KBA ETF: China A-Shares | KraneShares
by Kraneshares
The Future of China A-Shares Has Arrived
Overview of the KraneShares Bosera MSCI China A 50 Connect Index ETF
(Ticker: KBA)
Date: 3/31/2026
KraneShares
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Extensive ETF Product Suite Spanning High Growth Sectors
China, Emerging Markets & Regional
China Suite
- KWEB – Internet & E-Commerce
- KBA / CHIN – China A Shares
- KSTR – STAR Market
- KURE – Healthcare
- KGRN – Clean Technology
- KTEC – Hang Seng Tech
- KCAI – China Onshore Alpha Index
Broader Emerging Markets
- KEMQ – Emerging Markets Consumer Tech
- KPHO – Dragon Capital Vietnam Growth
- KEMX – MSCI Emerging Markets ex China
U.S. & Developed Markets
- KVLE – Value Line® Dynamic Dividend Equity
- KSPY – Hedgeye Hedged Equity
- BUYO – Man Buyout Beta Index
Levered & High-Conviction Exposure
- KBAB – 2X Long BABA Daily
- KPDD – 2X Long PDD Daily
- KMLI – 2X Long MELI Daily
- KJD – 2X Long JD Daily
- KBDU – 2X Long BIDU Daily
AI, Robotics & Emerging Technology
Future Tech
- AGIX – Artificial Intelligence & Technology
- KOID – Humanoid & Embodied Intelligence
- KARS – Electric Vehicles & Future Mobility
Income & Covered Call
Fixed Income
- IVOL – Quadratic Interest Rate Volatility & Inflation Hedge
- KCSH – Sustainable Ultra Short Duration
- KHYB – Asia High Income USD Bond
- BNDD – Quadratic Deflation ETF
Covered Call & Options Income
- KLIP – China Internet & Covered Call
- KIQQ – Nasdaq Buffer & Option Income
Alternative Income
- KWIN – Wahed Alternative Income
Alternatives
Carbon Credits
- KRBN – Global Carbon Strategy
- KCCA – California Carbon Allowance
- KEUA – European Carbon Allowance
Managed Futures
- KMLM – Mount Lucas Managed Futures
Outcome Based Equity
- KPRO – 100% KWEB Defined Outcome
- KBUF – 90% KWEB Defined Outcome
Strategy also available in UCITS / ETC
KBA – KraneShares Bosera MSCI China A 50 Connect Index ETF
Investment Strategy:
KBA is benchmarked to the MSCI China A 50 Connect Index, consisting of 50 large-cap Shanghai and Shenzhen listed stocks (A-shares) available through Stock Connect. A key feature of this Index is that it offers the first officially recognized Futures contracts for Stock Connect-eligible A-shares, representing a powerful risk management tool that makes its underlying stocks attractive to international investors. KBA focuses on the largest, most liquid stocks, which receive most foreign interest and inflows and may benefit from increased global investment in China's onshore market over the long term.
MSCI China A 50 Connect Index Features:
- Designed to meet the requirements of the growing number of international investors in China's mainland A-share markets.
- In addition to offering high correlation to broad China A-share benchmarks, the MSCI China A 50 Connect Index may offer greater liquidity and investability due to its balanced sector weighting methodology and focus on China's largest, most liquid securities.
- An expected reduction in tracking error and bid-ask spreads given that market makers can directly hedge exposure with Futures.
China A-Share Internationalization Highlights:
- China A-shares are vastly underrepresented in global indexes. While the United States has a weight of 64.01% in the MSCI All Country World Index, China only has a weight of 3.04%.
- Greater accessibility and inclusion in global indexes has led to significant foreign inflows into the China A-share market over the past several years.
The Evolution of China's Capital Markets and KraneShares
Timeline
- 1990 – Shanghai and Shenzhen Stock Exchanges launch
- 2002 – QFII is established allowing the first international access to A-share market
- 2011 – RQFII is established; allowing international access to A-share market with daily liquidity; First international funds with Interbank Bond Market exposure approved
- 2013 – KraneShares launches its first U.S. listed China ETF (KWEB)
- Mar 2014 – KraneShares Bosera MSCI China A-Share ETF (Ticker: KBA) launches; KraneShares partners with Bosera Asset Management to list KBA, the first MSCI-linked China A-Share ETF in the U.S.
