There was one change to the KraneShares Model this week
Chinese equities slipped modestly over the past week. Within the KraneShares Tactical Emerging Markets Model TR (KRANETACTEM.TR), this resulted in one significant allocation shift. The model exited the KraneShares Emerging Markets Consumer Technology Index ETF TR (KEMQ) after the fund moved below the KraneShares MSCI Emerging Markets Ex China Index ETF TR (KEMX) in the ranking matrix. Per the model’s rules, any ETF that falls below KEMX.TR is absorbed by KEMX.TR.
With KEMX.TR now ranking first out of six funds in the matrix, it assumes 100% of the model’s allocation. This shift reflects the ongoing underperformance of China relative to other emerging‑market segments, reinforcing the model’s systematic preference for stronger, non‑China exposures at this stage. As broader emerging‑market trends continue to evolve, the model will dynamically adjust positioning based on its rules‑based framework. We will continue to monitor for additional changes.
