An ETF Targeting Auto Industry Renaissance

“KraneShares has bee focused on China, but we are seeing trends that is happening in China that applicable elsewhere,” Ahern said.

The Electric Vehicles and Future Mobility ETF tries to reflect the performance of the Solactive Electric Vehicles and Future Mobility Index, which include companies that McKinsey & Company has classified as Future Mobility.

Underlying holdings are further broken down into four categories, including Autonomous Driving, Connectivity, Electrification, and Shared Mobility. These companies include those engaged in the electric vehicles production, autonomous driving, shared mobility, lithium and copper production, lithium-ion/lead acid batteries, hydrogen fuel cell manufacturing and electric infrastructure businesses.

The undelrying index ranks components by market capitalization and then, provided there are at least 30 constituents, weighted so that the largest ten companies are weighted equally, the next ten largest companies are weighted equally, and if there are enough components, the next ten largest companies are weighted equally. So the underlying index follows a type of equally weighted, laddered breakdown.

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