The Knowledge Leaders Developed World ETF has marked its two-year milestone with news of continued growth and outperformance.
As of the end of July, KLDW’s assets had surpassed USD80 million as the alpha-seeking ETF continued its record of outperformance since inception, besting the MSCI World Index by 2.84 per cent (NAV) annualised.
In addition, the Knowledge Leaders Developed World ETF, which seeks to capture the excess returns of highly innovative companies, ranked in the top decile in the Morningstar World Large Stock category for total return and the generation of alpha, a measure of excess returns against the benchmark index, for the two-year period as of 31 July 2017 (of 843 funds for total return and alpha).
The Knowledge Leaders ETF’s track record illustrates the tendency of Knowledge Leaders to deliver excess returns in the stock market. For example, KLDW delivered greater total return and alpha than all five of the top benchmark indexes tracked by the largest international core equity ETFs over ywo years, as of 31 July 2017. These included the FTSE Developed Index, the FTSE Developed ex-US All Cap Index, the MSCI World Index, the MSCI All Country World Index, and the MSCI EAFE Index.
KLDW’s investment strategy is based on capturing the Knowledge Effect, the tendency of highly innovative companies to generate excess returns in the stock market. As KLDW’s since inception performance demonstrates, the Knowledge Effect has been persistent across economic sectors and consistent through time.