ETF Watch: GaveKal Shutters EM Fund

ETF Watch: GaveKal Shutters EM Fund

The innovation-focused ETF failed to gather assets.
Reviewed by: Staff
Edited by: Staff

Friday, Feb. 10, was the last day of trading for the GaveKal Knowledged Leaders Emerging Markets ETF (KLEM). The fund rolled out in July 2015, but never really gathered assets, unlike its counterpart, the GaveKal Knowledge Leaders Developed World ETF (KLDW), which has nearly $58 million in assets under management.

Both funds sought to capture what GaveKal Capital calls the “knowledge effect,” which posits that innovative companies are more likely to outperform the market. However, while KLDW has been on a mostly upward trajectory since its launch and has kept pace with comparable plain-vanilla ETFs, KLEM’s trendline is far more jagged, recording a negative return between its launch and the end of January 2017. KLEM has also consistently underperformed plain-vanilla broad emerging market funds.

KLEM is the fourth ETF to close since the start of 2017, down from seven closures by this date last year.

Contact Heather Bell at [email protected]. is the single source for ETF intelligence. We provide real-time ETF news and analysis to educate investors and drive financial knowledge in the space. Our personalized and accurate information, alongside industry-leading financial tools, are depended upon to develop winning investment and financial decisions. At, we strive to serve both the individual investor as well as the professional financial advisor to educate and grow the ETF community.