KGRN Profile
The KraneShares MSCI China Clean Technology ETF aims to provide investment returns that closely mirror the performance of its underlying index, which focuses on companies in China involved in clean technology and sustainable practices. The fund is designed to allocate at least 80% of its net assets to securities included in the index or to instruments with similar economic characteristics. This strategy ensures that the fund’s investments are heavily weighted towards firms that contribute to environmental sustainability.
The underlying index, a free-float adjusted market capitalization weighted index, tracks the performance of Chinese companies engaged in sectors such as industrials, utilities, real estate, and technology that are pivotal in advancing a greener economy. Specifically, it includes firms that are actively involved in clean technology and sustainable infrastructure, aiming to drive progress towards reduced carbon emissions and improved environmental stewardship. The index is modified according to the 10/40 constraint, which imposes limits on the maximum percentage of assets that can be invested in any single security or sector.
As a non-diversified fund, the KraneShares MSCI China Clean Technology ETF is concentrated in the clean technology sector, focusing its investments on a specific subset of the broader market. This concentration reflects the fund’s strategic emphasis on capturing the growth potential of Chinese companies leading the way in sustainable practices and technological advancements in clean energy.
By investing in this ETF, investors gain targeted exposure to the burgeoning clean technology sector in China, which is increasingly important as the country continues to address environmental challenges and transition towards a more sustainable economy. The ETF offers a specialized avenue for investing in firms at the forefront of green technology, aligning with global trends towards sustainability and responsible investing.
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