Asia-focused ETF issuer KraneShares launched an ETF Thursday that combines access to Asian markets with a dividend growth strategy.
The KraneShares S&P Pan Asia Dividend Aristocrats Index ETF (KDIV) targets Asian companies that pay consistent dividends while at the same time increasing the amount paid to shareholders. The ETF comes with an expense ratio of 0.69% and lists on the NYSE Arca.
KDIV tracks the S&P Pan Asia Dividend Aristocrats Index, which is derived from the S&P Pan Asia BMI Index. Eligible securities must represent companies that have consistently raised their dividends annually for seven years or more, and once selected, are weighted by dividend yield. The resulting index includes 40-100 companies, according to the prospectus.
There are only a few ETFs that offer access to dividend strategies focused on Asian securities. In a recent press release, KraneShares CEO Jonathan Krane called the launch of KDIV a “timely expansion.”
“As markets remain volatile in 2022, we believe dividend growers could continue to outperform the broader market. Adding dividend growers to an investment portfolio may result in lower volatility, compounded growth on dividend reinvestment, and reduced drawdown in declining markets," said KraneShares Chief Investment Officer Brendan Ahern.
Contact Heather Bell at [email protected]