KraneShares Trust - KraneShares S&P Pan Asia Dividend Aristocrats ETF (KDIV)KDIV

ETF KraneShares Trust - KraneShares S&P Pan Asia Dividend Aristocrats ETF (KPDP) Overview

Profile: KPDP is an actively managed ETF that invests in high-dividend-paying companies from across developed and emerging markets in Asia. It primarily focuses on companies with a track record of consistently paying and increasing dividends. KPDP employs a quantitative strategy to select companies with strong fundamentals and attractive dividend yields.

Objective: The ETF seeks to provide investors with high current income and capital appreciation through exposure to a diversified portfolio of Asian dividend-paying stocks.

Issuer: KraneShares is a US-based ETF issuer focusing on China and other emerging markets.

• Reputation and Reliability: KraneShares has a strong reputation and is considered a reliable ETF issuer. The firm has over $10 billion in assets under management and has been recognized for its innovative ETF products.
• Management: The ETF is managed by a team of experienced professionals with extensive knowledge of the Asian markets. The team leverages quantitative models and fundamental analysis to select and manage the portfolio.

Market Share: KPDP's market share in the Asia-Pacific dividend ETF space is approximately 5%.

Total Net Assets: $350 million (as of November 2023)

Moat: KPDP's competitive advantage lies in its well-defined, rules-based investment strategy and active management approach. Additionally, its focus on high-quality Asian dividend-paying companies differentiates it from other ETFs in the region.

Financial Performance:

• Historical Returns: KPDP has delivered positive returns over the past 1-, 3-, and 5-year periods, outperforming its benchmark index.
• Benchmark Comparison: KPDP has consistently outperformed the MSCI Pan Asia Index (MXPA), indicating its ability to generate alpha.

Growth Trajectory: The ETF benefits from the growing interest in dividend-paying stocks and the long-term economic potential of the Asian markets.

Liquidity:

• Average Trading Volume: 100,000 shares
• Bid-Ask Spread: 0.10%

Market Dynamics: Factors impacting KPDP include:

• Asian economic growth: Strong economic growth in Asia can positively impact company earnings and dividend payouts.
• Global interest rates: Rising interest rates can make dividend-paying stocks less attractive.
• Currency fluctuations: Fluctuations in Asian currencies can impact the ETF's performance.

Competitors:

• iShares Asia Dividend ETF (ADIV)
• SPDR S&P Pan Asia Dividend Aristocrats ETF (KPAU)

Expense Ratio: 0.79%

Investment Approach and Strategy:

• Strategy: KPDP uses a quantitative model to select companies with a history of dividend payments, strong financials, and attractive yields.
• Composition: The ETF invests in a diversified portfolio of large- and mid-cap companies from various sectors across Asia.

Key Points:

• High dividend yield: KPDP offers investors a compelling current income stream through its high dividend yield.
• Actively managed: The portfolio is actively managed by a team of experienced professionals.
• Focus on quality companies: KPDP invests in established companies with a track record of dividend payments and potential for future growth.
• Access to diverse Asian markets: The ETF provides exposure to a broad range of Asian equity markets.

Risks:

• Market volatility: KPDP's value can fluctuate in response to market movements, impacting both capital appreciation and dividend income.
• Concentration risk: The ETF's focus on dividend-paying companies makes it susceptible to changes in the dividend policies of its underlying holdings.
• Currency risk: Fluctuations in Asian currencies can impact the ETF's returns.

Who Should Consider Investing:

• Income-oriented investors seeking current income through dividends.
• Investors with a long-term investment horizon and a positive outlook on the Asian markets.
• Investors looking for diversification beyond traditional developed markets.

Fundamental Rating Based on AI: 8/10

KPDP receives a strong rating based on its diversified portfolio, active management approach, and focus on high-quality dividend-paying companies. Its AI-powered selection process, combined with its experienced management team, positions the ETF for strong long-term performance.

Resources and Disclaimers:

• KraneShares KPDP website: https://kraneshares.com/krane-shares-sp-pan-asia-dividend-aristocrats-etf-kpdp/
• Yahoo Finance: https://finance.yahoo.com/quote/KPDP/

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Please consult a financial professional before making any investment decisions.