KEMQ ETF: Emerging Markets Tech ETF | EM ETF | KraneShares

info@kraneshares.comThe Emerging Market Technology Opportunity An Overview of the KraneShares Emerging Markets Consumer Technology ETF (Ticker: KEMQ)KEMQ 6/30/2026

Investment Strategy: KEMQ seeks to track the Solactive Emerging Markets Consumer Technology Index. The Index selects companies from 26 eligible count ries within emerging markets (EM) whose primary business or businesses are internet retail, internet software/services, purchase, payment processing, or software for internet and E -Commerce transactions. Upon rebalance, constituent weights are capped at 3% and count ry weights are capped at 40%. Emerging Markets Consumer Technology Highlights: •Internet adoption is expanding within emerging markets while domestic consumption and retail sales are steadily increasing and frequently taking place online. •In 2025, despite the slowest expansion since the pandemic, the global middle class will surpass 4 billion for the first time, becoming the majority.1 World Data Lab projects this dominance will continue, with another billion+ people joining the middle class within the next decade, reaching 5.7 billion consumer class individuals out of a world population of 8.7 billion.1 •We believe the growth of internet adoption within emerging markets is a long- term secular theme that may continue to play out ov er the course of decades. KEMQ features: •Access to emerging market internet companies that provide similar services as Google, Facebook, PayPal, Amazon, etc. •Exposure to companies that stand to benefit from increasing domestic consumption by emerging markets' growing middle class, irrespective of their country of incorporation. •Exposure to emerging market companies facilitating mobile E -Commerce sales.KEMQ KraneShares Emerging Markets Consumer Technology ETF 1.Data from “How the world has achieved middle -class dominance, against the odds,” World Economic Forum, as of 7/18/2025. Adoption and consumption trends are uncertain and can reverse due to economic, regulatory, and geopolitical developments.2

Population The middle -class consumer in Emerging Markets will drive global demand.Penetration Internet adoption is the catalyst for rapid innovation and facilitates “leapfrogging”.Performance Technology firms across the emerging markets are taking global leadership positions.Transformational growth in emerging markets is driven by the “Three P’s” 3

4•Demographics •Urban Middle Class •Consumption•Adoption of Technology & Telecommunications •HealthcareThis is why we buy EM: But this is what we get when we buy broad EM: •Commodities •“Old economy” companies•Slow growth sectors Apple store window with sign in Nanjing East Road with people who often line up to grab on one of the company's latest gadgets. Shanghai China

5Broad Emerging Markets have been “out of favor” in the past decade … Data from Bloomberg as of 6/30/2026. See end of presentation for index definitions. Index returns are for illustrative purpos es only. Indexes are unmanaged and one cannot invest directly in an index. Index returns do not reflect fees or other costs associated with investing. Past performance does not guarantee future returns.05,00010,00015,00020,00025,00030,00035,00040,00045,000 6/30/2016 6/30/2017 6/30/2018 6/30/2019 6/30/2020 6/30/2021 6/30/2022 6/30/2023 6/30/2024 6/30/2025 6/30/2026Growth of 10,000 unitsPerformance of MSCI EM and S&P 500 (6/30/2016 to 6/30/2026) MSCI EM Index S&P 500

