At a glance
KEMX charges 0.24% a year, below the 0.53% average of the 8 funds most like it (the 2nd cheapest of 8). It has $133.7M in assets, the 5th largest of that group; it paid 2.5% of its price in distributions over the past 12 months, semiannual. Over the past year it returned +35.1% with distributions reinvested (S&P 500: +11.5%), the best of those 8 funds; over three years it returned +28.3% a year. At its worst it fell 36.2% in the 2020 crash (S&P 500: 33.7%) and 30.8% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 21 months after the lows. Its ten largest positions make up 40.6% of the fund, out of 288 in all.
The short version
KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) is an index fund that tracks the MSCI Emerging Markets ex China Index. It holds mid- and large-cap stocks from emerging markets such as Taiwan, South Korea and India, and it leaves out China. After a fee waiver, its 0.24% expense ratio is below the 0.53% average of similar funds. Its heavy tilt toward Taiwanese and Korean chipmakers makes it more volatile than a broad stock fund.
Price history
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KEMX +35.1% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| KEMX official prospectus, to Dec 31, 2025 | — | +37.58% | — | +8.36% | — | +9.62% |
| MSCI Emerging Markets Index (Reflects no deduction for fees, expenses or taxes) index, same period | — | +33.57% | — | +4.20% | — | +6.45% |
| MSCI Emerging Markets ex China Index (Reflects reinvested dividends net of withholding taxes, but reflects no deduction for fees, expenses or other taxes) index, same period | — | +34.61% | — | +8.25% | — | +8.93% |
| KEMX price data to Oct 27, 2026 | +30.4% | +35.1% | +28.3% | +12.2% | — | +12.2% |
- Over the year to Oct 27, 2026, KEMX returned +35.1%, 1st of 8 among similar funds.
- Its 5-year annualized return was +12.2%.
- In the 2020 COVID crash it fell 36.2% and regained its old high 7.7 months after the low.
- Its worst full calendar year was 2022 (-19.3%); its best was 2025 (+38.3%).
- The deepest fall in its price history was 38.8% (Jan 17, 2020 to Mar 23, 2020), recovered by Nov 23, 2020.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +30.4% | — |
| 2025 | +38.3% | +37.58% |
| 2024 | +0.4% | +2.03% |
| 2023 | +20.6% | +21.36% |
| 2022 | -19.3% | -19.57% |
| 2021 | +10.5% | +9.03% |
| 2020 | +12.8% | +14.67% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 36.2% over that stretch · deepest drop along the way 36.2%, back to its old high 7.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 27.6% over that stretch · deepest drop along the way 30.8%, back to its old high 21.1 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $1.2100 | +28.7% |
| 2024 | $0.9400 | +64.9% |
| 2023 | $0.5700 | -42.4% |
| 2022 | $0.9900 | -33.6% |
| 2021 | $1.4900 | +198.0% |
| 2020 | $0.5000 |
What's inside
As of Jun 30, 2026, the fund held 288 securities; the ten largest made up 40.65% of assets.
| Holding | Weight | |
|---|---|---|
| Taiwan Semiconductor Manufacturing Company Limited | 15.22% | |
| Samsung Electronics Co., Ltd. | 7.73% | |
| SK hynix Inc. | 6.94% | |
| MediaTek Inc. | 2.59% | |
| SAMSUNG ELECTRO-MECHANICS CO.,LTD | 1.79% | |
| SK Square Co., Ltd. | 1.76% | |
| ACCTON TECHNOLOGY CORPORATION | 1.35% | |
| DELTA ELECTRONICS, INC. | 1.28% | |
| RELIANCE INDUSTRIES LIMITED | 1.00% | |
| NAN YA PLASTICS CORPORATION | 0.99% | |
| HON HAI PRECISION INDUSTRY CO., LTD. | 0.93% | |
| ICICI BANK LIMITED | 0.89% | |
| Samsung Electronics Co., Ltd. Preferred stock | 0.88% | |
| HDFC BANK LIMITED | 0.83% | |
| United Microelectronics Corporation | 0.80% |
By country
Taiwan 32.12%South Korea 30.22%India 13.84%Brazil 4.87%South Africa 3.94%By asset type
Stocks 97.06%Preferred stock 2.79%What changed recently
- Over the three months to Jun 30, 2026, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -0.46%, +13.52%, +17.39%.
How it works
KEMX aims to match the price and yield performance of the MSCI Emerging Markets ex China Index, before fees. It must invest at least 80% of net assets in the index's securities or in instruments that behave similarly. The index covers mid- and large-cap companies in the countries MSCI classes as emerging markets, except China. In each country, it includes companies whose free-float market value ranks in the top 85%. Free float means the shares the public can actually buy, leaving out large stakes held by insiders or governments. Each company is weighted by that value, so the biggest firms carry the most weight.
As of March 31, 2026, the index held 625 securities. Taiwan (30.2%), Korea (20.8%) and India (16.9%) were the largest countries. Information technology (39.7%) and financials (22.3%) were the largest sectors. The index is rebalanced quarterly, and the fund's portfolio turnover was 27%.
Krane, the fund's adviser, uses representative sampling. Instead of buying every index stock, it holds a smaller group that closely mirrors the index. As of June 30, 2026, the fund held about 288 stocks and reported no derivatives or cash. Up to 20% of assets may go into non-index stocks, derivatives, other ETFs (including Krane-affiliated funds) or cash. The fund may lend out securities. It could also become "non-diversified" if a few large stocks grow heavier, such as Taiwan Semiconductor at 15.2%.
