KraneShares Eltc Vhl and Ft Mbly ETF retains its Morningstar Medalist Rating of Bronze. Fees are a weakness here. The strategy's lofty fees are a high hurdle to clear, as it is priced within the second-costliest quintile among peers.  

 The strategy's investment process inspires confidence and earns an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight in quality exposure and volatility exposure compared with category peers. High quality exposure is attributed to stocks with low financial leverage and strong returns on equity. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The team managing this passive strategy earns a Low People Pillar rating. Even though the strategy's parent organization has some investor-friendly attributes like significant personal investments from managers, a bench of limited-tenure portfolio managers holds it back. As a result, the firm obtains a Below Average Parent Pillar.

Analyst Rating

Tesla

Aptiv

Albemarle

Rivian Automotive

Mistras Group

USC Midstream Energy Income Fund

Plug Power

Lucid Group

Livent Corp

MP Materials

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. KraneShares Eltc Vhl and Ft Mbly ETF earns an Above Average Process Pillar rating. The main driver of the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Strong risk-adjusted performance also influences the rating. This can be seen in the fund's five-year alpha calculated relative to the category average, which suggests that the process was successful over that period. Lastly, the process is limited by the parent firm's five-year retention rate of 50%, which suggests it could do more to hold onto its portfolio managers.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to provide investment results that correspond to the price and yield performance of the Bloomberg Electric Vehicles Index.  The fund will invest at least 80% of its net assets (plus borrowings for investment purposes) in instruments in its underlying index or in instruments that have economic characteristics similar to those in the underlying index. The index is designed to track the equity market performance of companies engaged in the production of electric vehicles or their components or in other initiatives that may change the future of mobility and as determined by index provider. 

 The portfolio is overweight in consumer cyclical and basic materials relative to the category average by 39.4 and 25.0 percentage points, respectively. The sectors with low exposure compared to category peers are industrials and financial services, with industrials underweighting the average portfolio by 69.6 percentage points of assets and financial services similar to the average. The portfolio is positioned across 65 holdings and its assets are more dispersed than peers in the category. In particular, 40.1% of the strategy's assets are concentrated in the top 10 fund holdings, compared to the category’s 73.1% average. And finally, in terms of portfolio turnover, this fund trades more frequently than its average peer, potentially racking up additional expenses for investors and creating a drag on performance.

Above Average

Process

Kraneshares’s team receives a Low People Pillar rating. The primary driver of the rating is the turnover of management across its parent firm. The firm's asset-weighted manager tenure of five years suggests it could do more to retain portfolio managers. The managers' failure to consistently outperform peers at the funds they run, as measured by their combined three-year manager excess returns, also weakens the team. Furthermore, none of the managers have put more than $1 million of their own money in the fund, which would align their interests with fundholders.

People

Kraneshares fails to meet industry-standard stewardship qualities, culminating in a Below Average Parent Pillar rating. Aside from the overall view, portfolio managers at Kraneshares have made a notable effort to align their interests with shareholders' by taking a personal stake and investing alongside them. Nearly 30% of the firm’s assets are represented by a manager who invests in their respective product. A notable weakness of Kraneshares is the inexperience of its longest-tenured managers compared with other asset managers. Managing capital through a full market cycle is a challenging prospect for seasoned managers, but with only five years of average asset-weighted tenure, there's cause for concern.

Below Average

Parent

KraneShares Electric Vehicles & Future Mobility Index ETF

KARS tracks a modified market-cap-weighted index of stocks that are involved in the production of electric vehicles or other initiatives that may enhance future mobility.

First Trust NASDAQ Global Auto Index Fund

Global X Autonomous & Electric Vehicles ETF

Fidelity Electric Vehicles and Future Transportation ETF

SPDR S&P Kensho Smart Mobility ETF

iShares Self-Driving EV and Tech ETF

Throughout the year, persistent inflation — including everyday costs like gasoline and groceries — has eaten into wage growth and created a broad impact across the labor market.

