NEW YORK, Jan. 07, 2026 (GLOBE NEWSWIRE) -- KraneShares, a leading provider of innovative exchange-traded funds (ETFs), today announced the launch of the KraneShares InspereX Nasdaq Dynamic Buffered High Income Index ETF (Ticker: KIQQ). KIQQ is designed for investors seeking to maintain equity exposure to the Nasdaq-100 Index® through volatile and uncertain markets.
Developed in partnership with InspereX, a long-standing leader in structured risk-managed solutions, this strategy combines Nasdaq-100® exposure with a systematic hedging and option income-generation process that adjusts as markets change. However, similar to other derivative-based ETFs, the hedging and option income objectives are not guaranteed.
Supporting long-term equity exposure through changing markets
The underlying approach uses a modern adaptation of the traditional “collar”, employing an enhanced, daily-adjusted put replication strategy to manage downside risk as an alternative to purchasing costly long-dated puts. At the same time, it generates option income by selling short-dated, out-of-the-money call options, aiming to provide an option income stream on top of traditional equity dividends.
This structure seeks to balance downside hedging and option income while staying exposed to the Nasdaq-100®. As an illustration, the Nasdaq-100® experienced dramatic swings in 2025, dropping -23% during the “Liberation Day” tariff sell-off before recovering to a +20.97% gain to end 2025.¹ Volatility events and market swings, like this, highlight the importance of tools that combine equity participation with downside risk management.
“KIQQ combines key elements of derivative-based ETF strategies into a single, adaptive approach. Unlike covered call strategies, which typically provide option income but have no structural downside hedge beyond premium collected, and defined outcome strategies, which generally offer a downside hedge but no stated option income goals, KIQQ seeks to offer equity exposure, a downside hedge, and option income,” said Jonathan Shelon, CFA, COO of KraneShares. “We are pleased to partner with InspereX, whose expertise in structured products strengthens the foundation of this ETF.”
“Investors continue to seek risk-managed equity solutions that can adapt to varying market conditions. KIQQ reflects the type of resilient, dynamically-managed approach designed to meet that need,” said Scott Mitchell, CEO of InspereX. “We’re excited to enter this ETF space with KraneShares.”
KIQQ has initially engaged Goldman Sachs as a swap counterparty for the fund’s option exposure.
Strategy and option income objectives
KIQQ is designed to:
- Replicate a rolling collar structure on the Nasdaq-100®
- Use enhanced put replication, adjusted daily, seeking to provide a dynamic downside hedge
- Seeks to earn monthly option income through short-dated call writing
By combining equity exposure, systematic risk management, and option income, KIQQ aims to serve as a useful building block for portfolios seeking growth potential, limiting losses, and mitigating downside risk.
For performance, holdings, risks, and additional details about the KraneShares InspereX Nasdaq Dynamic Buffered High Income Index ETF (Ticker: KIQQ), please visit https://www.kraneshares.com/etf/kiqq/.
Disclaimers:
There is no guarantee that losses will be limited or that the strategy will be effective in all market conditions. Distributions are not guaranteed and may vary. The Fund may engage one or more financial institutions as swap counterparties to implement its derivatives strategy.
Counterparties are subject to change without notice. Please see the end of the presentation for definitions.
About KraneShares
KraneShares is a specialist investment manager focused on delivering global investors innovative, high-conviction strategies. The firm is known for its China-focused and climate-focused ETFs, as well as its solutions across emerging markets, carbon allowances, options income, and disruptive technologies like artificial intelligence, electric vehicles, and humanoid robotics. KraneShares helps investors access transformative growth opportunities through research-driven products and educational resources.
