KEM Profile
The KraneShares Dynamic Emerging Markets Strategy ETF is an actively managed fund designed to provide investors with exposure to emerging markets while actively managing risk. The fund aims to outperform broader emerging markets indices by strategically adjusting its allocation between various underlying exchange-traded funds (ETFs) and cash or cash equivalents. This dynamic approach is intended to mitigate downside risk and capitalize on opportunities within emerging markets, adapting to changing market conditions.
To achieve its investment objective, the fund generally allocates at least 80% of its net assets, including any borrowings for investment purposes, to securities issued by entities located in emerging markets. This includes a broad range of securities from emerging market countries, as well as investments in other funds that offer exposure to these markets. By investing in both direct securities and investment companies, the ETF provides diversified access to emerging market equities and debt.
Emerging markets are characterized by their rapid economic growth and higher potential returns, but they also come with increased volatility and risks compared to developed markets. The fund's active management strategy seeks to navigate these risks by adjusting its investment allocations based on market conditions and economic indicators. This includes rebalancing between ETFs that track different regions or sectors within emerging markets, as well as holding cash or cash equivalents when market conditions are less favorable.
The KraneShares Dynamic Emerging Markets Strategy ETF is geared towards investors seeking to benefit from the growth potential of emerging markets while aiming to manage volatility through a flexible investment strategy. By focusing on dynamic allocation and active management, the fund seeks to enhance returns and reduce risk compared to a static exposure to emerging markets indices. This approach offers a tailored investment solution for those looking to tap into the opportunities within these rapidly evolving economies.
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