KraneShares MSCI One Belt One Road Index ETF (OBOR)

Overview

The KraneShares MSCI One Belt One Road Index ETF (OBOR) seeks to track the performance of the MSCI One Belt One Road Index, which is designed to represent the investment opportunity set of companies that stand to benefit from China's One Belt One Road (OBOR) initiative, formally known as the Belt and Road Initiative (BRI). The ETF invests primarily in companies involved in infrastructure development, logistics, energy, and related sectors across various countries impacted by the BRI. The ETF aims to provide investors with exposure to the growth potential stemming from the BRI through a diversified portfolio of publicly listed companies.

Reputation and Reliability

KraneShares is known for its focus on China-related ETFs. They have a generally solid reputation for providing access to Chinese markets.

Management Expertise

KraneShares has a dedicated team with experience in managing China-focused investment products, leveraging insights into Chinese markets and policy.

Goal

The primary investment goal of OBOR is to track the performance, before fees and expenses, of the MSCI One Belt One Road Index.

Investment Approach and Strategy

Strategy: OBOR aims to track the MSCI One Belt One Road Index. It uses a passive investment approach, seeking to replicate the index's composition and weighting.

Composition The ETF predominantly holds stocks of companies operating in sectors such as industrials, materials, energy, and financials that are expected to benefit from the Belt and Road Initiative.

Market Share: Insufficient data to accurately calculate OBOR's specific market share.

Total Net Assets (AUM): 13620000

Key Competitors

Competitive Landscape

Due to the unique focus on the Belt and Road Initiative, OBOR has limited direct competitors in the US ETF market. The competitive advantage lies in its targeted exposure, but this also makes it susceptible to policy changes and project risks.

Historical Performance: Historical performance data is not provided here, it can be found on KraneShares' website or major financial data providers.

Benchmark Comparison: OBOR's performance should be compared against the MSCI One Belt One Road Index. The extent to which OBOR tracks the index reflects its tracking efficiency.

Expense Ratio: 0.79

Average Trading Volume

The average trading volume is relatively low, potentially impacting ease of trade execution.

Bid-Ask Spread

The bid-ask spread can be wider due to lower trading volume, leading to higher transaction costs.

Market Environment Factors

Economic conditions in countries involved in the BRI, Chinese government policies, infrastructure spending trends, and global trade dynamics significantly impact OBOR's performance.

Growth Trajectory

Growth depends on the progress and success of the Belt and Road Initiative, which is subject to geopolitical risks, funding challenges, and project implementation delays.

Competitive Edge

OBOR offers a niche exposure to companies expected to benefit from China's Belt and Road Initiative. Its focused approach provides targeted exposure, allowing investors to capitalize on infrastructure and development projects in the BRI region. The ETF's strategic positioning gives access to emerging market growth and diversification that may not be easily replicated. The ETF leverages KraneShares' expertise in Chinese markets, providing investors access to a unique investment strategy.

Volatility

OBOR's volatility can be high due to its focus on emerging markets and specific geopolitical initiatives.

Market Risk

Market risk includes exposure to economic downturns in BRI countries, fluctuations in commodity prices, and changes in government regulations related to the initiative.

Ideal Investor Profile

OBOR is suitable for investors with a higher risk tolerance and a long-term investment horizon who seek exposure to emerging markets and the potential growth driven by China's Belt and Road Initiative.

Market Risk

OBOR is better suited for long-term investors seeking targeted exposure to the BRI, rather than active traders due to its potential volatility and liquidity constraints.

The KraneShares MSCI One Belt One Road Index ETF (OBOR) provides targeted exposure to companies benefiting from China's Belt and Road Initiative. It offers a niche investment opportunity in emerging markets but carries higher risk due to geopolitical factors and emerging market volatility. The ETF's success hinges on the progress and stability of the BRI, making it suitable for long-term investors with a higher risk tolerance. The ETF aims to replicate the performance of the MSCI One Belt One Road Index, offering diversified access to the investment prospects of this initiative, despite a relatively lower AUM compared to the other competitors.

Data Sources:

• KraneShares official website
• MSCI official website
• ETF.com
• Seeking Alpha

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Investment decisions should be made after consulting with a qualified financial advisor. Market data and analysis are subject to change.