KOKU Profile
The Xtrackers MSCI Kokusai Equity ETF is an exchange-traded fund designed to provide investors with broad exposure to equity securities from developed markets outside of Japan. The fund generally allocates at least 80% of its net assets, including any borrowed funds used for investment purposes, to the equity securities of issuers from these developed markets. This strategic focus excludes Japan, targeting a diverse range of companies across various sectors and industries within the developed world.
The fund tracks the MSCI Kokusai Index, an established benchmark that represents the performance of large- and mid-cap stocks in developed markets excluding Japan. The index aims to capture a comprehensive view of the equity markets in regions such as Europe, North America, and Oceania, providing investors with a well-rounded exposure to the global economy outside of Japan. By aligning with this index, the fund seeks to reflect the performance of these markets and offer investors access to international equity opportunities.
The Xtrackers MSCI Kokusai Equity ETF is characterized by its non-diversified nature, meaning that its investments are concentrated in a specific set of markets and sectors as defined by the MSCI Kokusai Index. This concentrated approach can offer targeted exposure to developed market equities but also entails specific risks related to market and sector concentration. As such, investors should be aware of the potential impacts on their portfolios' risk and return profiles.
By investing in this ETF, stakeholders gain the ability to diversify their holdings across a wide array of developed markets outside of Japan, benefiting from the economic performance of leading international companies. This investment approach is particularly suited for those seeking exposure to global equity markets without direct exposure to Japanese equities, thereby broadening their international investment horizons.
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