For investors and advisors looking for a safe haven to navigate geopolitical uncertainty, defined outcome ETFs have emerged as a viable choice. Generally speaking, defined outcome ETFs are used to provide asset class exposure while mitigating volatility.
KraneShares announced in a press release today the new caps as well as an extension of the buffer periods and new names for its defined outcome ETFs. The firm attributed the choice to extend the period covered and subsequent cap and name changes to ongoing momentum for China internet stocks.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
BLVD Private Wealth LLC BLVD Private Wealth LLC | 67,232 | $2.06M | $1.82M | -$237,129.18 | -11.5% |
| ARCA Exchange | US Country |
The fund is primarily focused on investment in the KraneShares CSI China Internet ETF (Underlying ETF), dedicating at least 80% of its net assets, along with the use of borrowings for the purpose of this investment. Specializing in the Chinese internet sector, the fund aims to leverage the growth and opportunities within China's rapidly evolving digital landscape. It employs a strategy that includes investing directly in the Underlying ETF and utilizing options, such as FLEX options, which are tied to the performance of the Underlying ETF. Being non-diversified, the fund concentrates its investments in the specified sector, making it a unique proposition for investors looking to capitalize on the internet sector of China's economy.
The fund primarily invests in the KraneShares CSI China Internet ETF, which is designed to track the performance of the Chinese internet sector. This includes a wide array of companies within China that predominantly operate in internet and related sectors. The strategy allows investors to tap into the rapid growth of China’s internet domain, benefiting from trends in e-commerce, online entertainment, and cloud computing.
Apart from direct investments in the Underlying ETF, the fund utilizes options and FLEX options to potentially enhance returns or hedge against market volatility. FLEX options, in particular, offer customizable terms, such as strike prices and expiration dates, providing a flexible method to gain exposure to the underlying ETF's performance or to implement various strategic and hedging activities suited to the fund's investment objectives.