A Gotham boutique's team is rolling out a trio of new index funds.

Jonathan Krane KraneShares Founder, CEO

This morning, Luke Oliver, head of climate investments at Krane Funds Advisors, LLC (aka KraneShares [profile]), and Jonathan Shelon, chief operating officer of KraneShares, along with Timo Pfeiffer, chief markets officer of Solactive AG, unveiled the launch of the KraneShares Sustainable Ultra Short Duration Index ETF (KCSH on the NYSE Arca, Inc.). Last Friday, Brendan Ahern, chief investment officer of KraneShares, and Derek Yan, senior investment strategist, unveiled the launch of the KraneShares Artificial Intelligence & Technology ETF (AGIX on the Nasdaq). And earlier last week, Ahern and Jonathan Krane, CEO of KraneShares, along with John McNamara, CIO of Hedgeye Asset Management, LLC (HAM), and Keith McCullough, CEO of HAM, unveiled the launch of the KraneShares Hedgeye Hedged Equity Index ETF (KSPY on the NYSE Arca).

KSPY comes with an expense ratio of 69 basis points, which bakes in a 10bps fee waiver promised through August 1, 2025. The fund's inception date was July 16, and as of yesterday it had $3.7 million in AUM.

AGIX comes with an expense ratio of 100bps. Its inception date was July 18, and as of yesterday it had $2.4 million in AUM.

KCSH comes with an expense ratio of 20bps, which bakes in the aforementioned 10bps fee waiver promised August of next year. The fund's inception date is today.

KCSH, AGIX, and KSPY are all passively managed series of the KraneShares Trust, with KraneShares as their investment advisor. James Maund, head of capital markets at KraneShares, is the lead portfolio manager for all three new ETFs, and Shelon also serves as a PM on the funds.

For AGIX, Etna Capital Management Company, Ltd. serves as subadvisor. Solomon Bier, PM and partner at Etna, also serves as a PM on that fund.

Solactive serves as index provider for AGIX and for KCSH, and as calculation agent for KSPY. KSPY is designed to track the Hedged Hedged Equity Index, KCSH is designed to track the Solactive ISS Sustainable Select 0-1 year USD Corporate IG Index, and AGIX is designed to track the Solactive Etna Artificial General Intelligence Index.

Oliver describes KCSH as designed "to maximize current income through ultra-short duration, investment grade bonds."

"As with the rest of KraneShares climate-focused suite of ETFs, KCSH can offer compelling potential returns while supporting the decarbonization of the global economy," Oliver states.

"KCSH combines KraneShares' ETF and climate investing expertise with Solactive's indexing capabilities, expanding our offering of sophisticated and innovative strategies with sustainable impact to our clients," Shelon states.

"We are delighted to extend our partnership with KraneShares into the area of 'green cash' investments," Pfeiffer states. "With this launch, we believe we are setting an important milestone in the sustainable investing fixed income indexing space."

Ahern puts the launch of AGIX in the context of AI being "poised to be a transformative force in the global economy." Yan adds that AI technology has "come of age."

"AGIX seeks to provide strategic access to the future of artificial intelligence, capturing the full spectrum on the AI value chain from hardware to infrastructures to applications," Ahern states.

Krane praises HAM as "an innovative research firm." McCullough describes HAM's risk range signal as "a valuable tool for determining S&P 500 levels in the immediate term."

"Hedgeye's proprietary Risk Range Signals provide us with the indicators we need to effectively managed S&P 500 volatility in a systematic manner," McNamara states.

The new ETFs' other service providers include: Brown Brothers Harriman & Co. (BBH) as custodian, dividend disbursing agent, securities lending agent, and transfer agent; K&L Gates LLP as counsel; KPMG LLP as independent accounting firm; SEI Investments Distribution, Co. as distributor; and SEI Investments Global Funds Services as administrator. 

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