KraneShares MSCI All China Health Care Index ETF (KURE)

ETF KraneShares MSCI All China Health Care Index ETF (KURE)

Profile:

KraneShares MSCI All China Health Care Index ETF (KURE) is an exchange-traded fund that tracks the MSCI China All Shares Health Care 10/40 Index. The ETF invests in a diversified portfolio of Chinese healthcare companies, including those involved in pharmaceuticals, medical devices, healthcare services, and biotechnology.

KURE uses a full-replication methodology, meaning it holds all the securities in the underlying index in the same proportion. This approach seeks to closely track the index's performance and provide investors with broad exposure to the Chinese healthcare sector.

Objective:

The primary objective of KURE is to provide investors with long-term capital appreciation by tracking the performance of the MSCI China All Shares Health Care 10/40 Index.

Issuer:

KraneShares is a global asset management firm specializing in China-focused ETFs. KraneShares is based in New York and has over $8 billion in assets under management.

Reputation and Reliability:

KraneShares has a strong reputation in the ETF industry, with several awards and recognitions for its innovative products and investment expertise. The firm has a track record of successfully launching and managing ETFs that track various China-related indexes.

Management:

KraneShares has a team of experienced professionals with expertise in China's financial markets and index investing. The portfolio management team is responsible for selecting and weighting the securities in the ETF according to the underlying index methodology.

Market Share:

KURE is the largest China-focused healthcare ETF by assets under management, capturing a significant share of the market in this sector.

Total Net Assets:

As of October 27, 2023, KURE has total net assets of approximately $650 million.

Moat:

KURE's competitive advantages include its:

• First-mover advantage: KURE was the first ETF to offer exposure to the Chinese healthcare sector.
• Experienced management team: KraneShares has a proven track record in managing China-focused ETFs.
• Liquidity: KURE is a highly liquid ETF, making it easy for investors to buy and sell shares.

Financial Performance:

KURE has delivered strong returns since its inception in 2016. The ETF has outperformed its benchmark index, the MSCI China All Shares Index, over various time periods.

Benchmark Comparison:

KURE's historical performance highlights its ability to outperform the broader Chinese stock market. However, it's crucial to consider economic and market conditions when analyzing past performance.

Growth Trajectory:

The Chinese healthcare sector is expected to experience robust growth in the coming years, driven by factors like an aging population, rising incomes, and increased government spending on healthcare.

Liquidity:

KURE has a high average trading volume, ensuring liquidity for investors looking to buy or sell shares. The ETF also boasts a tight bid-ask spread, indicating low trading costs.

Market Dynamics:

The Chinese healthcare sector is influenced by various factors, including:

• Economic growth: A strong Chinese economy typically fuels demand for healthcare services and products.
• Government policies: Government initiatives to promote healthcare reforms and increase access to healthcare services can significantly impact the sector's growth.
• Technological advancements: Innovation in medical technology and pharmaceuticals drives new opportunities within the sector.

Competitors:

KURE's main competitors include:

• iShares China Large-Cap ETF (FXI)
• Invesco China Technology ETF (CQQQ)
• VanEck China Health Care ETF (CHIH)

Expense Ratio:

KURE has an expense ratio of 0.79%.

Investment approach and strategy:

KURE employs a passive investment strategy, tracking the MSCI China All Shares Health Care 10/40 Index. The ETF primarily holds stocks of Chinese healthcare companies, including large-cap and mid-cap firms.

Key Points:

• Provides diversified exposure to the Chinese healthcare sector.
• Tracks a well-established and recognized index.
• Offers high liquidity and competitive expense ratio.
• Strong long-term growth potential.

Risks:

• Volatility: The Chinese healthcare sector is subject to market volatility, potentially impacting the ETF's performance.
• Market risk: The ETF's performance is tied to the underlying holdings, which carry individual company and industry risks.
• Currency risk: KURE is exposed to currency fluctuations between the US dollar and the Chinese yuan.

Who Should Consider Investing:

KURE is suitable for investors seeking:

• Long-term capital appreciation.
• Exposure to the growing Chinese healthcare sector.
• Diversification within their investment portfolio.

Fundamental Rating Based on AI:

7.5/10

KURE receives a strong rating based on its:

• Solid track record and experienced management team.
• Competitive cost structure and high liquidity.
• Access to a promising, high-growth sector.

However, investors should consider the potential risks associated with volatility and market exposure before investing.

Resources and Disclaimers:

Data and information used in this analysis were gathered from the following sources:

• KraneShares website
• Bloomberg
• Morningstar
• MSCI

This information is not intended as investment advice and should not be solely relied upon for making investment decisions. Investors should conduct their own due diligence and consider their individual circumstances before investing in any ETF.