KWIN Presentation
by Kraneshares
The KraneShares Wahed Alternative Income Index ETF
(Ticker: KWIN)
![KraneShares and Wahed logos with KWIN branding on decorative background with geometric pattern]
Introduction to KraneShares
About KraneShares
Krane Funds Advisors, LLC is a specialist investment manager focused on China, Climate, and Alternative assets. KraneShares seeks to provide innovative, high conviction, and first to market strategies. The firm was founded in 2013 and manages for institutions and individuals globally. The firm is a signatory of the United Nations-supported Principles for Responsible Investment (UN PRI).
Product Suite
China Thematic Equity
- KWEB - Internet & E-Commerce*
- KURE - Healthcare
- KGRN - Clean Technology
- KSTR - STAR Market*
- KTEC - Hang Seng Tech
China Core Equity
- KBA - MSCI China A 50
- KCAI - China Onshore Alpha Index
Options Income
- KLIP - KWEB Covered Call
- KWIN - Wahed Alternative Income
Managed Futures
- KMLM - Mount Lucas Managed Futures
Global Equity
- KARS - Electric Vehicles & Future Mobility
- AGIX - Artificial Intelligence & Technology
- KOID - Humanoid & Embodied Intelligence*
EM Equity
- KEMX - MSCI Emerging Markets ex China
- KEMQ - Emerging Markets Consumer Tech
- KPHO - Dragon Capital Vietnam Growth
Levered
- KBAB - 2X Long BABA Daily
- KPDD - 2X Long PDD Daily
- KMLI - 2X Long MELI Daily
- KJD - 2X Long JD Daily
- KBDU - 2X Long Baidu Daily
Carbon
- KRBN - Global Carbon Strategy*
- KEUA - European Carbon Allowance
- KCCA - California Carbon Allowance
Fixed Income
- IVOL - Quadratic Interest Rate Volatility & Inflation Hedge
- BNDD - Quadratic Deflation ETF
- KHYB - Asia High Income USD Bond
- KCSH - Sustainable Ultra Short Duration
US Equity
- KSPY - Hedgeye Hedged Equity
- BUYO - Man Buyout Beta Index
- KVLE - Value Line® Dynamic Dividend Equity
- KIQQ - Nasdaq Hedge & Option Income
*Strategy also available in UCITS
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.
*The Fund's option strategy is designed to achieve a delta-neutral outcome, meaning that the overall portfolio is constructed so that small changes in the price of the underlying stocks have minimal impact on the Fund's value. However, a delta-neutral position does not eliminate all risk. The Fund remains subject to other risks, including larger price movements, changes in volatility, time decay, and other market factors. Investors may still experience losses, and there is no guarantee that the strategy will be successful in maintaining a delta-neutral position or in achieving its investment objectives.
Example income generating option strategy:
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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.
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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.
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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.
Strike Price ("strike level"): A strike price is the predetermined price at which the holder of an options contract can buy (for a call option) or sell (for a put option) the underlying asset when exercising the option.
Risk-free Rate: The risk-free rate is the theoretical return an investor would earn on an investment with zero risk, typically represented in practice by the yield on high-quality government securities like U.S. Treasury bills or bonds.
Treasury Bill (T-Bill): A Treasury bill is a short-term debt security issued by the U.S. government, maturing in one year or less, and considered virtually risk-free since it is backed by the full faith and credit of the U.S. Treasury.
Example: Option Strategy With Amazon
- Buy Amazon stock
- Long PUT
- Short CALL
HOW IT GENERATES OPTION INCOME
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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.
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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 is comprised of large capitalization companies that are based in the United States.
KWIN Sector Breakdown
- Information Technology: 57%
- Consumer Discretionary: 25%
- Health Care: 9%
- Industrials: 4%
- Communication Services: 3%
- Financials: 2%
Sector Average Market Cap
- Information Technology: $107,463,300,000
- Consumer Discretionary: $703,062,240,000
- Health Care: $171,061,620,000
- Industrials: $169,779,520,000
- Financials: $36,127,510,000
- Communication Services: $18,357,260,000
Data from Bloomberg as of 12/31/2025.
KWIN universe top 10 holdings
| Top 10 KWIN Holdings | GICS Sector | KWIN Weight |
|---|---|---|
| INTUITIVE SURGICAL INC | Health Care | 5.39% |
| LULULEMON ATHLETICA INC | Consumer Discretionary | 5.11% |
| ADOBE INC | Information Technology | 4.72% |
| FIRST SOLAR INC | Information Technology | 4.63% |
| CADENCE DESIGN SYS INC | Information Technology | 4.47% |
| AMAZON.COM INC | Consumer Discretionary | 4.46% |
| AUTODESK INC | Information Technology | 4.39% |
| SYNOPSYS INC | Information Technology | 4.35% |
| TESLA INC | Consumer Discretionary | 4.28% |
| CROWDSTRIKE HOLDINGS INC - A | Information Technology | 4.09% |
| Total: | 45.89% |
The Fund's holdings are subject to change. Data from Bloomberg as of 12/31/2025.