EM consumer/technology has outperformed emerging markets over the past decade. •In order to show the historical performance of the EM consumer/technology sectors within the MSCI EM Index, we combined the I ndex’s information technology, consumer discretionary, and communication services sectors. We used the sectors’ pre - and post -GICS reclassification weightings pictured in slide 11. •We found that EM consumer/technology outperformed both broad emerging markets since December 2010. 6Data from Bloomberg as of 6/30/2026. See end of presentation for index and term definitions . Index returns are for illustrative purposes only. Indexes are unmanaged and one cannot invest directly in an index. Index returns do not reflect fees or other costs associated with investing. Past performance does not guarantee future returns.GICS Reclassification 050001000015000200002500030000350004000045000 12/1/2010 3/1/2011 6/1/2011 9/1/2011 12/1/2011 3/1/2012 6/1/2012 9/1/2012 12/1/2012 3/1/2013 6/1/2013 9/1/2013 12/1/2013 3/1/2014 6/1/2014 9/1/2014 12/1/2014 3/1/2015 6/1/2015 9/1/2015 12/1/2015 3/1/2016 6/1/20169/1/2016 12/1/2016 3/1/20176/1/2017 9/1/2017 12/1/2017 3/1/2018 6/1/20189/1/2018 12/1/2018 3/1/20196/1/2019 9/1/2019 12/1/2019 3/1/20206/1/2020 9/1/2020 12/1/2020 3/1/2021 6/1/2021 9/1/2021 12/1/2021 3/1/20226/1/20229/1/2022 12/1/2022 3/1/2023 6/1/2023 9/1/2023 12/1/2023 3/1/20246/1/2024 9/1/2024 12/1/2024 3/1/2025 6/1/2025 9/1/2025 12/1/2025 3/1/20266/1/2026Growth of 10,000 UnitsEM Consumer Technology vs. MSCI EM Index and S&P 500 EM Consumer Technology S&P 500 Index MSCI Emerging Markets Index

26 eligible countries: Argentina, Brazil, Chile, Colombia, Mexico, Peru, Puerto Rico, Cyprus, Czech Republic, Egypt, Greece, Hungary, Poland, Qatar, Russia, South Africa, Turkey, United Arab Emirates, China, India, Indonesia, South Korea, Malaysia, The Philippines, Taiwan, Thailand Select companies from Internet Retail and Internet Software/Services sub -sector and micro- sectors involved in the purchase, payment processing, and software for internet and e- commerce transactions To mitigate exposure to any one company, constituents are capped at 3% and country weights are capped at 40%. KraneShares seeks to minimize tracking error and trading costsMinimum 3- month average daily trading volume of $1 million USD Minimum Market Cap of 1 billion USD Country Eligibility* Stock Size & Trading Minimums Industry & Sub -sector Selection Ensure Proper Diversification KEMQFiltering Process for Index Constituent SelectionIn order to deliver a precise representation of the emerging markets consumer technology opportunity, we worked with Solactive to develop the Solactive Emerging Markets Consumer Technology Index. Diversification does not ensure a profit or guarantee against a loss. 7 *The index may also include companies incorporated in countries outside of the eligible list that derive significant revenue from one or more of the countries in the eligible list.

However, capturing the performance of the EM consumer/technology sector can be complicated. •In the past, E -Commerce and internet platforms were classified by Global Industry Classification Standards (GICS) as information technology (IT) companies. •However, as this sector evolved, it ended up grouping social media platforms, E -Commerce, gaming, and internet companies with chip -makers and hardware companies. •In October 2018, GICS underwent a major reclassification to resolve this issue. Information technology was left with mostly hard ware companies, while E -Commerce and internet platforms were split between two other sectors: consumer discretionary and communication services (formerly telecommunication services). •For instance, Alibaba and Mercado Libre were shifted to the consumer discretionary sector, while internet platforms, such as Baidu and Naver, were classified as communication services companies. 8 Data from MSCI and Bloomberg as of 6/30/2026. Information Technology 28%Information Technology 45%Consumer Discretionary 10%Consumer Discretionary 7%Communication Services 5%Communication Services 6% 0%10%20%30%40%50%60%70% Before Reclassification After ReclassificationWeight of Select Sectors within the MSCI Emerging Markets Index Before and After Reclassification Information Technology Consumer Discretionary Communication Services% Weight Information Technology 61% Information Technology 34%Consumer Discretionary 30%Consumer Discretionary 21%Communication Services 4% Communication Services 38% 0%10%20%30%40%50%60%70%80%90%100% Before Reclassification After ReclassificationWeight of Select Sectors within KEMQ Before and After Reclassification Information Technology Consumer Discretionary Communication Services% Weight

