KraneShares has rolled out the first U.S.-listed ETF to concentrate on electric cars. The KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) covers companies across the size spectrum from emerging as well as developed markets.
The fund lists on the NYSE Arca and comes with an expense ratio of 0.69%.
KARS’ underlying index targets stocks representing companies involved in the production of electric vehicles and their power sources and the businesses that support the infrastructure that electric vehicles depend on. Companies must have at least $500 million in market capitalization and meet minimum liquidity levels. The index methodology uses a modified equal-weighting approach.
The methodology notes there are multiple shares of Chinese securities that can be included in the index.
The prospectus notes that in January, the index included 64 components with the U.S., the largest country with a weighting of 40%, China at 23.3% and Germany at 15.7%.
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