- Jun 2014 – MSCI puts China A-Shares up for inclusion within their Global Standard Indexes
- Nov 2014 – Shanghai Hong Kong Stock Connect launches; Eligible Shanghai listed stocks now freely tradable through international brokerage accounts
- Dec 2014 – KraneShares E Fund China Commercial Paper ETF (Ticker: KCNY) Launches
- Oct 2016 – China's currency, the RMB, designated a reserve currency by the International Monetary Fund
- Aug 2016 – Shenzhen Hong Kong Stock Connect launches; Eligible Shenzhen listed stocks now freely tradable through international brokerage accounts
- Jun 2017 – MSCI announces inclusion of A-Shares in Global Standard Indexes starting June 1st, 2018
- Oct 2017 – CICC (China International Capital Corporation) acquires a 50.1% majority stake in Krane Funds Advisors, LLC
- Sep 2018 – First phase of China A-Share Inclusion completed
- Mar 2018 – Bloomberg announces it will add China's Interbank Bond Market to the Bloomberg Global Aggregate Indices starting April 2019
- Nov 2019 – Second phase of China A-Share Inclusion is completed
- Oct 2021 – HKEX launches futures contracts for the MSCI China A 50 Connect Index
- Jan 2022 – KraneShares Bosera MSCI China A 50 Connect Index ETF (Ticker: KBA) begins tracking the MSCI China A 50 Connect Index
The China A-Share market is too big to ignore.
Even though China is the world's second largest economy and stock market, China A-Shares are still underrepresented in global capital markets.
Top 5 Country Weights in the MSCI All Country World Index
- United States: ~61%
- Japan: ~6%
- United Kingdom: ~4%
- Canada: ~3%
- China: ~3%
Top 5 Country Weights in the MSCI All Country World Index (GDP Weighted)
- United States: ~27%
- China: ~17%
- Japan: ~5%
- South Korea: ~5%
- Germany: ~4%
Emerging Market Evolution
- China's weighting in the MSCI ACWI Index has grown since 2000 but remains a small percentage overall.
- We believe China will occupy a larger portion of both the MSCI All Country World Index and investors' portfolios in general as its markets continue to open up.
Historical Developed and Emerging Market Allocations within the MSCI ACWI Index
Chart showing allocations from 3/31/2004 to 3/31/2026 across:
- Developed Markets
- Emerging Markets ex China
- China
The Index Matters
MSCI is a trusted index provider for the largest global investment managers.
Key Statistics
- $18.3 trillion in AUM – Benchmarked to MSCI equity indexes.
- 246,000+ equity indexes – Calculated daily; ~16,300+ in real time.
- $2 trillion in AUM – Equity ETFs linked to MSCI indexes.
- 55+ Years – Representing and measuring global equity markets.
MSCI's current Global Standard definition of China only represents a small portion of China's total market.
The MSCI China Index was historically limited to Chinese companies listed on the Hong Kong Stock Exchange. Recently, MSCI expanded this definition to include US-listed Chinese companies and China A-shares. This definition represents only a small percentage of Chinese stocks.
MSCI's Current Global Standard Definition of China
MSCI China Index
- Hong Kong and US = 79.62%
- China A-Shares = 15.60%
- 559 Stocks
MSCI's Definition of Entire Mainland A-Share Market
MSCI China A Onshore IMI USD Net Index
- Shanghai and Shenzhen only
- 3,353 Stocks
Share Class Breakdown of the MSCI China All Shares Index
- Hong Kong Listed Chinese Companies: 49%
- Mainland China A-Shares: 48%
- U.S. Listed Chinese Companies: 3%
A50 Index Futures Offer a New Risk Management Tool for International Investors' A-Share Portfolios
- Hong Kong Exchanges and Clearing Limited (HKEX) launched USD-denominated, cash-settled MSCI China A 50 Connect (USD) Index Futures on its subsidiary, the Hong Kong Futures Exchange, on October 18, 2021.
- The MSCI China A 50 Connect (USD) Index Futures is the first officially recognized offshore market risk management tool for Stock Connect-eligible A-shares.
