KraneShares MSCI Emerging Markets ex China Index ETF (KEMX)

Overview

KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) provides exposure to emerging markets equities, excluding China, offering diversification and potential growth from economies like India, Taiwan, and South Korea. It targets investors seeking to avoid Chinese market volatility and regulation. The investment strategy involves passively tracking the MSCI Emerging Markets ex China Index.

Reputation and Reliability

KraneShares is known for its China-focused and emerging market ETFs, providing specialized investment solutions with a generally positive track record. However, specific performance can vary depending on the underlying market.

Management Expertise

KraneShares employs a team with expertise in emerging market investing and ETF management, offering investors confidence in their knowledge of these markets.

Goal

The primary investment goal is to track the performance, before fees and expenses, of the MSCI Emerging Markets ex China Index.

Investment Approach and Strategy

Strategy: The ETF seeks to replicate the MSCI Emerging Markets ex China Index, utilizing a passive investment strategy.

Composition The ETF primarily holds stocks from emerging markets, excluding China, with significant allocations to sectors like technology, financials, and consumer discretionary.

Market Share: KEMX holds a moderate market share in the emerging markets ex-China ETF sector.

Total Net Assets (AUM): 183000000

Key Competitors

• SPDR Portfolio Emerging Markets ex-China ETF (SPEM)
• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares Core MSCI Emerging Markets ETF (IEMG)

Competitive Landscape

The emerging markets ETF landscape is competitive, with several large players offering broad exposure. KEMX differentiates itself by excluding China, which can be an advantage for investors concerned about Chinese market risks. However, this exclusion also means missing out on potential growth from the Chinese market. Competitors like SPEM and VWO offer broader emerging market exposure, including China, and often have lower expense ratios, presenting a competitive disadvantage for KEMX.

Historical Performance: Historical performance data unavailable due to not being able to find historical performance data for KraneShares MSCI Emerging Markets ex China Index ETF.

Benchmark Comparison: The ETF's performance is intended to closely track the MSCI Emerging Markets ex China Index.

Expense Ratio: 0.49

Average Trading Volume

The ETF's average trading volume suggests moderate liquidity, which should be adequate for most retail investors but may be a concern for large institutional investors.

Bid-Ask Spread

The ETF's bid-ask spread is generally tight, indicating reasonable trading costs.

Market Environment Factors

Economic growth in emerging markets (excluding China), global trade policies, interest rate movements, and geopolitical events all influence KEMX's performance.

Growth Trajectory

The growth trajectory is tied to the overall health and performance of emerging markets excluding China, with potential for fluctuations based on economic cycles and market sentiment.

Competitive Edge

KEMX's primary advantage is its specific focus on emerging markets excluding China, catering to investors wary of Chinese market risks and regulations. This targeted approach provides a unique value proposition compared to broad emerging market ETFs. Its narrow focus can be a double-edged sword, however, limiting diversification and potentially missing out on China's growth. KraneShares' expertise in China and emerging markets provides some degree of brand recognition and trust.

Volatility

KEMX's volatility is expected to be similar to other emerging markets ETFs, reflecting the inherent risks of investing in developing economies.

Market Risk

Specific risks include currency fluctuations, political instability, economic downturns, and regulatory changes in the countries included in the index.

Ideal Investor Profile

The ideal investor is seeking emerging market exposure but wants to exclude China from their portfolio. These investors may be concerned about regulatory risks, geopolitical tensions, or simply prefer to allocate capital to other emerging economies.

Market Risk

KEMX is suitable for long-term investors who understand the risks and potential rewards of investing in emerging markets and who have a specific desire to exclude China from their emerging market allocation.

KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) offers a targeted approach to emerging markets by excluding China, appealing to investors seeking diversification outside of China. The ETF tracks the MSCI Emerging Markets ex China Index, offering exposure to economies like India, Taiwan, and South Korea. While its exclusion strategy can be an advantage, it also means missing potential growth in China. Investors should consider their risk tolerance and investment goals when evaluating KEMX against broader emerging market ETFs and the expense ratio of 0.49%.

• SPEM
• IEMG
• VWO
• EEM
• VEA

Data Sources:

• KraneShares official website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions can change rapidly, and past performance is not indicative of future results. Investors should consult with a financial advisor before making any investment decisions.