Overview

Performance

Distributions

Growth of $10,000

Holdings

Fund Documents

Overview

Investment Strategy:

The BNDD ETF is a fixed income ETF that seeks to benefit from lower growth, deflation, lower or negative long-term interest rates, and/or a reduction in the spread between shorter and longer term interest rates by investing in US Treasuries and options.

The Debt Machine is Challenging Investors

  • Demographics: Declining birth rates & a shrinking population tend to cause the costs of government programs to be spread over fewer people.
  • Extreme-Indebtedness: While many believe stimulus spurs growth, it has ballooned the federal debt to well beyond 100% of GDP, reaching levels never seen outside of wartime.
  • Lower for Longer “Japan 2.0”: Global long term interest rates have plummeted over the past three decades amid a surge in sovereign debt issuance, which may incentivize central banks to keep interest rates “lower for longer.”

BNDD: Built to Help Investors Navigate the Debt Machine

Unique Access:

  • Provides access to OTC fixed income options market which is typically not available to investors directly.

Asymmetric Upside:

  • Has the potential for enhanced returns in periods of lower growth.
  • The portfolio’s option downside is limited to the market value of the options.

Portfolio Diversification:

  • A potential diversifier to a traditional 60/40 portfolio.
  • Bonds have historically increased during large equity sell-offs.
  • The options held by the fund could also serve as a market hedge when policy rates are close to zero.

BNDD Yield Metrics

Data as of 10/08/2024
30-day SEC Yield 2.28%
Unsubsidized 30-day SEC Yield 2.26%

30-day SEC Yield (Subsidized/Unsubsidized) is a standard yield calculation developed by the U.S. Securities and Exchange Commission (SEC) that allows for fairer comparisons of bond funds. It is based on the most recent 30-day period covered by the fund's filings with the SEC. Unsubsidized yield does not adjust for any fee waivers and/or expense reimbursements in effect.

Fund Details

Data as of 10/08/2024
Ticker BNDD
Primary Exchange NYSE
CUSIP 500767587
ISIN US5007675870
Net Assets $22,195,375
Total Annual Fund Operating Expense (Gross) 1.03%
Total Annual Fund Operating Expense (Net) 1.01%*
Inception Date 9/20/2021
Distribution Frequency Monthly
BBSMI
Broad-Based Securities Market Index – a broad-based index that represents the overall applicable domestic, international equity, or debt market, as appropriate.
Bloomberg Long U.S. Treasury Index
Underlying Index N/A Active
Premium Discount Chart

Daily Performance

Data as of 10/08/2024
Daily Net Asset Value (NAV) and Market Price
NAV $14.32
NAV Daily Change -0.28%
Market Price $14.27
Market Price Daily Change -0.63%
30 Day Median Bid/Ask Spread
0.14%
Curve Spread DV01
Data as of 10/08/2024 		$-0.0146
Curve Spread DV01 is the sensitivity of the fund’s OTC options to a 0.01% change in the steepness of the US interest rate curve.
The ETF’s 30 Day Median Bid-Ask Spread is calculated by identifying the ETF’s national best bid and national best offer ("NBBO") as of the end of each 10 second interval during each trading day of the last 30 calendar days and dividing the difference between each such bid and offer by the midpoint of the NBBO. The median of those values is identified and that value is expressed as a percentage rounded to the nearest hundredth.

Performance History

Cumulative %
Data as of: 09/30/2024
Fund NAV Closing Price BBSMI
1 Month -0.11% -0.11% 2.02%
3 Month -0.68% -0.81% 7.82%
6 Month -2.05% -1.92% 5.86%
YTD -0.83% -1.23% 2.42%
Since Inception -10.57% -10.61% -26.24%
Avg Annualized %
Data as of quarter end: 09/30/2024
Fund NAV Closing Price BBSMI
1 Year 5.57% 5.80% 15.43%
3 Year -2.25% -2.27% -8.36%
Since Inception -3.62% -3.63% -9.56%

*Fee waivers are contractual and in effect until August 1, 2025

Broad-Based Securities Market Index (BBSMI) is a broad-based index that represents the overall applicable domestic, international equity, or debt market, as appropriate.

