As U.S. tech stocks slip on faltering AI investor confidence, looking to opportunities abroad could prove beneficial. The KraneShares Emerging Markets Consumer Technology Index ETF (KEMQ) increases portfolio diversification while also capturing strong consumer tech growth in emerging markets.
A range of risks threaten U.S. stocks and bonds in the second half. Concerns over expanding the government deficit, inflationary impacts of tariffs, and more create challenges for U.S. stocks and bonds.
For advisors and investors looking to tap into tech momentum outside the United States, China companies have emerged as a top choice. This should not come as a particular surprise.
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The fund is strategically focused on investing a significant portion of its assets in the equity securities of the top 50 large-capitalization companies that generate the majority of their revenue from Emerging and Frontier Markets, specifically within the consumer and technology sectors. By dedicating at least 80% of its net assets, including any borrowings for investment purposes, to either direct instruments in its underlying index or to instruments with similar economic characteristics to those in the underlying index, the fund aims to mirror or exceed the performance of its benchmark. The underlying index itself is an aggregation of equity securities from companies that not only lead in market size within their regions but also have a substantial footprint in either consumer or technology sectors, indicating a focused yet growth-oriented investment strategy towards rapidly developing markets.
The fund chiefly operates through investments structured around two key sectors: consumer and technology, in Emerging and Frontier Markets. Below are the primary vehicles through which it seeks to generate returns for its investors: