KraneShares launches China Environment ETF

Oct 13th, 2017 | By | Category: Equities

FACTOR INVESTING - THURSDAY 14TH JULY 2022 (08:15-11:30) - THE BERKELEY, LONDON Please join us for our annual factor investing breakfast briefing with participation from MSCI, FlexShares ETFs, Tabula and Professor Stefan Zohren, Deputy Director of the Oxford-Man Institute of Quantitative Finance. Please register now if you would like to attend.


KraneShares has launched the KraneShares MSCI China Environment ETF (NYSE Arca: KGRN). The ETF provides exposure to companies in China’s fast-growing environmental protection industry that has rapidly grown to be the largest renewable energy market in the world.

KraneShares launches China Environment ETF

China is already the largest provider of clean energy capacity in the world and has plans to increase its output in the next few years.

The ETF tracks the MSCI China IMI Environment 10/40 Index which serves as a benchmark for investors seeking exposure to Chinese companies that focus on contributing to a more environmentally sustainable economy by making efficient use of scarce resources or by mitigating the impact of environmental degradation.

The index is based on five key clean technology environmental themes: alternative energy, sustainable water, green building, pollution protection and energy efficiency. For inclusion, companies must derive at least 50% of their revenues from environmentally beneficial products and services. Constituent selection is based on data from MSCI environmental, social and governance (ESG) ratings.

China currently produces 28% of global renewable energy capacity and plans to spend a further $360 billion on renewable energy and achieve 50% commercial green building certification by 2020. Meeting these objectives would create as much renewable energy capacity as the entire US electrical system and would mean half of the world’s green building space was located in China.

The ETF has a total expense ratio of 0.80%.

Tags: , , , , , , , , ,

Leave a Comment