KraneShares Emerging Markets Consumer Technology (KEMQ)

Overview

The KraneShares Emerging Markets Consumer Technology ETF (KEMQ) seeks to provide exposure to companies in emerging markets that are focused on consumer technology sectors, including e-commerce, fintech, and digital entertainment. It aims to capture the growth potential of the rapidly expanding consumer technology industry in emerging economies.

Reputation and Reliability

KraneShares is known for its expertise in China and emerging markets ETFs. They have a solid reputation for providing access to niche investment areas.

Management Expertise

KraneShares has a dedicated investment team focused on emerging market equities and technology sectors, bringing relevant expertise to the management of KEMQ.

Goal

To provide investment results that, before fees and expenses, correspond to the performance of the Emerging Markets Consumer Technology Index.

Investment Approach and Strategy

Strategy: The ETF aims to track an index composed of companies focusing on consumer technology in emerging markets.

Composition The ETF primarily holds stocks of companies involved in e-commerce, mobile payments, online education, and other consumer technology related activities in emerging markets.

Market Share: Data unavailable.

Total Net Assets (AUM): 181586692

Key Competitors

• IEMG
• VWO
• EEM
• FM

Competitive Landscape

The emerging markets ETF space is dominated by broad market ETFs like IEMG and VWO. KEMQ focuses on a specific nicheu2014consumer techu2014which gives it a unique advantage, but also limits its potential market share compared to broadly diversified funds. KEMQ's advantage is its targeted exposure to a high-growth sector, while its disadvantage is its higher concentration risk.

Historical Performance: Data unavailable.

Benchmark Comparison: Data unavailable.

Expense Ratio: 0.65

Average Trading Volume

The average trading volume is moderate, suggesting reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is generally competitive, reflecting adequate liquidity in the market.

Market Environment Factors

Emerging market consumer technology is driven by factors like rising disposable incomes, increasing internet penetration, and growing adoption of e-commerce and digital payment platforms. Current market conditions, including global economic growth and geopolitical stability, can influence KEMQ's performance.

Growth Trajectory

The ETF's growth trajectory is tied to the continued expansion of consumer technology in emerging markets. Changes in strategy would primarily involve adjustments to the underlying index methodology and holdings to reflect the evolving landscape of the sector.

Competitive Edge

KEMQ's competitive advantage lies in its focused approach to emerging market consumer technology, providing targeted exposure that is not readily available through broad-based emerging market ETFs. It allows investors to capitalize on the rapidly expanding digital economy in developing nations. KraneShares' expertise in the Chinese market, a major player in emerging market consumer tech, further strengthens its position. The fund is uniquely positioned to benefit from the increasing adoption of digital technologies by consumers in emerging economies.

Volatility

KEMQ's volatility is expected to be higher than broad market ETFs due to its concentrated exposure to the technology sector and emerging markets.

Market Risk

Specific risks include regulatory changes in emerging markets, currency fluctuations, and potential geopolitical instability that could impact the performance of the underlying holdings.

Ideal Investor Profile

The ideal investor is one seeking high-growth potential and willing to accept higher volatility and risk associated with emerging markets and the technology sector. They have a long-term investment horizon and believe in the growth prospects of consumer technology in developing economies.

Market Risk

KEMQ is suitable for long-term investors seeking targeted exposure to emerging market consumer technology, rather than passive index followers seeking broad market exposure.

KEMQ offers targeted exposure to the high-growth potential of consumer technology companies in emerging markets. Its focused approach distinguishes it from broad-based emerging market ETFs, but also introduces higher volatility. It suits investors with a long-term perspective and willingness to accept emerging market and technology sector risks. KraneShares' expertise in emerging markets provides a competitive edge in managing this ETF, though it comes with a higher expense ratio.

Data Sources:

• KraneShares Official Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor. Market share data is unavailable and estimated based on known AUM of competing ETFs.