ETF Evaluator: KraneShares MSCI Em Mkts ex CHN ETF () Follow This ETF

KraneShares MSCI Em Mkts ex CHN ETF Overview

KraneShares MSCI Em Mkts ex CHN ETF (KEMX) is a passively managed International Equity Diversified Emerging Mkts exchange-traded fund (ETF). KraneShares launched the ETF in 2019.

The investment seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the MSCI Emerging Markets ex China Index. Under normal circumstances, the fund will invest at least 80% of its net assets (plus borrowings for investment purposes) in instruments in its underlying index or in instruments that have economic characteristics similar to those in the underlying index. The underlying index is a free float-adjusted market capitalization weighted index designed to measure the equity market performance of mid- and large-cap companies of emerging market countries, excluding China.

About KraneShares MSCI Em Mkts ex CHN ETF (KEMX)

There are 2 members of the management team with an average tenure of 6.93 years: James Maund (2020) and Jonathan Shelon (2019). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 2 primary benchmarks: MSCI EM NR USD index with a weighting of 100% and MSCI EM ex China NR USD index with a weighting of 100%. KraneShares MSCI Em Mkts ex CHN ETF has 295 securities in its portfolio. The top 10 holdings constitute 36.7% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

KraneShares MSCI Em Mkts ex CHN ETF is part of the Equity global asset class and is within the International Equity ETF group. KraneShares MSCI Em Mkts ex CHN ETF has 99.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.8% There is 99.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). KraneShares MSCI Em Mkts ex CHN ETF has 0.2% of the portfolio in cash.

Assets Under Management

The fund has $127 million in total assets, which is below the $3 billion average for the Diversified Emerging Mkts category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

KEMX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The KraneShares MSCI Em Mkts ex CHN ETF expense ratio is below average compared to funds in the Diversified Emerging Mkts category. KraneShares MSCI Em Mkts ex CHN ETF has an expense ratio of 0.24%, which is 54% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. KraneShares MSCI Em Mkts ex CHN ETF has a portfolio turnover rate of 27%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 44% for the Diversified Emerging Mkts category.

Recently, in the month of July 2026, KraneShares MSCI Em Mkts ex CHN ETF returned -4.4%, which earned it a grade of D, as the Diversified Emerging Mkts category had an average return of -3.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

KraneShares MSCI Em Mkts ex CHN ETF has a trailing yield of 2.47%, which is above the 2.41% category average. The fund normally distributes its income annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

KraneShares MSCI Em Mkts ex CHN ETF Grades

Year to date, the ETF has returned 31.7%, 14.6 percentage points better than the category, which translates into a grade of A. The fund has returned 56.0% over the past year (grade of A), 24.7% over the past three years (grade of A) and 12.9% per year over the past five years (grade of A).

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