NEW YORK, Dec. 04, 2025 (GLOBE NEWSWIRE) -- KraneShares, a leading global asset manager known for its innovative exchange-traded funds (ETFs), today announced the launch of the KraneShares Dragon Capital Vietnam Growth Index ETF (Ticker: KPHO). KPHO provides investors with targeted exposure to Vietnamese companies selected using a fundamental and proprietary growth methodology within one of Southeast Asia’s most dynamic and promising economies.
Dragon Capital, Vietnam’s largest fund manager by assets,1 will serve as the fund’s sub-advisor. With over three decades of on-the-ground experience, Dragon Capital’s deep local research capabilities and established product base position KPHO to capture compelling growth opportunities across Vietnam’s equity market.
“We believe Vietnam is becoming a key growth engine within global emerging markets,” said Jonathan Krane, CEO of KraneShares. “With favorable demographics, a young and skilled workforce, and rising foreign direct investment, the country is positioned to benefit from global supply chain diversification and surging consumer demand. Through our partnership with Dragon Capital, we are proud to bring investors a transparent, rules-based way to participate in Vietnam’s powerful growth story.”
Vietnam continues to rank among the fastest-growing economies globally, recording 7.5% year-over-year gross domestic product growth in the first half of 2025 – one of the strongest rates in the Asia-Pacific region.2 With a median age of just 33, Vietnam boasts a stable, expanding labor force that underpins its export-led development and rapidly growing domestic consumption.1
By investing in Dragon Capital’s locally-listed Diamond ETF, KPHO offers investors comprehensive access to Vietnam’s capital markets. This innovative structure helps overcome traditional barriers, such as foreign ownership limits, enabling investors to participate in the country’s next phase of growth.
Vietnam has been upgraded from Frontier Market to Emerging Market by global index provider FTSE Russell, with the reclassification set to go into effect in September 2026.3 It is also on the radar for a similar upgrade from MSCI. Dragon Capital estimates that upgrades from both providers could potentially drive approximately $25 billion in new inflows into Vietnam’s equity market* — 9% of the country’s current market capitalization.1
“As one of the fastest-growing economies in the world, Vietnam is poised to enter a golden era of opportunity,” said Dominic Scriven, Chairman and Co-Founder of Dragon Capital. “Our partnership with KraneShares combines Dragon Capital’s over 30 years of on-the-ground expertise with KraneShares’ global platform to deliver KPHO. This ETF provides investors efficient and broad access to Vietnam’s equity market during a pivotal moment, as the country moves toward inclusion in major global benchmarks like FTSE and potentially MSCI Emerging Markets – a milestone that could attract significant foreign investment and global diversification opportunities.**”
For KPHO standard performance, top 10 holdings, risks, and other fund information, visit www.kraneshares.com/etf/kpho or speak with your financial advisor.
*There is no assurance that Vietnam will be upgraded or that any resulting market inflows will occur. Market upgrades do not guarantee positive performance.
**KPHO is a non-diversified fund. The statement regarding diversification refers to exposure to a developing economy, not regulatory diversification under the Investment Company Act of 1940.
Citations:
- Data from Dragon Capital as of 12/31/2024.
- “Viet Nam’s 2025 GDP growth forecast raised to 7 per cent, highest in ASEAN +3: AMRO,” Viet Nam News. July 24, 2025.
- FTSE Russell. “FTSE Russell announces results of September 2025 semi-annual country classification review for equities and fixed income,” LSEG. October 7, 2025.
Gross Domestic Product (GDP): The total amount of goods and services produced within a country over a period of one year.
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 www.kraneshares.com/kpho. 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.
Investing in Vietnamese companies involves significant risks that are greater than those found in developed markets and are typical of both emerging and frontier markets. These risks include political and economic instability, government intervention, and the potential for expropriation or nationalization of assets. The Vietnamese government may impose restrictions on foreign investment, capital repatriation, or ownership limits, which could affect your ability to access or withdraw your investment. Vietnam’s economy is highly dependent on trading relationships with countries such as the United States, China, and Japan, and a decline in demand from these trading partners could negatively impact Vietnamese companies and the Fund. As an emerging and frontier market, Vietnam’s financial markets are less developed, more volatile, and less liquid than those of developed countries, and are subject to higher inflation, currency fluctuations, and regulatory changes. There may also be restrictions or delays on moving money in and out of the country, and additional taxes or costs for foreign investors. The securities markets in Vietnam may experience trading suspensions, low trading volumes, or sudden price swings, and the government may exercise substantial influence over many aspects of the private sector. These and other risks may result in greater losses, delays, or volatility compared to investments in more developed markets.
As an ETF, the Fund may trade at prices above or below its net asset value, especially during periods of market volatility or if there are few financial institutions creating and redeeming shares. The Fund’s use of cash for creations and redemptions can lead to higher taxes and transaction costs, which may reduce returns. Because the Fund invests in foreign markets—including indirect exposure through a locally traded Vietnamese ETF—its shares may trade at prices that differ from the value of the underlying securities, and there is no guarantee that an active trading market will always exist for the Fund’s shares
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.
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. KPHO is non-diversified.
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.
Contact:
KraneShares Investor Relations
info@kraneshares.com
