China's economic uncertainty and collapsing property sector highlight the need for conservative investment strategies like KLIP's covered call approach. KLIP has outperformed other China ETFs with a 21% total return and significantly lower volatility since inception. The fund's high dividend yield, resulting from distributing all option income, leads to a decreasing NAV, posing tax implications for investors.
As artificial intelligence enthusiasm continues, advisors and investors keep their attention turned towards the technology sector in 2025. However, most investors carry a notable underweight to a compelling class of internet firms this year.
NEW YORK, Dec. 31, 2024 (GLOBE NEWSWIRE) -- Krane Funds Advisors, LLC (“KraneShares”), an asset management firm known for its global exchange-traded funds (ETFs) announced changes to the KraneShares China Internet and Covered Call Strategy ETF (Ticker: KLIP), effective January 1, 2025.
![]() KLIP 4 months ago | Other | $0.67 Per Share |
![]() KLIP 5 months ago Paid | Monthly | $0.67 Per Share |
![]() KLIP 6 months ago Paid | Monthly | $0.67 Per Share |
![]() KLIP 7 months ago Paid | Monthly | $1.67 Per Share |
![]() KLIP 8 months ago Paid | Monthly | $1.83 Per Share |
![]() KLIP 4 months ago | Other | $0.67 Per Share |
![]() KLIP 5 months ago Paid | Monthly | $0.67 Per Share |
![]() KLIP 6 months ago Paid | Monthly | $0.67 Per Share |
![]() KLIP 7 months ago Paid | Monthly | $1.67 Per Share |
![]() KLIP 8 months ago Paid | Monthly | $1.83 Per Share |
Asset Management Industry | Financial Services Sector | - CEO | ARCA Exchange | 500767470 Cusip |
US Country | - Employees | - Last Dividend | 2 Jan 2025 Last Split | - IPO Date |
The fund described focuses on investing a significant portion, at least 80% of its net assets, in the securities that constitute the CSI Overseas China Internet Index. This index represents the Chinese internet sector, including companies that have significant internet-related operations. The fund aims to replicate the economic characteristics of this index through direct investment in the securities it comprises or through instruments that offer similar economic characteristics. Additionally, the fund engages in a covered call options strategy, which involves writing (selling) covered call options on the CSI Overseas China Internet Index or on instruments that mimic this action. This approach aims to generate additional income or hedge against potential downside risks. The advisor has chosen to primarily invest in the KraneShares CSI China Internet ETF as the underlying fund for achieving these investment goals. Despite its focus on a specific sector, the fund is categorized as non-diversified, meaning it may invest a larger portion of its assets in fewer securities, potentially increasing its vulnerability to market volatility or specific sector downturns.
The fund primarily invests in the KraneShares CSI China Internet ETF, which tracks the CSI Overseas China Internet Index. This underlying fund comprises companies in the Chinese internet sector, providing exposure to internet technology, e-commerce, streaming services, and other internet-related operations primarily within China. The investment aims to leverage the growth potential of China's internet sector.
In addition to direct investment, the fund employs a covered call options strategy on the KraneShares CSI China Internet ETF or equivalent instruments. This involves writing (selling) covered call options to generate income or to hedge against downside risk. This strategy can provide an additional stream of income while potentially mitigating investment risks during volatile market conditions. It is an integral part of the fund's approach to managing its investment in the Chinese internet sector.