Bloomberg Long U.S. Treasury Index (Total Return USD Unhedged): The Bloomberg Long U.S. Treasury Index measures US dollar-denominated, fixed-rate, nominal debt issued by the US Treasury with 10 years or more to maturity. The index was launched on January 1, 1973.

The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted.

Distribution History

2024 Distributions and Calendar
Ex-Date Record Date Payable Date Amount
01/29/2024 01/30/2024 01/31/2024 0.042868
02/27/2024 02/28/2024 02/29/2024 0.045049
03/26/2024 03/27/2024 03/28/2024 0.044265
04/26/2024 04/29/2024 04/30/2024 0.043752
05/30/2024 05/30/2024 05/31/2024 0.043811
06/27/2024 06/27/2024 06/28/2024 0.044907
07/30/2024 07/30/2024 07/31/2024 0.043354
08/29/2024 08/29/2024 08/30/2024 0.044049
09/27/2024 09/27/2024 09/30/2024 0.043424
10/29/2024 10/30/2024 10/31/2024
11/26/2024 11/27/2024 11/29/2024

Future calendar dates are subject to change. There is no guarantee that dividends will be paid. Past distributions are not indicative of future trends. This material is provided for educational purposes only and does not constitute investment advice.

Distributions are issued to brokers on the payable date, and are subject to broker payment schedules.

2023 Distributions
Ex-Date Record Date Payable Date Amount
01/27/2023 01/30/2023 01/31/2023 0.046249
02/24/2023 02/27/2023 02/28/2023 0.046632
03/29/2023 03/30/2023 03/31/2023 0.047287
04/26/2023 04/27/2023 04/28/2023 0.047677
05/26/2023 05/30/2023 05/31/2023 0.046143
06/28/2023 06/29/2023 06/30/2023 0.048232
07/27/2023 07/28/2023 07/31/2023 0.047829
08/29/2023 08/30/2023 08/31/2023 0.045904
09/27/2023 09/28/2023 09/29/2023 0.043136
10/27/2023 10/30/2023 10/31/2023 0.041301
11/28/2023 11/29/2023 11/30/2023 0.043084
12/27/2023 12/28/2023 12/29/2023 0.141775
2022 Distributions
Ex-Date Record Date Payable Date Amount
01/27/2022 01/28/2022 01/31/2022 0.075353
02/24/2022 02/25/2022 02/28/2022 0.076407
03/29/2022 03/30/2022 03/31/2022 0.076124
04/27/2022 04/28/2022 04/29/2022 0.072522
05/26/2022 05/27/2022 05/31/2022 0.069967
06/28/2022 06/29/2022 06/30/2022 0.067239
07/27/2022 07/28/2022 07/29/2022 0.069020
08/29/2022 08/26/2022 08/31/2022 0.067713
09/28/2022 09/29/2022 09/30/2022 0.065144
10/27/2022 10/28/2022 10/31/2022 0.060815
11/28/2022 11/29/2022 11/30/2022 0.063581
12/28/2022 12/29/2022 12/30/2022 5.734910
2021 Distributions
Ex-Date Record Date Payable Date Amount
10/27/2021 10/28/2021 10/29/2021 0.075290
11/26/2021 11/29/2021 11/30/2021 0.078480
12/29/2021 12/30/2021 12/31/2021 0.118547

Growth of $10,000

Data as of 10/08/2024

The Growth of $10,000 chart reflects an initial investment of $10,000 on the day prior to the selected time period and assumes reinvestment of dividends and capital gains. For the growth of $10,000 chart since inception, the initial investment of $10,000 is instead made on the inception date of the Fund. Fund expenses, including management fees and other expenses were deducted. The growth of a $10,000 investment in the fund is hypothetical and for illustration purposes only. Fund performance data used in this chart is based on Fund NAV and represents past performance. Past performance does not guarantee future results.

