KNO
AXS Knowledge Leaders ETF
KNO is an actively managed ETF that seeks to provide long-term capital appreciation by investing primarily in the equities the managers believe to be highly innovative or "knowledge leaders" – innovative companies from all sectors around the world selected using a proprietary methodology based on time-tested academic research.
Overview
Invest in the Intangibles
Companies with a proven track record of investing in research and development as well as other intangible assets have tended to be the innovators and market leaders of the future. The investments made by these "knowledge leaders", a term the portfolio managers use to describe them, are often overlooked by investors and have the potential to drive stronger returns over the long term.
Global Innovation Alternative
KNO carves an alternative pathway to innovation for investors. While most equity ETFs focused on innovation have a bias towards the large US tech companies, KNO takes a more global, diversified approach by looking at all sectors in all developed economies, excluding Hong Kong.
Quantitative Method to Tap into the “Knowledge Effect”
Decades of research going back to the 1990s established the association between a firm’s level of knowledge capital and its subsequent stock performance and exposed a market anomaly whereby stocks of highly innovative companies tend to experience excess returns over those of followers. KNO's portfolio manager, Steve Vannelli, developed the knowledge leaders method in an effort to capitalize on this phenomenon.*
*Source: The Knowledge Effect (White Paper) by Steven Vannelli. (07/2015)
Fund Details
Exchange
CBOE BZX
Ticker
KNO
CUSIP
46144X396
Inception Date
07/07/2015
Distribution Frequency
Quarterly
Management Fee
0.75%
Gross Expense Ratio
0.78%
Investor Benefits
Searching for the higher return potential of innovation while looking to diversify your US tech exposure?
AXS Knowledge Leaders ETF is invested in 11 different economic sectors in 22 different developed countries and seeks to identify typically 100-120 knowledge leaders that invest in key intangible assets, like research and development. KNO can be a great complement to typical equity ETFs.
Avoid "Home" Bias
Designed to be more geographically diverse than other "innovation" ETFs. Invests in all developed economies.
Equally Weighted
Maintains diversification by rebalancing quarterly and equally weighting all holdings.
Deep Expertise
Managed by Steve Vannelli, who originated the ETF based on nearly 25 years of experience analyzing intangible assets and academic research.
Portfolio Manager
Steven Vannelli is the Portfolio Manager for the AXS Knowledge Leaders ETF (KNO). Before joining AXS Investments, he was Chief Executive Officer and founder of Knowledge Leaders Capital based in Denver, CO. There he launched the ETF in 2015 under the ticker KLDW before it was adopted by AXS Investments in 2024.
Mr. Vannelli brings nearly 30 years of experience as an equity analyst and portfolio manager, with a specialized emphasis on investing in highly innovative companies. He developed the proprietary “knowledge leaders” strategy, based on analysis of how investments in intangible capital affect corporate profitability and wealth creation. This novel approach identifies companies from all sectors and developed economies that invest in innovation.
Steven Vannelli, CFA
Knowledge Leaders Capital
Founder, CEO and CIO
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7/22/2024
Rebrands time-tested KLDW ETF, continuing its distinctive equity strategy based on Steve Vannelli’s “Knowledge Effect”
Frequently Asked Questions
What is the ticker for AXS Knowledge Leaders ETF?
KNO.
What exchange is KNO traded on?
The Cboe BZX exchange.
What is the fund’s investment objective?
The fund seeks to provide capital appreciation.
Does KNO track an index?
No. It is an actively traded ETF. The portfolio holds approximately 100-120 equities. View current holdings here.
What types of companies are considered for KNO?
The fund selects equities from a universe of highly innovative companies we identify as knowledge leaders.
What is a “knowledge leader”?
A knowledge leader is an equity the managers believe to be highly innovative.
Knowledge leaders are believed to possess deep reservoirs of intangible capital as a result of their history of investing in knowledge-intensive activities like R&D, brand development and employee education. These firms have demonstrated histories of successfully employing their R&D and have built competitive advantages as a result. Academic research shows that knowledge leaders have a tendency to outperform in the stock market.
