KraneShares China Internet and Covered Call Strategy ETF

KLIP

Market cap $115M

October's top monthly dividend stocks offer high yields, with many providing annual dividends from $1,000 invested exceeding share prices, but carry volatility risks. Banco Macro, ARMOUR Residential, and Horizon Technology Finance lead projected gains, with average net gain estimates of 39.98% on $1,000 invested. Analyst estimates suggest the five lowest-priced MoPay stocks may outperform the top ten overall, highlighting contrarian opportunities for income-focused investors.

KLIP offers a unique covered call strategy on volatile Chinese tech via KWEB, delivering strong income and drawdown mitigation. Despite capping upside, KLIP's total return profile is impressive, outperforming KWEB with smoother returns and exceptional downside protection. The aggressive ~33% yield erodes NAV over time, but reinvestment can help maintain future income and growth potential.

Portfolio diversification matters more than ever in this year's challenging market environment. Tech investors looking for opportunities internationally would do well to consider China's internet sector for its performance, attractive valuations, and AI positioning.

Coming off stellar gains from last year, many entered 2025 expecting limited upside. But upside may be even more limited following the recent rebound in equities as the tariff rhetoric cools.

China's economic uncertainty and collapsing property sector highlight the need for conservative investment strategies like KLIP's covered call approach. KLIP has outperformed other China ETFs with a 21% total return and significantly lower volatility since inception. The fund's high dividend yield, resulting from distributing all option income, leads to a decreasing NAV, posing tax implications for investors.

As artificial intelligence enthusiasm continues, advisors and investors keep their attention turned towards the technology sector in 2025. However, most investors carry a notable underweight to a compelling class of internet firms this year.

NEW YORK, Dec. 31, 2024 (GLOBE NEWSWIRE) -- Krane Funds Advisors, LLC (“KraneShares”), an asset management firm known for its global exchange-traded funds (ETFs) announced changes to the KraneShares China Internet and Covered Call Strategy ETF (Ticker: KLIP), effective January 1, 2025.

KraneShares proved a valuable resource for advisors and investors in a busy year for markets. Top stories this year included insight into domestic China investor sentiment, artificial intelligence wins, and an alternative take on China tech investing.

Covered call strategies continue to gain popularity with investors seeking diversified income strategies. For those investors looking for overlooked income opportunities, the KraneShares China Internet and Covered Call Strategy ETF (KLIP) generates a substantial distribution rate by capitalizing on China tech sector volatility.

China stocks soared on a number of new supportive policy announcements at the end of last month and beginning of October. However, ongoing policy announcements have failed to wow investors in recent weeks, leading to muted performance and increased volatility.