Overpricer

USA

KraneShares overprices iShares with bizarre listing

You may have heard of a business strategy called under pricing: where you roll out a competitor product at a cheaper price. But now, thanks to China ETF specialist KraneShares, were have a new strategy in the ETF market: overpricing.

KraneShares is listing a new emerging markets tracker that excludes China. The KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) will track the MSCI Emerging Markets ex China Index. This is the same index that iShares MSCI Emerging Markets ex China ETF (EMXC) tracks. Only the iShares product does so at a cheaper price: 0.49% compared with the 0.58% that KraneShares intends to charge.

We admit to being puzzled by this strategy.

Europe

HANetf list Kuwait and healthcare Innovation trackers

Hector and Nik ETF are listing two new funds in Europe via their white-labelling platform.

  • HAN-GINS Indxx Healthcare Innovation UCITS ETF (WELL)
  • KMEFIC FTSE Kuwait Equity UCITS ETF (KUW8)

KUW8 has been put together with help from the Kuwait & Middle East Financial Investment Company (KMEFIC). Headquartered in Kuwait, KMEFIC is a provider of asset management, brokerage and wealth management services. Tracking the FTSE Kuwait All-Cap 15% Capped index, KUW8 holds 13 Kuwaiti companies with a combined market cap of $14.6bn, where the weight of the biggest company is capped at 15%. The fund will charge 0.80%.

WELL has been put together with help from GinsGlobal, the South African asset manager. Well will charge 0.75%. Tracking the Indxx Advanced Life Sciences & Healthcare Thematic index, WELL will look to offer investors exposure to developed and emerging companies that are involved in the advanced life sciences and smart healthcare sector. The index currently holds 88 securities with its top five holdings including Edwards Lifesciences, Intuitive Surgical, Regeneron Pharmaceuticals, Boston Scientific and Illumnina.