KraneShares MSCI Emerging Markets ex China Index ETF (KEMX)

Overview

KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) aims to provide investment results that, before fees and expenses, correspond to the price and yield performance of the MSCI Emerging Markets ex China Index. The ETF focuses on emerging market equities, excluding China, and seeks to replicate the composition and weighting of its benchmark index.

Reputation and Reliability

KraneShares is a reputable ETF provider known for its China-focused and emerging markets ETFs. They have a solid track record in managing and tracking indices effectively.

Management Expertise

KraneShares has a team of experienced investment professionals specializing in emerging markets and indexing strategies.

Goal

The primary investment goal of KEMX is to track the performance of the MSCI Emerging Markets ex China Index.

Investment Approach and Strategy

Strategy: KEMX employs a passive management strategy, seeking to replicate the holdings and weightings of the MSCI Emerging Markets ex China Index.

Composition The ETF holds a diversified portfolio of stocks from emerging market countries, excluding China. The holdings are weighted based on their market capitalization within the index.

Market Share: KEMX's market share within the ex-China emerging markets ETF category is substantial but faces competition from larger, more established funds.

Total Net Assets (AUM): 193300000

Key Competitors

• iShares Core MSCI Emerging Markets ETF (IEMG)
• Vanguard FTSE Emerging Markets ETF (VWO)
• Schwab Emerging Markets Equity ETF (SCHE)

Competitive Landscape

The emerging markets ETF landscape is highly competitive. KEMX differentiates itself by excluding China, which can be attractive to investors seeking specific exposure. However, IEMG and VWO have significantly larger AUM, indicating greater investor preference and liquidity. The primary advantage of KEMX is its targeted exposure, while disadvantages include a potentially higher expense ratio and lower liquidity compared to broader EM ETFs.

Historical Performance: Historical performance data should be sourced from financial data providers for accurate results. A structured array cannot be accurately generated without real-time updated performance figures.

Benchmark Comparison: Benchmark Comparison should be sourced from financial data providers for accurate results. A structured array cannot be accurately generated without real-time updated performance figures.

Expense Ratio: 0.69

Average Trading Volume

KEMX's average trading volume reflects its liquidity, which is moderate compared to larger emerging market ETFs.

Bid-Ask Spread

The bid-ask spread indicates the cost of trading KEMX and is generally reasonable but may widen during periods of market volatility.

Market Environment Factors

Economic indicators in emerging markets (excluding China), global trade policies, commodity prices, and geopolitical events significantly impact KEMX's performance.

Growth Trajectory

KEMX's growth trajectory depends on the overall performance of emerging markets (ex-China) and investor demand for this specific regional exposure; changes in its index construction may also influence future holdings.

Competitive Edge

KEMX's primary advantage lies in its focused exposure to emerging markets excluding China, allowing investors to isolate specific regional growth. It caters to investors who may have concerns about the Chinese economy or prefer to allocate separately to China. The ETF's success hinges on the relative outperformance of emerging markets outside of China. Investors might find this niche appealing, especially when comparing the advantages and disadvantages of China's inclusion in their portfolio.

Volatility

KEMX's historical volatility is reflective of the inherent volatility of emerging markets, and potentially greater due to being ex-China.

Market Risk

KEMX is subject to market risk, including fluctuations in emerging market currencies, political instability, and economic downturns in the constituent countries. Sector-specific risks may arise from heavy concentration in certain industries.

Ideal Investor Profile

The ideal investor for KEMX is someone seeking exposure to emerging markets excluding China and who understands the risks associated with investing in these markets.

Market Risk

KEMX is suitable for long-term investors with a moderate to high risk tolerance who want to diversify their portfolio with emerging market equities, specifically avoiding China.

KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) provides exposure to emerging market equities without including China, catering to investors seeking specific regional focus. The ETF tracks the MSCI Emerging Markets ex China Index and is passively managed, holding a diversified portfolio of stocks. It offers a unique proposition in the competitive EM ETF landscape but faces challenges in terms of market share and liquidity compared to broader EM ETFs. KEMX's performance is tied to the overall performance of emerging markets excluding China, and investors should carefully consider the associated risks.

Data Sources:

• KraneShares Official Website
• MSCI Index Fact Sheet
• Morningstar
• Yahoo Finance

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market data is subject to change. Consult with a financial advisor before making any investment decisions.