KEMX Profile
The KraneShares MSCI Emerging Markets ex China Index ETF is designed to provide investors with exposure to the equity markets of emerging market countries while excluding China. The fund generally invests at least 80% of its net assets, including any borrowings for investment purposes, in securities that are components of its underlying index or in instruments that have economic characteristics similar to those of the index. This approach ensures that the fund aligns closely with the index's performance, offering a targeted investment strategy.
The underlying index, known as the MSCI Emerging Markets ex China Index, is a free float-adjusted, market capitalization-weighted index. It tracks the performance of mid- and large-cap companies from emerging markets, excluding those based in China. This index provides a broad representation of emerging market economies, including regions such as Asia-Pacific (excluding China), Latin America, Eastern Europe, the Middle East, and Africa. By excluding China, the index focuses on other high-growth emerging markets that offer unique investment opportunities.
The ETF offers investors a strategic opportunity to gain exposure to emerging markets while avoiding the specific risks and market dynamics associated with China. Emerging markets, characterized by rapid economic growth, increasing consumer spending, and expanding industrial sectors, present significant investment potential. The exclusion of China allows for a focus on other rapidly developing economies that are experiencing their own unique growth trajectories and investment opportunities.
This investment approach provides a diversified portfolio across various emerging market regions, capturing growth from companies that are benefiting from economic development, technological innovation, and rising consumer demand. The KraneShares MSCI Emerging Markets ex China Index ETF is suitable for investors seeking to diversify their holdings in emerging markets while strategically avoiding the Chinese market, thereby gaining targeted exposure to a broad array of mid- and large-cap companies in other high-growth regions.
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