KEMP, the newest KraneShares ETF, tracks the FTSE Emerging GDP Weighted index. The GDP-weighted index is a combination of securities from three different underlying index series:The FTSE Emerging Index, part of the FTSE Global Equity Index Series, FTSE China A Index, including A-shares and the FTSE China Overseas Index, including N-shares and S-chips, according to FTSE.
India is KEMP’s second-largest country weight after China at 17.1%. That is 460 basis points more than the FTSE Emerging Markets Index allocated to Asia’s third-largest economy at the end of March. KEMP also features less than half of the Brazil weight as the traditional FTSE index.
“I don’t believe there has been a good look at what’s effecting EM investors. I believe there are two EM headwinds: increased US oil production and slowing Chinese fixed asset investment growth (building stuff). US oil production and the fall in oil prices has hurt many oil dependent countries. China’s slowing appetite for raw materials effects many EM countries as China is there number one export market (Brazil, Peru, Chile, and South Africa). There are winners such as India which buy oil and natural resources at these lower prices,” adds Ahern.
Not only is KEMP the first U.S.-listed diversified emerging markets ETF to feature China A-shares, it is the first ETF to purchase those equities through the recently launched Shanghai-Hong Kong Stock Connect Program. [Issuers Want in on China A-Shares ETFs]
KraneShares FTSE Emerging Markets Plus ETF