Information Technology 34%Consumer Discretionary 38%Communication Services 21%Consumer Staples 3%Financials 3%KEMQKEMQ offers greater exposure to growth- oriented sectors than the MSCI Emerging Markets Index. 9 Data from Bloomberg as of 6/30/2026. Excluding cash. Due to rounding, may not add up to 100%. See end of presentation for ind ex definitions.Value -Oriented SectorsInformation Technology 45% Consumer Discretionary 7%Communication Services …Consumer Staples …Health Care 2%Real Estate 1%Financials 18%Materials 5%Industrials 7%Energy 3%Utilities 2%MSCI Emerging Markets Index

10 Data from FactSet as of 6/30/2026. FY1 = Forward Year 1 (next 12 months). See end of presentation for index and term definitions. Forward P/E ratios for the fund are not a forecast of the fund's future performance. KEMQ’s Forward P/E is still lower than the US Internet sector 051015202530354045Forward Price -to-Earnings Ratio (FY1 P/E)KEMQ Forward Price -to-Earnings Comparison (12/31/2017 through 6/30/2026) U.S. Internet KEMQ

Our index filtering process also results in a very different country breakdown than traditional emerging markets. Unlike the MSCI Emerging Markets Index, KEMQ’s index may contain companies located in developed markets that nonetheless deri ve significant revenue from emerging markets. Data from Bloomberg as of 6/30/2026. See end of presentation for index definitions. *Although Japan and Germany are not emerging market countries, the holdings headquartered in these countries derive significa nt revenue from emerging markets. **Others include Malaysia, United Arab Emirates , and Egypt . 11A maximum weight of 40% per Country of Domicile is applicable. If the 40% cap is breached, the following steps will be taken: Stocks from the respective Country of Domicile which have the smallest Market Capitalization values are removed until country weight is below or equal to 40%. To reach 50 companies in the index once again, companies from the eligible universe (excluding respective Country of Domicile) are selected based on highest Market Capitalization.China 28% South Korea 9% Taiwan 23%Singapore 6%India 10%United States 4%Uruguay 4%Japan 2%Ireland 3%Other 22%KEMQ Country Breakdown 05101520253035 China South Korea Brazil India Taiwan OtherCountry Breakdown: KEMQ vs. MSCI Emerging Markets KEMQ MSCI EM Index

Emerging market exposure to the Semiconductor Industry 12•NVIDIA has become a well -known player in the semiconductor industry recently. However, it is a fabless semiconductor company, meaning it designs chips instead of manufacturing them. •NVIDIA has cultivated pivotal partnerships with Taiwan Semiconductor (TSMC) and SK Hynix, which are integral to bringing its innovative products to market . •TSMC, as the world's largest foundry, manufactures NVIDIA's high- performance GPUs using its cutting -edge 5nm and 4nm process nodes. •SK Hynix is the undisputed leader in high- bandwidth memory (HBM) chips, securing 62% global market share in this specialized memory crucial for GPU -accelerated AI computation that companies like NVIDIA rely on. 2 1.Data from Bloomberg as of 6/30/2026. 2.Data from SK Hynix company website as of 12/31/2025. Holdings are subject to change. See page 17 for top 10 holdings.Semiconductors 27% Broadline Retail 24% Interactive Media & Services 13%Interactive Home Entertainment 7%Technology Distributors 3%Other 26%KEMQ Subsector Breakdown1

NVIDIA Valuation Versus KEMQ Semiconductor Holdings 13050,000,000,000100,000,000,000150,000,000,000200,000,000,000250,000,000,000300,000,000,000350,000,000,000400,000,000,000450,000,000,000 2024 2025 2026 2027USDRevenue For 2024 & 2025, Revenue Estimates For 2026 & 2027 NVIDIA Taiwan Semiconductor Manufacturing Company SK Hynix Data from Bloomberg as of 6/30/2026. Holdings are subject to change. See page 17 for top 10 holdings. Please see the end of t he presentation for definitions.