Top 10 Holdings

Data as of 10/08/2024 Full Holdings .CSV
Rank Name % of Net Assets Ticker Identifier Type Shares Held Market Value($)
1 VANGUARD LT TREA 80.40% VGLT US92206C8477 Mutual Fund 298,916 17,845,285
2 Cash 12.60% – – Cash 2,796,312 2,796,312
3 USD CMS 2-30 09/24/25 33 4.81% – – Option 25,000 1,067,157
4 USDCMS 2-30 08/12/26 25 1.49% – – Option 8,000 330,192
5 USDCMS 2-30 03/12/25 -30 0.70% – – Option 15,000 156,429

Holdings are subject to change.

Fund Documents

©2024 Krane Funds Advisors, LLC
280 Park Avenue, 32nd Floor, New York, NY 10017

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 investing.

Risk Disclosures:

Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. Indices are unmanaged and do not include the effect of fees. One cannot invest directly in an index.

This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change. Certain content represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results; material is as of the dates noted and is subject to change without notice.

The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund’s gains or losses. A derivative (i.e., futures/forward contracts, swaps, and options) is a contract that derives its value from the performance of an underlying asset. The primary risk of derivatives is that changes in the asset’s market value and the derivative may not be proportionate, and some derivatives can have the potential for unlimited losses. Derivatives are also subject to liquidity and counterparty risk. The Fund is subject to liquidity risk, meaning that certain investments may become difficult to purchase or sell at a reasonable time and price. If a transaction for these securities is large, it may not be possible to initiate, which may cause the Fund to suffer losses. Counterparty risk is the risk of loss in the event that the counterparty to an agreement fails to make required payments or otherwise comply with the terms of the derivative.

The derivatives used by the Fund may give rise to a form of leverage. Leverage magnifies the potential for gain and the risk of loss. The prices of options can be highly volatile and the use of options can lower total returns. OTC options generally have more flexible terms negotiated between the buyer and the seller. As a result, such instruments generally are subject to greater credit risk and counterparty risk. OTC instruments also may be subject to greater liquidity risk. The Fund does not seek to mitigate credit risk, non-curve interest rate risk, or other factors influencing the price of U.S. government bonds, which factors may have a greater impact on the bonds’ returns than the U.S. interest rate curve or deflation. There is no guarantee that the Fund’s investments will eliminate or mitigate curve risk, deflation risk on long positions in U.S. government bonds. In addition, when the forward U.S. interest rate curve steepens, the Fund’s investments will generally underperform a portfolio comprised solely of the U.S. government bonds. In a steepening curve environment, the Fund’s hedging strategy could result in disproportionately larger losses in the Fund’s options as compared to gains or losses in the U.S. government bond positions attributable to interest rate changes.

The Fund’s exposure to derivatives tied to interest rates subjects the Fund to greater volatility than investments in traditional securities, such as stocks and bonds. Investing in derivatives tied to interest rates, including through options tied to the shape of the swap curve, is speculative and can be extremely volatile. BNDD is non-diversified.

ETF shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the Fund. However, shares may be redeemed at NAV directly by certain authorized broker-dealers (Authorized Participants) in very large creation/redemption units. The returns shown do not represent the returns you would receive if you traded shares at other times. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Beginning 12/23/2020, market price returns are based on the official closing price of an ETF share or, if the official closing price isn't available, the midpoint between the national best bid and national best offer ("NBBO") as of the time the ETF calculates the current NAV per share. Prior to that date, market price returns were based on the midpoint between the Bid and Ask price. NAVs are calculated using prices as of 4:00 PM Eastern Time.

The KraneShares ETFs and KFA Funds ETFs are distributed by SEI Investments Distribution Company (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456, which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Funds, or any sub-advisers for the Funds.

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