ETF Research Center

GaveKal Knowledge Leaders Developed World ETF tracks an index of highly innovative companies from developed markets

FUND BASICS
Category	Global Equities
Fund Sponsor	Exchange Traded Concepts
Website	gavekalfunds.com
Inception date	Jul 08, 2015
Assets (mns)	$140
Currency	USD
Expense ratio	75 bp
Distributions	Annually

FUND STRUCTURE
Regulation	Open-End Investment Company
Custodian
Weighting	Equal
Index replication
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	316
Wgt avg mkt cap (mns)	$34,907
Large cap (>$10bn)	52.8%
Mid cap ($2-10bn)	43.5%
Small cap (<$2bn)	3.6%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	5.3 %
ASML HOLDING NV	0.6 %
CSL LIMITED	0.6 %
NEMETSCHEK AG	0.5 %
EN-JAPAN INC	0.5 %
GEBERIT AG-REG	0.5 %
ADOBE SYSTEMS INC	0.5 %
FUJITSU LTD	0.5 %
SUNTORY BEVERAGE & FOOD LTD	0.5 %
TOYO SUISAN KAISHA LTD	0.5 %
INTUIT INC	0.5 %

TOP COUNTRY EXPOSURE
	JAPAN	34.3 %
	UNITED STATES	27.4 %
	BRITAIN	5.0 %
	GERMANY	4.0 %
	SWEDEN	3.8 %
	FRANCE	3.4 %
	AUSTRALIA	3.3 %
	SWITZERLAND	3.0 %
	CANADA	2.4 %
	IRELAND	2.0 %

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.
19.7%	10.9%	--	--	7.7%

Market Correlations
versus...	Beta	R-squared
S&P500	0.90	80%
MSCI EAFE	1.01	85%
MSCI Emg. Mkts.	0.73	72%

Technical Indicators
Recent close	$35.79
30d moving avg.	$34.60
Annualized volatility	12.2%
Short interest (ETF)	0.2%
Relative strength (RSI)	76

Liquidity measures
Avg. volume (thou.)	8
Turnover	0.2%
Bid/Ask (% of price)	0.09%
ADV underlying (mns)	$47,447

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Gavekal Knowledge Leaders Developed World ETF based on the alternatives' overlap in portfolio holdings with KLDW. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

KLDW

Expense:

75 bp

ALTAR Score™:

5.3%

ALTERNATIVE ETFs BASED ON OVERLAP WITH KLDW
Ticker	Fund Name	Overlap¹ vs KLDW (%)	Expense ratio (bp)	Savings vs KLDW (bp)	ALTAR Score™ (%)	ALTAR vs KLDW (%)
EWJE	iShares MSCI Japan Equal Weighted	21.0	15	60	7.3	+2.0
GSEW	Goldman Sachs Equal Weight U.S. Large Cap Equity	17.9	9	66	6.4	+1.1
RSP	Invesco S&P 500 Equal Weight	17.1	20	55	6.8	+1.5
EFG	iShares MSCI EAFE Growth	17.1	40	35	5.1	-0.3
QRFT	Qraft Ai-Enhanced U.S. Large Cap ETF	16.6	75	0	4.7	-0.6
PQIN	PGIM QMA Strategic Alpha International Equity	16.6	29	46	7.4	+2.1
XT	iShares Exponential Technologies	16.4	47	28	5.3	+0.0
GSLC	Goldman Sachs ActiveBeta U.S. Large Cap Equity	16.4	9	66	6.4	+1.1
ISZE	iShares MSCI Int'l Developed Size Factor	16.3	30	45	6.7	+1.4
SCIU	Global X Scientific Beta US	16.3	19	56	5.7	+0.4
JPEU	JPMorgan Diversified Return Europe Equity	16.2	37	38	6.7	+1.4
SZNE	Pacer CFRA-Stovall Equal Weight Seasonal Rotation	16.2	60	15	6.6	+1.3
PQLC	PGIM QMA Strategic Alpha Large-Cap Core	16.0	17	58	7.0	+1.7
GSIE	Goldman Sachs ActiveBeta Int'l Equity	16.0	25	50	6.7	+1.4
URTH	iShares MSCI World Index	15.4	24	51	6.0	+0.7
ETHO	Etho Climate Leadership U.S.	15.4	45	30	4.9	-0.4
JHMD	John Hancock Multifactor Developed International	15.3	45	30	7.2	+1.9
JPUS	JPMorgan Diversified Return U.S. Equity	15.2	19	56	6.3	+1.0
QEFA	SPDR MSCI EAFE Quality Mix	15.2	30	45	6.6	+1.3
EFAX	SPDR MSCI EAFE Fossil Fuel Free	15.0	20	55	7.1	+1.8

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%.

Content on this tab for subscribers only**

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

Content on this tab for subscribers only

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:	Gavekal Knowledge Leaders Developed World
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	13.3	%
Divided by: Fwd. P/BV	2.2	x
Less: Expense ratio	75	bp
Equals: ALTAR Score	5.3	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.66	CATEGORY AVERAGE	1.54

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.