KROP ISSUER
Global X Funds' KROP is an exchange-traded fund (ETF) that follows the investment strategy of the Solactive AgTech & Food Innovation Index. This ETF allocates a minimum of 80% of its total assets to securities in the Underlying Index, along with American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) based on these securities. The Underlying Index is specifically designed to provide exposure to companies in the fields of agricultural technology (AgTech) and food innovation. The eligible companies within the index are those deriving at least 50% of their revenues, operating income, or assets from various AgTech and Food Innovation activities, including precision agriculture, robotics/automation, controlled environment agriculture, agricultural biotechnology, protein & dairy alternatives, and food waste reduction. The ETF's investment policy is subject to a 60-day notice period for any changes to the 80% investment threshold. The Underlying Index, sponsored by Solactive AG, is reconstituted and re-weighted semi-annually, utilizing a modified capitalization weighting methodology. The ETF generally employs a passive indexing approach, striving to achieve a correlation of over 95% with the Underlying Index. It may concentrate its investments in industries to the same extent as the Underlying Index, and as of January 31, 2023, the Underlying Index exhibited concentration in the chemicals and food products industries, with significant exposure to consumer staples and materials sectors. Additionally, the Fund is classified as non-diversified, allowing it to invest a larger percentage of its assets in a smaller number of issuers compared to diversified funds.
KROP DIVIDEND
Global X Funds' KROP ETF may distribute dividends to its shareholders based on the income generated from its investments. The dividend payments would be derived from the interest, dividends, and capital gains earned within the fund's portfolio. As an ETF focused on the Solactive AgTech & Food Innovation Index, the dividend payouts to KROP investors would reflect the performance of the underlying companies in the fields of agricultural technology and food innovation. The frequency and amount of dividend distributions, if any, would depend on factors such as the yields of the securities held within the ETF and the fund's overall income. Shareholders may anticipate receiving dividends from KROP in accordance with the fund's dividend distribution policies and market conditions.
KROP TRACKING
Global X Funds' KROP employs a tracking strategy to replicate the performance of the Solactive AgTech & Food Innovation Index. The fund aims to closely mirror the movements and returns of the underlying index by investing at least 80% of its total assets in securities, American Depositary Receipts (ADRs), and Global Depositary Receipts (GDRs) based on the index components. KROP typically follows a passive or indexing approach, seeking to achieve a correlation of over 95% with the index's performance before fees and expenses. The tracking methodology involves investing in the securities of the underlying index in approximately the same proportions, maintaining a replication strategy. However, under certain circumstances, such as practical difficulties or substantial costs, the fund may employ a representative sampling strategy. By adopting a tracking strategy, KROP aims to provide investors with an investment vehicle that reflects the market movements and returns of companies in the AgTech and food innovation sectors, as defined by the Solactive AgTech & Food Innovation Index.
KROP CORRELATION
lGlobal X Funds' KROP ETF seeks to achieve a high correlation with the Solactive AgTech & Food Innovation Index, reflecting its commitment to tracking the performance of companies in the agricultural technology and food innovation sectors. The fund's investment strategy, which involves investing at least 80% of its total assets in securities, ADRs, and GDRs based on the index components, is designed to closely mimic the movements of the underlying index. KROP employs a passive or indexing approach, aiming for a correlation exceeding 95% with the index's performance before accounting for fees and expenses. The correlation percentage provides investors with an indication of how closely the ETF's returns align with those of the Solactive AgTech & Food Innovation Index, offering a transparent and efficient means for market participants to gain exposure to the evolving landscape of AgTech and food innovation.
KROP SECTOR
Global X Funds' KROP ETF focuses on the agricultural technology and food innovation sectors, as delineated by the Solactive AgTech & Food Innovation Index. Within these sectors, KROP invests in companies engaged in various activities such as precision agriculture, robotics/automation, controlled environment agriculture, agricultural biotechnology, protein & dairy alternatives, and food waste reduction. The ETF's sector allocation aligns with the evolving trends and advancements in the fields of AgTech and food innovation, providing investors with targeted exposure to companies at the forefront of transformative developments. As of the latest available information, the Solactive AgTech & Food Innovation Index, and consequently KROP, has demonstrated concentration in the chemicals and food products industries, with significant exposure to the consumer staples and materials sectors, reflecting the specific focus of the underlying index and the ETF's sector composition.
KROP EXPOSURE
Global X Funds' KROP ETF offers investors exposure to the dynamic and innovative fields of agricultural technology (AgTech) and food innovation. By tracking the Solactive AgTech & Food Innovation Index, KROP provides a diversified investment portfolio that includes companies involved in precision agriculture, robotics and automation, controlled environment agriculture, agricultural biotechnology, protein and dairy alternatives, as well as food waste reduction technologies. The exposure provided by KROP reflects the potential growth and transformative developments within these sectors. Investors in KROP gain access to a broad spectrum of companies at the forefront of technological advancements and sustainability initiatives in agriculture and food production. The ETF's exposure is strategically designed to capture the opportunities presented by the increasing demand for innovative solutions in the global AgTech and food innovation landscape.
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