NEW YORK, Sept. 5, 2018 /PRNewswire/ -- Krane Funds Advisors, LLC, ("KraneShares"), a U.S. asset management firm known forits China-focused KraneShares exchange-traded funds (ETFs) and innovative China investment strategies, announced the launch of the KraneShares Emerging Markets Healthcare Index ETF
"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 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 KraneSharesKrane 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).
Carefully consider the Funds' investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' full & summary prospectus, which may be obtained at www.kraneshares.com. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. ETF shares are not redeemable with the issuing fund other than in large Creation Unit aggregations. Instead, investors must buy or sell ETF Shares in the secondary market with the assistance of a stockbroker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling. The NAV of the Fund's shares is calculated each day the national securities exchanges are open for trading as of the close of regular trading on the New York Stock Exchange ("NYSE"), normally 4:00 p.m. Eastern time (the "NAV Calculation Time"). Shares are bought and sold at market price (closing price) not NAV. Market price returns are based on the midpoint of the bid/ask spread at 4:00 pm Eastern Time (when NAV is normally determined).
The KraneShares MSCI All China Health Care Index ETF and the KraneShares Emerging Markets Healthcare ETF are subject to political, social or economic instability within China which may cause decline in value. Fluctuations in currency of foreign countries may have an adverse effect to domestic currency values. Emerging markets involve heightened risk related to the same factors as well as increase volatility and lower trading volume.
Narrowly focused investments typically exhibit higher volatility. Internet companies are subject to rapid changes in technology, worldwide competition, rapid obsolescence of products and services, loss of patent protections, evolving industry standards and frequent new product productions. Such changes may have an adverse impact on performance. Technology companies may be subject to severe competition and rapid obsolescence. the KraneShares MSCI All China Health Care Index ETF, and the KraneShares Emerging Markets Healthcare ETF are non-diversified.
The ability of the KraneShares MSCI All China Health Care Index ETF and the KraneShares Emerging Markets Healthcare ETF to achieve their respective investment objectives is dependent, in part, on the continuous availability of A Shares and the ability to obtain, if necessary, additional A Shares quota. If a Fund is unable to obtain sufficient exposure to limited availability of A Share quota, the Fund could seek exposure to the component securities of the Underlying Index by investment in other types of securities. The funds may in invest in derivatives, which are often more volatile than other investments and may magnify the Funds' gains or losses.
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.
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SOURCE Krane Funds Advisors
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