KraneShares Launches a Future Cars ETF

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, according to a prospectus sheet.

“These categories have developed into popular global business trends due to the enhanced convenience, cost-effectiveness, improved safety and pollution reduction benefits they can provide. The shift toward future mobility technologies is occurring rapidly. 54% of new car sales and 33% of the global car fleet are projected to be electric by 2040. 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 generate a cumulative $8 trillion in global service revenues by 2050,” according to Krane Funds Advisors.

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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