Krane Funds Advisors (KraneShares) announced today the launch of a new China focused ESG-themed ETF. The KraneShares MSCI China ESG Leaders ETF (KESG) will be listed on the New York Stock Exchange (NYSE).
The new ETF will track the MSCI China ESG Leaders 10/40 Index, a cap-weighted index designed to measure the performance of large and mid-cap companies in China with high Environmental, Social, and Governance ratings relative to their sector peers. According to index provider MSCI, the index is designed for investors seeking a broad, diversified sustainability benchmark with relatively low tracking error to the underlying equity market.
Since its inception in July 2013, the MSCI China ESG Leaders Index has outperformed the MSCI China Index by 76%. The 5-year annualized return of the MSCI China ESG Leaders Index was 10.51%, versus 5.32% from the MSCI China Index.
Jonathan Krane, CEO of KraneShares, said:
“Across markets and strategies, investments with high ESG ratings have become a priority to many investors – China is no exception. We are proud to partner with MSCI, a global leader in ESG indexing, to deliver a China-focused ESG strategy to our clients with the US-listing of the KraneShares MSCI China ESG Leaders ETF (Ticker: KESG).”