NVIDIA Valuation Versus KEMQ Semiconductor Holdings 1422.94 21.98 5.6819.72 14.07 3.06130 123 68 020406080100120140 NVIDIA Taiwan Semiconductor Manufacturing CompanySK HynixNVIDIA Compared to Taiwan Semiconductor Manufacturing Company and SK Hynix Forward P/E Price to Sales 2025 Revenue ($ Billions) Data from Bloomberg as of 6/30/2026. Holdings are subject to change. See page 17 for top 10 holdings. Please see the end of t he presentation for definitions.

NVIDIA Price -to-Sales Versus KEMQ Semiconductor Holdings 15Company Listing Location Weight in KEMQ (%) Price -to-Sales (P/S) NVIDIA CORP United States -- 19.72 TAIWAN SEMI Taiwan 3.52 14.07 SK HYNIX South Korea 3.87 3.06 UNITED MICRO Taiwan 4.45 5.59 NANYA TECH Taiwan 3.28 3.16 VISERA TECHNOLOGIES Taiwan 0.75 14.39 VANGUARD INTERNATIONAL SEMITaiwan 3.32 4.62 WIN SEMI Taiwan 0.62 6.09 POWERCHIP SEMI Taiwan 2.72 6.19 HUA HONG SEMICONDUCTOR China 4.19 13.59 Data from Bloomberg as of 6/30/2026. Holdings are subject to change. See page 17 for top 10 holdings. Please see the end of t he presentation for definitions.

We believe using KEMQ to augment or replace an existing exposure to broad EM may provide performance benefits. 16Investor Type Hypothetical Portfolio Hypothetical Investor 1: No EM Exposure Current Allocation: 0% Hypothetical Investor 2: Some EM Exposure Current Allocation: 3-5% Hypothetical Investor 3: Significant EM Exposure Current Allocation: 20%EM Growth 3-5% Broad - Based EM 15-17%Other 80-82%Hypothetical Portfolio 3Other 100%Hypothetical Portfolio 1 EM Growth 3-5% Other 95-97%Hypothetical Portfolio 2•We have found that investors tend to fall into one of three camps: no EM exposure, some exposure, or significant exposure. •We have mapped out how KEMQ (EM Growth) may fit into each of these three investors’ portfolios.

Fund Details Data as of 06/30/2026 Primary Exchange NYSE Arca, Inc. CUSIP 500767876 ISIN US5007678767 Total Annual Fund Operating Expense (Gross) 0.80% Total Annual Fund Operating Expense (Net)* 0.50% Inception Date 10/11/2017 Distribution Frequency Annual Underlying Index Solactive Emerging Markets Consumer Technology Index Net Assets $38,488,476 Number ofHoldings 99Top10Holdings asof 06/30/2026 Holdings are subject tochange.Ticker % UNITED MICROELECTRONICS CORP 2303 4.45 HUA HONG GRACE SEMICONDUCTOR 1347 4.19 SEA LTD-ADR SE 3.92 SK HYNIX INC 000660 3.87 MERCADOLIBRE INC MELI 3.58 NETEASE INC 9999 3.49 VANGUARD INTERNATIONAL SEMI 5347 3.32 NANYA TECHNOLOGY CORP 2408 3.28 PDD HOLDINGS INC PDD 3.11 TENCENT HOLDINGS LTD 700 3.11 KEMQ Performance History asof06/30/2026: Cumulative % Average Annualized % 3Mo 6Mo Since Inception 1Yr 3Yr 5Yr Since Inception Fund NAV 17.01% 3.59% 13.99% 20.30% 23.51% -3.87% 1.51% Closing Price 14.18% 4.87% 14.82% 20.86% 23.79% -3.80% 1.60% Underlying Index 17.08% 3.97% 22.78% 21.03% 23.49% -3.34% 2.38% Theperformance data quoted represents past performance. Past performance does notguarantee future results. Theinvestment return andprincipal value ofaninvestment willfluctuate sothat aninvestors shares, when sold or redeemed, may beworth more orless than their original cost andcurrent performance may belower orhigher than theperformance quoted. Forperformance data current tothemost recent month end, please visit www.kraneshares.com/kemq. Index returns areforillustrative purposes only. Index performance returns donotreflect anymanagement fees, transaction costs orexpenses. Indexes areunmanaged andonecannot invest directly inanindex. *Fee waivers arecontractual andineffect until August 1,2026.KraneShares Emerging Markets Consumer Technology ETF Investment Strategy: KEMQ seeks totrack theSolactive Emerging Markets Consumer Technology Index. TheIndex selects companies from 26eligible countries within emerging markets whose primary business or businesses areinternet retail, internet software/services, purchase, payment processing, orsoftware forinternet andE-Commerce transactions.

