KFA Funds
KFA Funds is a New York-based ETF platform, operated by Krane Funds Advisors, LLC, that develops and distributes 34+ differentiated investment strategies — including the IVOL and BNDD options-based ETFs sub-advised by Quadratic Capital Management — for global institutional and retail investors via NYSE listing and major broker-dealers.
- Company typePrivate
- Founded2012
- HeadquartersNew York, United States
- Headcount11–50
- GTM typeB2B
- OfferingServices
What KFA Funds does
KFA Funds is a New York-based ETF platform operated by Krane Funds Advisors, LLC, an SEC-registered investment adviser founded in 2012. It develops and distributes differentiated, high-conviction investment strategies for global institutional investors, with offices in New York, San Francisco, and London and 11–50 employees. The platform combines two core KFA Funds-branded ETFs — IVOL (Quadratic Interest Rate Volatility and Inflation Hedge ETF) and BNDD (Quadratic Deflation ETF), sub-advised by Quadratic Capital Management (Nancy Davis) — with the broader KraneShares ETF lineup spanning China/EM equity (KWEB, KBA, KURE, KSTR, KTEC, KEMX), climate/carbon (KRBN, KCCA), AI/technology (AGIX, KOID), and various thematic and fixed-income strategies, totaling 34+ funds and $8.5B+ in combined AUM.
The core technology is product structuring rather than software: IVOL is constructed as ~80% TIPS combined with fully funded OTC interest rate options, providing retail and institutional investors ETF-level access to a fixed-income volatility market that was previously OTC-only. BNDD uses US Treasuries and OTC options to express a deflation/yield-curve-flattener view. The funds are listed on NYSE and distributed by SEI Investments Distribution Company (SIDCO), with availability on Robinhood, Fidelity, Schwab, E*Trade, and Interactive Brokers.
Revenue is generated primarily through ETF management fees embedded in expense ratios (gross 0.30%–1.27%, with contractual fee waivers on some share classes through August 2026) and supplemented by securities-lending activity on fund holdings. The firm targets a horizontal segmentation of institutional investors (pensions, endowments, foundations, family offices, RIAs) and global investors seeking non-traditional diversification, supported by a content-led go-to-market motion comprising a semi-monthly newsletter, research/insights blog, webinars, media appearances by Nancy Davis on Bloomberg and CNBC, and downloadable fact sheets and pitchbooks.
KFA Funds firmographics
Firmographics- Name
- KFA Funds
- Legal name
- Krane Funds Advisors, LLC
- Website
- https://kfafunds.com
- Company type
- Private
- Founded year
- 2012
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- KFA Funds is a New York-based ETF platform, operated by Krane Funds Advisors, LLC, that develops and distributes 34+ differentiated investment strategies — including the IVOL and BNDD options-based ETFs sub-advised by Quadratic Capital Management — for global institutional and retail investors via NYSE listing and major broker-dealers.
- Ownership category
- akta.pro rank
KFA Funds industry classification
Industry- Product category
- Exchange-Traded Funds (Asset Management)
- NAICS
- Portfolio Management and Investment Advice (523940)
- SIC
- Investment Advice (6282)
- akta.pro primary industry
- Sector & Industry Equity ETFs (FSAAAFAC)
- akta.pro secondary industries
- Credit & High Yield / Bank Loan ETFs (FSAAAFAE), Real Assets & Infrastructure ETFs (REITs, Infrastructure, Natural Resources) (FSAAAFAH), Broad Market Equity ETFs (FSAAAFAA)
Keywords
Where KFA Funds is headquartered
LocationHeadquarters
- HQ city
- New York
- HQ country
- United States
- HQ region
- North America
Offices3 records
Markets served
KFA Funds business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure
Revenue model
- ETF Management Fees: KFA Funds generates revenue through management fees embedded in expense ratios charged to investors in its suite of ETFs. Each fund has a specified gross expense ratio ranging from 0.20% to 1.27% as of July 2026.
- Securities Lending: Revenue may be generated through securities lending activities associated with ETF holdings, though specific details are not disclosed.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Annual | IVOL - Quadratic Interest Rate Volatility and Inflation Hedge ETF |
| Subscription | Annual | BNDD - Quadratic Deflation ETF |
| Subscription | Annual | KMLM - KraneShares Mount Lucas Managed Futures Index Strategy ETF |
| Subscription | Annual | Various KraneShares ETFs (KWEB, AGIX, KSTR, etc.) |
Go-to-market motion2 records
Distribution channels3 records
Marketing channels5 records
KFA Funds product offering
Product offeringCore offering
KFA Funds, operated by Krane Funds Advisors, LLC, is an SEC-registered investment adviser that develops and delivers a suite of exchange-traded funds (ETFs) offering differentiated, high-conviction investment strategies for global investors. The platform spans 34+ ETFs covering China/emerging markets equities, carbon/climate, AI/robotics, fixed income, and alternatives, with the core KFA-branded products being the Quadratic Capital–sub-advised IVOL (Interest Rate Volatility and Inflation Hedge ETF) and BNDD (Deflation ETF).