A-Shares futures contracts complement the entire HKEX ecosystem & further establish Hong Kong as a premier Asia derivatives hub.
Addresses demand for risk management tool
First officially recognized offshore market risk management tool for Stock Connect-eligible A-shares.
Strengthens cross border connectivity
Builds on the Stock Connect programs.
Creates China anchor
Expands offshore A-Share offerings; creates one-stop-shop for international investors, strengthens offshore RMB businesses.
Supports the opening-up of China's Mainland markets
Enriches the risk management tools for overseas investors to invest in Asia, further attracts interest in long term foreign capital into Mainland China stocks.
Expands HKEX's evolving derivatives suite
HKEX is currently the world's most robust/competitive offshore Asia equity and derivative trading venue. A50 Index Futures adds to existing futures and options offerings.
MSCI China A 50 Connect Index Constituent Selection Process
A50 Filtering Process for Index Constituent Selection
| Step | Description |
|---|---|
| Stock Universe | Chooses from stocks within its Parent Index, the MSCI China A Index |
| Sector Selection | Selects two large cap stocks from each sector with highest index weight |
| Additional Selection | Selects the rest 28 stocks from the rest of large cap universe with highest index weights |
| Normalize Exposure | Applies market cap weight within sectors and normalize sector weights to be the same of parent index weights |
| Optimization | Balanced security representation from the 11 GICS® sectors, with diversified weighting that mirror the Parent Index, a quarterly rebalance, and turnover mitigation. |
We believe that the MSCI China A 50 Connect Index has distinct advantages over the CSI 300 Index.
- The CSI 300 Index, originally built for domestic Chinese investors, consists of the 300 largest China A-Share stocks ranked by market capitalization.
- In comparison, the MSCI China A 50 Connect Index currently tracks 50 large cap securities deemed most suitable for international investors by MSCI.
- We believe gaining exposure to China A-Shares through an MSCI index provides international investors with several distinct advantages.
MSCI China A 50 Connect Index and CSI 300 Index Comparison
| MSCI China A 50 Connect Index | CSI 300 Index | MSCI Advantage | |
|---|---|---|---|
| Index Construction Methodology | Derived from the large cap segment of Parent Index, selects 2 securities from each GICS® sector by weight, followed by selecting securities from the Parent Index by weight until the total count reaches 50 | Largest 300 China A-share companies ranked by full market capitalization | Reflects broad diversification across China's full market opportunity, with tailored exposure to China's sector leaders |
| Eligible Universe | Only A-shares that can be traded through Stock Connect | Any A-share listed in Shanghai and Shenzhen Stock Exchanges | No QFII or RQFII quota restraints |
| Hong Kong Futures Contracts | MSCI China A 50 Connect (USD) Index Futures is the first officially recognized offshore market risk management tool for Stock Connect-eligible A-shares | Does not have futures product | Provides international investors with a new risk management tool to manage their A-Share portfolios |
| Sector Exposure | Operates through a diversified weighting system that filters the first 22 constituents by sector | Does not filter by sector, which can lead to overweight toward unfavorable sectors | Balances its sector exposures based on MSCI China A, making it less vulnerable to sector rotations in broad market and concentrates on industry leaders |
| Foreign Ownership | Considers China regulator's foreign ownership limits of 30% | Does not consider foreign ownership limits, creating potential for tracking error | Tailored for foreign investors |
| Index Review | Quarterly Index Reviews | Semi-Annual Reviews | More timely reflection of the market |
MSCI China A 50 Connect Index aims to avoid overweighting to certain sectors and instead provides concentration in the industry leaders
- China A 50 Connect balances its sector exposures based on MSCI China A, making it less vulnerable to sector rotations in the broad market
- Indiscriminate selection of China's largest A-Share stocks will often lead to an overweight of certain sectors, like financials and consumer staples and underweight to some "New China" sectors
Sector Breakdown Comparison
Bar chart comparing index weights across sectors (Financials, Consumer Staples, Information Technology, Industrials, Materials, Health Care, Consumer Discretionary, Utilities, Energy, Real Estate, Communication Services) for:
- MSCI China A 50 Connect Index
- CSI 300 Index
- FTSE China A50 Index
The 3 & 5-year average revenue growth rates for the top 10 holdings in KBA are higher than their non-China peers.
