KWIN ETF: Alternative Income | Shariah-Compliant
by Kraneshares
The KraneShares Wahed Alternative Income Index ETF
(Ticker: KWIN)
Date: 3/31/2026
Investment Strategy
KWIN is an alternative income ETF that seeks to implement an option strategy to generate options income. The fund will take long equity positions while simultaneously selling a call and buying a put for each of these positions. The option income is generated through the difference in the amount received for the call option and the price paid for the put option. KWIN is designed for investors seeking option income or alternatives to earning traditional interest.
Option Strategy Features
- Goal: Generate steady, alternative option income by capturing option premium spreads through a short call and long put position.
- Execution: For each selected stock, the fund holds a long position and simultaneously sells a call and buys a put (both options are written against the same long position in that stock). The option strategy is designed to provide a delta-neutral outcome*, meaning it is not sensitive to the direction of the underlying asset's price.
KWIN Highlights
- KWIN is sub-advised by Wahed Invest LLC, a global financial technology company that provides digital investment portfolios and serves a large global and Middle Eastern community.
- KWIN's holdings consist of non-dividend-paying, U.S.-domiciled securities whose eligibility for inclusion has been reviewed by Wahed Invest LLC for Shariah compliance.
Example Income Generating Option Strategy
For each stock position in KWIN, a synthetic short exposure is created using a short call option and a long put option, with the strike level (the fixed price at which the options can be exercised) of the options determined at the close of the corresponding Rebalancing Day.
To execute the option strategy, KWIN may use FLEX options, which are exchange-traded options contracts with customizable terms like exercise price, style, and expiration date.
Delta neutral: the option strategy is not sensitive to the direction of the underlying asset's price.
This option strategy is designed to potentially generate option income over a set term, but profits are not guaranteed, and losses are possible. Earning a yield on a risk-free security like a Treasury bill (T-bill) is conceptually similar, but this strategy involves risk, including loss of principal.
Example: Option Strategy With Amazon
- Buy Amazon stock
- Long PUT
- Short CALL
HOW IT GENERATES OPTION INCOME
- Timeframe: At option expiry, depending on the stock price, the fund may deliver the stock and receive cash, or retain the stock if neither option is exercised. This structure allows the fund to efficiently reset its positions for potentially short-term strategies.
- Option Income Stream: An investor can potentially receive the equivalent of an interest rate, earning a fixed fee that mimics the economics of lending or borrowing stock for a set term. However, the amount and outcome are not guaranteed and depend on market conditions.
KWIN Index Methodology
Domicile/Security Type
The company corresponding to the security must be domiciled in the United States. Only common stocks are included. Preferred stocks, ADRs, and other equity securities that are not common stocks are excluded.
Exchange Listing/Length of Listing
Equity securities must be listed on NYSE, NASDAQ or CBOE. Potential new securities must have traded for a minimum of 3 months prior to the Selection Day.
Non-Dividend Payment
Only non-dividend paying securities are eligible for the index. Any security that has paid a dividend over the past three months as of the Selection Day or has declared a dividend or return of capital with an ex-date in the future, is not eligible for selection.
Shariah Compliance
The equity security must be deemed to be Shariah compliant for inclusion by Wahed Invest LLC.
KWIN Has Gained +1.72% Since Its Inception On 11/5/2025 (~4 Months)
Growth of 10,000 Units chart showing performance from 11/5/2025 to 3/25/2026, rising from 10,000 to approximately 10,172.
Data from Bloomberg as of 3/31/2026.
Wahed Overview
Wahed is a financial technology company founded in 2017 that offers Shariah-compliant investment solutions aimed at those seeking Islamic finance options. Headquartered in New York, with operations in over 130 countries, Wahed provides digital investment portfolios that include global stocks, sukuk (Islamic bonds), and gold while avoiding industries and practices prohibited by Islamic law, such as conventional financial services, alcohol, tobacco, gambling, weapons, and certain entertainment industries. Their platform uses a robo-advisor model to make investing accessible, with a mission to build a financial system aligned with Islamic values.
Key Stats
- Founded: 2017
- HQ: New York
- # of clients: 420k
- Retention rate: ~99%
- AUM: ~c.$1.1b
- Revenue growth: ~100%
Key Investors
- Saudi Aramco Entrepreneurship
- QDB
- Cue Ball
Geographic Footprint
Live: USA, UK, UAE, MYS
Licenses: USA, UK, MUS, MYS, UAE, MUS, NGA, IDN, IND, ZAF
Shariah Compliance Related To Investing
Shariah-compliant investing is a set of investment practices that align with Islamic law (Sharia), ensuring that all financial activities are ethical and fair and in accordance with Islam's core principles. This approach seeks to grow wealth without violating religious values.
