KraneShares Global Carbon Strategy ETF · AMEX:KRBN
KraneShares Global Carbon Strategy ETF — KFA Large Cap Quality Dividend Index ETF — Investor Presentation (September 2020)
15 slides from KraneShares Global Carbon Strategy ETF's investor presentation, Sep 30, 2020
Slide 1: The Long-Term Potential of Dividend Growth
KLCD 9/30/2020 The Long-Term Potential of Dividend Growth An Overview of the KFA Large Cap Quality Dividend Index ETF (Ticker: KLCD) info@kraneshares.com 1
Slide 2: Introduction to KFA Funds
Introduction to KFA Funds About KFA Funds KFA Funds is the premier platform for developing and delivering differentiated, high-conviction investment strategies to global investors. We are passionate about identifying and delivering groundbreaking capital market opportunities. We believe that investo
Slide 3: Investment Strategy
Investment Strategy KLCD KLCD is benchmarked to the Russell 1000 Dividend Select Equal Weight Index, which takes a smart beta1 approach to investing in US large cap companies. The strategy seeks to measure the performance of US companies that have KFA Large Cap Quality successfully increased their d
Slide 4: What is dividend growth?
What is dividend growth? • Dividend growth refers to the consistent increase in dividend payments over consecutive years, focusing on repeated increases not necessarily a high dividend. • Breaking down a company’s sustainable growth rate uncovers drivers of dividend growth. The sustainable growth ra
Slide 5: Advantages of Dividend Growth Strategies
Advantages of Dividend Growth Strategies Historical Compounded growth on Dampened drawdown outperformance with dividend reinvestment in declining markets lower volatility When observing US stocks that When observing S&P 500 dividend raised their dividend payouts over a growers during the market decl
Slide 6: Less volatility and higher dividend yields
Less volatility and higher dividend yields • Despite recent market volatility due to the coronavirus outbreak, over the past 10 years S&P 500 dividend growers performed relatively in-line with the S&P 500 Index but with lower volatility. • The S&P 500 dividend growers has historically had a higher a
Slide 7: Compounded growth on dividend reinvestment
Compounded growth on dividend reinvestment • Data from Bloomberg and NYU Stern shows that from 1970 to 2019, an average of 57% of the total return of the S&P 500 can be attributed to compounding growth on reinvested dividends1. • In fact, a $10,000 investment in the S&P 500 in December of 1960 would
Slide 8: Dampened drawdown in declining markets
Dampened drawdown in declining markets • Lower drawdown may help prevent an investor from making emotional decisions regarding their portfolio during market turmoil. Greater discipline results in dedication to the investment plan and an increased likelihood of achieving investment goals. • Dividend
Slide 9: Smart-Beta Filtering Process for Constituent Selection
The KFA Large Cap Quality Dividend Index ETF (ticker: KLCD) uses a smart-beta approach that not only holds securities demonstrating increased dividends but also those with positive momentum. Smart-Beta Filtering Process for Constituent Selection Russell 1000 Equity Universe Select stocks from the Ru
Slide 10: Momentum is key to unlocking potentially high returns
Momentum is key to unlocking potentially high returns from dividend growing companies. • Many of the companies that have consistently increased their dividends tended to be large, old, and slow-growing. • A momentum strategy looks at acceleration in stock prices and seeks investment in companies tha
Slide 11: Conclusion
Conclusion • We believe dividend growth is an attractive investment theme that should be considered when constructing a portfolio. • Companies exhibiting dividend growth have Advantages of Dividend Growth Strategies historically shown the ability to pay and commitment to paying these dividends and H
Slide 12: KFA Large Cap Quality Dividend Index ETF Fund Details
KFA Large Cap Quality Dividend Index ETF Fund Details Data as of 9/30/2020 Ticker % Primary Exchange NYSE FEDEX CORP FDX 0.98 Investment Strategy: CUSIP 500767728 NIKE INC -CL B NKE 0.97 KLCD is benchmarked to the Russell 1000 Dividend Select ISIN US5007677280 Equal Weight Index, which takes a smart
Slide 13: Terminology Definitions
Terminology Definitions Dividend Growth Rate: A company’s dividend growth rate is the rate at which that company is expected to increase its dividend payments. The dividend growth rate is the annualized percentage rate of growth that a particular stock’s dividend undergoes for a period of time. Sust
Slide 14: Index Definitions
Index Definitions S&P 500 Index: The S&P 500 Index is widely regarded as the best single gauge of large-cap U.S. equities. There is over USD 9.9 trillion indexed or benchmarked to the index, with indexed assets comprising approximately USD 3.4 trillion of this total. The index includes 500 leading c
Slide 15: Important Notes
Important Notes Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' full and summary prospectus, which may be obtained by visiting www.kfafunds.com. Read the prospectus carefully before i
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