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This Tiny China-Focused ETF Surged 10% Today

Published 02/01/2017, 11:57 PM
Updated 05/14/2017, 06:45 AM
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KFYP
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The KraneShares CSI China Five Year Plan ETF (NYSE:KFYP) outperformed all other non-leveraged, non-inverse exchange traded products in the U.S. today on a percentage basis, producing a +10.51% one-day return and outperforming the wider markets by a total of 10.47 percentage points.

Behind The Gains

KFYP closed today at $31.64 per share, up $3.01 (+10.51%). Putting this move in context, the S&P 500 index — largely considered the most popular and useful benchmark for equity performance — closed up just $0.09 (+0.04%) on the day.

KFYP’s trading volume today was a total of 188 shares, which was a decrease of 6% versus its average daily trading volume of 200. Rising trading volume generally an indicator of increased demand for a particular security, and is typically associated with a specific news event or trend that draws investors into or out of specific asset classes, or sectors or subsectors within those classes. KFYP is extremely thinly traded, which makes it a dangerous play for short-term holding periods.

Including any dividends as well as today’s gains, KFYP has now returned a total of 9.18% year-to-date, versus a 1.83% gain in the S&P 500 during the same timeframe.

A Look Under The Hood

KraneShares CSI China Five Year Plan ETF is a Equity-focused product issued by KraneShares. Its expense ratio of 0.73% makes it the #24 cheapest ETF among 32 total funds in the China Equities ETFs category.

KFYP currently boasts $2.90M in assets under management (AUM), placing it #27 of 32 ETFs in its category, and #1744 of 1922 total ETFs in the U.S. exchange traded universe.

The investment objective of the KraneShares Zacks New China ETF is to provide investment results that correspond generally to the price and yield performance of the Zacks New China Index. This index posted big gains today, amid a handful of Chinese internet stocks rising.

KFYP SMART Grade

KFYP currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #24 of 32 funds in the China Equities ETFs category.

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