The team at a $1-billion-AUM roboadvisor in Gotham are teaming up with a nearby, 12-year-old ETF shop. Their new joint offering is the fund firm's 33rd exchange-traded fund.

Jonathan Krane KraneShares Founder, CEO

Yesterday (November 5), Jonathan Krane, CEO of KraneShares [profile], and Mohsin Siddiqul, CEO of Wahed, revealed the launch of the KraneShares Wahed Alternative Income Index ETF (KWIN on the NYSE Arca, Inc.). Krane Fund Advisors, LLC will serve as KWIN's investment advisor, while Wahed Invest LLC will serve as subadvisor. (Both firms are based in New York City.)

KWIN's inception date was yesterday. THe new ETF's expense ratio is 51 basis points, and as of yesterday it had about $2.5 million in AUM.

MerQube, Inc. serves as index provider to KWIN, which is designed to track the Wahed Shariah Alternative Income Index. The new fund's PM team includes:

James Maund, head of capital markets at KraneShares; and

Jonathan Shelon, chief operating officer at KraneShares.

Krane puts the launch of KWIN in the context of the KraneShares team's "commitment to innovative option income solutions that leverage advanced capital markets strategies." Siddiqui notes Wahed's "mission to empower investors with tools that align their finaicial goals with modern capital markets innovation."

"We are proud to integrate Wahed's global expertise and particular focus on the needs of Middle Eastern investors into KWIN, to provide an option income stream that we believe will resonate in today's uncertain market environment," Krane states.

"We are proud to partner with KraneShares to bring KWIN to market and provide our investors with an options-based alternative to traditional interest-bearing assets," Siddiqui states.

Wahed is no ETF industry neophyte. The roboadvisor's team already offers a pair of their own ETFs: $732.13-million-AUM HLAL, which debuted in 2019; and $189.84-million-AUM UMMA, which launched on January 7, 2022.

KWIN is a passively managed, non-diversified series of KraneShares Trust. The new ETF's other service providers include:

Brown Brothers Harriman & Co. (BBH) as custodian, dividend disbursing agent, and transfer agent;

K&L Gates LLP as counsel;

KPMG LLP as independent accounting firm;

SEI Investments Distribution Co. as distributor; and

SEI Investments Global Funds Services as administrator.

 

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