ETF Research Center

KraneShares Bosera MSCI China A is an exchange-traded fund incorporated in the USA. The Fund seeks to track the performance of the MSCI China A index.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	Krane Fund Advisors LLC
Website	http://kraneshares.com/
Inception date	Mar 05, 2014
Assets (mns)	$559
Currency	USD
Expense ratio	60 bp
Distributions	Annually

FUND STRUCTURE
Regulation	Open-End Investment Company
Custodian	Brown Brothers Harriman & Co
Weighting	Market Cap
Index replication	Full
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	443
Wgt avg mkt cap (mns)	$46,826
Large cap (>$10bn)	65.0%
Mid cap ($2-10bn)	32.7%
Small cap (<$2bn)	2.3%
Developed mkts	5.4%
Emerging mkts	94.6%

TOP TEN HOLDINGS
Total	22.7 %
KWEICHOW MOUTAI CO LTD-A	5.9 %
PING AN INSURANCE (GROUP) COMPANY	3.6 %
CHINA MERCHANTS BANK -A	2.9 %
WULIANGYE YIBIN CO LTD-A	2.0 %
JIANGSU HENGRUI MEDICINE CO., LTD.	1.6 %
INDUSTRIAL BANK CO LTD -A	1.5 %
CHINA YANGTZE POWER CO LTD-A	1.5 %
SHANGHAI PUDONG DEVEL BANK-A	1.4 %
IND & COMM BK OF CHINA - A	1.2 %
HANGZHOU HIKVISION DIGITAL-A	1.2 %

TOP COUNTRY EXPOSURE
	CHINA	93.1 %
	BRITISH VIRGIN ISLANDS	0.1 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru October 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
26.2%	22.7%	4.1%	--	7.4%

Market Correlations
versus...	Beta	R-squared
S&P500	1.03	40%
MSCI EAFE	1.14	42%
MSCI Emg. Mkts.	1.02	55%

Technical Indicators
Recent close	$31.20
30d moving avg.	$31.26
Annualized volatility	19.6%
Short interest (ETF)	1.4%
Relative strength (RSI)	57

Liquidity measures
Avg. volume (thou.)	84
Turnover	0.5%
Bid/Ask (% of price)	0.08%
ADV underlying (mns)	$17,083

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the KraneShares MSCI China A Int'l ETF based on the alternatives' overlap in portfolio holdings with KBA. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

KBA

Expense:

60 bp

ALTAR Score™:

8.9%

ALTERNATIVE ETFs BASED ON OVERLAP WITH KBA
Ticker	Fund Name	Overlap¹ vs KBA (%)	Expense ratio (bp)	Savings vs KBA (bp)	ALTAR Score™ (%)	ALTAR vs KBA (%)
ASHX	Xtrackers MSCI China A Inclusion	81.1	60	0	9.3	+0.4
CNYA	iShares MSCI China A	80.9	65	-5	9.2	+0.4
ASHR	Xtrackers Harvest CSI 300 China A-Shares	76.1	65	-5	9.3	+0.4
PEK	VanEck Vectors ChinaAMC A-Shares	75.6	60	0	9.3	+0.4
CNHX	CSOP MSCI China A International Hedged	72.9	79	-19	9.3	+0.5
WCHN	WisdomTree ICBCCS S&P China 500	46.6	55	5	9.2	+0.3
AFTY	CSOP FTSE China A50	42.3	70	-10	11.1	+2.2
KALL	KraneShares MSCI China All Shares	34.0	49	11	9.2	+0.3
KFYP	KraneShares CICC China Leaders 100	23.4	70	-10	11.8	+2.9
CHIL	Global X MSCI China Large-Cap 50	22.2	29	31	10.6	+1.8
CXSE	WisdomTree China ex-State Owned Enterprises	18.3	32	28	7.3	-1.6
CNXT	VanEck Vectors China AMC SME-ChiNext	14.2	65	-5	5.4	-3.5
CHIS	Global X MSCI China Consumer Staples	13.5	65	-5	3.2	-5.7
CHIX	Global X MSCI China Financials	13.3	65	-5	19.5	+10.6
GXC	SPDR S&P China ETF	13.2	59	1	9.3	+0.4
ASHS	Xtrackers Harvest CSI China A-Shrs S/C	9.7	65	-5	5.6	-3.3
CHII	Global X MSCI China Industrials	9.0	66	-6	13.9	+5.0
OBOR	KraneShares MSCI One Belt One Road Index	8.7	79	-19	9.3	+0.5
FLCH	Franklin FTSE China	8.2	19	41	10.1	+1.2
MCHI	iShares MSCI China	7.6	59	1	9.5	+0.6

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	KraneShares MSCI China A Int'l
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	14.0	%
Divided by: Fwd. P/BV	1.5	x
Less: Expense ratio	60	bp
Equals: ALTAR Score	8.9	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.41	CATEGORY AVERAGE	1.49

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.