KraneShares Launches Global Luxury ETF Benchmarked to Solactive Global Luxury Selected USD Index
The worldwide luxury goods market has recorded a total revenue of $354.8 billion in 2023, with a projected annual growth of 3.4% by 2028. To cater to the growing demand from investors seeking to capitalize on this flourishing sector, KraneShares has launched the KraneShares Global Luxury Index ETF, tracking the Solactive Global Luxury Select USD Index.
The Solactive Global Luxury Select USD Index comprises companies involved in global luxury sectors, including travel, leisure, premium wear, apparel, luxury goods, and premium consumer goods. Stocks are selected through a rule-based process considering minimum market capitalization, liquidity, and industry classification. Components are weighted based on their free float market value, subject to maximum weight caps on the top holdings to avoid overconcentration.
The KraneShares Global Luxury Index ETF is listed on the NYSE Arca with the ticker code KLXY.
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “We are delighted that KraneShares selected Solactive to launch their global luxury ETF. Through our Solactive Global Luxury Select Index, we strive to develop a benchmark tailored to this niche yet high-potential segment, providing valuable opportunities for investors seeking exposure to this industry.”
“We believe the global luxury sector is poised to flourish as international travel regains momentum. The rising middle class in emerging markets is creating millions of new customers for luxury companies. This population presents a long-term growth opportunity with their strong pricing power and high barriers to entry, which are advantageous during economic upturns and downturns” said Jonathan Krane, Founder and CEO of KraneShares. “KLXY provides investors with a compelling solution to gain direct exposure to the significant growth opportunity offered by the global luxury market.”