KIQQ KraneShares InspereX Nasdaq Dynamic Buffered High Income Index ETF

Overview

Investment Strategy:

KIQQ is designed for investors seeking to maintain equity exposure to the Nasdaq-100® Index through volatile and uncertain markets. The underlying approach is similar to a common trading strategy known as a “collar”, where an investor owns a stock position and simultaneously sells call options to generate option income while purchasing put options to hedge against downside risk. KIQQ takes this strategy one step further by utilizing the Nasdaq InspereX Dynamic Buffered High Income™ Index as its benchmark. The Index uses futures on the Nasdaq-100 Futures Excess Return™ Index to delta-replicate loss-limiting puts, while selling out-of-the-money calls to generate option income. This enhanced approach seeks to provide upside participation, a potential reduction in hedging costs, and monthly distributions.​

Why KIQQ:

• KIQQ was developed in partnership with InspereX, who specializes in structured risk-managed solutions, while also leveraging the expertise of Goldman Sachs, who is the fund’s primary SWAP partner.
• KIQQ is designed for investors seeking to maintain equity exposure through volatile and uncertain markets, like in 2025, where the Nasdaq 100 continued to hit all-time highs even as valuations and concentration risk increased.​
• KIQQ’s Index utilizes an enhanced collar strategy to potentially serve as a useful building block for portfolios seeking growth potential while limiting losses and mitigating downside risk.​

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. As of Fund launch, Goldman Sachs serves as the swap counterparty. Counterparties are subject to change without notice. Goldman Sachs does not sponsor, endorse, or guarantee the Fund. Please see the end of the presentation for definitions.

Delta-replicate loss-limiting puts: An options strategy involving put options structured to limit downside risk, where the "delta" is closely matched (replicated) to the underlying asset’s movements, providing targeted risk exposure or protection. The core objective is to hedge a position while effectively capping potential losses through a controlled options purchase. This approach is mainly used to ensure a portfolio against significant declines while retaining upside potential.​