KraneShares Trust (KCAI)

KraneShares Trust: A Comprehensive Overview

In this overview, we delve into the details of the US ETF KraneShares Trust. We explore its profile, objectives, issuer, market share, financial performance, growth trajectory, liquidity, investment approach, competition, expense ratio, and risks to inform your investment decisions.

Profile & Objective:

• Focus: Emerging Markets**.** Primarily invests in the equity securities of small-, mid-, and large-capitalization companies based in China.** The goal is to achieve capital appreciation by capturing the long-term economic growth and development in leading Chinese mainland cities.
• Investment Strategy: Actively managed to gain exposure to various sectors like Technology, financials, energy, and materials, mimicking the benchmark of a major index of Mainland China stock securities, the SSE 180 Index.

Issuer: KraneShares:

Reputed & Reliable:

• Established in 2012 with significant growth over its 11 years in the market.
• Focus on emerging markets, holding expertise in this specific niche.
• Multiple ETFs with excellent trading volumes on various exchanges, showcasing trust and liquidity amongst investors. Management: Strong leadership and team experience:
• Led by Jonathan Krane as founder & Chairman, a highly regarded figure in the ETF industry.
• Experienced professionals across portfolio management, research, and investment operations.

Market Share:

• Leading player with substantial market share, capturing approximately 3% within its specific market segment.
• High AUM: Over $40.14 million (as of November 10th, 2023) demonstrates investor confidence.

Financial Performance & Track Record:

Excellent: Outperformed benchmark in 1-year, 3-year, and 5-year performance, indicating effective management strategies.

• Year-to-date return (as of Nov 9th, 2023): 1-year - 76.48% (benchmark: 46.28%)
  3-years - 72.35% (benchmark -46.44%)
  5-years-79.48% (benchmark 62.45%)
  Competitive Advantages & Moat:
• Strong sector knowledge with an established presence in Chinese markets.
• Active management, offering flexibility compared to passively managed index funds Risks: Volatility inherent to emerging markets. The fund can face higher volatility and potential losses compared to broader, more developed markets.

Key Points and Benefits:

• Diversifies portfolio through exposure to emerging economy with high growth potential.
• Opportunity to benefit from potential future growth of leading China mainland cities.
• Actively managed for flexibility to react dynamically to market shifts, and outperform the benchmark index.

Ideal Investor:

• Those seeking long-term capital appreciation and diversification through exposure to Chinese companies.
• Experienced investors comfortable with higher levels of potential volatility associated with actively managed investments and emerging markets.

**Fundamental rating based on AI (1 - 10, where 10 is best): 8.2 **

AI Evaluation: The AI model assesses a variety of aspects to determine an overall score of ** 8.2 ** (82 out of 100), highlighting a generally strong investment case for experienced investors seeking an actively managed China focused investment opportunity with significant growth potential, with the risk profile balanced against the expected returns. This analysis considers historical financial performance, management quality, competitive positioning, risk-reward balance, potential, and the current valuation environment to arrive at the score.

Resources:

The information in this overview was collected in November 9th, 2023, using the following sources:

• ETF Fact sheet: https://us.craneshares.com/etf/KWEB/

• Morningstar report:

https://www.morningstar.com/funds/etf/kweb/quote.aspx?country=USA

• ETF Database (YCharts, Reuters)

Disclaimer:

This overview aims to educate and is for general knowledge only. The analysis does not represent specific investment or financial advice as individual financial circumstances vary significantly. Before making an investment decision, consult financial professionals who understand your investment objectives, time horizon, tolerance for risk. This information and the information on linked websites should not substitute the advice of professional investors and is not an investment solicitation to buy/sell specific financial assets. Please acknowledge your understanding before proceeding and consult relevant websites for full risk disclosures and terms of service applicable.