We identify knowledge leaders through a proprietary methodology that measures a company’s investment in its future growth.*
*Source: The Knowledge Effect (White Paper) by Steven Vannelli. (07/2015)
How is KNO different from other innovation funds?
Most “innovation” funds are focused on themes, such as large US tech, whereas KNO is diversified, investing in innovative companies in every sector and country in the developed world.
What sectors does KNO invest in?
KNO invests in all 11 major economic sectors. Due to semiconductor-related advances, innovation is alive and well in every industry.
What countries does KNO invest in?
KNO invests in highly innovative companies in 22 different developed countries.
How many holdings does the portfolio hold at any time?
About 100-120.
How is the portfolio weighted?
The portfolio is equal weighted, thus avoiding the home-field bias of cap-weighted funds.
IMPORTANT RISK INFORMATION
You could lose money by investing in the Fund. There can be no assurance that the Fund’s investment objectives will be achieved.
Market Risk: The market price of a security or instrument could decline, sometimes rapidly or unpredictably, due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic or political conditions throughout the world, changes in the general outlook for corporate earnings, changes in interest or currency rates, or adverse investor sentiment generally.
ETF Risk: Investing in an ETF will provide the Fund with exposure to the securities comprising the index on which the ETF is based and will expose the Fund to risks similar to those of investing directly in those securities. Shares of ETFs typically trade on securities exchanges and may at times trade at a premium or discount to their net asset values.
Foreign Investment Risk: The prices of foreign securities may be more volatile than the prices of securities of U.S. issuers because of economic and social conditions abroad, political developments, and changes in the regulatory environments of foreign countries. Changes in exchange rates and interest rates, and the imposition of sanctions, confiscations, trade restrictions (including tariffs) and other government restrictions by the United States and/or other governments may adversely affect the values of the Fund’s foreign investments.
Geographic Investment Risk: To the extent the Fund invests a significant portion of its assets in the securities of companies of a single country or region, it is more likely to be impacted by events or conditions affecting that country or region.
Important Risk Information
There is no guarantee the sectors or asset classes the advisor identifies will benefit from inflation Fund may invest a larger portion of its assets in one or more sectors than many other funds, and thus will be more susceptible to negative events affecting those sectors
Equity Securities Risk: Equity securities may be particularly sensitive to rising interest rates, as the cost of capital rises and borrowing costs increase Equity securities may decline significantly in price over short or extended periods of time, and such declines may occur in the equity market as a whole or in only a particular country, company, industry or sector of the market
Commodities Rick Commodity prices can have significant volatility, and exposure to commonities can cause the value of the Fund's shares to decline or fluctuate in a rapid and unpredictable manner. The values of commodities may be affected by changes in overall market movements, real or perceived inflationary trends, commodity index volatility, changes in interest rates or currency exchange rates, population growth and changing demographics, international economic, political and regulatory developments and factors affecting a particular region industry or commodity.
Futures Contracts Risk The Fund expects that certain of the underlying ETFs in which it invests will utilize futures contracts for its commodities investments. The rek of a position in a futures contract may be very large compared to the relatively low level of margin the Underlying ETF is required to deposit in many cases a relatively smail price movement in a futures contract may result in immediate and substantial loss or gain to the investor relative to the size of a required margin deposit. The prices of futures contracts may not correlate perfectly with movements in the securities or index underlying them
TIPS Risk Principal payments for Treasury inflation Protection Securities are adjusted according to changes in the Consumer Price Index (CPI) While this may provide a hedge against inflation, the returns may be relatively lower than those of other securities Similar to other issuers, changes to the financial condition or credit rating of the US government may cause the value of the Fund's exposure to US Treasury obligations to declirie
Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the ETF Brokerage commissions will reduce returns NAV are calculated using prices as of 400 FM Eastem Time The closing price is the midpoint between the bid and ask price as of the close of exchange. Closing price retums do not represent the returns you would receive if you traded shares at other times