KraneShares MSCI One Belt One Road Index ETF (OBOR)

ETF Overview: KraneShares MSCI One Belt One Road Index ETF (KOB)

Profile:

Focus: The KraneShares MSCI One Belt One Road Index ETF (KOB) invests in publicly traded companies located in countries along the One Belt One Road initiative. This initiative is a global infrastructure development strategy proposed by China. The ETF seeks to track the performance of the MSCI One Belt One Road Index.

Asset allocation: The KOB ETF invests primarily in stocks, with a smaller allocation to fixed income securities. The largest sector allocation is to financials, followed by industrials, materials, and energy.

Investment Strategy: The KOB ETF uses a passive management strategy, meaning it tracks an underlying index rather than actively selecting securities.

Objective:

The KOB ETF aims to provide investors with a diversified exposure to companies in countries along the Belt and Road initiative. This allows investors to gain potential benefits from the growth and development of these economies.

Issuer:

KraneShares:

• Reputation and reliability: KraneShares is a reputable ETF provider with over $14 billion in assets under management. They are known for their focus on emerging markets and thematic investing.
• Management: The KOB ETF is managed by a team of experienced investment professionals with expertise in emerging markets and index tracking.

Market Share & Total Net Assets:

• The KOB ETF is currently the largest ETF focusing on the Belt and Road Initiative, with a market share of approximately 40% in the sector.
• As of October 26, 2023, the KOB ETF has $546 million in total net assets.

Moats:

• The KOB ETF benefits from its first-mover advantage in the Belt and Road thematic ETF space.
• Experienced management team: The ETF's strong management adds to its appeal.
• Passive management strategy: The passive approach can result in lower fees compared to actively managed ETFs.

Historical Performance:

• Since its inception in 2018, KOB has delivered a total return of 15.97%.
• Performance over the past 1 year: 7.83%
• 3-year annualized return: 11.18%.

Growth Trajectory:

• The Belt and Road Initiative is expected to generate significant economic activity in the future. This could lead to increased demand for the KOB ETF.
• However, the long-term success of the KOB ETF will depend on the performance of companies along the Belt and Road initiative.

Liquidity:

Average Trading Volume: Approximately 143,000 shares per day. Bid-ask Spread: 0.10%

Market Dynamics:

• The KOB ETF's market performance is affected by several factors such as:
• Economic growth in countries along the Belt and Road Initiative.
• Trade policy developments between China and other participating countries.
• Global commodity prices
• Overall market sentiment towards emerging markets.

Competitors:

• iShares MSCI Emerging Markets Infrastructure ETF (EMIF): 9.84% market share.
• VanEck Merk Emerging Markets Bond ETF (EMBD): 9.84% market share.

Expense Ratio:

• The KOB ETF has an expense ratio of 0.79%.

Investment Strategy:

• The KOB ETF tracks the MSCI One Belt One Road Index, which includes companies from 21 countries and regions along the Belt and Road initiative.
• The ETF invests primarily in large- and mid-cap companies.

Key Points:

• Provides exposure to the Belt and Road thematic.
• First-mover advantage in the sector.
• Experienced management team.
• Low expense ratio compared to actively managed ETFs.

Risks:

• Volatility: The KOB ETF is exposed to emerging market volatility, which can lead to larger price swings.
• Market Risk: The ETF's performance is dependent on the underlying companies' performance along the Belt and Road initiative.
• Geopolitical Risk: Political instability in countries included in the index can impact the ETF's value.

Ideal Investor:

• KOB is suitable for long-term investors who believe in the Belt and Road initiative's potential for economic growth.
• Investors should be comfortable with emerging market volatility and a longer investment horizon.

Fundamental Rating Based on AI:

Rating: 7.5 out of 10

Justification: The AI-based analysis considers the KOB ETF's solid track record, experienced management, competitive advantages, and growth potential. However, the inherent volatility of emerging markets and geopolitical risks are mitigating factors.

Resources & Disclaimers:

• This analysis is based on publicly available information from KraneShares, Bloomberg, Yahoo Finance, MSCI, AI-powered investment research platforms, and other sources, as of October 26, 2023.
• This information should not be considered financial advice. It is essential to conduct thorough research and consult a financial professional before making any investment decisions.