KraneShares Trust (KEM)KEM

KraneShares Dynamic Emerging Markets Strategy ETF (KEMP)

Profile:

KEMP is an actively managed ETF that employs a dynamic allocation strategy to invest in emerging market equities and fixed income securities. It primarily focuses on growth potential and diversification across various sectors, including technology, healthcare, consumer staples, financials, and energy.

Objective:

KEMP's primary objective is to achieve long-term capital appreciation by investing in a diversified portfolio of emerging market assets.

Issuer:

KraneShares is a global asset management firm with over $12 billion in assets under management. Founded in 2014, KraneShares focuses primarily on China- and emerging market-focused ETFs.

Reputation and Reliability:

KraneShares has a solid reputation in the industry, having been recognized for its innovative ETF strategies and commitment to transparency.

Management:

The firm's portfolio management team possesses extensive experience in emerging markets and quantitative analysis, led by CIO and portfolio manager David Schassler.

Market Share:

KEMP currently holds a market share of approximately 0.2% within the emerging market equity ETF category.

Total Net Assets:

KEMP's total net assets under management are roughly $240 million.

Moat:

KEMP's moat lies in its unique dynamic allocation strategy, which allows for flexible asset allocation and potential outperformance in various market conditions. This strategy leverages quantitative models and proprietary research to identify areas of opportunity within the emerging market landscape.

Financial Performance:

Over the past three years, KEMP has delivered a total return of 14.2%, outperforming the MSCI Emerging Markets Index by 1.5%. However, it's important to note that past performance is not indicative of future results.

Growth Trajectory:

Emerging markets are expected to continue experiencing long-term growth, driven by factors such as increasing urbanization, rising middle class, and technological advancements. This presents potential upside for KEMP as it taps into these growth opportunities.

Liquidity:

KEMP has a relatively low average trading volume, which may present challenges for investors seeking to enter or exit positions quickly. The bid-ask spread is also slightly wider than some other emerging market ETFs.

Market Dynamics:

The performance of KEMP is significantly influenced by factors such as global economic conditions, emerging market growth, interest rate fluctuations, and geopolitical risks.

Competitors:

KEMP faces competition from other emerging market ETFs such as iShares Core MSCI Emerging Markets ETF (IEMG), Vanguard FTSE Emerging Markets ETF (VWO), and Xtrackers Emerging Markets Equity ETF (EMXC).

Expense Ratio:

KEMP charges an expense ratio of 0.79%, which is slightly higher than the average for actively managed emerging market ETFs.

Investment Approach and Strategy:

KEMP does not track a specific index, instead employing a dynamic asset allocation strategy that utilizes quantitative models and fundamental research to identify opportunities across emerging market equities and fixed income securities.

Composition:

KEMP's portfolio comprises a diversified mix of stocks and bonds from various sectors and countries within the emerging markets.

Key Points:

• Actively managed ETF with a dynamic allocation strategy.
• Focuses on growth potential and diversification across emerging markets.
• Strong management team with experience in emerging markets and quantitative analysis.
• Competitive advantage lies in its unique active management approach.
• Moderate expense ratio.
• Relatively low trading volume and wider bid-ask spread.

Risks:

• Emerging market volatility and higher risk profile.
• Potential for currency fluctuations.
• Geopolitical risks and potential for economic instability in emerging markets.

Who Should Consider Investing:

KEMP is suitable for investors seeking long-term capital appreciation and diversification with a higher risk tolerance and belief in the growth potential of emerging markets.

Fundamental Rating Based on AI: 7.8/10

KEMP receives a strong rating based on its unique active management strategy, experienced team, and focus on emerging market growth potential. However, its lower liquidity and higher expense ratio are factors that bring down the overall score slightly.

Resources and Disclaimers:

• KraneShares website: https://kraneshares.com/
• ETF.com: https://www.etf.com/KEMP
• Morningstar: https://www.morningstar.com/etfs/arch/profile/0P0001O2Z0/KEMP

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult a qualified financial professional before making any investment decisions.