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China, Emerging Markets & Regional Alternatives Income & Covered Call AI, Robotics & Emerging Technology KURE Healthcare KGRN Clean TechnologyKSTR STAR Market KTEC Hang Seng TechKWEB Internet & E -Commerce China A Shares KBA / CHIN KCAI China Onshore Alpha IndexAGIX Artificial Intelligence & Technology KOID Humanoid & Embodied Intelligence Electric Vehicles & Future Mobility KARSChina Suite Future TechBroader Emerging Markets KEMQ Emerging Markets Consumer Tech KPHODragon Capital Vietnam GrowthKEMX MSCI Emerging Markets ex China U.S. & Developed Markets KVLE Value Line® Dynamic Dividend EquityHedgeye Hedged Equity KSPY Man Buyout Beta Index BUYO Fixed Income BNDDQuadratic Deflation ETFIVOLQuadratic Interest Rate Volatility & Inflation Hedge KHYB Asia High Income USD BondSustainable Ultra Short DurationKCSH KEUA European Carbon AllowanceGlobal Carbon Strategy KRBNCarbon CreditsKPDD 2X Long PDD Daily KJD 2X Long JD DailyKBAB 2X Long BABA Daily KMLI 2X Long MELI Daily Covered Call & Options Income Managed Futures KMLMMount Lucas Managed Futures KWIN Wahed Alternative IncomeKLIP China Internet & Covered Call Outcome Based Equity KIQQ Nasdaq Buffer & Option IncomeLevered & High- Conviction Exposure KBUF90% KWEB Defined Outcome100% KWEB Defined Outcome KPRO Alternative Income KCCA California Carbon AllowanceExtensive ETF Product Suite Spanning High Growth Sectors Strategy also available in UCITS / ETCKBDU 2X Long BIDU Daily

Key Takeaways •Our China experience has allowed us to identify and deliver extraordinary opportunities across emerging markets •The three P’s may shape buying behavior for decades to come oPopulation: The middle -class consumer oPenetration: Rapid internet adoption oPerformance: The growth of technology platforms •Many of the themes and opportunities that we observe in China extend across the Emerging Markets and include the consumer, technology, healthcare, the environment, and electric vehicles 20These themes are not assured and may be significantly affected by market volatility, evolving regulatory environments, geopolitical developments, and fluctuations in foreign currencies.

