KraneShares MSCI Emerging Markets ex China Index ETF (KEMX)

Overview

The KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) seeks to track the investment results of the MSCI Emerging Markets ex China Index, providing exposure to emerging market equities excluding China.

Reputation and Reliability

Krane Funds Advisors, LLC, is a specialist investment manager focused on China-related exchange-traded funds (ETFs). They are considered reputable in the ETF market, particularly for their expertise in China and emerging markets.

Management Expertise

Krane Funds Advisors has a team with experience in asset management and ETF development. They focus on providing investors access to specific market segments, including emerging markets.

Goal

To provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the MSCI Emerging Markets ex China Index.

Investment Approach and Strategy

Strategy: The ETF employs a 'passive management' investment approach, attempting to replicate the performance of the underlying index.

Composition The ETF primarily holds stocks of companies located in emerging markets, excluding China. Holdings are diversified across various sectors and countries within the emerging market universe.

Market Share: KEMX's market share within the emerging market ex-China ETF category is notable, but varies depending on the specific sub-segment considered.

Total Net Assets (AUM): 174136644

Key Competitors

• iShares MSCI Emerging Markets ex China ETF (EMXC)
• Vanguard FTSE Emerging Markets ex China ETF (VFE)
• Xtrackers MSCI Emerging Markets ex China Equity ETF (XCHN)

Competitive Landscape

The emerging markets ex-China ETF market is moderately competitive. KEMX differentiates itself through its specific focus and KraneShares' expertise in emerging markets. Competitors like EMXC and VFE have lower expense ratios, which are advantages. KEMX's active marketing and distribution can provide a competitive edge.

Historical Performance: Historical performance varies based on the time period. Data should be sourced directly from ETF websites and financial data providers for accurate figures. Data should be structured as an array of returns for each year/period.

Benchmark Comparison: The ETF's performance is typically compared against the MSCI Emerging Markets ex China Index. Comparing performance helps investors gauge tracking effectiveness.

Expense Ratio: 0.49

Average Trading Volume

The ETF's average trading volume provides acceptable liquidity.

Bid-Ask Spread

The ETF's bid-ask spread demonstrates the cost of trading the ETF.

Market Environment Factors

Economic growth in emerging markets (excluding China), interest rate policies, trade relations, and geopolitical stability significantly influence KEMX.

Growth Trajectory

Growth trends depend on the overall performance of emerging markets. Changes to the underlying index and holdings can reflect evolving market conditions and investment opportunities.

Competitive Edge

KEMX's competitive edge lies in its specific focus on emerging markets without China, allowing investors targeted exposure. KraneShares' expertise in Asian markets enhances its understanding of these markets. The ETF may appeal to investors seeking to diversify beyond China or have concerns about Chinese market risk. Their marketing efforts also attract specific investor segments. This focused approach differentiates it from broader emerging market ETFs.

Volatility

The ETF's volatility reflects the volatility inherent in emerging market equities. Data can be sourced from historical price movements.

Market Risk

Specific risks include currency fluctuations, political instability, regulatory changes, and economic cycles in emerging markets.

Ideal Investor Profile

The ideal investor is seeking exposure to emerging market equities outside of China, believing that these markets offer growth potential or diversification benefits.

Market Risk

The ETF is suitable for long-term investors seeking growth, and willing to tolerate higher levels of volatility inherent in emerging markets.

KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) offers exposure to emerging market equities excluding China. It aims to replicate the performance of the MSCI Emerging Markets ex China Index. The ETF's competitive advantage lies in its targeted focus, excluding China and the experience of KraneShares. Investors should consider the inherent risks of emerging markets and the expense ratio when making investment decisions. The ETF suits long-term investors seeking growth in emerging markets with high risk tolerance.

Data Sources:

• KraneShares official website
• MSCI official website
• Financial data providers (e.g., Bloomberg, Reuters)
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results. Market data is subject to change.