Despite challenges in the U.S., electric vehicle sales continue to rise overseas. With demand growing in Europe and in China in the opening months of the year, investors would do well to consider the KraneShares Electric Vehicles and Future Mobility ETF (KARS).
In spite of global challenges, China's new energy vehicle market, comprising electric and hybrid vehicles, continues to grow. Investors looking to capture global EV growth through a diversified strategy would do well to consider the KraneShares Electric Vehicles and Future Mobility ETF (KARS).
The KraneShares Electric Vehicles and Future Mobility Index ETF KARS has just hit a significant milestone, making a Golden Cross that has investors' attention piqued and driving optimism.
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The fund is a specialized investment vehicle focused on the burgeoning electric vehicle (EV) market and the broader future mobility sector. It commits at least 80% of its net assets, alongside any borrowings intended for investment purposes, to assets that are either directly part of its underlying index or possess economic characteristics closely mirroring those found within the index. This includes investments in companies directly involved in the production of electric vehicles, their components, or engaging in initiatives poised to significantly influence the course of future mobility. The index's composition is curated by the fund's index provider, ensuring a targeted approach to capturing the equity market performance of leading entities within the evolving electric vehicle and mobility landscape.
The fund specializes in equity investments, directing capital towards companies actively involved in the electric vehicle industry or those contributing to the future of mobility. By focusing on equity market performance, the fund seeks to leverage the growth potential within this dynamic sector.
Adhering to a strategy that emphasizes alignment with its underlying index, the fund ensures that a significant portion of its assets is invested in instruments either part of or analogous to those in the index. This method is designed to closely track market movements and trends within the EV and future mobility sectors, as identified by the index provider.
In addition to direct investments in the underlying index constituents, the fund also explores opportunities in instruments that share economic characteristics with those in the index. This approach broadens the fund's exposure to potential growth drivers in the EV and mobility ecosystem beyond the confines of the index itself.