An Article 8 fund, the KraneShares MSCI China Clean Technology Index UCITS ETF (KRGN) tracks the MSCI China IMI Environment 10/40 index and has listed on the London Stock Exchange, Borsa Italiana and Deutsche Börse Xetra.
To qualify for the index, a company must derive at least 50% of its revenue from “environmentally beneficial products and services”.
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The fund invests across themes of alternative energy, sustainable water, pollution prevention and energy efficiency.
Among the holdings are lithium-ion battery manufacturer Contemporary Amperex Technology, electric vehicle makers NIO, XPeng, BYD and Li Auto and solar panel manufacturer Xinyi Solar Holdings.
KRGN is available for a total operating expense of 0.78%.
Jonathan Krane, chief executive of KraneShares, said: “We believe China is currently undergoing an environmental renaissance, pledging hundreds of billions of dollars to environmental protection projects and policies.
“Chinese companies focused on contributing to a more environmentally sustainable economy may potentially benefit from this focused initiative.”
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KraneShares head of international Xioalin Chen added: “KGRN presents a compelling investment opportunity for those seeking to gain exposure to industries that are not only experiencing rapid growth, but are also actively addressing environmental challenges.
“By investing in China’s clean technology companies at the forefront of sustainable innovation, KGRN provides the potential to generate strong returns while aligning with investors’ values.”
