KFA Funds

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.

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

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

• Exchange-traded funds
• Asset management
• Investment management
• Thematic ETFs
• Fixed income volatility

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. 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.
2. Securities Lending: Revenue may be generated through securities lending activities associated with ETF holdings, though specific details are not disclosed.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels5 records

Core 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

Segments2 records

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Six partnerships are on record, tiered core and minor.

• SEI Investments Distribution Company (SIDCO)coreChannel Partner/ Reseller/ DistributorSEI 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 ManagementcoreStrategic or Co-development PartnerQuadratic 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.
• RobinhoodminorChannel Partner/ Reseller/ DistributorRetail brokerage platform offering IVOL and BNDD for purchase to Robinhood users.
• FidelityminorChannel Partner/ Reseller/ DistributorMajor retail brokerage offering KFA Funds ETFs for purchase.
• SchwabminorChannel Partner/ Reseller/ DistributorMajor retail brokerage offering KFA Funds ETFs for purchase.
• Interactive BrokersminorChannel Partner/ Reseller/ DistributorRetail brokerage platform offering IVOL and BNDD for purchase to Interactive Brokers users.

Scale indicators3 records

Recent moves6 records

Direct 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

• Xx.com/KraneShares
• Facebookfacebook.com/KraneShares
• LinkedInlinkedin.com/company/kraneshares

Revenue estimate

Valuation estimate

Number of profiles

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about KFA Funds