KraneShares Plans 2 Unique Funds

November 07, 2017

KraneShares has filed for two ETFs that target very different markets. The KraneShares Future Vehicle Index ETF will target makers of electric vehicles and industries that support that business, while the KraneShares Emerging Markets Healthcare Index ETF will target the health care sector in emerging markets.

Both funds will track capitalization-weighted indexes from Indxx and list on the NYSE Arca.

Methodologies

According to the filing, the electric vehicle fund will select companies directly involved in the production of hybrid and electric vehicles for personal and mass transit or the production of the energy sources and chemicals used by those industries. The prospectus notes that the fund can select companies of any size from developed or emerging markets, including a wide range of China-related securities.

The emerging markets health care fund will select companies that meet liquidity requirements and have at least $100 million in market capitalization. The index can include companies from across the market capitalization spectrum from more than 20 emerging markets. The prospectus also notes that eligible companies must have free-float market capitalization equal to at least 10% of their total market capitalization. If a company has an American depositary receipt, it is given preference in the selection process.

There currently are no ETFs devoted exclusively to either of these markets.

The filing did not include tickers or expense ratios.

Contact Heather Bell at hbell@etf.com

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