When it comes to creating a well-diversified portfolio, healthcare stocks have traditionally offered a variety of benefits. As an innovative sector, healthcare companies offer the potential to build long-term portfolio growth.
With markets see-sawing up and down on a daily (or even minute-by-minute) basis on hints of global tariffs updates, there's an opportunity to time an investment to win short-term gains.
An escalating trade war with China elevates a number of risk factors, but also creates pockets of overlooked opportunity for those with the appetite. Advisors and investors looking for contrarian opportunities in 2025 need look no further than China's healthcare sector and the KraneShares MSCI China All Shares Healthcare 10/40 Index ETF (KURE).
| XBER Exchange | US Country |
The fund is an investment vehicle focusing on the healthcare sector in China. It commits at least 80% of its net assets, alongside borrowings intended for investment purposes, to securities that either form part of its underlying index or possess economic characteristics akin to those present within this index. The underlying index is a market capitalization weighted index that is adjusted for free float and is designed to reflect the performance of the Chinese healthcare equity market. It operates with adherence to the 10/40 Constraint, ensuring a balanced representation of investments. As a non-diversified fund, it channels its investments into a concentrated selection of assets, providing a focused approach to sector-specific growth in the Chinese market.
The fund primarily invests in financial instruments related to the Chinese healthcare sector, including equities of companies operating within this industry. These instruments either form part of the fund's underlying index or share similar economic characteristics, aiming to mirror or exceed the index's equity market performance.
Its investment strategy is guided by the underlying index – a free float adjusted market capitalization weighted index that evaluates the equity performance of Chinese healthcare companies. The fund adheres to the 10/40 Constraint, which regulates investment concentration, thereby ensuring a level of diversification within its focused approach.
Operating as a non-diversified fund, it has the freedom to invest a larger portion of its assets into fewer securities. This structure allows for potentially higher gains from individual investments but comes with a higher risk due to lesser diversification compared to diversified funds.