KraneShares launches electrical automobile ETF in Europe

US-based asset supervisor Krane Funds Advisors has rolled out an trade traded fund in Europe that invests within the “multi-decade global megatrend” of electrical autos, and the way forward for transportation and mobility.

The new KraneShares Electric Vehicles & Future Mobility ESG Screened Ucits ETF, which has been listed on the London Stock Exchange, tracks the Bloomberg Electric Vehicles ESG-Screened Index.

Anthony Sassine, senior funding strategist at New York-headquartered KraneShares, mentioned the ETF holds globally listed corporations concerned in your entire future mobility ecosystem, together with electrical automobile manufacturing, autonomous driving, shared mobility, lithium and copper manufacturing, lithium-ion batteries, hydrogen gasoline cell manufacturing and electrical infrastructure.

A US-domiciled model of the KraneShares technique (KARS), which began buying and selling in New York in early 2018, manages some $240mn in property.

Xiaolin Chen, head of worldwide at KraneShares, which is legendary for its China-focused funds, mentioned “global electric vehicle adoption will be a multi-decade secular investment opportunity”, including that the brand new Ucits ETF “provides diversified geographic exposure to the world’s electric vehicle leaders, including China, Europe and the US”.

KraneShares CEO Jonathan Krane mentioned the ETF offered “pure exposure” to this world megatrend with an overlap of lower than 3 per cent to the MSCI ACWI index.

The new Ucits ETF has a complete annual fund working expense of 0.72 per cent.

KraneShares, which is majority owned by Chinese funding financial institution China International Capital Corporation, mentioned the worldwide electrical automobile market was projected to achieve $2.7tn of complete investments by 2040, whereas autonomous autos and the related “passenger economy” have been anticipated to generate cumulative world revenues of $8tn by 2050.

Other asset managers that provide Europe-domiciled ETFs centered on electrical autos and future mobility are BlackRock’s iShares arm, DWS and Global X.

The product is classed below article eight of the EU’s Sustainable Financial Disclosure Regulation, that means it should promote sustainable or environmental traits and might spend money on sustainable property however doesn’t have sustainable investing as a core goal.

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