There is also a significant yield opportunity with Chinese onshore bonds. As of late September, the trailing 12-month yield on KCNY’s underlying index was 5.85% compared to just 0.2% on the S&P US Commercial Paper Index, according to KraneShares data.
The ChinaBond Commercial Paper Index is up nearly 38% over the past five years compared to a gain of just 1.55 for the S&P US Commercial Paper Index.
KCNY is the fourth ETF from KraneShares. The firm’s other offerings are the KraneShares CSI China Internet Fund (NasdaqGM: KWEB), KraneShares Bosera MSCI China A-Shares ETF (NYSEArca: KBA) and the KraneShares CSI New China ETF (NYSEArca: KFYP).
ETF Trends editorial team contributed to this post.