ETF Research Center

The KFA Large Cap Quality Dividend Index ETF tracks a dividend-selected, market-cap weighted index of large-cap U.S equities.

FUND BASICS
Category	US Equities
Fund Sponsor	KraneShares
Website	kraneshares.com
Inception date	Jun 12, 2019
Assets (mns)	$52
Currency	USD
Expense ratio	41 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	99
Wgt avg mkt cap (mns)	$72,315
Large cap (>$10bn)	76.3%
Mid cap ($2-10bn)	23.7%
Small cap (<$2bn)	0.0%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	11.3 %
CUMMINS INC	1.2 %
NORDSON CORP	1.2 %
WESTERN UNION CO	1.2 %
QUALCOMM INC	1.2 %
DOVER CORP	1.1 %
UNITED TECHNOLOGIES CORP	1.1 %
SHERWIN-WILLIAMS CO/THE	1.1 %
CARLISLE COS INC	1.1 %
AT&T INC	1.1 %
PRAXAIR INC	1.1 %

TOP COUNTRY EXPOSURE
	UNITED STATES	93.8 %
	BERMUDA	1.9 %
	BRITAIN	1.1 %
	IRELAND	1.0 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru January 01)
Year-to-date	1 year	5 years	10 years	Since Incep.
--	--	--	--	0.0%

Market Correlations
versus...	Beta	R-squared
S&P500	--	--
MSCI EAFE	--	--
MSCI Emg. Mkts.	--	--

Technical Indicators
Recent close	$26.41
30d moving avg.	$26.30
Annualized volatility	0.0%
Short interest (ETF)	0.0%
Relative strength (RSI)	58

Liquidity measures
Avg. volume (thou.)	9
Turnover	0.5%
Bid/Ask (% of price)	0.17%
ADV underlying (mns)	$26,547

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the KFA Large Cap Quality Dividend Index ETF based on the alternatives' overlap in portfolio holdings with KLCD. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

KLCD

Expense:

41 bp

ALTAR Score™:

5.0%

ALTERNATIVE ETFs BASED ON OVERLAP WITH KLCD
Ticker	Fund Name	Overlap¹ vs KLCD (%)	Expense ratio (bp)	Savings vs KLCD (bp)	ALTAR Score™ (%)	ALTAR vs KLCD (%)
PFM	Invesco Dividend Achievers	37.0	54	-13	5.5	+0.4
VIG	Vanguard Dividend Appreciation	35.0	6	35	5.5	+0.4
LGLV	SPDR Russell 1000 Low Volatility	34.3	12	29	5.2	+0.2
HUSV	First Trust Horizon Managed Volatility Domestic	33.6	70	-29	4.7	-0.3
LVUS	Hartford Multifactor Low Volatility US Equity	32.9	21	20	5.8	+0.8
SPLV	Invesco S&P 500 Low Volatility	31.6	25	16	5.3	+0.2
LVHB	Elkhorn Lunt Low Vol/High Beta Tactical	31.6	52	-11	5.0	-0.1
SDY	SPDR S&P Dividend ETF	31.4	35	6	6.4	+1.4
USMV	iShares MSCI USA Minimum Volatility	31.3	15	26	5.2	+0.2
FLQL	Franklin LibertyQ U.S. Equity	30.5	15	26	6.9	+1.9
LSLT	Salt Low truBeta US Market	30.2	0	41	6.9	+1.9
JMIN	JPMorgan U.S. Minimum Volatility	29.9	12	29	5.6	+0.6
FLLV	Franklin Liberty U.S. Low Volatility	29.2	29	12	5.3	+0.2
NOBL	ProShares S&P500 Aristocrats	29.0	35	6	5.8	+0.8
KNG	Cboe Vest S&P 500 Dividend Aristocrats Target Income	29.0	75	-34	5.4	+0.4
DEF	Invesco Defensive Equity	28.6	59	-18	4.9	-0.2
FDLO	Fidelity Low Volatility Factor	28.5	29	12	5.3	+0.3
VSDA	VictoryShares Dividend Accelerator	28.3	35	6	4.8	-0.2
XRLV	Invesco S&P 500 ex-Rate Sensitive Low Volatility	28.1	25	16	5.7	+0.7
OVOL	Invesco Russell 1000 Low Volatility Factor ETF	26.6	19	22	5.6	+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:	KFA Large Cap Quality Dividend Index
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	18.5	%
Divided by: Fwd. P/BV	3.4	x
Less: Expense ratio	41	bp
Equals: ALTAR Score	5.0	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.68	CATEGORY AVERAGE	1.55

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.