ETF Research Center

The KraneShares CSI China Internet ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the CSI Overseas China Internet Index. The index is designed to measure the performance of publicly traded China-based companies whose primary business or businesses are in the Internet and Internet-related sectors.

FUND BASICS
Category	Emerging Market Equities
Fund Sponsor	Krane Fund Advisors LLC
Website	www.kraneshares.com
Inception date	Aug 01, 2013
Assets (mns)	$2,539
Currency	USD
Expense ratio	76 bp
Distributions	Semi-Annually

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

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	45
Wgt avg mkt cap (mns)	$116,319
Large cap (>$10bn)	63.9%
Mid cap ($2-10bn)	28.7%
Small cap (<$2bn)	4.7%
Developed mkts	25.9%
Emerging mkts	74.1%

TOP TEN HOLDINGS
Total	59.2 %
ALIBABA GROUP HOLDING LTD. SPONSOR	9.8 %
TENCENT HOLDINGS LTD	8.8 %
MEITUAN DIANPING	7.7 %
BAIDU INC - SPON ADR	7.2 %
JD.COM INC-ADR	6.3 %
TAL EDUCATION GROUP UNSPONSORED AD	4.1 %
CTRIP.COM INTERNATIONAL-ADR	4.1 %
NETEASE.COM INC-ADR	4.0 %
PINDUODUO, INC. SPONSORED ADR CLAS	3.6 %
IQIYI, INC. SPONSORED ADR CLASS A	3.6 %

TOP COUNTRY EXPOSURE
	CHINA	92.9 %
	HONG KONG	1.3 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
29.9%	29.9%	9.6%	--	11.5%

Market Correlations
versus...	Beta	R-squared
S&P500	1.55	53%
MSCI EAFE	1.87	63%
MSCI Emg. Mkts.	1.47	67%

Technical Indicators
Recent close	$53.96
30d moving avg.	$49.73
Annualized volatility	25.8%
Short interest (ETF)	8.9%
Relative strength (RSI)	77

Liquidity measures
Avg. volume (thou.)	999
Turnover	2.1%
Bid/Ask (% of price)	0.04%
ADV underlying (mns)	$5,854

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

KWEB

Expense:

76 bp

ALTAR Score™:

3.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH KWEB
Ticker	Fund Name	Overlap¹ vs KWEB (%)	Expense ratio (bp)	Savings vs KWEB (bp)	ALTAR Score™ (%)	ALTAR vs KWEB (%)
PGJ	Invesco Golden Dragon China	63.3	70	6	3.2	-0.3
EMQQ	Emerging Markets Internet & E-Commerce	55.6	86	-10	3.2	-0.3
CQQQ	Invesco China Technology	54.6	70	6	4.6	+1.1
TTTN	TigerShares China-U.S. Internet Titans	46.7	59	17	3.6	+0.1
FDNI	First Trust Dow Jones International Internet	45.4	65	11	3.7	+0.2
FNI	First Trust ISE Chindia	45.0	59	17	3.6	+0.1
CHIC	Global X MSCI China Communication Services	40.2	65	11	4.7	+1.2
CXSE	WisdomTree China ex-State Owned Enterprises	37.7	32	44	6.1	+2.6
CHIQ	Global X MSCI China Consumer Discretionary	35.3	65	11	4.7	+1.2
KEMQ	KraneShares EM Consumer Focus	33.7	80	-4	8.3	+4.8
CHIL	Global X MSCI China Large-Cap 50	30.5	29	47	9.3	+5.8
PLAT	WisdomTree Modern Tech Platforms	29.9	45	31	2.7	-0.8
FLCH	Franklin FTSE China	29.3	19	57	8.5	+5.0
EEB	Invesco BRIC	28.6	64	12	6.1	+2.6
GXC	SPDR S&P China ETF	28.6	59	17	8.1	+4.6
ECON	Columbia Emerging Markets Consumer	27.9	59	17	5.0	+1.5
MCHI	iShares MSCI China	27.6	59	17	8.1	+4.6
EBIZ	Global X E-commerce	27.0	68	8	2.5	-1.0
KALL	KraneShares MSCI China All Shares	27.0	49	27	8.1	+4.6
SOCL	Global X Social Media	25.1	65	11	3.8	+0.3

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 CSI China Internet
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	14.3	%
Divided by: Fwd. P/BV	3.4	x
Less: Expense ratio	76	bp
Equals: ALTAR Score	3.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.31	CATEGORY AVERAGE	1.48

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.