KraneShares Expands Its Internet Suite with the Launch of Emerging Markets Consumer Technology ETF (NYSE: KEMQ)
(New York, October, 19th 2017) 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 Consumer Technology ETF (Ticker: KEMQ) listed on the New York Stock Exchange. KEMQ holds emerging market companies focused on internet software/services, payment processing, and E-Commerce.
“Through our experience investing in China, we saw that the China internet and E-Commerce sector has consistently outperformed the broader China markets1,” said Jonathan Krane, Chief Executive Officer of KraneShares. “We believe this trend also holds true across other emerging markets”. KraneShares has established a market leadership position by assets under management in the China Internet sector through the KraneShares CSI China Internet ETF (Ticker : KWEB), which launched in July 2013.
According to a seminal study from the The Organization for Economic Co-operation and Development (OECD), emerging market middle class consumption could reach 52% of total global consumption by the year 2030. With internet adoption growing by an average 25% a year across the emerging markets2, and EM smartphone ownership per capita nearing 50%3, KraneShares believes the bulk of this consumption could take place online.
KEMQ holds companies like Brazilian electronic payment processor Cielo4, Argentinian E-Commerce platform MercadoLibre5, South Korea’s social media giant Naver6, Russian web portal Mail.ru7, and China internet leaders like Alibaba8 and Tencent9.
“Emerging market internet companies are increasingly driving global innovation in areas like, artificial intelligence, self-driving cars, internet-of-things, drone delivery, and cloud computing,” said Brendan Ahern, Chief Investment Officer of KraneShares. “For investors looking to diversify their technology allocation, we believe that KEMQ holds many attractive emerging market internet and E-Commerce companies.”
KraneShares will broadacast a live webinar on Wednesday November 1st at 11:00am EST. The webinar will cover Singles Day, China’s online shopping mega-holiday, and the KraneShares Emerging Markets Consumer Technology ETF (Ticker: KEMQ). Click here to register for the webinar.
Diversification does not ensure a profit or guarantee against a loss.
This article is intended for educational purposes only and should not be construed as investment advice. All opinions or views expressed in this article are current only as of the date of this article and are subject to change without notice.
- Data from Bloomberg as of 9/30/2017
- Data from internet live stats as of 9/30/2017
- JACOB POUSHTER “Smartphone Ownership and Internet Usage Continues to Climb in Emerging Economies” Pew Research Center. 02/22/2016
- Cielo was 3.30% of KEMQ net assets as of 10/19/2017
- MercadoLibre was 1.92% of KEMQ net assets as of 10/19/2017
- Naver was 3.94% of KEMQ net assets as of 10/19/2017
- Mail.ru was 2.57% of KEMQ net assets as of 10/19/2017
- Alibaba was 3.30% of KEMQ and 9.94% of KWEB net assets as of 10/19/2017
- Tencent was 3.60% of KEMQ and 10.71% of KWEB net assets as of 10/19/2017
The KraneShares ETFs are distributed by SEI Investments Distribution Company (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456, which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Fund. Additional information about SIDCO is available on FINRA’s BrokerCheck.