Product overview
KFA Funds is a platform for differentiated, high-conviction investment strategies, offering a portfolio of 34 ETFs. The core KFA Funds products are two Quadratic Capital ETFs: IVOL (Quadratic Interest Rate Volatility and Inflation Hedge ETF) and BNDD (Quadratic Deflation ETF). These are complemented by the broader KraneShares ETF lineup including China/EM equity funds (KWEB, KSTR, KTEC), carbon/climate funds (KRBN, KCCA), AI/technology funds (AGIX, KOID), and various thematic and leveraged funds. KFA Funds ETFs are distributed through major brokerages and designed for institutional investors seeking non-traditional diversification.
Differentiator
Problem solved
Functional benefit
Brands
- KraneShares: A brand of ETFs primarily focused on China and emerging markets investments, including KWEB (KraneShares CSI China Internet ETF), KLIP, KBA, KURE, and numerous other China and emerging market focused products.
Products and services
- IVOL (Quadratic Interest Rate Volatility and Inflation Hedge ETF) Actively managed ETF that hedges the risk of increased fixed income volatility and/or increased inflation expectations. Invests approximately 80% in TIPS and adds fully funded OTC interest rate options to provide access to the OTC fixed income options market. Designed for institutional investors seeking inflation protection and non-traditional fixed income exposure.
- BNDD (Quadratic Deflation ETF) Actively managed government bond ETF that seeks to benefit from lower growth, deflation, lower or negative long-term interest rates, and/or yield curve flattening by investing in U.S. Treasuries and OTC options. Targets institutional investors seeking to hedge deflationary scenarios.
- KWEB (KraneShares CSI China Internet ETF) Flagship KraneShares ETF providing exposure to China's internet and technology sector. Listed on NYSE; flagship product with $5.07B AUM as of July 2026.
- KRBN (KraneShares Global Carbon Strategy ETF) ETF providing exposure to global carbon credit futures markets. Designed for investors seeking climate-aligned and carbon allowance investment strategies.
- KCCA (KraneShares California Carbon Allowance Strategy ETF) ETF tracking the California Cap-and-Trade carbon allowance market. Provides exposure to US state-level carbon credit pricing.
- AGIX (KraneShares Artificial Intelligence & Technology ETF) Thematic ETF providing exposure to artificial intelligence and disruptive technology companies. Held $763M AUM as of July 2026.
- KMLM (KraneShares Mount Lucas Managed Futures Index Strategy ETF) Systematic managed futures ETF providing diversified exposure to global futures markets. Expense ratio 0.85%. Held $313M AUM as of July 2026.
- KSTR (KraneShares SSE STAR Market 50 Index ETF) ETF providing exposure to China's STAR Market technology and innovation companies listed on the Shanghai Stock Exchange.
- KLIP (KraneShares KWEB Covered Call Strategy ETF) Covered call strategy ETF that holds KWEB and writes call options to generate income. Options-based income strategy on China internet exposure.
- KARS (KraneShares Electric Vehicles & Future Mobility Index ETF) Thematic ETF providing exposure to electric vehicles, autonomous driving, and future mobility companies globally.
Quantifiable outcome
- IVOL delivered +11.97% in 2025, one of top-performing fixed income funds, with -0.50 correlation to S&P 500 and 0.23 correlation to Bloomberg Agg
- +2 more outcomes
Companies that use KFA Funds
Customer profileSegments2 records
Ideal customer profiles2 records
KFA Funds technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Feature3 records
KFA Funds partnerships and signals
Strategic signalPartnerships
Six partnerships are on record, tiered core and minor.
- SEI Investments Distribution Company (SIDCO)coreSEI Investments Distribution Company serves as the official distributor for KraneShares ETFs and KFA Funds. Located at 1 Freedom Valley Drive, Oaks, PA 19456. Not affiliated with Krane Funds Advisors, LLC.
- Quadratic Capital ManagementcoreQuadratic Capital Management, founded in 2013 by Nancy Davis, serves as sub-adviser for IVOL and BNDD ETFs. Provides expertise in options and volatility markets. Nancy Davis serves as Portfolio Manager for these funds.
- RobinhoodminorRetail brokerage platform offering IVOL and BNDD for purchase to Robinhood users.
- FidelityminorMajor retail brokerage offering KFA Funds ETFs for purchase.