About InspereX
InspereX is built on access, aggregation, and analysis. We redefine precision investing across structured products, ETFs, private markets, and new-issue and secondary fixed income. InspereX connects advisors and institutions to differentiated investment opportunities, combining deep market expertise with a modern approach to distribution. Our Aria platform integrates advanced technology, market intelligence, and personalized service to streamline execution and empower advisors to deliver greater value to their clients. InspereX represents more than 400 issuing entities, distributes to more than 1,500 partners, and has distributed more than $850 billion in new issue securities. The firm has seven trading desks and more than 180 employees with offices in Delray Beach, Florida; Charlotte, North Carolina; Chicago, Illinois; and New York, New York.
Goldman Sachs is not an advisor, promoter or affiliate of KIQQ or KraneShares and has no responsibility regarding the advisability or suitability of the KIQQ fund as an investment.
Citations:
- Data from Bloomberg as of 12/31/2025.
Definitions:
Traditional Collar Strategy: An options strategy in which an investor holding a stock buys a protective put and sells a covered call to limit downside risk while capping upside potential.
Important Notes
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 https://www.kraneshares.com/etf/kiqq. 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.
KIQQ may invest in derivatives, which are often more volatile than other investments and may magnify KIQQ’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. KIQQ 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 KIQQ 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. Hedges may have imperfect matching between the derivative and the underlying security; there is no assurance that hedging will be effective. Hedging may reduce or eliminate losses or gains.
Options are derivative contracts that give the holder, for a premium, the right to buy or sell an underlying asset at a set price within a specified period, while the writer must fulfill the obligation if exercised. Their value is highly sensitive to factors such as changes in the underlying asset, interest and currency rates, implied volatility, time to expiration, and global economic or political events. These instruments can be illiquid and may not perfectly track the reference asset. Writing options can reduce market risk but limits upside potential, while purchasing options risks losing the premium paid. Market disruptions or lack of liquidity may impair strategy effectiveness, so options may not always reduce volatility and could result in losses.
The Fund earns option premium income from selling options, which is generally classified as a return of capital for financial reporting and shown as such on monthly 19(a) notices. These notices, however, do not reflect the tax treatment, which is determined after year-end. For tax purposes, this income is typically considered taxable investment income and may not reduce your tax basis in Fund shares when distributed.
The use of options involves risks and strategies that differ from traditional securities. Options prices can be highly volatile and influenced by changes in the underlying asset, interest rates, currency exchange rates, and market expectations. Options may be illiquid or imperfectly correlated with the underlying asset. Purchasing options can result in the loss of the entire premium, while writing options may limit gains and create significant obligations if exercised. Market disruptions or lack of liquidity may reduce the effectiveness of options strategies, and there is no guarantee they will reduce portfolio volatility.
Certain derivatives, including options, may be centrally cleared through a clearing house such as the OCC, which introduces risks related to margin, commingled accounts, and clearing member defaults. If a clearing member or the OCC fails to meet obligations, the Fund could suffer losses.
Futures contracts also involve risks, including imperfect correlation with reference assets, potential illiquidity, and substantial daily margin calls that may require selling securities at disadvantageous times.
Swap transactions generally do not involve delivery of the reference asset or notional amount, and losses are typically limited to net payments owed. Swaps are of limited duration, and the ability to maintain or renew positions depends on available counterparties and agreed terms. Limited counterparties or defaults could impair the Fund’s ability to implement its investment strategy.
Narrowly focused investments typically exhibit higher volatility. The Fund’s assets are expected to be concentrated in a sector, industry, market, or group of concentrations to the extent that the Underlying Index has such concentrations. The securities or futures in that concentration could react similarly to market developments. Thus, the Fund is subject to loss due to adverse occurrences that affect that concentration. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility. KIQQ is non-diversified.
The Fund may invest in other investment companies, including those advised or serviced by Krane or its affiliates, which exposes the Fund to the risks of those investments and its share of their expenses. Investments in ETFs are subject to ETF risk. Krane may face conflicts of interest when allocating assets to affiliated investment companies. If the Fund invests in pooled vehicles not registered under the Investment Company Act of 1940, it will not have the protections of U.S. law.
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 Fund.
Contact:
KraneShares Investor Relations
info@kraneshares.com
