Traditional healthcare exchange-traded funds primarily focus on large-cap U.S.-based companies. A new ETF shifts the healthcare investing paradigm by emphasizing healthcare opportunities in China, the world's second-largest economy.

KraneShares, the New York-based ETF sponsor known for its lineup of unique China and emerging markets funds, introduced Thursday the KraneShares MSCI All China Health Care Index ETF (NYSE:KURE).

The KraneShares MSCI All China Health Care Index ETF tracks the MSCI China All Shares Health Care Index. That benchmark includes A-Shares, B-Shares, H-Shares, P-Chips and Red Chips, giving the new ETF exposure to companies listed in mainland China (A-Shares), Hong Kong (H-Shares) and the U.S.

Another China Boom

China's healthcare sector is booming, however, as well and posting growth rates well in excess of the same sector in large developed markets.

What's Inside KURE

KURE's holdings include generic pharmaceuticals makers, traditional Chinese medicine firms, hospital administration, biotechnology, medical equipment production and healthcare technology companies.

“There is still opportunity for considerable growth in China’s healthcare market with per capita health spending at just $420, compared to an average of over $5,800 for the world’s top eight healthcare markets in terms of per capita expenditure,” according to KraneShares.

KURE is the second ETF introduced by KraneShares this year. The issuer launched the KraneShares Electric Vehicles & Future Mobility ETF (NYSE:KARS) last month. KURE charges 0.79 percent per year, or $79 on a $10,000 investment.

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