The KraneShares Large Cap Dividend ETF (KLCD) aims to track the performance of the Underlying Index, which comprises large-cap companies demonstrating consistent dividend growth over ten years, reflecting what the fund considers quality businesses. Derived from the Russell 1000© Index, the Underlying Index encompasses around 1,000 of the largest U.S. companies, representing approximately 98% of the investable U.S. equity market. Eligible securities must exhibit increasing annual cash dividends for at least ten consecutive years, with no quarter-to-quarter decrease in dividends. The index employs a quarterly review process, adding securities with high price momentum values while removing those with declining dividends. The Fund may allocate up to 20% of its assets outside the Underlying Index, utilizing various instruments such as equities, derivatives, and other investment vehicles, to enhance tracking performance. While the Fund typically replicates the Underlying Index, it retains the option for representative sampling. Additionally, the Fund may engage in securities lending activities. Notably, sector concentration in the Fund aligns with the composition of the Underlying Index, with significant representations from industries such as Industrials and Financials as of May 31, 2022.
The KLCD Dividend ETF focuses on delivering returns based on the performance of its underlying index, which consists of large-cap companies that have consistently increased their dividend payments over a decade, indicative of stable and quality businesses. Drawing from the Russell 1000© Index, which encompasses a significant portion of the U.S. equity market, the ETF maintains a portfolio primarily composed of securities meeting stringent dividend growth criteria. Quarterly reviews ensure the index remains dynamic, with additions based on robust price momentum and exclusions for companies displaying declining dividend trends. While the ETF predominantly mirrors the index, it has the flexibility to allocate up to 20% of its assets to instruments not included in the index, potentially enhancing overall performance. Sector concentration within the ETF aligns with the underlying index, reflecting the industrial and financial sectors' prominence as of its latest assessment. Through this strategic approach, the KLCD Dividend ETF aims to provide investors with exposure to high-quality dividend-paying companies while seeking to outperform its benchmark.
The KLCD Tracking ETF is designed to closely follow the performance of its underlying index, which comprises large-cap companies that have demonstrated consistent dividend growth over a ten-year period, indicating their quality and stability. Leveraging the Russell 1000© Index as its foundation, the ETF aims to replicate the index's composition, which includes approximately 1,000 of the largest U.S. companies, representing a significant portion of the U.S. equity market. To achieve this, the ETF typically invests at least 80% of its net assets in securities that mirror the underlying index, ensuring a close correlation with its performance. While the fund primarily aims for full replication, it retains the flexibility to engage in representative sampling, a strategy involving investments in a subset of securities that collectively mimic the index's investment profile. Furthermore, the ETF may allocate up to 20% of its assets to instruments outside the index, such as equities, derivatives, and other investment vehicles, to optimize tracking performance. By adhering to a disciplined investment approach and maintaining alignment with the underlying index, the KLCD Tracking ETF seeks to provide investors with a reliable means of participating in the potential growth of high-quality dividend-paying companies within the large-cap segment of the U.S. equity market.
The KLCD Correlation ETF endeavors to maintain a strong correlation with its underlying index, which is composed of large-cap companies that have consistently increased dividend payments over a ten-year period, signifying their stability and quality. Built upon the Russell 1000© Index, which encompasses a broad spectrum of the U.S. equity market, the ETF seeks to replicate the performance of the index by investing at least 80% of its net assets in securities mirroring the index's composition. Through this strategic allocation, the ETF aims to closely track the fluctuations of its underlying index, ensuring that investors can expect movements in the ETF's value to mirror those of the benchmark. Additionally, the ETF may utilize representative sampling techniques or allocate up to 20% of its assets to instruments outside the index to enhance correlation performance. By adhering to a disciplined investment strategy and maintaining alignment with its underlying index, the KLCD Correlation ETF aims to provide investors with a reliable means of participating in the potential growth of high-quality dividend-paying companies within the large-cap segment of the U.S. equity market, while minimizing tracking error and maintaining a strong correlation with the index.
The KLCD Sector ETF is structured to reflect the sector composition of its underlying index, which comprises large-cap companies demonstrating consistent dividend growth over a ten-year period, a hallmark of stability and quality. Leveraging the Russell 1000© Index as its foundation, which encompasses a wide array of sectors within the U.S. equity market, the ETF aims to replicate the sector allocations of the index. This strategic approach ensures that the ETF's portfolio closely mirrors the sector distribution of the benchmark, providing investors with exposure to various sectors while maintaining alignment with the index's composition. Additionally, the ETF may utilize representative sampling techniques or allocate up to 20% of its assets to instruments outside the index to optimize sector-specific performance. Through this disciplined investment strategy, the KLCD Sector ETF seeks to provide investors with diversified exposure to high-quality dividend-paying companies across different sectors within the large-cap segment of the U.S. equity market.
The KLCD Exposure ETF aims to provide investors with comprehensive exposure to the underlying index, which consists of large-cap companies demonstrating consistent dividend growth over a ten-year period, indicating stability and quality. Anchored by the Russell 1000© Index, encompassing a broad spectrum of the U.S. equity market, the ETF seeks to replicate the index's composition, ensuring broad exposure to a diverse range of companies across various industries and sectors. By investing at least 80% of its net assets in securities mirroring the index's constituents, the ETF aims to closely track the performance of the benchmark. Additionally, the ETF may employ representative sampling techniques or allocate up to 20% of its assets to instruments outside the index to enhance overall exposure. Through this strategic approach, the KLCD Exposure ETF endeavors to provide investors with a comprehensive and diversified investment vehicle to participate in the potential growth of high-quality dividend-paying companies within the large-cap segment of the U.S. equity market.
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