NEW YORK, May 15, 2020 /PRNewswire/ -- Krane Funds Advisors, LLC, the investment manager for KFA Funds and KraneShares ETFs, today announced that the Quadratic Interest Rate Volatility and Inflation Hedge ETF (ticker: IVOL), is celebrating its 1-year anniversary.
In April, IVOL was awarded "Best New US Fixed Income Fund of 2019" by ETF.com, beating fixed income ETFs issued by BlackRock, Goldman Sachs, Van Eck and, Nuveen. Additionally, Bloomberg Intelligence cited IVOL for its efforts to "democratize hedge funds by putting hedge-fund-caliber strategies into a wrapper with lower costs and better tax efficiency."1
IVOL is an actively managed ESG fixed-income ETF, launched by Quadratic Capital. IVOL seeks to hedge relative interest rate movements, whether these movements arise from falling short-term interest rates or rising long-term interest rates, and to benefit from market stress when fixed-income volatility increases while providing the potential for enhanced inflation-protected income.
"IVOL may help investors who are looking for diversification in their portfolios," said Nancy Davis, the Chief Investment Officer of Quadratic Capital and portfolio manager for IVOL. "IVOL has had very low correlations with common asset classes. More importantly, the correlation data tells us that, since inception IVOL has done well on days that stock and bond prices fell."
For more information about the Quadratic Interest Rate Volatility and Inflation Hedge ETF (ticker: IVOL), visit ivoletf.com.
About Quadratic Capital
Quadratic Capital Management LLC is an asset management firm founded in 2013 by Nancy Davis and based in Greenwich, CT. Ms. Davis is the portfolio manager for The Quadratic Interest Rate Volatility and Inflation Hedge ETF (ticker: IVOL). Ms. Davis has been the recipient of numerous industry recognitions, including being named one of the "100 Most Influential Women in US Finance" by Barron's.
Ms. Davis began her career at Goldman Sachs, where she spent ten years, the last seven with the proprietary trading group where she became Head of Credit, Derivatives and OTC Trading.
About KFA Funds
Founded in 2012, Krane Funds Advisors, LLC is the investment manager for KFA Funds and KraneShares ETFs. We believe that investors should have cost-effective and transparent tools for attaining exposure to a wide variety of asset classes.
The KFA Funds product suite delivers differentiated, high-conviction investment strategies to global investors. We are passionate about identifying groundbreaking capital market opportunities and developing them into investment vehicles that offer a source of non-traditional diversification to our clients.
Krane Funds Advisors, LLC is majority owned by China International Capital Corporation (CICC).
1. Bloomberg Intelligence, "IVOL Makes Its Mark in 2020", 5/4/2020
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.kfafunds.com. Read the prospectus carefully before investing.
Investing involves risk. Principal loss is possible. ETF shares are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The Fund's derivatives may give rise to a form of leverage. Leverage magnifies potential for gain and the risk of loss. Options prices can be highly volatile. Option use can lower total returns. OTC options generally have more flexible terms negotiated between the buyer and the seller making them subject to greater credit, counter-party, and liquidity risk. Debt securities typically decrease in value when interest rates rise which is usually greater for longer term debt. The Fund seeks to mitigate the risk associated with a steepening swap curve ("curve risk") on the performance of U.S. government bonds by investing in products designed to appreciate in value when the swap curve steepens. Such instruments are not intended to mitigate credit risk or non-curve interest rate risk. There's no guarantee the Fund will achieve its objective. When the swap curve flattens, the Fund will generally underperform a portfolio comprised solely of U.S. government bonds. A flattening curve environment may result in disproportionately larger losses in the Fund's options as compared to its gains or losses in the U.S. government bonds attributable to interest rate changes. Investing in interest rates derivatives, including through options tied to the shape of the swap curve, is speculative and can be extremely volatile. The Fund is non-diversified.
The KFA 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, Quadratic Capital Management, LLC, the sub-adviser. R_KS_SEI
SOURCE Krane Funds Advisors, LLC