KraneShares Man Buyout Beta Index ETF

KraneShares Man Buyout Beta Index ETF (BUYO) tracks the Man Buyout Beta Index, a basket of US small- and mid-sized stocks chosen to resemble companies private equity buyout funds target. It offers buyout-style exposure through listed stocks, without owning actual private equity. It stands apart on cost and size: a 0.89% annual expense ratio versus a 0.15% average for similar funds, and just $16.9 million in net assets as of June 30, 2026.

• Over the year to Oct 27, 2026, BUYO returned +21.2%, 1st of 8 among similar funds.
• Its worst full calendar year was 2025 (+10.9%); its best was 2025 (+10.9%).
• The deepest fall in its price history was 28% (Nov 25, 2024 to Apr 8, 2025), recovered by Nov 12, 2025.

As of Jun 30, 2026, the fund held 299 securities; the ten largest made up 14.16% of assets.

• Over the three months to Jun 30, 2026, investors added a net $1.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +6.71%, +4.26%, +9.59%.

BUYO aims to track the Man Buyout Beta Index, before fees. The index starts with the 3,000 largest US public companies and drops the biggest 500, leaving small- and mid-sized firms. It then picks those resembling buyout targets (a buyout fund acquires control of companies to try to raise their value), screening on industry, valuation, profitability, debt capacity, cash management, growth potential, supply chains and competition. It relies on models from Numeric and steers its industry mix toward that of US private equity buyouts.

The index weights stocks by market value, caps any one at 5%, and is rebalanced and reconstituted (members added or dropped) monthly. Portfolio turnover, a measure of trading, was 76%. As of March 31, 2026, the index included 289 stocks, with Industrials (22.4%), Information Technology (20.9%) and Consumer Discretionary (13.1%) the largest sectors. As of June 30, 2026, the fund's top 10 holdings, led by Onto Innovation, DigitalOcean and MKS, made up 14.2% of assets.

The fund does not own private equity funds or private companies. It expects to hold every index stock, though up to 20% may go into derivatives, other ETFs, cash or other stocks. It is non-diversified, so it can hold bigger stakes in fewer companies. The index provider is affiliated with the adviser, Krane Funds Advisors, a potential conflict of interest.

• BUYO charges 0.89% a year, versus an average of 0.15% for the similar funds below (8th of 8, cheapest first).
• Of that, 0.88% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $91 in the first year and $1,096 over 10 years (assuming a 5% annual return).

With a 0.89% fee, about two years of history and a 28% peak-to-trough drop, this screened small- and mid-cap stock fund works more as an add-on than a foundation.

BUYO could add a tilt toward small and mid-sized US companies that resemble private equity buyout targets. It launched in October 2024, so it has no record through the 2008, 2020 or 2022 downturns. Its deepest drop was 28%, from November 25, 2024 to April 8, 2025; it regained its prior peak on November 12, 2025, about seven months after the low. Anyone withdrawing near that low would have locked in losses. Its only full calendar year, 2025, returned 10.81%, trailing the Russell 3000 Index's 17.15%.

It offers almost no income: the trailing 12-month yield was 0.01% as of October 27, 2026, paid annually. Costs are high: 0.89% a year against a 0.15% average for similar funds, or $1,096 over 10 years on $10,000 in the SEC's standard example. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.