KraneShares CSI China Internet ETF

Kraneshares China Internet And Covered Call Strategy Etf

KLIP is a fund-of-fund that tracks an index of China-based internet stocks and sells one-month, at-the-money call options on the full amount of the portfolio.

Covered call strategies continue to gain popularity with investors seeking diversified income strategies. For those investors looking for overlooked income opportunities, the KraneShares China Internet and Covered Call Strategy ETF (KLIP) generates a substantial distribution rate by capitalizing on China tech sector volatility.

Play China Tech Volatility for Income With KLIP

China stocks soared on a number of new supportive policy announcements at the end of last month and beginning of October. However, ongoing policy announcements have failed to wow investors in recent weeks, leading to muted performance and increased volatility.

Earn Income on China Tech Stock Volatility With KLIP

China equities present a wide range of exciting opportunities, but much of that excitement right now relies on government support. While the market offers significant potential, from electric vehicles to e-commerce, ongoing concerns about real estate debt have loomed over much of that positivity.

Get China Equities With a Kick via China ETF KLIP

The KLIP ETF offers steady returns with low volatility by generating monthly call option income, ideal for income-focused investors in undervalued China tech stocks. The KWEB's low valuations and strong cash positions among Chinese tech companies should limit the potential for downside. KLIP's buywrite strategy has outperformed KWEB, providing high returns with less volatility, making it suitable for risk-averse investors.

KLIP: A Great Opportunity For Income Focused China Bulls

While ETF assets have grown in leaps and bounds in recent years, education still remains a key part of the space's development. Many investors are still familiarizing themselves with ETFs' tax advantages and transparency.

Understanding ETF Performance: Total Return vs. Price Return

Interested in China equities? You're not alone – many investors entered 2024 with a desire to increase allocations to China.

Get Reduced Volatility China Exposure With China ETF KLIP

After an impressive rally that commenced in April and lasted for a good portion of May, Chinese internet equities and the KraneShares CSI China Internet ETF (KWEB) are in the midst of a pullback.

It Could Be Time to Call on KLIP

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A lot is happening in the China ETF space these days. Product closures, market rallies, and product development are making for an interesting opportunity.

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Global equity ETFs have seen a steady drumbeat of inflows all year long, but one major player has been left out of the party. China has climbed a great wall of worry for years – with a property debt crisis, a disastrous equity slump, and a slow exit from COVID-19 restrictions.

China's Strong, Silent Bull Cycle: Driving Renewed Interest?

The KraneShares China Internet & Covered Call Strategy ETF employs a covered-call strategy to provide attractive yields and capped participation in the KWEB ETF. Despite its 61.7% headline yield, total returns for the fund has been far lower, due to poor performance from KWEB and the utilization of ROC. Overall, I continue to recommend investors avoid this amortizing fund, as the high yield is just a mirage.

KLIP: Continue To Avoid This Amortizing Fund

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The U.S. stock market has done so well that many investors may have forgotten about the rest of the world. Emerging markets, however, have a case to get back into investors' portfolios.

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Last year brought about a rise in covered call strategies as investors sought to maximize income potential in uncertain times. An area of opportunity often overlooked is covered call strategies on Chinese stocks.

KLIP Generates Income on China Tech Stock Volatility

The Kraneshares China Internet And Covered Call Strategy ETF has outperformed the KraneShares CSI China Internet ETF by 45% in its first year, thanks to option income. KLIP follows a covered call strategy, which has generated 68% annualized income returns since inception by selling slightly out-of-the-money call options on KWEB. With Chinese tech stocks looking undervalued and under-owned, a contrarian rally should allow the KLIP to generate outsized returns.

KLIP: High Income And Cheap Valuations Suggest Strong Returns

NEW YORK, Jan. 08, 2024 (GLOBE NEWSWIRE) -- KraneShares, a leading global ETF provider specializing in China, climate, and uncorrelated assets, today announced a monthly distribution for the KraneShares China Internet & Covered Call Strategy ETF (Ticker: KLIP) in the amount of $0.625001 per share, representing a Monthly Distribution* of 3.81% and a current Distribution Rate** of 45.85%. The Fund's current 30-day SEC Yield, which excludes options income, is 1.26%.

KraneShares China Internet & Covered Call ETF (Ticker: KLIP) Distributes 3.81% In December

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"We are absolutely going to see more of these options-based products come to market. We see it in our own book," BNY Mellon's Ben Slavin said.

This ETF offering could become next year's hot product

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London-based investment research firm Macro Hive highlighted that one of the potential gray swans in 2024 that could rock markets is China, as quoted on Business Insider.

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Covered call ETFs have proven to be one of the brighter spots in the ETF landscape this year. Offering an income added on top of an underlying index, covered call strategies were once far more exclusive.

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Amid President Xi Jinping's visit to the U.S., two major Chinese firms saw exciting earnings beats. Both Tencent (TCEHY) and JD.com (JD) reported Q3 financial results that beat analysts' expectations.

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To mitigate interest rate volatility, fixed income investors may need to diversify their streams with other sources. One possible option is the KraneShares China Internet and Covered Call Strategy ETF (KLIP), which offers a monthly distribution.

Diversify Your Income With This China-Focused Covered Call ETF

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The US economy is facing challenges including potential stagflation and high consumer debt, which could impact the stock market. China's economy is showing signs of a robust recovery, making Chinese equities an attractive investment opportunity. Longing the KLIP-covered call ETF and shorting US indices like SPY and QQQ provide a balanced approach to capitalize on these divergent economic trajectories.

Long China (KLIP) Short U.S. (SPY/QQQ) Pair Trade Moving Into 2024

China's economic outlook has been something of a mixed bag over the last several weeks as the country's real estate uncertainty lingers. That said, China investing remains a major consideration for investor portfolios in the U.S. and around the world.

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Back-to-back years of celebration for VettaFi's research! Last week, VettaFi received the Best U.S. ETF Research award from ETF Express, a dedicated ETF news outlet, at an awards reception in New York.

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Hiya VettaFi Voices! On Friday we're hosting the Income Strategy Symposium, so keeping in the spirit of that event, I wanted to know: Where you see the best places to find income in the markets today?

VettaFi Voices On: Finding Income

In KraneShares' robust suite of ETFs is a unique strategy that uses volatility to generate income for investors. It all starts with the firm's flagship ETF, the KraneShares CSI China Internet ETF (KWEB).

How KraneShares Uses Volatility to Generate Income

Option-based ETFs have experienced significant asset growth, reaching over $45 billion by the end of 2022. Ultra-high yielding products that harvest option premium from volatile securities are gaining popularity, such as the KraneShares China Internet & Covered Call Strategy ETF. Although the KLIP ETF pays an ultra-high 50% distribution yield, total returns for the fund are much more modest.

News for Kraneshares China Internet And Covered Call Strategy Etf ETF (KLIP)