KraneShares Launches China 5G and Semiconductor ETF (Ticker: KFVG); Surpasses $100 Million AUM

NEW YORK, Dec. 1, 2020 /PRNewswire/ -- Krane Funds Advisors, LLC, ("KraneShares"), a global asset management firm known for its China-focused exchange-traded funds (ETFs) and innovative China investment strategies, today announced the launch of the KraneShares CICC China 5G & Semiconductor ETF (Ticker: KFVG) on the New York Stock Exchange. Since KFVG's inception on November 24, the Fund has surpassed $100 Million in assets under management (AUM).

KFVG tracks the CICC China 5G and Semiconductor Leaders Index, designed to capture the performance of China-domiciled companies engaged in 5G and semiconductor-related businesses, including 5G equipment, semiconductors, electronic components, and big data centers.

China has quickly emerged as a world leader in 5G spending and adoption. By 2025, China is projected to have over 400 million 5G users, accounting for 40% of total global use.¹ At the same time, China is cultivating its domestic semiconductor production capacity through government policies and funding specifically for the industry. As stated in the "Made in China 2025" initiative, China aims to produce 70% of the semiconductors used domestically by 2025 and achieve complete import substitution by 2030.²

Unlike previous generations of wireless technology, 5G represents a giant leap forward in potential applications — enabling data-intensive processes to be implemented anywhere at broadband speeds. Such functions include real-time communication among autonomous vehicles, AI integrated robotic devices for remote surgeries, smart cities, and sensors optimized for energy conservation within homes.

"The advent of 5G is fundamentally changing the way people interact with technology and the world in which we live. China is the world leader in 5G adoption, which is providing a tremendous catalyst across various sectors and industries in China," said Jonathan Krane, CEO of KraneShares. "We are proud to partner with the top-ranked research team at China International Capital Corporation (CICC) for KFVG's index."

For more information about KFVG, visit kraneshares.com/kfvg, or talk to your financial advisor.

About KraneShares
Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. The firm focuses on providing investors with strategies to capture China's importance as an essential element of a well-designed investment portfolio. KraneShares ETFs represent innovative, first-to-market strategies developed based on the firm and its partners' in-depth knowledge of investing. These strategies allow investors to stay current on global market trends and provide meaningful diversification. Krane Funds Advisors, LLC is majority-owned by China International Capital Corporation (CICC).

About China International Capital Corporation (CICC)
KFVG tracks an index developed by CICC Research. CICC is a leading, publicly-traded, Chinese financial services company with expertise in research, asset management, investment banking, private equity, and wealth management. In 2019, the CICC Research Team ranked #1 in Institutional Investor's All-China Research Category for the eighth year in a row.³

Citations:

1. UBS, "The China 5G Opportunity", retrieved 9/30/2020
2. US Chamber of Commerce, "Made in China 2025: Global Ambitions Built on Local Protections", 2017.
3. Alexandra DeLuca, "The Firms Helping Investors Navigate a Trade War in China", Institutional Investor 11/1/2018.

Carefully consider the Funds' investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Funds' 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. The Fund is subject to political, social or economic instability within China which may cause decline in value. Fluctuations in currency of foreign countries may have an adverse effect to domestic currency values. Emerging markets involve heightened risk related to the same factors as well as increase volatility and lower trading volume Narrowly focused investments typically exhibit higher volatility.

Diversification does not ensure profit or guarantee against a loss.

In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility.

The ability of the Fund to achieve its objective is dependent, in part, on the continuous availability of A Shares and the ability to obtain, if necessary, additional A Shares quota. If a Fund is unable to obtain sufficient exposure to limited availability of A Share quota, the Fund could seek exposure to the component securities of the Underlying Index by investment in other types of securities. The Fund invests a significant portion of its assets insecurities issued by companies in the information technology sector in order to track the Underlying Index's allocation to that sector. The value of stocks of technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation and competition, both domestically and internationally, including competition from competitors with lower production costs. The Fund may in invest in derivatives, which are often more volatile than other investments and may magnify the Funds' gains or losses. The Fund is non-diversified.

ETF shares are not redeemable with the issuing Fund other than in large Creation Unit aggregations. Instead, investors must buy or sell ETF Shares in the secondary market with the assistance of a stockbroker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling. The NAV of the Fund's shares is calculated each day the national securities exchanges are open for trading as of the close of regular trading on the New York Stock Exchange ("NYSE"), normally 4:00 p.m. Eastern time (the "NAV Calculation Time"). Shares are bought and sold at market price (closing price) not NAV. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined).

The KraneShares ETFs 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.

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SOURCE Krane Funds Advisors, LLC

Related Links

http://kraneshares.com