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KraneShares unveils China clean tech ESG ETF

KGRN tracks the MSCI China IMI Environment 10/40 index

Tom Eckett

Xiaolin Chen

KraneShares has expanded its China range with the launch of an environmental clean tech ETF.

The KraneShares MSCI China Clean Technology Index UCITS ETF (KGRN) is listed on the London Stock Exchange, Euronext Milan and Deutsche Boerse with a total expense ratio (TER) of 0.78%.

KGRN tracks the MSCI China IMI Environment 10/40 index which currently offers exposure to 56 companies that have at least 50% of their revenues based on environmentally sustainable products and services.

Incorporating MSCI’s ESG data, the ETF focuses on four clean tech environmental themes including alternative energy, sustainable water, pollution prevention and energy efficiency.

Overall, KGRN enables investors to gain exposure to Chinese companies that focus on contributing to a more environmentally sustainable economy.

The ETF is classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).

Jonathan Krane, CEO of KraneShares, commented: “We believe China is currently undergoing an environmental renaissance, pledging hundreds of billions of dollars to environmental protection projects and policies.

“Chinese companies focused on contributing to a more environmentally sustainable economy may potentially benefit from this focused initiative.”

Dr. Xiaolin Chen (pictured), head of international at KraneShares, said: “KGRN presents a compelling investment opportunity for those seeking to gain exposure to industries that are not only experiencing rapid growth but are also actively addressing environmental challenges.

Nicco Ferrarini, managing director at MSCI, added: “The index is comprised of securities that derive at least 50% of their revenues from environmentally beneficial products and services.”

Last month, ETF Stream revealed KraneShares is set to launch an S&P China 500 ETF amid proposals to merge the new strategy with an existing product from ICBC Credit Suisse Asset Management.

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