KWEB: KraneShares CSI China Internet ETF Announces 5 Year Track Record
NEW YORK, Aug. 14, 2018 /PRNewswire/ -- Krane Funds Advisors, LLC, ("KraneShares") a U.S. asset management firm known for its China focused KraneShares exchange traded funds (ETFs) and innovative China investment strategies, announced that its flagship KraneShares CSI China Internet ETF (NYSE: KWEB) achieved an annualized five year return of 18.14% and a cumulative five year return of 130.26% as of July 31, 2018. During the same time period the S&P 500 Index returned 13.11% annualized and 85.18% cumulative1.
Click here for standard performance as of most recent month end.
Over the past five years the China internet sector has achieved many significant milestones. In 2013 E-Commerce sales in China reached $296.57 billion surpassing E-Commerce sales in the United States of $262.51 billion for the first time2. By the end of 2017, China's annual E-Commerce sales had nearly quadrupled to $1.14 trillion3 compared to $453.5 billion in the United States4. The current percent of China's population with internet access is only 52.2% compared to 88.5% in the United States5, indicating there is significant room for growth in China's internet sector.
"KWEB is the number one performing U.S.-listed China ETF for the five year period according to Bloomberg6," said Brendan Ahern, Chief Investment Officer of KraneShares. "KWEB is also the number one performer out of seventy-nine China region mutual funds with five year track records, according Morningstar7. The Morningstar China region category is comprised of both ETFs and actively managed mutual funds."
"KraneShares was founded with the goal of providing U.S. investors opportunities to realize meaningful long term returns from China's capital markets," said Jonathan Krane, Chief Executive Officer of KraneShares. "We believe KWEB's strong five-year track record is a testament to the long term investment opportunities available in China's capital markets."
Following the success of KWEB, KraneShares expanded its internet ETF offering in October 2017 with the launch of KraneShares Emerging Markets Consumer Technology ETF (NYSE: KEMQ). KEMQ provides access to companies benefitting from rapidly expanding internet adoption and domestic consumption within the broad emerging markets.
For investors interested in learning more about the potential benefits of KraneShares' suite of ETFs, please contact KraneShares.
About Krane Funds Advisors, LLC:
Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. Our suite of China focused ETFs provides investors with solutions to capture China's importance as an essential element of a well-designed investment portfolio. We strive to provide innovative, first to market strategies that have been developed based on our strong partnerships and our deep knowledge of investing. We help investors stay up to date on global market trends and aim to provide meaningful diversification. Krane Funds Advisors, LLC is majority owned by China International Capital Corporation (CICC).
- Data from Bloomberg as of 7/31/2018, retrieved 8/07/2018
- Frank Tong, "China officially passes the U.S. in e commerce" Internet Retailer. 5/29/2014
- National Bureau of Statistics in China, "Total Retail Sales of Consumer Goods in December 2017" 1/25/2018. Note: Figures converted from Chinese Renminbi to USD
- U.S. Department of Commerce, "Quarterly Retail E-commerce Sales 4th Quarter 2017" 2/16/2018.
- Data from internetlivestats.com as of 12/31/2016. Retrieved 6/30/2018.
- Data from Bloomberg as of 7/31/2018, retrieved 8/07/2018
- Data from Morningstar as of 7/31/2018 retrieved 8/07/2018
Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' full & summary prospectus, which may be obtained here: KWEB, KEMQ, Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. 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 Funds are 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. Internet companies are subject to rapid changes in technology, worldwide competition, rapid obsolescence of products and services, loss of patent protections, evolving industry standards and frequent new product productions. Such changes may have an adverse impact on performance. Technology companies may be subject to severe competition and rapid obsolescence. The KraneShares CSI China Internet ETF & the KraneShares Emerging Markets Consumer Technology ETF are non-diversified.
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. Additional information about SIDCO is available on FINRA's BrokerCheck.
SOURCE Krane Funds Advisors, LLC
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