On the Fence About China Investing This Year? Consider KEMX

Despite ongoing, arguably aggressive domestic policy support by the Chinese government in the past few months, China remains a fraught investing topic for U.S. investors. While the previous Trump administration remained on positive terms with China, concerns of shifting sentiment in a second Trump term may cause some advisors and investors to err on the side of caution with their China exposures.

The KraneShares MSCI Emerging Markets ex-China Index ETF (KEMX) allows investors flexibility when investing in emerging markets. It provides a solution for EM investors looking to invest in China through a targeted, separate strategy. Furthermore, it also allows investors to divest of China exposure in their broad EM allocations.

KEMX seeks to track the MSCI Emerging Markets ex-China Index. The index is free float-adjusted and market cap-weighted. It includes large- and mid-cap companies from emerging markets. Notably, it excludes Chinese issuers. Securities contained are in the top 85% by market cap of their respective emerging markets.

A security’s country is determined primarily by where it is incorporated and the primary place of listing for its stock. A number of other factors are considered for securities with differing primary listing and incorporated locations. These include any secondary listings, the geographic location of shareholders and operations, location of headquarters, its history, and which country investors associate with the issuer.

Investing in KEMX allows for EM portfolio allocation alongside targeted investment into China via a different strategy. This could include thematic, tactical, or other strategic approaches to China exposure.

KEMX carries an expense ratio of 0.24% with fee waivers that expire on August 1, 2025.

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