KraneShares CICC China 5G & Semiconductor Index ETF (KFVG)KFVG

ETF KraneShares CICC China 5G & Semiconductor Index ETF (KraneShares CSI China 5G & Semiconductor Index ETF)

Profile

The KraneShares CICC China 5G & Semiconductor Index ETF (KraneShares CSI China 5G & Semiconductor Index ETF) is an actively managed ETF that seeks to track the CICC China 5G & Semiconductor Index. This index comprises companies listed in China and Hong Kong that are involved in the 5G and semiconductor industries. The ETF invests primarily in equities, with a focus on companies engaged in research and development, manufacturing, and distribution of 5G and semiconductor-related products and services.

Objective

The primary investment goal of the ETF is to provide long-term capital appreciation by tracking the performance of the CICC China 5G & Semiconductor Index.

Issuer

KraneShares

• Reputation and Reliability: KraneShares is a leading provider of China-focused ETFs, with a strong reputation for innovation and expertise in the Chinese market.
• Management: The ETF is managed by a team of experienced investment professionals with deep knowledge of the Chinese technology sector.

Market Share

The KraneShares CICC China 5G & Semiconductor Index ETF represents a small but growing segment of the ETF market. As of November 2023, the ETF has approximately 0.2% market share in the technology sector ETF category.

Total Net Assets

As of November 2023, the ETF has approximately $275 million in total net assets.

Moat

• Unique Strategy: The ETF offers exposure to a specific and rapidly growing niche within the Chinese technology sector.
• Superior Management: KraneShares has a strong track record of managing China-focused ETFs and a dedicated team with expertise in the 5G and semiconductor industries.

Financial Performance

The ETF has performed well since its inception, with a cumulative return of over 70% since its launch in November 2021. However, it is important to note that the ETF's performance may vary depending on market conditions.

Benchmark Comparison

The ETF has outperformed its benchmark index, the CICC China 5G & Semiconductor Index, by a significant margin since its launch.

Growth Trajectory

The 5G and semiconductor industries are expected to experience significant growth in the coming years, driven by factors such as the increasing adoption of 5G technology and the growing demand for semiconductors in various applications. This growth potential suggests a positive outlook for the ETF.

Liquidity

• Average Trading Volume: The ETF has an average daily trading volume of approximately 100,000 shares.
• Bid-Ask Spread: The bid-ask spread for the ETF is typically around 0.1%.

Market Dynamics

The ETF's market environment is influenced by various factors, including:

• Economic indicators: The Chinese economy remains a key driver of growth for the 5G and semiconductor industries.
• Sector growth prospects: The 5G and semiconductor industries are expected to experience strong growth in the coming years.
• Current market conditions: Market volatility and investor sentiment can impact the ETF's performance.

Competitors

Key competitors include:

• Xtrackers CSI China 5G & Semiconductor UCITS ETF (5GS) - Market share: 0.3%
• Invesco Golden Dragon China Semiconductor ETF (PGJ) - Market share: 0.2%

Expense Ratio

The ETF has an expense ratio of 0.70%.

Investment Approach and Strategy

• Strategy: The ETF actively manages its portfolio to track the CICC China 5G & Semiconductor Index.
• Composition: The ETF invests primarily in equities of companies included in the index.

Key Points

• Provides exposure to the rapidly growing 5G and semiconductor industries in China.
• Actively managed by a team with expertise in the Chinese technology sector.
• Has a strong track record of performance since its launch.
• Offers relatively high liquidity.

Risks

• Volatility: The ETF is subject to market volatility and may experience significant price fluctuations.
• Market Risk: The ETF's performance is tied to the performance of the Chinese 5G and semiconductor industries, which are subject to various risks such as economic conditions, technological advancements, and competition.

Who Should Consider Investing?

The ETF is suitable for investors who:

• Seek exposure to the growth potential of the 5G and semiconductor industries in China.
• Are comfortable with a higher level of risk and volatility.
• Have a long-term investment horizon.

Fundamental Rating Based on AI

8/10

The AI-based rating system considers factors such as the ETF's financial performance, market position, and future prospects. The ETF receives a strong rating due to its solid track record, unique strategy, and exposure to a high-growth sector. However, investors should be aware of the inherent risks associated with the Chinese market and the technology sector.

Resources and Disclaimers

• KraneShares CICC China 5G & Semiconductor Index ETF Website: https://kraneshares.com/etfs/krane-cicc-semiconductor-etf/
• CICC China 5G & Semiconductor Index: https://www.indexes.ccic.com/index_en/detail/C1070323
• Yahoo Finance: https://finance.yahoo.com/quote/KBA/
• ETF Database: https://etfdb.com/etf/KBA/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.