KFVG Profile
The KraneShares CICC China 5G & Semiconductor Index ETF is tailored to provide investors with targeted exposure to China’s rapidly growing 5G and semiconductor sectors. The fund invests at least 80% of its net assets, including any borrowings for investment purposes, in securities that are part of its underlying index or in financial instruments that have similar economic characteristics. This focus ensures that the fund closely tracks the performance of the index and captures the growth potential within these specific technology segments.
The underlying index comprises a selection of equity securities from companies actively involved in the development and deployment of 5G technology and semiconductor manufacturing in China. This includes China A-Shares that are accessible through the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs, as well as companies listed in Hong Kong and the U.S. with China as their country of domicile. By incorporating these diverse sources of investment, the ETF aims to offer comprehensive exposure to key players in China’s technology and innovation landscape.
The 5G sector represents a transformative shift in global communications, with China at the forefront of developing and implementing next-generation network technologies. Similarly, the semiconductor industry is crucial for supporting advancements in electronics, telecommunications, and a wide range of technological applications. Investing in these sectors allows the fund to capitalize on China’s strategic focus on technological self-sufficiency and innovation leadership.
Investors in the KraneShares CICC China 5G & Semiconductor Index ETF gain access to a specialized portfolio that reflects the dynamic growth of China’s technology sectors. The fund is non-diversified, focusing specifically on the 5G and semiconductor industries, providing a concentrated investment opportunity for those looking to benefit from China’s technological advancements. This approach positions the ETF to capture potential growth from critical technological developments that are driving the future of global communication and computing.
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