Topic: How To Invest

Q: Pat, can I get your recommendation on the KraneShares Emerging Markets Healthcare Index ETF? Thanks.

Article Excerpt

A: KraneShares Emerging Markets Healthcare Index ETF, $21.69, symbol KMED on New York (Units outstanding: 100.0 million; Market cap: $2.2 billion; www.kraneshares.com), mirrors the Solactive Emerging Markets Healthcare Index. This index tracks companies engaged in the health-care segment of various emerging markets. The stocks it invests in include companies involved in hospital management, healthcare management, pharmaceutical manufacturing and biotechnology, among other industries. The fund aims to capitalize on what it sees as positive trends in emerging markets healthcare. In its view, these trends include: 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 period. In emerging markets, rapid urbanization and rising income is fueling growth in the demand for healthcare services and treatments. Cases of non-communicable diseases such as diabetes and cancer are rising steadily in emerging market countries, presenting a growth opportunity for innovators in the healthcare space. Governments in…