KraneShares KWEB Covered Call Strategy ETF

Frequently Asked Questions About KLIP

What does KLIP invest in?

Under typical market conditions, this fund's core strategy involves allocating a minimum of 80% of its total assets to investments that track the CSI Overseas China Internet Index. This can be achieved either through direct holdings of the index's constituent securities or by using financial instruments with similar economic attributes. Concurrently, the fund aims to generate revenue by selling covered call options linked to this same index or to comparable financial products. Currently, the investment advisor plans to execute this approach by acquiring shares in the KraneShares CSI China Internet ETF (referred to as its "underlying fund") and subsequently writing covered call options directly on those ETF shares. This fund is categorized as non-diversified.

What is the expense ratio of KLIP?

KraneShares KWEB Covered Call Strategy ETF (KLIP) charges an expense ratio of 0.95%. This is the annual fee deducted from fund assets to cover management and operations.

What is KLIP's distribution yield?

KLIP's trailing-twelve-month yield is 29.56%, calculated from the sum of distributions over the past year divided by the current price.

How does KLIP's covered-call strategy work?

KLIP sells call options against the stocks (or index) it holds, collecting premium income that gets passed through to shareholders as distributions. The strategy generates above-market income in flat or rising markets but caps upside — when the underlying rallies past the strike, the gains above the strike go to the option buyer, not the fund.

How big is KLIP?

KraneShares KWEB Covered Call Strategy ETF (KLIP) manages $101.1M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is KLIP actively managed or an index fund?

KLIP's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.