Alternative Investments/ESG: Krane Funds Launches UCITS ETF For ESG-Screened Exposure To EVs
The ETF is focused on the electric vehicle industry and associated technologies for future mobility.
Krane Funds launched Thursday the KraneShares Electric Vehicles & Future Mobility ESG Screened UCITS ETF (KARS). It is a passively managed UCITS that tracks the Bloomberg Electric Vehicles ESG Screened Index. (CISION PR Newswire)
KraneShares Electric Vehicles & Future Mobility ESG Screened UCITS ETF (KARS)
According to statistics cited by the fund manager, the future mobility sector has tremendous potential:
- 57% of new car sales and over 30% of the global car fleet are projected to be electric by 2040.
- The global electric vehicle (EV) market was valued at $162 billion in 2019 and is projected to reach $803 billion by 2027.
- The global electric vehicle market is projected to command $2.7 trillion of total investment before 2040.
- Autonomous vehicles and the resulting ”passenger economy” are projected to create $8 trillion of value in the global economy.
The new KraneShares ETF will invest in companies engaged in the production of electric vehicles and/or their components or engaged in other initiatives that may change the future of mobility.
The Index includes issuers engaged in the electric vehicle production, autonomous driving, lithium and/or copper production, lithium-ion/lead acid battery production, hydrogen fuel cell manufacturing and/or electric infrastructure businesses.
Companies involved in ESG controversies and controversial business activities are excluded.
Exposure will include equities listed in Mainland China, currently the world’s largest electric vehicle market.
The ETF has an Article 8 EU Sustainable Finance Disclosure Regulation (SFDR) product classification.
The expense ratio of the ETF is 0.72%.
“We are in the early phase of a multi-decade global mega-trend with electric vehicle and future mobility adoption,” said Jonathan Krane, CEO of KraneShares. “KARS provides pure exposure to this opportunity with less than 3% overlap to the MSCI ACWI global equity index.”
“KARS provides diversified geographic exposure to the world’s electric vehicle leaders, including China, Europe, and the US respectively,” said Dr. Xiaolin Chen, Head of International at KraneShares. “We believe global electric vehicle adoption will be a multi-decade secular investment opportunity that UCITS investors can now access through our KARS UCITS ETF.”
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