KCNY — KraneShares Bloomberg China Bond Inclusion Index ETF

KCNY Fund Overview

KCNY — KraneShares Bloomberg China Bond Inclusion Index ETF is a US ETF managed by Krane Shares Trust, categorised as Intermediate Total / Aggregate Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US ETF
• Manager: Krane Shares Trust
• Category: Intermediate Total / Aggregate Bond
• Assets under management: $3.14M
• 1-year return: 1.6%
• Ticker: KCNY
• SEC CIK: 0001547576
• SEC series ID: S000044482
• Share class ID: C000138387

KCNY Investment Objective and Strategy

KraneShares Bloomberg China Bond Inclusion Index ETF describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Krane Shares Trust.

Investment objective

The KraneShares E Fund China Commercial Paper ETF (the Fund) seeks to provide investment results that, before fees and expenses, correspond to the price and yield performance of a specific foreign fixed income securities index. The Funds current index is the CSI Diversified High Grade Commercial Paper Index (the Underlying Index).

Principal investment strategy

Under normal circumstances, the Fund will invest at least 80% of its total assets in securities of the Underlying Index. The Underlying Index seeks to track the performance of investment grade on-shore renminbi (RMB)-denominated (or CNY) commercial paper that is issued by sovereign, quasi-sovereign and corporate issuers in the Peoples Republic of Chinas (China or the PRC) and traded in the Chinese Inter-Bank Bond Market (CIBM). For purposes of the Underlying Index, investment grade commercial paper is commercial paper that is issued by an issuer whose long-term bonds are rated AAA or equivalent by a Chinese credit rating agency; or commercial paper that is rated at least A-1 or equivalent by a Chinese credit rating agency and is issued by an issuer whose long-term bonds are rated at least AA+ or equivalent by a Chinese credit rating agency.

All constituents in the Underlying Index are unsecured bonds. To qualify for inclusion in the Underlying Index, commercial paper issue must have at least RMB 600 million outstanding and a remaining term to final maturity of no more than one year (365 days) and no less than one month (31 days). Index constituents are weighted based on current amounts outstanding. E Fund Management (Hong Kong) Co., Limited (E Fund), the Funds sub-adviser, has received a Renminbi Qualified Foreign Institutional Investor (RQFII) license from the China Securities Regulatory Commission (CSRC) and has received an initial quota to invest in PRC securities, such as onshore RMB-denominated commercial paper, by Chinas State Administration of Foreign Exchange (SAFE) that enables E Fund to buy PRC securities for the Fund.

E Fund may also obtain a license on behalf of the Fund as a Qualified Foreign Institutional Investor (QFII). The Fund may also invest in PRC securities through a Peoples Bank of China program that permits foreign investors to invest in PRC debt securities (RMB Bonds) traded on the onshore CIBM (CIBM Program) without a RQFII or QFII license. The securities in which the Fund expects to invest will primarily be purchased and sold in over-the-counter (OTC) markets. The Fund may invest up to 20% of its assets in instruments that are not included in the Underlying Index, but that Krane and/or E Fund believes will help the Fund track the Underlying Index, including RMB-denominated securities principally traded in the off-shore RMB (or CNH) market, which is an OTC market located in countries outside of the PRC, such as Hong Kong and Singapore.

The Fund may also invest in RMB Bonds traded on the Shanghai and Shenzhen Stock Exchanges. The Fund may also invest in debt securities issued in any currency denomination in other political jurisdictions, including Hong Kong and Singapore, unrated and high yield securities (or junk bonds), derivatives (including futures, swaps, forwards, structured notes and options), equity securities and cash and cash equivalents. The Fund may invest in shares of investment companies, such as ETFs, unit investment trusts, closed-end investment companies and foreign investment companies, including to gain exposure to component securities of the Funds Underlying Index or when such investments present a more cost efficient alternative to investing directly in the securities. Foreign investment companies in which the Fund may invest include RMB-denominated short-term bond funds domiciled in the PRC (PRC Investment Companies).

The Fund may also hold cash in a deposit account in China or invest in U.S. money market funds or other U.S. cash equivalents, provided that no more than 5% of the Funds net assets will be invested in any one foreign investment company or held in cash in a deposit account in China. The other investment companies in which the Fund may invest may be, and several currently are, advised, sponsored or otherwise serviced by Krane, E Fund and/or their affiliates. Although the Fund reserves the right to replicate (or hold all components of) the Underlying Index, the Fund expects to use representative sampling to track the Underlying Index. Representative sampling is a strategy that involves investing in a representative sample of securities that collectively have an investment profile similar to the Underlying Index.

As of June 30, 2018, the Underlying Index reflected the commercial paper of approximately 251 issuers. The Underlying Index is reconstituted and rebalanced monthly. The Fund may engage in securities lending. The Fund is non-diversified. To the extent the Underlying Index is concentrated in a particular industry, the Fund is expected to be concentrated in that industry. As of June 30, 2018, issuers in the utilities sector (27.1%) and energy sector (17.5%) represented significant portions of the Underlying Index.

KCNY Holdings

Top 10 holdings of KraneShares Bloomberg China Bond Inclusion Index ETF by percentage of net assets, from the fund's latest SEC N-PORT filing.

View all KCNY holdings

KCNY Portfolio Allocation

Asset-class allocation of KraneShares Bloomberg China Bond Inclusion Index ETF by percentage of net assets, from the latest SEC N-PORT filing.

KCNY Performance

Total returns for KCNY (as of 2026-10-01), from SEC filings.

KCNY Risk Information

Risk metrics for KCNY, derived from monthly returns in SEC filings.

• 1-year volatility (annualised): 5.5%

KCNY Costs and Fees

KCNY costs about $49 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.49%
• Gross expense ratio: 0.69%
• Portfolio turnover: 151%
• Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)

KCNY Cashflows

Over the 12 months to 2023-12, KraneShares Bloomberg China Bond Inclusion Index ETF had net inflows of $10.73M, from monthly SEC N-PORT filings.

KCNY Debt Constituents

Largest debt holdings of KraneShares Bloomberg China Bond Inclusion Index ETF by percentage of net assets, from the latest SEC N-PORT filing.

KCNY Prospectus and SEC Filings

Official KraneShares Bloomberg China Bond Inclusion Index ETF filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2023-07-28
• Prospectus (485BPOS) — filed 2022-07-29
• Prospectus (485BPOS) — filed 2021-07-30
• Portfolio holdings (N-PORT) — filed 2024-02-28
• Portfolio holdings (N-PORT) — filed 2023-11-29
• Portfolio holdings (N-PORT) — filed 2023-08-29
• Annual census (N-CEN) — filed 2023-06-14
• Annual census (N-CEN) — filed 2022-06-14

Related Funds

Other Intermediate Total / Aggregate Bond funds tracked on ABC INVEST:

• Vanguard Total Bond Market Index Fund (VBMFX)
• Vanguard Total Bond Market II Index Fund (VTBIX)
• Vanguard Total International Bond II Index Fund (VTIIX)
• iShares Core U.S. Aggregate Bond ETF (AGG)
• Vanguard Total International Bond Index Fund (VTIBX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.