China Environment ETF Debuts

New KraneShares fund is a play on China’s anti-pollution efforts.
Reviewed by: Staff
Edited by: Staff

Today, KraneShares launched its second fund so far this week. The KraneShares MSCI China Environment Index ETF (KGRN) targets Chinese companies that are focused on environmental sustainability.

KGRN comes with an expense ratio of 0.79% and lists on the NYSE Arca exchange.


The cap-weighted index is designed to select companies that are primarily engaged in offering environmentally beneficial products and services, the prospectus said. Companies should be involved in at least one of five themes, including alternative energy, sustainable water, green building, pollution prevention and energy efficiency.

The prospectus notes that KGRN’s underlying index included 38 companies as of the start of September, with holdings ranging in size from $211.6 million to $37.8 billion. Utilities was the largest sector, with a weight of 34.5%, followed by industrials at 27.1% and information technology at 16.6%.

The methodology limits the weight of any single company to 10% of the index, while companies weighted at 5% or more will see their combined weight limited to 40%, the document said.

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