Auto Strike Not a Large Strike Out for EV ETFs

The number of zero-emission models sold in the European Union more than doubled year over year in August. Look into EV ETFs with exposure in Europe to gain an advantage, as the EV market in the bloc grows.

ETFs to Benefit as EV Market Growth in EU Remains Optimistic

It's widely known that today, electric vehicles (EV) account for a small, but growing percentage of the global automobile market. That growth trajectory underpins the investment thesis for a variety of assets, including the KraneShares Electric Vehicles and Future Mobility ETF (KARS).

An Electrifying Forecast for this EV ETF

The 2023 United Auto Workers (UAW) strike has led to the rise of ETFs to buy during this period of disruption. These ETFs are weighted towards what can be substantial changes in the automotive industry.

UAW Strike 2023: 3 ETFs Poised to Profit From Auto Worker Unrest

Defiance Pure Electric Vehicle ETF

Defiance ETFs is trying to change up the EV ETF market with an all-electric carmaker fund.

Going beyond Tesla: ETF bets solely on electric vehicle makers

ARK Industrial Innovation ETF

Amplify Lithium & Battery Technology ETF

Global X Lithium & Battery Tech ETF

Three investment return trends related to the green transition concern me. These apply across all sectors but to automotive in particular.

The Auto Sector's Green Transition: Three Roads To Lower Returns?

First Trust Nasdaq Transportation ETF

As UAW's strike continues against the "Detroit Three", look into how ETFs are affected.

UAW Strike: How Tesla and EV ETFs Stand to Gain

Kraneshares MSCI China Environment Index ETF

It's a common misconception among investors that the grid won't be able to keep up with the adoption of EVs. Many investors worry that the electrical grid in countries such as the U.S. and China will be a roadblock in the continued growth of electric vehicles.

Should Investors Worry About EVs Overloading the Grid?

Kraneshares California Carbon Allowance ETF

KraneShares Global Carbon ETF

KraneShares Rockefeller Ocean Engagement ETF

KraneShares and Rockefeller Asset Management have teamed up to launch an ETF offering access to the blue economy.

KraneShares and Rockefeller Offer Access to Blue Economy With KSEA Launch

Outside of the U.S., China is the world's largest automobile market. Combine that with the country's status as a leading generator of renewable energy and purveyor of clean technology, and it's logical that the world's second-largest economy is fertile territory for electric vehicle adoption.

Rev Up This ETF for China ETF Exposure

FuHonda Motor Co. is the latest automaker to announce it will adopt Tesla's charging technology. Honda announced Thursday it will use Tesla's fast-charging port for its EV models.

Tesla Charger Positioned to Be Industry Standard; KARS Offers Exposure

It's been a rocky road for Ford's transition to electric vehicles, marked by delays and setbacks. The ICE manufacturer remains more committed than ever to the EV transition, however, a direct reflection of broader industry changes.

Ford Quits 3 More Gas Models as EV Transition Continues

Allego NV

Wallbox NV

If you've heard it once, you've heard it at least one hundred times: A charging infrastructure is essential to the mainstream adoption of electric vehicles (EVs). Not surprisingly, Tesla (NASDAQ: TSLA ) is a key player in this space.

3 Up-And-Coming EV Charging Stocks to Put On Your Must-Buy List

The Micro-EV market holds promising growth potential, projected to maintain a steady annual growth rate of 12.9%. Consider exploring EV ETFs to capitalize on this promising growth opportunity.

Will Rise in Micro-EV Fuel EV ETFs?

BEV sales growth in the U.S. is slowing, leading automakers to implement measures such as price cuts and production adjustments. Insufficient charging infrastructure, range anxiety, and high prices are contributing to the slowdown in BEV sales. The Biden administration aims for half of all new-vehicle sales in the U.S. to be BEVs by 2030.

