(KURE) KraneShares MSCI All China - Overview

The KraneShares MSCI All China Health Care Index ETF (KURE) commits at least 80 % of its net assets-plus any investment-purpose borrowings-to securities that either belong to its underlying index or closely mimic its economic profile. The index is a free-float-adjusted, market-cap-weighted basket of Chinese healthcare equities, constrained by the 10/40 rule (no single stock may exceed 10 % of the index, and the top 40 % of holdings cannot surpass 40 % of total weight). Because the ETF is classified as “non-diversified,” it may hold fewer than 25 securities, concentrating risk in a relatively narrow segment of the Chinese health-care market.

Key sector drivers that shape KURE’s performance include: (1) China’s rapidly aging population, which the National Bureau of Statistics projects will raise the 65-plus demographic from 12 % to ~20 % of the total by 2050, fueling demand for chronic-disease treatments; (2) the government’s “Healthy China 2030” plan, targeting a 7 % annual increase in total health-care expenditure, with a particular emphasis on biotech and medical-device innovation; and (3) the recent relaxation of foreign-investment caps in the Chinese pharmaceutical sector, which has already lifted foreign-owned R&D spending by roughly 15 % year-over-year, potentially expanding the addressable market for listed firms.

Given the ETF’s concentration and the volatility inherent in Chinese regulatory policy, investors should monitor the index’s turnover rate (currently ~45 % annually) and the average forward-PE of its constituents (≈18×), as these metrics signal valuation pressure and portfolio churn risk. For a deeper, data-driven view of how KURE’s risk-return profile stacks up against peers, you might explore the analytics on ValueRay.