- SchwabminorMajor retail brokerage offering KFA Funds ETFs for purchase.
- Interactive BrokersminorRetail brokerage platform offering IVOL and BNDD for purchase to Interactive Brokers users.
Scale indicators3 records
Recent moves6 records
KFA Funds competitors and assessment
Company assessmentDirect peers
- Invesco: Invesco operates a comparable ETF platform with similar active and thematic offerings (QQQ family, BulletShares fixed income). Highly comparable as a mid-to-large ETF issuer with both broad and niche strategies competing in similar channels.
- First Trust: First Trust is a comparable mid-sized ETF issuer with thematic, sector, and income-focused products distributed through similar advisor and institutional channels. Comparable in product breadth and target customer profile.
- WisdomTree Investments: WisdomTree is a direct peer in thematic and differentiated ETFs, particularly in EM, currency-hedged, and active strategies. Similar business model focused on higher-conviction ETF products targeting advisors and institutional buyers.
- ProShares: ProShares specializes in leveraged, inverse, and alternatives ETFs including volatility products. Highly comparable as a specialist ETF issuer with active management and complex strategies targeting sophisticated investors.
Broad incumbents
- Vanguard: Vanguard is a top-3 global ETF issuer known for low-cost broad-market index ETFs. Comparable as a major ETF platform but competes on scale and low fees rather than differentiated active or thematic strategies like KFA Funds.
- PIMCO: PIMCO operates a growing active ETF suite focused on fixed income and multi-asset strategies. Directly comparable in the active bond/fixed income ETF space where IVOL competes, with similar institutional targeting and active management ethos.
- State Street Global Advisors (SPDR): State Street operates the SPDR ETF franchise, one of the original ETF families. Comparable broad ETF platform with both traditional and thematic offerings, including fixed income and sector exposures that overlap with KFA Funds' suite.
- BlackRock (iShares): BlackRock is the world's largest ETF issuer through iShares with multi-trillion AUM. Directly comparable as the dominant broad-market ETF platform, though KFA Funds differentiates through niche/thematic offerings rather than competing in BlackRock's core broad-market products.
Emerging players
- Alpha Architect: Alpha Architect is an emerging ETF issuer focused on quantitative and factor-based strategies. Comparable as a smaller, specialized active ETF platform competing for advisor mindshare with differentiated active strategies.
Others
- Quadratic Capital Management: Quadratic Capital Management is the sub-adviser for IVOL and BNDD, founded by Nancy Davis. Included as an ecosystem participant rather than competitor; its portfolio management partnership is core to KFA Funds' most differentiated products.
Market position
Strengths2 records
Weaknesses5 records
Competitive moat3 records
Key risks5 records
Key highlights6 records
Customer concentration
KFA Funds social profiles
Digital presenceKFA Funds financial estimates
Financial estimateRevenue estimate
Valuation estimate
KFA Funds leadership team
Management profileNumber of profiles
KFA Funds funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
KFA Funds M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about KFA Funds
What does KFA Funds do?
KFA Funds, operated by Krane Funds Advisors, LLC, is an SEC-registered investment adviser that develops and delivers a suite of exchange-traded funds (ETFs) offering differentiated, high-conviction investment strategies for global investors. The platform spans 34+ ETFs covering China/emerging markets equities, carbon/climate, AI/robotics, fixed income, and alternatives, with the core KFA-branded products being the Quadratic Capital–sub-advised IVOL (Interest Rate Volatility and Inflation Hedge ETF) and BNDD (Deflation ETF).
Is KFA Funds a public or private company?
KFA Funds is a private company. It is classified as founder individual operated bootstrapped and is currently operating.
When was KFA Funds founded?
KFA Funds was founded in 2012. It employs 11 to 50 people.
Where is KFA Funds based?
KFA Funds is headquartered in New York, United States, in the North America region.
How does KFA Funds make money?
Two revenue lines are on record. ETF Management Fees are the primary driver. The others are securities Lending.
Who are KFA Funds's main competitors?
Direct peers on record are Invesco, First Trust, WisdomTree Investments and ProShares. Broad incumbents are Vanguard, PIMCO, State Street Global Advisors (SPDR) and BlackRock (iShares). Alpha Architect is listed as an emerging player. Quadratic Capital Management is listed as an others.
Does KFA Funds have an API?
No public API is recorded for KFA Funds.
What industry is KFA Funds in?
KFA Funds's product category is Exchange-Traded Funds (Asset Management). Its primary akta.pro industry code is FSAAAFAC, Sector & Industry Equity ETFs, with a secondary code of FSAAAFAE, Credit & High Yield / Bank Loan ETFs. Its NAICS code is 523940 and its SIC code is 6282.