Index Definitions: The MSCI Emerging Markets Net USD Index: Captures large and mid cap representation across 23 Emerging Markets (EM) countries. MSCI World Net USD Index: The MSCI World Index is a free -float weighted equity index. It was developed with a base value of 100 as of December 31, 1969. The index includes developed world markets and does not include emerging markets.The Solactive Emerging Markets Consumer Technology Index: The Solactive Emerging Markets Consumer Technology Index selects companies from 26 eligible countries within emerging markets whose primary business or businesses are internet retail, internet software/services, purchase, payment processing, o r software for internet and E -Commerce transact. The S&P 500 Index: The S&P 500 Index is an American stock market index based on the market capitalization of the 500 largest companies having co mmon stock listed on the NYSE or NASDAQ. countries in the universe prior to the removal of state -owned enterprises while also limiting sector deviations to 3% of the sta rting universe. Dow Jones Internet Composite Index: The index is designed to measure the performance of the 40 largest and most actively traded stocks of U.S. companies in the i nternet industry. To be eligible for the index, a company must derive at least 50% of cash flows from the internet. WisdomTree Emerging Markets ex -State -Owned Enterprises Index: The Index measures the performance of emerging markets stocks that are not state -owned enterprises. State -owned enterprises are defined as government ownership of more than 20% of outstanding shares of companies. The index employs a modi fied float -adjusted market capitalization weighting process to target the weights of MSCI Emerging Markets (EM) Minimum Volatility (USD) Index: The Index aims to reflect the performance characteristics of a minimum variance strategy applied to large and mid cap equitie s across 26 Emerging Markets countries*. The index is calculated by optimizing the MSCI Emerging Markets Index, its parent inde x, for the lowest absolute risk (within a given set of constraints). Morningstar Active EM Category (Morningstar Diversified Emerging Markets Universe): This is an index composed of funds and their constituents that have been identified by Morningstar as falling under the category of “Diversified emerging -markets portfolios.” Diversified emerging -markets portfolios tend to divide their assets among 20 or more nations, although they tend to focus on the emerging markets of Asia and Latin America rather than on those of the Middle East, Africa, or Europe. These por tfolios invest at least 70% of total assets in equities and invest at least 50% of stock assets in emerging markets.MSCI EM ESG Leaders Gross USD Index: The MSCI Emerging Markets (EM) ESG Leaders Index is a capitalization weighted index that provides exposure to companies with hig h Environmental, Social, and Governance (ESG) performance relative to their sector peers. MSCI EM ESG Leaders Index consists of large and mid cap companies across 26 Emerging Markets (EM) countries. The Index is designed for investors seeking a broad, diversified sustainability benchmark with relatively low tracking error to the underlying equity market. The index is a member of the MSCI ESG Leaders Index series. Constituent selection is based on data from MSCI ESG Research. The index was launched on June 6, 20 13. MSCI Emerging Markets Consumer Discretionary USD Net Index: The MSCI Emerging Markets Consumer Discretionary Index captures large and mid cap representation across 26 Emerging Markets (EM) countries. All securities in the index are classified in the Consumer Discretionary sector as per the Global Ind ustry Classification Standard (GICS). The index was launched on January 1, 2001. MSCI Emerging Markets Information Technology USD Gross Index: The MSCI Emerging Markets Information Technology Index is designed to capture the large to mid -cap segments across 26 Emerging Markets (EM) countries. All securities in the index are classified in the Information Technology sector according to the Global Industry Classification Standard (GICS). The index was launched on September 15, 1999. MSCI Emerging Markets Communication Services Gross USD Index: The MSCI Emerging Markets Information Technology Index is designed to capture the large to mid -cap segments across 26 Emerging Markets (EM) countries. All securities in the index are classified in the Communication Services sector according to the Global Industry Classification Standard (GICS). The index was launched on September 15, 1999. 21

22Term Definitions: Emerging Markets Consumer/Technology: Prior to the GICS reclassification in October 2018, this is defined as 28% MSCI Emerging Markets Information Technology Index , 10% the MSCI Emerging Markets Consumer Discretionary Index, and 5% the MSCI Emerging Markets Communication Services Index. After the reclassificati on, this is defined as 15% the MSCI Emerging Markets Information Technology Index, 14% the MSCI Emerging Markets Consumer Discretionary Index, and 11% the MSCI Emerging Markets Communication Services Index. Price -to-Earnings Ratio (P/E): A company’s price per share divided by the company’s current earnings per share. The ratio is widely used as a valuation metr ic. Forward Price -to-Earnings Ratio (FY1 P/E): A company’s price per share divided by the company’s estimated earnings per share for the next fiscal year. The ratio is wide ly used as a forward -looking valuation metric. Revenue Estimates: Revenue estimates are projections of the total sales or income a company is expected to generate over a specific future perio d, often based on historical data and market conditions. Price -to-Sales Ratio: The price -to-sales ratio is a financial metric that measures a company’s market valuation by dividing its market capitalization or share price by its total sales or revenue, indicating how much investors are willing to pay for each dollar of sales.