Top 10 KBA holdings vs. their Non-China equivalents as of the latest earnings release (Q4 2025).
| Top 10 KBA Holdings | Primary Business | KBA Weight (%) | China A 50 Connect Companies 3 Yr Avg Revenue Growth Rate | China A 50 Connect Companies 5 Yr Avg Revenue Growth Rate | Comparable Non-China Business | 3 Yr Avg Revenue Growth Rate | 5 Yr Avg Revenue Growth Rate |
|---|---|---|---|---|---|---|---|
| Contemporary Amperex Technology (CATL) | Batteries | 8.49 | 9.78% | 68.10% | Panasonic | 4.78% | 2.82% |
| Zijin Mining | Mining | 6.12 | 9.00% | 15.67% | Antofagasta | 14.27% | 13.38% |
| Kweichow Moutai | Liquor | 5.21 | 16.74% | 14.44% | Diageo | -0.44% | 5.33% |
| Zhongji Innolight | Communications Equipment | 4.6 | 64.68% | 45.70% | Broadcom | 25.25% | 22.32% |
| Foxconn Industrial Internet | Computer Hardware | 4.57 | 23.06% | 17.48% | Advanced Micro | 14.71% | 31.21% |
| BYD | Automobiles | 4.26 | 24.84% | 42.31% | Tesla | 5.60% | 27.77% |
| Hygon Information Technology | Computer Hardware | 3.55 | 63.84% | 97.43% | Advanced Micro | 14.71% | 31.21% |
| Eoptolink Technology | Communications Equipment | 3.2 | 62.18% | 60.73% | Broadcom | 25.25% | 22.32% |
| China Merchants Bank | Bank | 3.1 | -0.60% | 2.85% | TD Bank | 27.38% | 19.99% |
| Cambricon | Computer Hardware | 2.99 | 172.02% | 114.86% | Advanced Micro | 14.71% | 31.21% |
| Total: 46.09% | Average: 45% | Average: 48% | Average: 15% | Average: 21% |
Company Highlight:
Contemporary Amperex Technology Co., Ltd. (CATL)
Top Ranking Battery Company Worldwide
- Ranked first for global market share among EV battery makers in China, with an impressive 36% year-over-year (YoY) growth in install capacity in 2025.
- CATL has several notable long-term battery supply contracts with major automakers, including Honda, BMW, Tesla, Ford, VW, Daimler and PSA.
- CATL signed a framework agreement with NIO, the largest operator of battery swapping vehicles, to promote the research and development of long service life batteries.
The company is well-positioned to benefit from the shift toward greater electric vehicle adoption in the coming years.
- By 2030, roughly 30% of global passenger vehicle sales are estimated to be electric vehicles, a number projected to increase to 58% by 2040.
- New strategic partnerships in the pipeline, such as with Apple or Nio, may serve as additional growth catalysts.
Global Battery Market Share
- CATL: 38%
- BYD: 16%
- LG Energy Solutions: 13%
- SK On: 5%
- CALB: 5%
- Others: 23%
Mainland China A-Share equities exhibit low correlation to other global markets.
As Emerging Markets (EM) have become more correlated with Developed Markets over the years, the diversification benefits of EM investing have largely diminished.
- Frontier Markets, countries whose stocks are less mature than those in EM, still have relatively low correlations with the rest of the world.
- Remarkably, China A-Shares exhibit an even lower correlation to the MSCI All Country World Index than Frontier Markets.
- The MSCI China A 50 Connect maintains a high correlation and low tracking error to the MSCI China A Index and other China A-share benchmarks.