KEY PRINCIPLES OF SHARIAH-COMPLIANT INVESTING
- Prohibition of Riba (Interest): Earning or paying interest is strictly forbidden.
- Avoidance of Gharar (Excessive Uncertainty): Investments should not involve high uncertainty or speculation.
- Avoidance of Haram (Forbidden) Activities: Investments are not allowed in sectors like alcohol, gambling, pork, weapons, and adult entertainment.
- Profit and Loss Sharing: Investments operate on a model of shared risk and reward, commonly through structures such as Mudarabah (profit-sharing partnerships) and Musharakah (joint ventures).
- Asset-Backed Investments: Transactions must be tied to tangible assets or real economic activity, not just financial speculation.
- Charitable Giving (Zakat): A portion of earnings should be donated to charity, supporting the principle of social justice and redistribution of wealth.
KWIN Option Strategy vs Sukuk (Islamic Bonds)
| KWIN Option Strategy | Sukuk | |
|---|---|---|
| Income Generation | Generates steady, fixed-term option income by capturing premium spreads in liquid equity options markets | Offers regular profit payments (analogous to coupons), tied to asset performance |
| Liquidity | Underlying equities and options trade on public exchanges, with transparent pricing and frequent rebalancing | Secondary sukuk markets can be thin, with many investors holding to maturity; may face wider bid-ask spreads, higher trading costs, and less price transparency |
| Yield / Return | Potentially higher, especially in low-rate or sideways markets; ability to respond dynamically in volatile environments | Generally stable but may offer lower yields, especially in investment-grade portfolios; returns depend on underlying asset and market rates |
| Transparency & Cost | Transparent exposures, daily NAV, typically lower management fees than active sukuk funds | Fees for sukuk funds are higher due to complex legal structuring; limited number of passive ETF options available and geographic concentration |
| Complexity / Access | Institutional strategy made accessible via ETFs; can be difficult and costly for individuals to implement directly | Easy for individuals to access through funds, but choice remains limited and portfolio diversification can be constrained |
| Shariah Compliance | Fully compliant: Strategy and universe pre-screened; avoids riba and non-compliant income sources in ETF wrapper | Fully compliant: Asset-backed, no riba; long regulatory and scholarly acceptance |
The KraneShares Wahed Alternative Income Index ETF
Investment Strategy
KWIN is an alternative income ETF that seeks to implement an option strategy to generate options income. The fund will take long equity positions while simultaneously selling a call and buying a put for each of these positions. The option income is generated through the difference in the amount received for the call option and the price paid for the put option. KWIN is designed for investors seeking option income or alternatives to earning traditional interest.
Fund Details (Data as of 03/31/2026)
| Field | Value |
|---|---|
| Primary Exchange | NYSE Arca, Inc. |
| CUSIP | 500767223 |
| ISIN | US5007672232 |
| Total Annual Fund Operating Expense | 0.51% |
| Inception Date | 11/05/2025 |
| Distribution Frequency | Annual |
| Underlying Index | Wahed Shariah Alternative Income Index |
| Net Assets | $45,775,423 |
| Number of Holdings | 306 |
Top 10 Holdings as of 03/31/2026
| Company | Ticker | % |
|---|---|---|
| Intuitive Surgical Inc | ISRG | 4.73 |
| Fortinet Inc | FTNT | 4.27 |
| Amazon.com Inc | AMZN | 4.09 |
| Lululemon Athletica Inc | LULU | 4.08 |
| Cadence Design Sys Inc | CDNS | 3.95 |
| Arista Networks Inc | - | 3.86 |
| O'Reilly Automotive Inc | ORLY | 3.85 |
| AutoZone Inc | AZO | 3.69 |
| CrowdStrike Holdings Inc - A | CRWD | 3.67 |
| Advanced Micro Devices | AMD | 3.64 |
KWIN Performance History as of 03/31/2026
| 3 Mo | 6 Mo | Since Inception | 1 Yr | 3 Yr | 5 Yr | Since Inception | |
|---|---|---|---|---|---|---|---|
| Fund NAV | 0.91% | – | 1.72% | – | – | – | 1.72% |
| Closing Price | 0.83% | – | 1.76% | – | – | – | 1.76% |
| Underlying Index | 0.90% | – | 1.53% | – | – | – | 1.53% |
KraneShares
Empowering investors with access to the world's most powerful growth themes through ETFs, private strategies, and innovative investment solutions.
