Krane Funds Advisors, LLC, a U.S. asset management firm known for its China focused KraneShares exchange traded funds (ETFs) and innovative China investment strategies, announced the launch of the KraneShares Electric Vehicles and Future Mobility ETF (Ticker: KARS) listed on the NYSE.
KARS is focused on the fast-growing electric vehicle industry and the expanding technologies shaping the future of transportation and mobility.
KARS holds globally listed companies involved in the entire future mobility ecosystem, including: Electric Vehicle production, Autonomous Driving, Shared Mobility, lithium and copper production, lithium-ion batteries, hydrogen fuel cell manufacturing and electric infrastructure businesses.
McKinsey & Company has classified Future Mobility into four categories: Autonomous Driving, Connectivity, Electrification, and Shared Mobility. 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 occrring rapidly. 54% of new car sales and 33% of the global car fleet are projected to be electric by 20401. 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 20503.
Future mobility initiatives are gaining particularly strong momentum in China as the country moves to address pollution concerns and a rapidly urbanizing population. “China is currently the world’s largest electric vehicle market. Chinese companies like Baidu are developing Artificial Intelligence necessary for Autonomous Driving, and BYD is a world leader in electric vehicles and electric battery manufacturing,” said Jonathan Krane, CEO of KraneShares. “Global companies within the future mobility ecosystem such as Tesla, Nividia, and Albemarle Corporation are also capitalizing on strong demand from Chinese and global consumers.”
KARS tracks the Solactive Electric Vehicles and Future Mobility Index. The index tracks companies listed globally including companies listed on the Shanghai and Shenzhen Stock Exchanges (A-shares). Example constituents and weightings in the index as of January 2018 include: Nvidia, Baidu, Daimler, Tesla, Samsung SDI, BYD, and Galaxy Resource.