ETF Research Center

The KraneShares MSCI China Environment Index ETF tracks an index of Chinese companies of all capitalization sizes that derive at least 50% of their revenue from environmentally beneficial products and services.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	KraneShares
Website	kraneshares.com
Inception date	Oct 13, 2017
Assets (mns)	$2
Currency	USD
Expense ratio	80 bp
Distributions	Annually

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian
Weighting	Market Cap
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	37
Wgt avg mkt cap (mns)	$5,409
Large cap (>$10bn)	19.5%
Mid cap ($2-10bn)	61.0%
Small cap (<$2bn)	17.2%
Developed mkts	41.0%
Emerging mkts	59.0%

TOP TEN HOLDINGS
Total	58.9 %
CHINA CONCH VENTURE HOLDINGS	9.3 %
BYD CO LTD-H	7.4 %
CHINA EVERBRIGHT INTL LTD	7.4 %
CHINA VANKE CO LTD-H	7.1 %
SHIMAO PROPERTY HOLDINGS LTD	5.4 %
HUANENG RENEWABLES CORP-H	5.1 %
XINYI SOLAR HOLDINGS LTD	4.5 %
GZI REAL ESTATE INVMNT TRUST	4.3 %
CHINA LONGYUAN POWER GROUP-H	4.2 %
BEIJING ENTERPRISES WATER GR	4.2 %

TOP COUNTRY EXPOSURE
	CHINA	58.5 %
	HONG KONG	36.8 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru November 30)
Year-to-date	1 year	5 years	10 years	Since Incep.
0.5%	-8.8%	--	--	-15.5%

Market Correlations
versus...	Beta	R-squared
S&P500	0.95	47%
MSCI EAFE	1.18	55%
MSCI Emg. Mkts.	1.08	70%

Technical Indicators
Recent close	$17.91
30d moving avg.	$17.69
Annualized volatility	19.8%
Short interest (ETF)	0.0%
Relative strength (RSI)	57

Liquidity measures
Avg. volume (thou.)	4
Turnover	4.0%
Bid/Ask (% of price)	0.68%
ADV underlying (mns)	$796

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

KGRN

Expense:

80 bp

ALTAR Score™:

10.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH KGRN
Ticker	Fund Name	Overlap¹ vs KGRN (%)	Expense ratio (bp)	Savings vs KGRN (bp)	ALTAR Score™ (%)	ALTAR vs KGRN (%)
CHIU	Global X MSCI China Utilities	13.3	65	15	9.5	-0.6
ICLN	iShares S&P Global Clean Energy	13.3	46	34	3.8	-6.4
CHII	Global X MSCI China Industrials	11.1	66	14	13.0	+2.9
CHIR	Global X MSCI China Real Estate	10.5	65	15	15.1	+5.0
TAN	Invesco Global Solar Energy	8.7	70	10	-3.3	-13.5
CHIK	Global X MSCI China Information Technology	7.7	65	15	6.6	-3.6
PBD	Invesco Gbl Clean Energy	7.1	75	5	-1.6	-11.7
ECNS	iShares MSCI China Small Cap	6.8	59	21	10.0	-0.2
FAN	First Trust Global Wind	6.5	60	20	5.4	-4.7
YLCO	Global X YieldCo & Renewable Energy Income	5.7	65	15	4.6	-5.6
TAO	Invesco China Real Estate	5.7	70	10	13.1	+3.0
FHK	First Trust Hong Kong	5.1	80	0	9.5	-0.7
SDG	iShares MSCI Global Impact	4.8	49	31	6.0	-4.1
LIT	Global X Lithium & Battery Tech ETF	4.6	75	5	5.1	-5.1
PBW	Invesco WilderHill Clean Energy	4.5	70	10	-1.9	-12.1
HAO	Invesco China Small Cap ETF	4.5	75	5	9.5	-0.7
NUEM	NuShares ESG Emerging Markets Equity	3.9	45	35	7.9	-2.3
GEX	VanEck Vectors Global Alternative Energy	3.5	63	17	4.0	-6.2
CHIQ	Global X MSCI China Consumer Discretionary	3.4	65	15	5.4	-4.8
KALL	KraneShares MSCI China All Shares	2.6	49	31	9.1	-1.1

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 Environment Index
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	9.7	%
Divided by: Fwd. P/BV	0.9	x
Less: Expense ratio	80	bp
Equals: ALTAR Score	10.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.36	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.