Important Notes: Carefully consider the Funds’ investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Funds' full and summary prospectus, which may be obtained by visiting www.kraneshares.com /kemq .Read the prospectus carefully before investing. Risk Disclosures: Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. Indices are unmanaged and do not include the effect of fees. One cannot invest directly in an index. This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategie s, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change. Certain content represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results; material is as of the dates noted and is subject to change without notice. A-Shares are issued by companies in mainland China and traded on local exchanges. They are available to domestic and certain fo reign investors, including QFIs and those participating in Stock Connect Programs like Shanghai -Hong Kong and Shenzhen- Hong Kong. Foreign investments in A -Shares face various regulations and restrictions, including limits on asset repatriation. A -Shares may experience frequent trading halts and illiquidity, which can lead to volatility in the Fund’s share price and increased trad ing halt risks. The Chinese economy is an emerging market, vulnerable to domestic and regional economic and political changes, often showing more volatility than developed markets. Companies face ri sks from potential government interventions, and the export -driven economy is sensitive to downturns in key trading partners, impacting the Fund. U.S. -China tensions raise concerns over tariffs a nd trade restrictions, which could harm China’s exports and the Fund. China's regulatory standards are less stringent than in the U.S., resulting in limited information about issuers. Tax laws ar e unclear and subject to change, potentially impacting the Fund and leading to unexpected liabilities for foreign investors. Fluctuations in currency of foreign countries may have an adverse effect to dom estic currency values. The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund’s gains or los ses. A derivative (i.e., futures/forward contracts, swaps, and options) is a contract that derives its value from the performance of an underlying asset. The primary risk of derivatives is that changes i n the asset’s market value and the derivative may not be proportionate, and some derivatives can have the potential for unlimited losses. Derivatives are also subject to liquidity and counterparty risk . The Fund is subject to liquidity risk, meaning that certain investments may become difficult to purchase or sell at a reasonable time and price. If a transaction for these securities is large, it may n ot be possible to initiate, which may cause the Fund to suffer losses. Counterparty risk is the risk of loss in the event that the counterparty to an agreement fails to make required payments or o therwise comply with the terms of the derivative. Narrowly focused investments typically exhibit higher volatility. The Fund’s assets are expected to be concentrated in a sect or, industry, market, or group of concentrations to the extent that the Underlying Index has such concentrations. The securities or futures in that concentration could react similarly to market dev elopments. Thus, the Fund is subject to loss due to adverse occurrences that affect that concentration. In addition to the normal risks associated with investing, investments in smaller companies typi cally exhibit higher volatility. ETF shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the Fund. However, shares may be redeemed at NAV directly by certain authorized broker- dealers (Authorized Participants) in very large creation/redemption units. The returns shown do not represent the returns you would receive if you traded shares at other times. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Beginning 12/ 23/2020, market price returns are based on the official closing price of an ETF share or, if the official closing price isn't available, the midpoint between the national best bid and national best offer ("NBBO") as of the time the ETF calculates the current NAV per share. Prior to that date, market price returns were based on the midpoint between the Bid and Ask price. NAVs are calculated using prices as of 4:00 PM Eastern Time. The KraneShares ETFs and KFA Funds ETFs are distributed by SEI Investments Distribution Company (SIDCO), 1 Freedom Valley Dri ve, Oaks, PA 19456, which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Funds, or any sub -advisers for the Funds.