January was a volatile month for markets, with advisors and investors pivoting their portfolios to face a rising rate environment. The following were the top four KraneShares ETFs that pulled in their share of the moving money, indicating interest in fundamentals, ESG principles, and diversification.
- The KraneShares CSI China Internet ETF (KWEB) continues to draw in remarkable inflows, bringing in approximately $930 million in net flows in the month of January. The ETF was one of the superstar surprise ETFs of last year that saw sharp negative price movements in 2021 during Chinese regulation of the internet and technology sectors, but still experienced record inflows. This trend appears to be carrying strongly into this year as investors and advisors indicate continued confidence in the fundamentals of the space.
- The KraneShares Global Carbon Strategy ETF (KRBN) maintains its status as the top performer within carbon allowances markets and brought in roughly $65 million in flows in January. KRBN offers global exposure to the four major carbon compliance markets: the European Union Allowance market, the new U.K. Allowance market, the Regional Greenhouse Gas Initiative, and the California Carbon Allowance market.
- The KraneShares Electric Vehicles & Future Mobility Index ETF (KARS) had approximately $23 million in inflows in January and capitalizes on the powerful movement that will see the eventual conversion of most cars to electric in order to combat climate change. The fund invests in some of the major global players within the electric vehicle industry and related industries.
- The Quadratic Deflation ETF (BNDD) experienced slightly over $22 million in inflows in January. The fund utilizes an ESG lens within fixed income that seeks to capitalize on deflation, lower growth, and lower or negative long-term interest rates, or else reductions in the spread between short-term and long-term interest rates. It provides individual investors unique access to the OTC fixed income options market and can be a diversification play for a portfolio.
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