Extensive ETF Product Suite Spanning High Growth Sectors
China, Emerging Markets & Regional
China Suite
- KWEB – Internet & E-Commerce
- KBA / CHIN – China A Shares
- KSTR – STAR Market
- KURE – Healthcare
- KGRN – Clean Technology
- KTEC – Hang Seng Tech
- KCAI – China Onshore Alpha Index
Broader Emerging Markets
- KEMQ – Emerging Markets Consumer Tech
- KPHO – Dragon Capital Vietnam Growth
- KEMX – MSCI Emerging Markets ex China
U.S. & Developed Markets
- KVLE – Value Line® Dynamic Dividend Equity
- KSPY – Hedgeye Hedged Equity
- BUYO – Man Buyout Beta Index
Levered & High-Conviction Exposure
- KBAB – 2X Long BABA Daily
- KPDD – 2X Long PDD Daily
- KMLI – 2X Long MELI Daily
- KJD – 2X Long JD Daily
- KBDU – 2X Long BIDU Daily
AI, Robotics & Emerging Technology
Future Tech
- AGIX – Artificial Intelligence & Technology
- KOID – Humanoid & Embodied Intelligence
- KARS – Electric Vehicles & Future Mobility
Income & Covered Call
Fixed Income
- IVOL – Quadratic Interest Rate Volatility & Inflation Hedge
- KCSH – Sustainable Ultra Short Duration
- KHYB – Asia High Income USD Bond
- BNDD – Quadratic Deflation ETF
Covered Call & Options Income
- KLIP – China Internet & Covered Call
- KIQQ – Nasdaq Buffer & Option Income
Alternative Income
- KWIN – Wahed Alternative Income
Alternatives
Carbon Credits
- KRBN – Global Carbon Strategy
- KCCA – California Carbon Allowance
- KEUA – European Carbon Allowance
Managed Futures
- KMLM – Mount Lucas Managed Futures
Outcome Based Equity
- KPRO – 100% KWEB Defined Outcome
- KBUF – 90% KWEB Defined Outcome
Strategy also available in UCITS / ETC
Index Definitions:
The Wahed Shariah Alternative Income Index: Measures the performance of a strategy consisting of long positions in equities and short synthetic forward positions in the same equities.
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/kwin. 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.
The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund'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.
By writing call options and buying put options as part of its strategy, the Fund may limit its ability to benefit from increases in the value of its holdings above the options' strike prices, while still being exposed to declines in value.
Transactions in options are centrally cleared through the Options Clearing Corporation (OCC). While the OCC guarantees settlement, there is a risk that the OCC or a clearing member could fail to meet its obligations.
Because the Index applies Islamic principles, the Fund cannot invest in certain issuers and securities—such as financial companies and interest-paying bonds—which reduces the pool of eligible investments.
Risk Disclosures Continued:
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. KWIN is non-diversified.
Neither MerQube, Inc. nor any of its affiliates (collectively, "MerQube") is the issuer or producer of KraneShares Wahed Alternative Income Index ETF and MerQube has no duties, responsibilities, or obligations to investors in KraneShares Wahed Alternative Income Index ETF. The index underlying the KraneShares Wahed Alternative Income Index ETF is a product of MerQube and has been licensed for use by Krane Funds Advisors, LLC.
MerQube® is a registered trademark of MerQube, Inc. This trademark has been licensed for certain purposes by Krane Funds Advisors, LLC in its capacity as the issuer of the KraneShares Wahed Alternative Income Index ETF. KraneShares Wahed Alternative Income Index ETF is not sponsored, endorsed, sold or promoted by MerQube, any Data Provider, or any other third party.
NEITHER MERQUBE NOR ANY OTHER DATA PROVIDER GUARANTEES THE ADEQUACY, ACCURACY, TIMELINESS, AND/OR THE COMPLETENESS OF THE MERQUBE US SHARIAH REVERSE CONVERTIBLE INDEX OR ANY DATA RELATED THERETO. MERQUBE AND ITS DATA PROVIDERS MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND THEY EXPRESSLY DISCLAIM ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
Risk Disclosures Continued:
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 Funds.
