Replay: Considering EM ex China? Strategies To Right-Size Your China Exposure
Thursday, November 16, 2023 11:00 am - 12:00 pm EDT
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Investing in Emerging Markets (EM) ex China is gaining popularity with over $2 billion in flows to ex China ETFs so far this year. At KraneShares, we have been active in the space since launching the KraneShares MSCI Emerging Markets ex China Index ETF (Ticker: KEMX) back in 2019. However, we think there is a way to separate China from the rest of EM while still potentially benefitting from the incredible strategic growth and tactical opportunities in China stocks, which we believe remain firmly intact.
The KraneShares Dynamic Emerging Markets Strategy ETF (Ticker: KEM) provides investors with exposure to broad EM equities while dynamically adjusting the portfolio’s China weight based on fundamental and technical signals. KEM has the potential to mitigate the downside risk of investing in China by dynamically adjusting its allocations between the Underlying ETFs, which are the KraneShares MSCI All China Index ETF (Ticker: KALL) and KEMX, and cash. By combining a strategic allocation with a systematic valuation overlay between China and the rest of Emerging Markets, KEM may potentially outperform its benchmark: the MSCI Emerging Markets Index.*
Join KraneShares portfolio managers Jonathan Shelon, CFA and Anthony Sassine, CFA as they discuss:
- An overview of current opportunities in EM
- An exploration of the factors that have made China more volatile in recent years
- How to better manage China risk within EM
- Strategic and tactical opportunities from investing in China relative to the rest of EM
- An introduction to the KEM ETF
- Comprehensive Q&A
1 CFP/CIMA Credit Available
*The MSCI Emerging Markets Index is a free-float weighted equity index that captures large and mid cap representation across Emerging Market (EM) countries. The index covers approximately 85% of the free-float adjusted market capitalization in each country. The index was launched on January 1, 2001.
This material contains speakers’ opinions. It should not be regarded as investment advice or a recommendation of specific securities. Holdings are subject to change. Securities mentioned do not make up the entire portfolio and, in the aggregate, may represent a small percentage of the fund.
Z-Score – a statistical measurement of a score’s relationship to the mean in a group of scores.