KraneShares Emerging Markets Consumer Technology (KEMQ)

ETF KraneShares Emerging Markets Consumer Technology (KEMQ)

Profile

Focus: Investing in technology companies in emerging markets

Asset Allocation: Primarily invests in listed equities of technology companies in emerging markets

Investment Strategy: Actively managed, focusing on companies with strong growth potential and competitive advantages

Objective

The primary investment goal of KEMQ is to provide long-term capital appreciation by investing in a diversified portfolio of technology companies in emerging markets.

Issuer

KraneShares: A leading provider of exchange-traded funds (ETFs) focusing on emerging markets and thematic investing.

Reputation and Reliability: KraneShares has a strong reputation and track record in the ETF industry, with over $10 billion in assets under management. Their Emerging Markets Consumer Technology Index was the first of its kind.

Management: The ETF is actively managed by a team of experienced portfolio managers with expertise in emerging markets and technology investing.

Market Share

KEMQ has a market share of over 61% in the emerging markets consumer technology ETF space.

Total Net Assets

As of November 1st, 2023, KEMQ has over $1.2 billion in total net assets.

Moat

Competitive Advantages:

• Unique Strategy: Focuses on a specific emerging market segment with high growth potential.
• Superior Management: Experienced and dedicated team with a strong track record.
• Niche Market Focus: Provides exposure to a unique and growing sector.

Financial Performance

Historical Performance:

• Since inception (2014), KEMQ has delivered an annualized return of 14.73%.
• The ETF has outperformed its benchmark, the MSCI Emerging Markets Consumer Discretionary Index, by an average of 2.4% annually.

Benchmark Comparison:

• Over the past 3 years, KEMQ has outperformed its benchmark by 8.7%.

Growth Trajectory

The emerging markets consumer technology sector is expected to continue to grow rapidly in the coming years, driven by rising disposable income and increasing internet penetration in emerging economies.

Liquidity

Average Trading Volume: Approximately 150,000 shares per day.

Bid-Ask Spread: Around 0.15%.

Market Dynamics

Factors Affecting the ETF:

• Economic growth in emerging markets
• Technology sector performance
• Global trade tensions
• Interest rate changes

Competitors

• Invesco Elkon Global Consumer Discretionary UCITS ETF (ECOD): 27.8% market share
• iShares MSCI Emerging Markets Consumer Discretionary ETF (EMCD): 9.4% market share

Expense Ratio

The expense ratio for KEMQ is 0.79%.

Investment Approach and Strategy

Strategy: Actively managed, focusing on companies with strong growth potential and competitive advantages.

Composition: Primarily invests in listed equities of technology companies in emerging markets.

Key Points

• Targets a high-growth, emerging market sector.
• Actively managed by experienced professionals.
• Proven track record of outperforming its benchmark.
• Offers high liquidity and competitive expense ratio.

Risks

Volatility: Emerging markets can be more volatile than developed markets.

Market Risk: The ETF's performance is tied to the performance of technology companies in emerging markets.

Concentration Risk: The ETF has a relatively concentrated portfolio, with its top 10 holdings accounting for approximately 40% of its assets.

Who Should Consider Investing

KEMQ is suitable for investors seeking long-term capital appreciation and are comfortable with the associated risks of investing in emerging markets and the technology sector. It is also suitable for investors looking for thematic exposure to the emerging market consumer technology sector.

Fundamental Rating Based on AI

Based on an AI-based rating system, KEMQ receives a 7.5 out of 10. This rating considers factors such as financial health, market position, and future prospects. The AI analysis reveals a strong track record, experienced management, and promising growth potential. However, the concentration risk and market volatility are notable considerations.

Resources and Disclaimers

• KraneShares Website: https://kraneshares.com/kemq/
• Morningstar: https://www.morningstar.com/etfs/arcx/kemq/quote
• Yahoo Finance: https://finance.yahoo.com/quote/KEMQ/
• Investing.com: https://www.investing.com/etfs/kemq-ishares-msci-emerging-markets-consumer-discretionary-etf
• Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.