KraneShares MSCI China Clean Technology Index ETF

KraneShares MSCI China Clean Technology Index ETF (KGRN) tracks the MSCI China IMI Environment 10/40 Index. The index holds about 50 Chinese companies that earn at least half their revenue from alternative energy, sustainable water, pollution prevention or energy efficiency. Electric-car makers lead the fund: BYD, NIO and XPeng were its top three holdings as of June 30, 2026. Its 0.79% expense ratio is higher than all six similar funds compared, which average 0.52%.

• Over the year to Oct 27, 2026, KGRN returned -30.9%, 6th of 7 among similar funds.
• Its 5-year annualized return was -14.7%.
• In the 2020 COVID crash it fell 27.1% and regained its old high 2.6 months after the low.
• Its worst full calendar year was 2022 (-40.6%); its best was 2020 (+138.5%).
• The deepest fall in its price history was 66.3% (Feb 16, 2021 to Feb 5, 2024), not yet recovered.

As of Jun 30, 2026, the fund held 50 securities; the ten largest made up 52.57% 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: -13.57%, -3.51%, +0.68%.

KGRN, managed by Krane Funds Advisors, tracks the MSCI China IMI Environment 10/40 Index. MSCI picks Chinese companies that earn at least 50% of revenue from alternative energy, sustainable water, pollution prevention and energy efficiency. As of March 31, 2026, the index held 50 stocks, led by consumer discretionary stocks (39.2%), industrials (26.2%) and utilities (20.0%).

Stocks are weighted by free-float market value, which counts only shares available to outside investors. A 10/40 cap limits any one company to 10% at each quarterly rebalance, and holdings above 5% can total no more than 40%. Weights can drift in between. As of June 30, 2026, the largest positions were BYD (7.4%), NIO (6.3%) and XPeng (5.9%). Contemporary Amperex Technology appears twice, as Hong Kong-listed H-shares (5.4%) and mainland A-shares (5.3%). The top 10 made up 52.6% of assets.

The fund must keep at least 80% of net assets in index securities or close equivalents. It expects to own every index stock but may use representative sampling, holding a subset that behaves like the index. Up to 20% can go into other stocks, derivatives such as swaps or futures, other ETFs or cash. For A-shares, it plans to use Stock Connect, a trading link based outside mainland China. The fund is non-diversified, so single stocks can move it more.

• KGRN charges 0.79% a year, versus an average of 0.52% for the similar funds below (7th of 7, cheapest first).
• Of that, 0.78% is the management fee; the rest covers other fund expenses.
• Using the prospectus's standard example, $10,000 invested would cost about $81 in the first year and $978 over 10 years (assuming a 5% annual return).

KGRN is a narrow, non-diversified, single-country theme fund that has suffered deep losses, so it fits best as a small position alongside broader holdings.

KGRN could add Chinese electric-car makers, the battery maker Contemporary Amperex Technology and power producers like China Yangtze Power to a portfolio. That exposure comes with sharp swings. The fund launched in October 2017, so it has no record from 2008. In the 2020 COVID crash it fell 27.1% and recovered in about 2.6 months. In the 2022 bear market it fell 43.8%. Its worst calendar year was 2022, at -39.67%. Its deepest drop was 66.3%, from February 2021 to February 2024, and it had not recovered as of October 27, 2026. Anyone forced to sell in a slump could lock in large losses.

Income is small. The trailing yield was 1.11% as of October 27, 2026, paid once a year. In the SEC's standard example, costs on $10,000 come to $978 over 10 years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).