NEW
YORK, Sept. 15, 2022 /PRNewswire/ -- Krane
Funds Advisors, LLC ("KraneShares"), an asset management firm known
for its global exchange-traded funds (ETFs) and innovative
investment strategies, announced the launch of the KraneShares
S&P Pan Asia Dividend Aristocrats ETF (Ticker: KDIV) on the New
York Stock Exchange today.
KDIV tracks the S&P Pan Asia Dividend Aristocrats Index,
which provides exposure to companies in China, Japan,
Australia, and other Asian
countries that have paid and increased their dividends over a
sustained period. Studies by S&P Dow Jones Indices have shown
that over the long-term, dividend-paying companies have
outperformed their corresponding broad market indexes on a
risk-adjusted basis1. KDIV gives investors access to the
S&P Dividend Aristocrats methodology applied to the Pan Asia
region, one of the fastest-growing areas in the world. The
International Monetary Fund forecasts gross domestic product (GDP)
growth in the region to be 4.9% in 2022 and 5.1% in
20232.
"KDIV is a timely expansion of KraneShares' China and global ETF suite, which includes the
$6.7bn KraneShares CSI China Internet
ETF (KWEB)3. KDIV is also the first US-listed ETF to
apply the S&P Dividend Aristocrats methodology to the Pan Asia
region4," said Jonathan
Krane, Chief Executive Officer at KraneShares. "We are
pleased to offer KDIV as a compelling addition to our global ETF
suite."
"KDIV gives investors access to S&P's widely popular
Dividend Aristocrats® Index Series, which is tracked by
billions of dollars in ETF assets5. KDIV applies this
methodology to the Pan Asia region, an area we are particularly
focused on at KraneShares," said Brendan
Ahern, KraneShares Chief Investment Officer. "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."
"We're excited that KraneShares has selected our S&P Pan
Asia Dividend Aristocrats Index as the underlying benchmark for its
exchange-traded fund," said Pavel
Vaynshtok, Head of Strategy Indices at S&P Dow Jones
Indices (S&P DJI). "The Pan Asia index represents a key member
of the Dividend Aristocrats® Index Series, which helps
investors and fund managers track companies that have consistently
increased dividend payments on an annual basis across the
globe."
For additional information on the KraneShares S&P Pan Asia
Dividend Aristocrats ETF (Ticker: KDIV), contact your financial
advisor or visit kraneshares.com/kdiv.
About Krane Funds Advisors,
LLC
Krane Funds Advisors, LLC is the investment manager for
KraneShares ETFs. KraneShares is a premier platform for developing
differentiated, high-conviction investment strategies for global
investors. KraneShares strives to deliver innovative
first-to-market strategies based on strong partnerships and deep
investing knowledge. Since 2013, KraneShares has become one of the
largest China ETF providers. This focus continues with product
launches worldwide and a constant stream of China-focused research.
KraneShares continues to provide investors new ways to access
markets as it did with China. In
recent years, the Firm launched the first ETFs giving access to
carbon markets via futures contracts. KraneShares is now one of the
largest global carbon/climate ETF providers. KraneShares helps
investors stay current on global market trends and provides funds
offering meaningful diversification.
Krane Funds Advisors, LLC, is a signatory of the United
Nations-supported Principles for Responsible Investing
(UN PRI). The Firm is majority-owned
by China International Capital Corporation (CICC). Citations:
Carefully consider the Fund's investment objectives, risk
factors, charges, and expenses before investing. This and
additional information can be found in the Fund's full and summary
prospectus, which may be obtained by visiting www.kraneshares.com
Read the prospectus carefully before investing.
Risk Disclosures:
Investing involves risk, including possible loss of principal.
There can be no assurance that a Fund will achieve its stated
objectives. Indices are unmanaged and do not include the effect of
fees. One cannot invest directly in an index.
This information should not be relied upon as research,
investment advice, or a recommendation regarding any products,
strategies, or any security in particular. This material is
strictly for illustrative, educational, or informational purposes
and is subject to change. Certain content represents an assessment
of the market environment at a specific time and is not intended to
be a forecast of future events or a guarantee of future results;
material is as of the dates noted and is subject to change without
notice.
The Fund is subject to the legal, regulatory, political and
economic instability associated with investing in Asia-Pacific countries including China and Japan which may cause a decline in value.