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 Statistics:
- Founded in 2017
- HQ: New York
- ~420k clients
- ~99% retention rate
- ~$1.1b AUM
- ~100% revenue growth
Geographic footprint:
- Live in: USA, UK, UAE, MYS
- Licenses in: USA, UK, MUS, MYS, UAE, MUS, NGA, IDN, IND, ZAF
Key investors: Saudi Aramco, QDB, CUE BALL
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 12/31/2025
| 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 | $36,536,611 |
| Number of Holdings | 336 |
Top 10 Holdings as of 12/31/2025
Holdings are subject to change.
| Ticker | % |
|---|---|
| ISRG | 5.39 |
| LULU | 5.11 |
| ADBE | 4.72 |
| FSLR | 4.63 |
| CDNS | 4.47 |
| AMZN | 4.46 |
| ADSK | 4.39 |
| SNPS | 4.35 |
| TSLA | 4.28 |
| CRWD | 4.09 |
KWIN Performance History as of 12/31/2025:
| 3 Mo | 6 Mo | Since Inception | 1 Yr | 3 Yr | 5 Yr | Since Inception | |
|---|---|---|---|---|---|---|---|
| Fund NAV | – | – | 0.80% | – | – | – | 0.80% |
| Closing Price | – | – | 0.92% | – | – | – | 0.92% |
| Underlying Index | – | – | 0.79% | – | – | – | 0.79% |
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.
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.
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. 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. The Fund 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 the Fund 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.
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. The premiums received from selling options may not be enough to offset losses from volatility or declines in the underlying stocks. The Fund's use of options involves unique risks, including the possibility that options may become illiquid or expire worthless, and that the Fund may not be able to close out positions at desired times or prices. FLEX options, which the Fund uses, may be less liquid than standard options and can only be exercised at expiration.
The value of the Fund's options positions will fluctuate with changes in the value and volatility of the underlying securities. Unusual market conditions or trading suspensions may reduce the effectiveness of the Fund's options strategies, and the Fund's strategies may not work as expected and could result in losses. In addition, the Fund's ability to sell or buy the underlying securities may be limited while options are outstanding, unless the Fund cancels out the option positions by purchasing offsetting options before expiration.
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, which could result in losses for the Fund. If the Fund cannot find a clearing member to transact with, it may be unable to effectively implement its investment strategy.
Premiums received from writing options will generally result in short-term capital gains, which may be taxed at higher rates than long-term capital gains.
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. This may limit investment opportunities and affect performance. The Fund will not earn interest on cash, and securities may become non-compliant after purchase and be held until the Index is rebalanced. A large number of shares of the Fund is held by a single shareholder or a small group of shareholders. Redemptions from these shareholder can harm Fund performance, especially in declining markets, leading to forced sales at disadvantageous prices, increased costs, and adverse tax effects for remaining shareholders.
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. 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. 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. Such index is calculated using, among other things, market data or other information ("Input Data") from one or more sources (each such source, a "DataProvider").
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, and none of such parties make any representation regarding the advisability of investing in securities generally or in KraneShares Wahed Alternative Income Index ETF particularly, nor do they have any liability for any errors, omissions, or interruptions of the Input Data, the MerQube US Shariah Reverse Convertible Index, or any associated data. Neither MerQube nor the Data Providers make any representation or warranty, express or implied, to the owners of the shares/units of KraneShares Wahed Alternative Income Index ETF or to any member of the public, of any kind, including regarding the ability of the MerQube US Shariah Reverse Convertible Index to track market performance or any asset class. The MerQube US Shariah Reverse Convertible Index is determined, composed and calculated by MerQube without regard to Krane Funds Advisors, LLC or the KraneShares Wahed Alternative Income Index ETF. MerQube and Data Providers have no obligation to take the needs of Krane Funds Advisors, LLC, or the owners of KraneShares Wahed Alternative Income Index ETF into consideration in determining, composing, or calculating the MerQube US Shariah Reverse Convertible Index. Neither MerQube nor any Data Provider is responsible for and have not participated in the determination of the prices or amount of KraneShares Wahed Alternative Income Index ETF or the timing of the issuance or sale of KraneShares Wahed Alternative Income Index ETF or in the determination or calculation of the equation by which KraneShares Wahed Alternative Income Index ETF is to be converted into cash, surrendered or redeemed, as the case may be. MerQube and Data Providers have no obligation or liability in connection with the administration, marketing or trading of KraneShares Wahed Alternative Income Index ETF. There is no assurance that investment products based on the MerQube US Shariah Reverse Convertible Index will accurately track index performance or provide positive investment returns. MerQube is not an investment advisor. Inclusion of a security within an index is not a recommendation by MerQube to buy, sell, or hold such security, nor is it considered to be investment advice.
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 (INCLUDING DATA INPUTS) OR ANY COMMUNICATION WITH RESPECT THERETO. NEITHER MERQUBE NOR ANY OTHER DATA PROVIDERS SHALL BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. 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 OR USE OR AS TO RESULTS TO BE OBTAINED BY KRANE FUNDS ADVISORS, LLC, OWNERS OF THE KRANE SHARES WAHED ALTERNATIVE INCOME INDEX ETF, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THEMERQUBE US SHARIAH REVERSE CONVERTIBLE INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANYOF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL MERQUBE OR DATA PROVIDERS BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOSTTIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THE FOREGOING REFERENCES TO "MERQUBE" AND/OR "DATA PROVIDER" SHALL BE CONSTRUED TO INCLUDE ANY AND ALL SERVICE PROVIDERS, CONTRACTORS, EMPLOYEES, AGENTS, AND AUTHORIZED REPRESENTATIVES OF THE REFERENCED PARTY.
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.
