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 China One Belt One Road Index, focusing on companies expected to benefit from China's Belt and Road Initiative. It targets companies with significant revenue exposure to countries involved in the BRI. The ETF primarily invests in equities.

Reputation and Reliability

KraneShares is a well-known issuer specializing in China-focused ETFs. They have a solid reputation for providing access to specific segments of the Chinese market.

Management Expertise

KraneShares has a dedicated team with expertise in Chinese markets and ETF management.

Goal

To provide investment results that, before fees and expenses, correspond to the price and yield performance of the MSCI China One Belt One Road Index.

Investment Approach and Strategy

Strategy: The ETF tracks the MSCI China One Belt One Road Index, which measures the performance of Chinese companies expected to benefit from the Belt and Road Initiative.

Composition The ETF holds a basket of Chinese equities selected based on their revenue exposure to countries participating in the Belt and Road Initiative.

Market Share: Insufficient data available to provide specific market share in the sector. The OBOR ETF has a niche focus within the broader emerging markets or China-focused ETF landscape, making direct market share comparison challenging.

Total Net Assets (AUM): 12030000

Key Competitors

• Emerging Markets ETF US Symbol
• China ETF US Symbol

Competitive Landscape

The competitive landscape is dominated by broader emerging market and China-focused ETFs. OBOR's advantage is its specific focus on companies benefiting from the Belt and Road Initiative. The disadvantage is that it's less diversified than broader ETFs and more concentrated on a particular theme.

Historical Performance: Historical performance data needs to be requested directly from financial data providers. The ETF's performance is tied to the performance of the underlying index and the success of the Belt and Road Initiative.

Benchmark Comparison: The ETF's performance should be compared to the MSCI China One Belt One Road Index to assess tracking effectiveness. Due to the specialized nature of this ETF it is difficult to accurately compare performance with other benchmark indexes outside of OBOR's underlying holdings

Expense Ratio: 0.79

Average Trading Volume

The average trading volume is relatively low, indicating lower liquidity.

Bid-Ask Spread

The bid-ask spread is relatively wide, which could increase trading costs.

Market Environment Factors

Economic indicators in China and participating Belt and Road countries, infrastructure spending trends, and geopolitical developments influence the ETF. Any policies from China can heavily affect OBOR.

Growth Trajectory

Growth is tied to the progress and success of the Belt and Road Initiative and the performance of Chinese companies involved. Changes to strategy and holdings would be dependent on index methodology adjustments.

Competitive Edge

OBOR offers investors a unique and targeted exposure to companies expected to benefit from China's Belt and Road Initiative, which differentiates it from broad-based emerging market or China ETFs. This targeted approach can provide potentially higher growth if the initiative is successful. However, this niche focus also introduces concentration risk, as the ETF's performance is heavily dependent on the success of the Belt and Road Initiative. The relatively small AUM results in lower liquidity for investors.

Volatility

Volatility will depend on the underlying holdings and market conditions in China and participating countries. Generally, it will have higher volality since it's a niche ETF.

Market Risk

Specific risks include economic and political instability in participating countries, regulatory changes in China, and overall market sentiment towards Chinese equities. It also highly depends on political tensions between countries and China.

Ideal Investor Profile

The ideal investor is one who believes in the long-term success of the Belt and Road Initiative and is comfortable with the risks associated with investing in emerging markets and Chinese equities.

Market Risk

This ETF is best suited for long-term investors with a higher risk tolerance and a specific interest in China's Belt and Road Initiative. It is not suitable for risk-averse investors.

The KraneShares MSCI One Belt One Road Index ETF provides targeted exposure to Chinese companies expected to benefit from the Belt and Road Initiative. The ETF's performance is closely tied to the success of the initiative and carries inherent risks associated with investing in emerging markets and Chinese equities. The relatively small AUM and lower liquidity can be drawbacks for some investors. It is best suited for long-term investors with a higher risk tolerance and belief in the Belt and Road Initiative.

Data Sources:

• KraneShares website
• MSCI website
• ETF.com
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence before making any investment decisions.