KDIV to Benefit From Electronic Market 4.27% CAGR Growth

The Electronic Manufacturing Services market is forecast for 4.27% CAGR by 2030 according to a new report. Market Research Future predicts the market will surpass $794 billion USD by 2032, and the KraneShares S&P Pan Asia Dividend Aristocrats ETF (KDIV) captures that growth.

Electronics Manufacturing Services (EMS) companies are those that manufacture and/or assemble electronic parts. Further, the market includes those companies that design, make, test, and maintain electronic systems and components.

The industry is subdivided into three different products: printed circuit boards, system-in-package, and integrated circuits. Printed circuit boards will experience increased demand from consumer electronics, the automotive industry, and oil and gas equipment in the coming years.

China and Japan currently have the highest EMS sales, followed by Germany and the U.S., according to the MRF press release. Moreover, the Asia-Pacific region will contain the largest portion of the EMS market through 2032 according to forecasts. It’s also likely to benefit from growing demand and greater foreign investment.

Wistron Corporation is a leading global electronics manufacturer headquartered in Taiwan. The company has operational centers in Asia, Europe, and North America. Wistron was the manufacturing branch of Acer until the 2000s when it became its own independent company. It’s a company primed to benefit from industry growth and increased foreign investment in the coming years.

Capture Electronic Markets Growth With This Dividend ETF

The KraneShares S&P Pan Asia Dividend Aristocrats ETF (KDIV) tracks companies that have grown their dividends sustainably over an extended time horizon in the Pan-Asia region. The fund offers exposure to China, Australia, Japan, and more. Wistron Corp is the top allocation in the fund at an 8.15% weighting as of 05/26/23.

KDIV provides advisors with the opportunity to diversify their portfolios globally. It also enables more defensive stance against market volatility through dividend aristocrat companies.

Price performance graph for KDIV year-to-date, currently up 3.41%. The fund is positioned to capture growing demand for the electronic services manufacturing market in the coming years.

KDIV seeks to provide investment results that correspond to the performance of the S&P Pan Asia Dividend Aristocrats Index. It is the first U.S.-listed ETF to apply the S&P Dividend Aristocrats strategy to the Pan-Asian area.

The fund is diversified across a number of sectors. Current allocations include real estate at 15.97%, utilities at 14.77%, and information technology at 14.09% as of 04/30/23. It also includes financials at 14.08%, health care at 12.71%, and several smaller allocations.

KDIV has an expense ratio of 0.69%.

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