What it really costs
- KEMX charges 0.24% a year, versus an average of 0.53% for the similar funds below (2nd of 8, cheapest first).
- Of that, 0.58% is the management fee; the rest covers other fund expenses.
- The fee includes a 0.35% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $25 in the first year and $669 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| KEMX | $25 | $116 | $258 | $669 |
In a retirement portfolio
Nearly a third of the fund sat in three Asian chip stocks as of June 30, 2026, and its one-year volatility was 28.3% as of October 27, 2026, so it works better as a small add-on than as a foundation.
KEMX could add exposure to emerging markets other than China to a portfolio built mostly on US stocks. It launched in April 2019, so it has no record from the 2008 financial crisis. In the 2020 COVID crash it fell 36.2% and took about 7.7 months to recover. Its deepest drop, 38.8% from January to March 2020, took about eight months to recover. The 2022 bear market was slower to heal: a 30.8% fall that took about 21 months to make back. Calendar 2022 was its worst year, with a 19.3% loss. A retiree forced to sell shares during a stretch like that would lock in losses.
The trailing yield was 2.5% as of October 27, 2026, paid twice a year, so the income arrives unevenly. The 0.24% expense ratio is low for the group but depends on a fee waiver. Past results don't predict the future, and a retirement plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who already hold China separately, or want to avoid it, and want other emerging markets for a 0.24% net expense ratio.
- Those comfortable with heavy chip exposure: Taiwan Semiconductor, Samsung and SK hynix made up nearly 30% of assets as of June 30, 2026.
- Long-term holders of a small satellite position who can sit through drops like the 30.8% fall in 2022, which took about 21 months to recover.
Look elsewhere if
- Investors who want one emerging-markets fund that includes China, such as a fund tracking the broader MSCI Emerging Markets Index.
- Those who prefer a much larger fund: EMXC held about $24.9 billion versus KEMX's roughly $134 million, with a similar 0.25% expense ratio.
- Retirees who need steady, frequent income: the 2.5% yield is paid only twice a year, and one-year volatility was 28.3%.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| KEMX this fund | — | 0.24% | $133.7M | +35.1% | +28.3% |
| EMXC iShares MSCI Emerging Markets ex China ETF | 72% | 0.25% | $24.92B | +27.3% | +24.6% |
| XCNY SPDR S&P Emerging Markets ex-China ETF | 53% | 0.15% | $9.9M | +17.6% | — |
| DEXC Dimensional Emerging Markets ex China Core … | 43% | — | $307.9M | — | — |
| PEMX Putnam Emerging Markets ex-China ETF | 42% | 0.85% | $31.2M | +28.4% | +31.8% |
| EMM Global X Emerging Markets ex-China ETF | 38% | 0.76% | $57.8M | +25.7% | +21.7% |
| TLTE FlexShares Morningstar Emerging Markets Fac… | 36% | 0.57% | $342.5M | +14.1% | +20.2% |
| MEMX Matthews Emerging Markets ex China Active E… | 34% | 0.79% | $50.3M | +25.7% | +25.0% |
Questions investors ask
What's the difference between KEMX and EMXC?
They are close alternatives that differ mainly in size. Both hold emerging-market stocks outside China, and their holdings overlapped by about 72% in the latest N-PORT reports. KEMX's net expense ratio is 0.24%, compared with 0.25% for iShares MSCI Emerging Markets ex China ETF (EMXC). EMXC is far larger, at about $24.9 billion as of August 31, 2026, versus roughly $134 million for KEMX as of June 30, 2026. KEMX's one-year return was 35.1% as of October 27, 2026. EMXC returned 27.4% as of October 30, 2026.
Does KEMX pay dividends?
Yes. KEMX pays dividends twice a year, not monthly or quarterly. Over the 12 months to October 27, 2026, it paid about $1.21 per share, a trailing yield of 2.5%. The dividends come from the emerging-market companies it holds, so the amount can change from one payment to the next. Changes in foreign currencies against the US dollar can also affect it. Investors who need regular monthly cash would have to plan around the semiannual payments.
What are KEMX's top holdings?
Asian technology companies dominate. As of June 30, 2026, Taiwan Semiconductor Manufacturing was the largest position at 15.2%. Samsung Electronics followed at 7.7%, plus another 0.9% in its preferred shares. SK hynix came next at 6.9% and MediaTek at 2.6%. The top 10 holdings made up 40.7% of assets. By country, Taiwan was 32.1%, South Korea 30.2% and India 13.8%. That makes the fund far more concentrated than its long list of about 288 stocks suggests.
How has KEMX performed compared with its index?
It has kept pace with its index and beaten the broader MSCI Emerging Markets Index. As of December 31, 2025, KEMX's average annual return was 8.36% over five years and 9.62% since inception. The MSCI Emerging Markets ex China Index returned 8.25% and 8.93% over the same periods. The MSCI Emerging Markets Index, which includes China, returned 4.2% over five years. KEMX gained 37.58% in 2025 and lost 19.57% in 2022, by the prospectus figures.
Is KEMX's 0.24% expense ratio permanent?
Not necessarily. The 0.24% net expense ratio comes from the prospectus filed July 29, 2026. It reflects a 0.35% fee waiver on a 0.58% management fee. The SEC's standard example on a $10,000 investment shows costs of $25 after one year, $116 after three years, $258 after five and $669 after 10. Those steeper later figures suggest the example assumes the waiver won't continue. Waivers can end, so the prospectus terms are worth checking.