demand from Chinese and global consumers.”