ETF Evaluator: Quadratic Intrst Rt Vol & Infl H ETF () Follow This ETF

Quadratic Intrst Rt Vol & Infl H ETF Overview

Quadratic Intrst Rt Vol & Infl H ETF (IVOL) is an actively managed Taxable Bond Inflation-Protected Bond exchange-traded fund (ETF). KraneShares launched the ETF in 2019.

The investment seeks to hedge relative interest rate movements, whether these movements arise from falling short-term interest rates or rising long-term interest rates, and to benefit from market stress when fixed income volatility increases, while providing the potential for enhanced inflation-protected income. The fund is actively managed and seeks to achieve its investment objective primarily by investing, directly or indirectly, in a mix of U.S. Treasury Inflation-Protected Securities ("TIPS") and long options tied to the shape of the U.S. interest rate curve. It is non-diversified.

About Quadratic Intrst Rt Vol & Infl H ETF (IVOL)

There are 1 members of the management team with an average tenure of 7.22 years: Nancy Davis (2019). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 1 primary benchmark: Bloomberg US Treasury US TIPS TR USD index with a weighting of 100%. Quadratic Intrst Rt Vol & Infl H ETF has 12 securities in its portfolio. The top 10 holdings constitute 75.3% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a nondiversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Quadratic Intrst Rt Vol & Infl H ETF is part of the Fixed Income global asset class and is within the Taxable Bond ETF group. Quadratic Intrst Rt Vol & Infl H ETF has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0% There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 85.0% (85.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Quadratic Intrst Rt Vol & Infl H ETF has 15.0% of the portfolio in cash.

Assets Under Management

The fund has $272 million in total assets, which is below the $2 billion average for the Inflation-Protected Bond category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

IVOL Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Quadratic Intrst Rt Vol & Infl H ETF expense ratio is high compared to funds in the Inflation-Protected Bond category. Quadratic Intrst Rt Vol & Infl H ETF has an expense ratio of 0.98%, which is 257% higher than its category average, making the fund expense ratio grade a F. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Quadratic Intrst Rt Vol & Infl H ETF has a portfolio turnover rate of 0%, which indicates that it holds its assets around /years. By way of comparison, the average portfolio turnover is 37% for the Inflation-Protected Bond category.

Recently, in the month of July 2026, Quadratic Intrst Rt Vol & Infl H ETF returned 1.0%, which earned it a grade of A, as the Inflation-Protected Bond category had an average return of -0.7%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Quadratic Intrst Rt Vol & Infl H ETF has a trailing yield of 3.87%, which is below the 4.95% category average. The fund normally distributes its income monthly.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Quadratic Intrst Rt Vol & Infl H ETF Grades

Year to date, the ETF has returned -6.9%, 6.4 percentage points worse than the category, which translates into a grade of F. The fund has returned -5.5% over the past year (grade of F), -1.8% over the past three years (grade of F) and -5.8% per year over the past five years (grade of F).

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