ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
    • Crypto ETF Hub
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • Gaining Perspective Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. China Insights Channel
  2. KraneShares Launches New Dynamic Emerging Markets Strategy ETF
China Insights Channel
Share

KraneShares Launches New Dynamic Emerging Markets Strategy ETF

James ComtoisAug 25, 2023
2023-08-25

Krane Funds Advisors (KraneShares) has launched the actively managed KraneShares Dynamic Emerging Markets Strategy ETF (NYSE Arca: KEM). KEM provides exposure to broad emerging market equities while dynamically adjusting its weight to China based on real-time signals.

KEM actively allocates between China and emerging markets ex China by primarily investing in the KraneShares MSCI All China Index ETF (KALL A-) and the KraneShares MSCI Emerging Markets ex China Index ETF (KEMX C+). This strategy could potentially mitigate downside risk while outperforming its benchmark, the MSCI Emerging Markets Index.

See more: This Covered Call ETF Provides Monthly Income and Tech Upside

Treating China as a Distinct Asset Class

According to KraneShares COO Jonathan Shelon, “investors can potentially achieve better returns by treating China as a distinct asset class within their EM portfolio.”

“China has the world’s second-largest equity market and has shown differentiated historical performance as evidenced by its low correlation to global equity markets,” Shelon added. “Our goal with KEM is to provide investors a powerful tool that leverages our best thinking on how to approach investing in EM.”

KEM’s strategy is rooted in enhanced strategic allocation, systematic overlay and risk management, and adaptability to market conditions. The fund begins with a baseline allocation that mirrors the MSCI Emerging Markets Index weightings. Within the index, China and Emerging Markets ex China are currently set at 31% and 69%, respectively.

The allocation between China and Emerging Markets ex China is adjusted based on weighted valuation signals for the underlying holdings. This allows for a maximum of 30% overweight/underweight compared to the strategic allocation. Additionally, the strategy can allocate up to 10% to cash based on market conditions.

The fund is continuously monitored and adjusted at least quarterly. Adjustments can also occur more frequently to ensure that the portfolio remains aligned with its objectives.

For more news, information, and analysis, visit the China Insights Channel.


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X