ETF Research Center

KMED seeks to provide investment results that, before fees and expenses, track the performance of the Solactive Emerging Markets Healthcare Index. The index seeks to track the equity market performance of companies engaged in the health care sector in various emerging markets.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	KraneShares
Website	kraneshares.com
Inception date	Aug 29, 2018
Assets (mns)	$1
Currency	USD
Expense ratio	79 bp
Distributions	Semi-annual

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	76
Wgt avg mkt cap (mns)	$8,965
Large cap (>$10bn)	43.4%
Mid cap ($2-10bn)	47.8%
Small cap (<$2bn)	7.7%
Developed mkts	6.5%
Emerging mkts	93.5%

TOP TEN HOLDINGS
Total	39.1 %
SUN PHARMACEUTICAL INDUS	5.0 %
BANGKOK DUSIT MED SERVICE	4.7 %
SAMSUNG BIOLOGICS CO., LTD.	4.5 %
JIANGSU HENGRUI MEDICINE CO., LTD.	4.4 %
CELLTRION INC	4.3 %
IHH HEALTHCARE BHD	4.2 %
HAPVIDA PARTICIPACOES E INVESTIMEN	3.8 %
NOTRE DAME INTERMEDICA PARTICIPACO	2.8 %
AIER EYE HOSPITAL GROUP CO., LTD.	2.7 %
WUXI BIOLOGICS (CAYMAN) INC.	2.7 %

TOP COUNTRY EXPOSURE
	CHINA	27.7 %
	SOUTH KOREA	19.4 %
	INDIA	11.7 %
	BRAZIL	9.1 %
	MALAYSIA	6.8 %
	THAILAND	6.0 %
	INDONESIA	2.9 %
	SOUTH AFRICA	2.9 %
	HUNGARY	1.3 %
	MEXICO	0.4 %

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.
5.6%	-1.3%	--	--	-11.7%

Market Correlations
versus...	Beta	R-squared
S&P500	0.90	50%
MSCI EAFE	1.21	63%
MSCI Emg. Mkts.	1.00	60%

Technical Indicators
Recent close	$21.42
30d moving avg.	$21.97
Annualized volatility	22.3%
Short interest (ETF)	0.0%
Relative strength (RSI)	46

Liquidity measures
Avg. volume (thou.)	0
Turnover	0.0%
Bid/Ask (% of price)	1.02%
ADV underlying (mns)	$1,958

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

KMED

Expense:

79 bp

ALTAR Score™:

3.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH KMED
Ticker	Fund Name	Overlap¹ vs KMED (%)	Expense ratio (bp)	Savings vs KMED (bp)	ALTAR Score™ (%)	ALTAR vs KMED (%)
KURE	KraneShares MSCI All China Health Care	25.0	65	14	4.4	+0.8
CHIH	Global X MSCI China Health Care	16.6	65	14	5.2	+1.7
CHNA	Loncar China BioPharma	7.4	79	0	5.0	+1.5
CNXT	VanEck Vectors China AMC SME-ChiNext	5.9	65	14	5.5	+2.0
FLKR	Franklin FTSE South Korea	5.7	9	70	10.7	+7.2
EWY	iShares MSCI Korea	5.7	59	20	10.2	+6.7
EWM	iShares MSCI Malaysia	5.2	47	32	7.1	+3.6
MXDE	Nationwide Maximum Diversification Emg Mkts Core	5.1	64	15	5.2	+1.7
IPOS	Renaissance International IPO	4.9	80	-1	5.7	+2.2
PEK	VanEck Vectors ChinaAMC A-Shares	4.9	60	19	9.2	+5.7
CXSE	WisdomTree China ex-State Owned Enterprises	4.8	32	47	7.0	+3.5
ASHR	Xtrackers Harvest CSI 300 China A-Shares	4.8	65	14	9.2	+5.7
FPXI	First Trust International IPO	4.8	70	9	3.9	+0.4
BICK	First Trust BICK Index Fund	4.4	64	15	5.6	+2.1
ASHX	Xtrackers MSCI China A Inclusion	4.1	60	19	8.8	+5.3
CNYA	iShares MSCI China A	4.0	65	14	9.3	+5.8
KBA	KraneShares MSCI China A Int'l	3.9	60	19	8.8	+5.3
EDOG	ALPS Emerging Sector Dividend Dogs	3.8	60	19	9.3	+5.8
FDEM	Fidelity Targeted Emerging Markets Factor	3.6	45	34	8.8	+5.3
AFTY	CSOP FTSE China A50	3.2	70	9	11.2	+7.7

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 Emerging Markets Healthcare Index
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	14.6	%
Divided by: Fwd. P/BV	3.4	x
Less: Expense ratio	79	bp
Equals: ALTAR Score	3.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.42	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.