Battery Electric Vehicle Share Growth Stalls, Hitting Ford Motor And Detroit Three Hardest

Kraneshares European Carbon Allowance ETF

KraneShares Electrification Metals Strategy ETF

KraneShares Global Carbon Offset Strategy ETF

ESG remains a contentious topic for the investing world, and often for good reason, given flagging performance and inconsistent frameworks. There is strong opportunity, however, and substantial difference in portfolio performance in the decades to come for investors that align with climate and global decarbonization efforts.

“Material Differences” in Portfolio Performance Focus on Climate

The electric vehicle market is just getting started when it comes to sales and growth. The runway is long for EV investors, given EV market forecasts of $56.7 trillion by 2050.

EV Market Forecast to Reach $56 Trillion by 2050

Li Auto Inc.

Global demand for electric vehicles has been soaring, creating opportunities for some of the market's top EV stocks. However, there are reports that the pace of growth has slowed compared to the first half of the year.

7 ‘Strong Buy' EV Stocks You Should Be Loading Up on Now

Batteries are part of the foundation that supports the renewable energy transition and that's obviously true with electric vehicles. That's an investable thesis, and one that's efficiently accessible via exchange traded funds such as the KraneShares Electric Vehicles and Future Mobility ETF (KARS).

Bet on Batteries With This ETF

Ford Motor Company

General Motors

Capitalize on the upbeat Q2 earnings of the Automobile companies with these ETFs.

Automobile ETFs in the Spotlight After Upbeat Q2 Earnings

China's 2023 comeback could be losing steam as the economy struggles with maintaining its rally, but the government is doing what it can in order to keep consumption at an elevated level. Given this, investors may want to consider a pair of exchange traded fund (ETF) options from KraneShares.

As China Looks to Boost Consumption, Consider This Pair of ETFs

Many consider transportation one of the most effective avenues through which the world can combat climate change. After all, there are an estimated 1.3 billion internal combustion engine vehicles on global roads today.

Electric Vehicle Investment Thesis Is Revving Up

First Trust RBA American Industrial Renaissance ETF

Direxion Daily Industrials Bull 3X Shares

Eaton

VanEck Vectors Environmental Services ETF 

iShares Global Industrials ETF

Fidelity MSCI Industrials Index ETF

First Trust Industrials/Producer Durables AlphaDEX Fund

Voya Infrastructure. Industrials and Materials Fund

iShares U.S. Aerospace & Defense ETF

iShares U.S. Industrials ETF

iShares Transportation Average ETF

Invesco Dynamic Building & Construction ETF

Invesco Aerospace & Defense ETF

Invesco DWA Industrials Momentum Portfolio

Invesco S&P SmallCap Industrials ETF

First Trust Alerian US NextGen

SPDR S&P Kensho Final Frontiers ETF

Invesco S&P 500 Equal Weight Industrials ETF

ProShares UltraShort Industrials

Procure Space ETF

ProShares Ultra Industrials

Vanguard Industrials ETF

SPDR S&P Aerospace & Defense ETF

Industrial Select Sector SPDR Fund

SPDR S&P Transportation ETF

The industrial sector could be poised for a lift as mega spending projects kick in. Why capital investment in infrastructure has been lagging.

Why There May Be Growing Opportunities In The Industrial Sector

Autonomous vehicles could be one of the most productive innovations of all time, impacting global gross domestic product (GDP) by approximately 20% over the next decade. Weighing the potential positive economic impacts of autonomous taxis against the potential negative economic impacts, ARK estimates that net GDP gains could approach $26 trillion by 2030.

Autonomous Taxis May Have The Most Impact On GDP Of Any Innovation In History

Despite economic stuttering and recovery this year, China's consumer remains on the move, this time in automobile purchases. Electric vehicle sales grew significantly in the first half of 2023 and continue to cut into overall market share.

News for KraneShares Electric Vehicles & Future Mobility Index ETF ETF (KARS)