KraneShares Launches China Internet Covered Call ETF

KraneShares has just announced the launch of a new ETF looking to provide current income through a covered call strategy. The KraneShares China Internet & Covered Call Strategy ETF (KLIP) will buy shares of its own, KraneShares CSI China Internet ETF (KWEB) and then “write” or “sell” call options of it. KWEB seeks to offer exposure to the ever-growing internet sector in China, including companies such as, Tencent, Alibaba, Meituan, and JD.com. Covered call ETFs look to manage the options exposure for investors, which can offer a more economical and time-efficient option than individually purchasing stocks.