Krane Funds Advisors, LLC ("KraneShares"), an asset management firm
known for its global exchange-traded funds (ETFs) and innovative
investment strategies, today announced the launch of the
KraneShares Global Luxury Index ETF (Ticker: KLXY) on the New York
Stock Exchange.
KLXY provides investors with exposure to the world's top luxury
companies by market capitalization across an array of
luxury-related sectors such as leather goods, jewelry, accessories,
skincare, cosmetics, beverages, travel, and supercar
businesses.
"We believe the global luxury sector may present a long-term
growth opportunity due to companies' resilient pricing power,
strong profitability, and high barriers to entry inherent to global
luxury companies," said Derek Yan, CFA, Senior Investment
Strategist at KraneShares.
Global Luxury Market Highlights:
Growth & Resilience: The global luxury
industry has experienced tremendous growth even through economic
downturns and inflationary periods. These companies' resilience is
strengthened by strong profitability, longstanding brand
reputations, and loyal customer bases.
Evolving Customer Base: Global luxury brands
have embraced E-Commerce and digital marketing, broadening their
customer base from 400 million in 2022 to an expected 500 million
by 2030.1
Global Exposure: Diversified exposure to
developed countries outside the United States, including France,
the United Kingdom, Italy, Switzerland, and Japan.
"We believe the luxury market is one of the most resilient
sectors, especially in economic downturns and inflationary periods.
Brand value, consumer loyalty, and innovation play pivotal roles in
driving demand and commanding premium pricing," says Jonathan
Krane, Founder and CEO of KraneShares. "KLXY provides investors a
compelling solution to gain direct exposure to the significant
growth opportunity offered by the global luxury market."
For more information on the KraneShares Global Luxury Index ETF
(Ticker: KLXY), visit kraneshares.com/klxy or consult your
financial advisor.
About KraneShares
KraneShares is a specialist investment manager focused on China,
climate, and uncorrelated assets. KraneShares seeks to provide
innovative, high-conviction, and first-to-market strategies based
on the firm and its partners' deep investing knowledge. KraneShares
identifies and delivers groundbreaking capital market opportunities
and believes investors should have cost-effective and transparent
tools for attaining exposure to various asset classes. The firm was
founded in 2013 and serves institutions and financial professionals
globally. The firm is a signatory of the United Nations-supported
Principles for Responsible Investing (UN PRI).
Citations:
- Bain & Company, "Global luxury goods market takes 2022 leap
forward and remains poised for further growth despite economic
turbulence", Nov 2022. Retrieved 8/30/2023.
Carefully consider the Fund's investment objectives,
risk factors, charges, and expenses before investing. This and
additional information can be found in the Fund's full and summary
prospectus, which may be obtained by visiting
www.kraneshares.com Read the prospectus
carefully before investing.
Risk Disclosures:Investing involves risk,
including possible loss of principal. There can be no assurance
that a Fund will achieve its stated objectives. Indices are
unmanaged and do not include the effect of fees. One cannot invest
directly in an index.
This information should not be relied upon as research,
investment advice, or a recommendation regarding any products,
strategies, or any security in particular. This material is
strictly for illustrative, educational, or informational purposes
and is subject to change. Certain content represents an assessment
of the market environment at a specific time and is not intended to
be a forecast of future events or a guarantee of future results;
material is as of the dates noted and is subject to change without
notice.
The Fund invests in companies in luxury-related sectors that may
face intense competition and be dependent on their ability to
maintain brand image. These companies may be subject to changes in
consumer preferences and the spending of a relatively small segment
of the general population, and technologies employed by the
companies that may become obsolete. The companies can be especially
sensitive to a decline in consumer confidence or any downturns in
the broader economy. Demand for luxury products may be seasonal,
and incorrect assessment of future demand can lead to
overproduction or underproduction, which can impact company
profitability.
The Fund is subject to non-U.S. issuers risk, which may be less
liquid than investments in U.S. issuers, may have less governmental
regulation and oversight, are typically subject to different
investor protection standards than U.S. issuers, and the economic
instability of the non-U.S. countries. Fluctuations in currency of
foreign countries may have an adverse effect to domestic currency
values.
Narrowly focused investments typically exhibit higher
volatility. The Fund's assets are expected to be concentrated in a
sector, industry, market, or group of concentrations to the extent
that the Underlying Index has such concentrations. The securities
or futures in that concentration could react similarly to market
developments. Thus, the Fund is subject to loss due to adverse
occurrences that affect that concentration. KLXY is
non-diversified.
The Fund may invest in derivatives, which are often more
volatile than other investments and may magnify the Fund's gains or
losses. A derivative (i.e., futures/forward contracts, swaps, and
options) is a contract that derives its value from the performance
of an underlying asset. The primary risk of derivatives is that
changes in the asset’s market value and the derivative may not be
proportionate, and some derivatives can have the potential for
unlimited losses. Derivatives are also subject to liquidity and
counterparty risk. The Fund is subject to liquidity risk, meaning
that certain investments may become difficult to purchase or sell
at a reasonable time and price. If a transaction for these
securities is large, it may not be possible to initiate, which may
cause the Fund to suffer losses. Counterparty risk is the risk of
loss in the event that the counterparty to an agreement fails to
make required payments or otherwise comply with the terms of the
derivative.
The Fund is new and does not yet have a significant number of
shares outstanding. If the Fund does not grow in size, it will be
at greater risk than larger funds of wider bid-ask spreads for its
shares, trading at a greater premium or discount to NAV,
liquidation and/or a trading halt.
ETF shares are bought and sold on an exchange at market price
(not NAV) and are not individually redeemed from the Fund. However,
shares may be redeemed at NAV directly by certain authorized
broker-dealers (Authorized Participants) in very large
creation/redemption units. The returns shown do not represent the
returns you would receive if you traded shares at other times.
Shares may trade at a premium or discount to their NAV in the
secondary market. Brokerage commissions will reduce returns.
Beginning 12/23/2020, market price returns are based on the
official closing price of an ETF share or, if the official closing
price isn't available, the midpoint between the national best bid
and national best offer ("NBBO") as of the time the ETF calculates
the current NAV per share. Prior to that date, market price returns
were based on the midpoint between the Bid and Ask price. NAVs are
calculated using prices as of 4:00 PM Eastern Time.
The KraneShares ETFs and KFA Funds 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 Funds, or any sub-advisers for
the Funds.
Media Contactjoseph.dube@kraneshares.com
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