KraneShares is a family of ETF's, all focused on China. Brendan, the Chief Investment Officer, tells about the restructuring of the MSCI Emerging Market Index, to include mainland Chinese securities. Index based ETF's, as passive investments, invest in those companies that are included in these indexes. This means that those who invest in this index will now include those securities from Chinese exchanges, resulting in additional shares to be purchased of these companies. This is somewhat historic, and could generate some significant changes in the value of these securities that will now be included in the index. Very interesting interview for any investor.
June 19, 2018