MSCI Indexes Correlation to MSCI China A Index
| ACWI | EAFE | EM | USA | China | Frontier | China A | |
|---|---|---|---|---|---|---|---|
| ACWI | 1 | ||||||
| EAFE | 0.89 | 1 | |||||
| EM | 0.77 | 0.79 | 1 | ||||
| USA | 0.96 | 0.76 | 0.62 | 1 | |||
| China | 0.52 | 0.53 | 0.83 | 0.40 | 1 | ||
| Frontier | 0.62 | 0.66 | 0.61 | 0.53 | 0.40 | 1 | |
| China A | 0.43 | 0.42 | 0.64 | 0.34 | 0.76 | 0.35 | 1 |
Index Definitions
- MSCI ACWI Index (ACWI) - All Country World Index
- MSCI EAFE Index (EAFE) - Europe, Australasia and Far East
- MSCI Emerging Markets Index (EM) - Emerging Markets
- The MSCI USA Index (USA) – United States of America
- MSCI China Index (China) - Chinese companies listed in Hong Kong & USA
- MSCI Frontier Markets Index (Frontier) - Frontier Markets
- MSCI China A Index (China A) - Chinese companies listed on Shanghai and Shenzhen Stock Exchanges
Current Valuations in the Mainland Chinese equity market are lower than those in the US equity market.
KBA's valuation is currently attractive compared to that of the S&P 500 Index.
Price/Earnings Ratio of KraneShares MSCI China A 50 Connect Index ETF
(3/31/2021 - 3/31/2026)
Line chart comparing Price to Earnings (P/E) ratios of KBA Index vs. S&P 500 from March 2021 to March 2026.
- KBA Index P/E has generally ranged between approximately 10–20x
- S&P 500 P/E has generally ranged between approximately 18–29x
- KBA Index P/E is consistently lower than the S&P 500 over the period shown
KraneShares Bosera MSCI China A 50 Connect Index ETF
Investment Strategy:
KBA is benchmarked to the MSCI China A 50 Connect Index, consisting of 50 large-cap Shanghai and Shenzhen listed stocks (A-shares) available through Stock Connect. A key feature of this Index is that it offers the first officially recognized Futures contracts for Stock Connect-eligible A-shares, representing a powerful risk management tool that makes its underlying stocks attractive to international investors. KBA focuses on the largest, most liquid stocks, which receive most foreign interest and inflows and may benefit from increased global investment in China's onshore market over the long term.
**Formerly the KraneShares Bosera MSCI China A Share ETF
Fund Details (Data as of 3/31/2026)
| Primary Exchange | NYSE Arca, Inc. |
| CUSIP | 500767405 |
| ISIN | US5007674055 |
| Total Annual Fund Operating Expense (Gross) | 0.79% |
| Total Annual Fund Operating Expense (Net)* | 0.56% |
| Inception Date | 03/04/2014 |
| Distribution Frequency | Annual |
| Underlying Index | MSCI China A 50 Connect Index |
| Net Assets | $170,401,301 |
| Number of Holdings | 55 |
Top 10 Holdings as of 3/31/2026
| Ticker | % |
|---|---|
| CONTEMPORARY AMPEREX TECHN-A 300750 | 8.49 |
| ZIJIN MINING GROUP CO LTD-A 601899 | 6.12 |
| KWEICHOW MOUTAI CO LTD-A 600519 | 5.21 |
| ZHONGJI INNOLIGHT CO LTD-A 300308 | 4.60 |
| FOXCONN INDUSTRIAL INTERNE-A 601138 | 4.57 |
| BYD CO LTD -A 002594 | 4.26 |
| HYGON INFORMATION TECHNOLO-A 688041 | 3.55 |
| EOPTOLINK TECHNOLOGY INC L-A 300502 | 3.20 |
| CHINA MERCHANTS BANK-A 600036 | 3.10 |
| CAMBRICON TECHNOLOGIES-A 688256 | 2.99 |
KBA Performance History as of 3/31/2026
| Cumulative % | Average Annualized % | ||||||
|---|---|---|---|---|---|---|---|
| 3 Mo | 6 Mo | Since Inception | 1 Yr | 5 Yr | 10 Yr | Since Inception | |
| Fund NAV | -3.98% | 0.40% | 105.60% | 27.37% | -0.58% | 4.68% | 6.15% |
| Closing Price | -2.07% | 2.22% | 110.26% | 30.13% | -0.30% | 4.93% | 6.34% |
| Underlying Index | -3.84% | -0.07% | 130.75% | 29.34% | 0.30% | 5.07% | 7.17% |
Conclusion:
- Mainland China A Shares represent nearly one-half of China's market capitalization but are often overlooked by global indexes and investors.
