KraneShares Expands Healthcare Suite with Launch of Emerging Markets Healthcare ETF (NYSE: KMED)
Krane Funds Advisors, LLC, (“KraneShares”), a U.S. asset management firm known for its China-focused KraneShares exchange-traded funds (ETFs) and innovative China investment strategies, announced the launch of the KraneShares Emerging Markets Healthcare Index ETF (NYSE: KMED). KMED is designed to track the performance of companies engaged in the healthcare sector in various emerging markets. The issuers include small-cap, mid-cap, and large-cap companies involved in biotechnology, pharmaceuticals, hospital management, healthcare management, and other sub-industries.
“In emerging markets, rapid urbanization and rising income are fueling growth in demand for healthcare,” said Jonathan Krane, Chief Executive Officer of KraneShares. “We believe this a strong growth trend across broad emerging markets”.
By 2040, emerging market countries on average are projected to increase healthcare spending as a percent of GDP by 24.4% compared to just 9.8% in developed markets over the same time period1. Healthcare expenses now comprise the largest segment of household consumption in China2, which has the second largest healthcare market globally3. At the same time, healthcare expenditure as a percent of GDP lags developed markets in both China and broad emerging markets, indicating there is significant room for growth in the sector.
“Emerging market healthcare companies are global growth leaders in areas including, biologics, hospital administration, pharmaceuticals, and medical equipment manufacturing,” said Brendan Ahern, Chief Investment Officer of KraneShares. “Additionally, the emerging market healthcare sector has a low correlation to US healthcare equities. We believe KMED can help investors diversify their U.S. healthcare sector or emerging market allocations.”
KMED’s top country weightings are China: 38.31%, South Korea: 25.89%, and India: 16.03%.
KraneShares previously launched the first U.S.-listed China healthcare sector ETF4, the KraneShares MSCI All China Health Care Index ETF (NYSE: KURE), in January 2018.
For investors interested in learning more about the potential benefits of KMED or KURE, please contact KraneShares.
About Krane Funds Advisors, LLC:
Krane Funds Advisors, LLC is the investment manager for KraneShares ETFs. Our suite of China-focused ETFs provides investors with solutions to capture China’s importance as an essential element of a well-designed investment portfolio. We strive to provide innovative, first to market strategies that have been developed based on our strong partnerships and our deep knowledge of investing. We help investors stay up to date on global market trends and aim to provide meaningful diversification. Krane Funds Advisors, LLC is majority owned by China International Capital Corporation (CICC).
The Fund’s holdings are subject to change. Click here for full fund holdings.
- Dieleman, Joseph L et al., “Future and potential spending on health 2015–40: development assistance for health, and government, prepaid private, and out-of-pocket health spending in 184 countries”, The Lancet , Volume 389 , Issue 10083 , 2005 - 2030.
- Data from the National Bureau of Statistics of China. Data as of 12/31/2017. Retrieved 6/30/2018.
- IMS Market Prognosis, Oct 2016. Retrieved 6/30/2018.
- Data from Bloomberg as of 7/31/2018.