Japan has also experienced natural
disasters of varying degrees of severity, which could negatively
affect the Fund. Emerging markets involve heightened risk related
to the same factors as well as increase volatility and lower
trading volume. Fluctuations in currency of foreign countries may
have an adverse effect to domestic currency values.
Narrowly focused investments typically exhibit higher
volatility. The Fund's assets are expected to be concentrated in a
sector, industry, market, or group of concentrations to the extent
that the Underlying Index has such concentrations. The securities
or futures in that concentration could react similarly to market
developments. Thus, the Fund is subject to loss due to adverse
occurrences that affect that concentration. The Fund is
non-diversified.
The Fund may invest in derivatives, which are often more
volatile than other investments and may magnify the Funds' gains or
losses. A derivative (i.e., futures/forward contracts, swaps, and
options) is a contract that derives its value from the performance
of an underlying asset. The primary risk of derivatives is that
changes in the asset's market value and the derivative may not be
proportionate, and some derivatives can have the potential for
unlimited losses. Derivatives are also subject to liquidity and
counterparty risk. The Fund is subject to liquidity risk, meaning
that certain investments may become difficult to purchase or sell
at a reasonable time and price. If a transaction for these
securities is large, it may not be possible to initiate which may
cause the Fund to suffer losses. Counterparty risk is the risk of
loss in the event that the counterparty to an agreement fails to
make required payments or otherwise comply with the terms of
derivative.
In addition to the normal risks associated with investing,
investments in smaller companies typically exhibit higher
volatility. The Fund is new and does not yet have a significant
number of shares outstanding. If the Fund does not grow in size, it
will be at greater risk than larger funds of wider bid-ask spreads
for its shares, trading at a greater premium or discount to NAV,
liquidation and/or a trading halt.
ETF shares are bought and sold on an exchange at market price
(not NAV) and are not individually redeemed from the Fund. However,
shares may be redeemed at NAV directly by certain authorized
broker-dealers (Authorized Participants) in very large
creation/redemption units. The returns shown do not represent the
returns you would receive if you traded shares at other times.
Shares may trade at a premium or discount to their NAV in the
secondary market. Brokerage commissions will reduce returns.
Beginning 12/23/2020, market price returns are based on the
official closing price of an ETF share or, if the official closing
price isn't available, the midpoint between the national best bid
and national best offer ("NBBO") as of the time the ETF calculates
the current NAV per share. Prior to that date, market price returns
were based on the midpoint between the Bid and Ask price. NAVs are
calculated using prices as of 4:00 PM
Eastern Time.
The KraneShares ETFs, KFA Funds ETFs, and KraneShares Mutual
Funds are distributed by SEI Investments Distribution Company
(SIDCO), 1 Freedom Valley Drive, Oaks,
PA 19456, which is not affiliated with Krane Funds Advisors,
LLC, the Investment Adviser for the Fund.
The S&P Pan Asia Dividend Aristocrats Index is a product of
S&P Dow Jones Indices LLC or its affiliates ("SPDJI") and has
been licensed for use by Krane Funds Advisors, LLC ("KraneShares").
S&P®, "S&P 500® and "Dividend
Aristocrats®" are registered trademarks of Standard
& Poor's Financial Services LLC ("S&P"); Dow
Jones® is a registered trademark of Dow Jones Trademark
Holdings LLC ("Dow Jones") and has been licensed for use by S&P
Dow Jones Indices; and these trademarks have been licensed for use
by SPDJI and sublicensed for certain purposes by KraneShares.
KraneShares S&P Pan Asia Dividend Aristocrats ETF is not
sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P,
their respective affiliates, and none of such parties make any
representation regarding the advisability of investing in such
product(s) nor do they have any liability for any errors,
omissions, or interruptions of the S&P Pan Asia Dividend
Aristocrats Index.
[R_US_KS_SEI]
1 "S&P 500® Dividend
Aristocrats®: The Importance of Stable Dividend Income",
S&P Dow Jones Indices, Sep 23,
2021.
2 "The Case for Dividend Aristocrats in Pan Asia",
S&P Dow Jones Indices, Aug 29,
2022. Gross domestic product (GDP) is a monetary measure of
the market value of all the final goods and services produced in a
specific time period by a country.
3 Data from KraneShares as of 8/31/2022
4 Data from Bloomberg as of 8/31/2022
5 Data from Bloomberg as of 8/31/2022
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SOURCE Krane Funds Advisors, LLC