- A Shares have exhibited low correlations to global markets over the past decade, making them a potential source of diversification* to global portfolios.
- The Hong Kong Exchanges and Clearing Ltd. (HKEX) offers futures contracts based on the MSCI China A 50 Connect Index, providing international investors with a powerful risk management tool.
- The MSCI China A 50 Connect Index maintains a tilt toward "New China" sectors, such as information technology, compared to the FTSE China A 50 Index.
Index definitions:
MSCI China Index: captures large and mid cap representation across China H shares, B shares, Red chips and P chips.
MSCI All China Investable Market Index (IMI): captures large, mid and small cap representation across all China securities that are listed in China and Hong Kong, the US and in Singapore. The index includes: A-Shares, H shares, B shares, Red chips and P chips as well as China securities that are listed on the NYSE Euronext (New York), NASDAQ, New York AMEX and Singapore exchanges.
MSCI ACWI Index: captures large and mid cap representation across 23 Developed Markets (DM) and 23 Emerging Markets (EM) countries.
MSCI ACWI GDP Weighted Index: is based on the flagship MSCI ACWI Index, its parent index, and includes large and mid cap stocks across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries. The index uses a different weighting scheme than its cap weighted parent index. The weight of each country in the index is derived from its economic size (using GDP data) rather than the size of its equity market.
MSCI EAFE Index: is an equity index which captures large and mid cap representation across Developed Markets countries around the world, excluding the US and Canada.
S&P 500 Index: is an American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.
MSCI Emerging Markets Index: captures large and mid cap representation across 23 Emerging Markets (EM) countries.
MSCI USA Index: The MSCI USA Index is designed to measure the performance of the large and mid cap segments of the US market.
MSCI Frontier Markets (FM) Index: captures large and mid cap representation across 29 Frontier Markets countries.
MSCI China A Index: captures large and mid cap representation across China securities listed on the Shanghai and Shenzhen exchanges.
MSCI China A International Index: is a free-float adjusted market capitalization weighted index that is designed to track the equity market performance of large-cap and mid-cap Chinese securities listed on the Shanghai and Shenzhen Stock Exchanges.
CSI 300 Index: consists of the 300 largest and most liquid A-share stocks. The Index aims to reflect the overall performance of China A-share market.
MSCI China All Shares Net USD Index: The MSCI China All Shares Index captures large and mid-cap representation across China A-shares, B-shares, H-shares, Red-chips, P-chips and foreign listings (e.g. ADRs).
FTSE China A50 Index: The FTSE China A50 Index is a stock market index created by FTSE Russell that tracks the performance of the 50 largest and most liquid mainland China A-share companies listed on the Shanghai and Shenzhen stock exchanges, providing a key benchmark for China's domestic equity market.
Term definitions:
Investable Market Index (IMI): Refers to an index consisting of stocks that have been determined by MSCI to be suitable for international investors.
Global Industry Classification Standard (GICS): is a common global classification developed in 1999 by MSCI and Standard & Poor's for use by the global financial community.
Compound Annual Growth Rate (CAGR): is the measure of an investment's annual growth rate over time, with the effect of compounding taken into account.
Qualified Foreign Institutional Investor (QFII/RQFII): The Qualified Foreign Institutional Investor program grants access to China's domestic stock markets to foreign institutional investors that register with and are approved for trading by the State Administration of Foreign Exchange (SAFE). Until the launch of the Stock Connect program in 2016, this and the similar Registered Qualified Foreign Institutional Investor (RQFII) were the only means by which foreign investors could access stock markets in Mainland China.
Northbound Connect: A mutual market access program between the Hong Kong Stock Exchange, Shanghai Stock Exchange, and Shenzhen Stock Exchange. The program allows investors who are not citizens of the People's Republic of China (PRC) to trade stocks listed on the Shanghai Stock Exchange and/or the Shenzhen Stock Exchange through brokerage accounts used for trading on the Hong Kong Stock Exchange.
Price to Earnings Ratio: The price-earnings ratio (P/E Ratio) is the ratio for valuing a company that measures its current share price relative to its per-share earnings.
Renminbi: The official currency of the People's Republic of China.
Offshore Renminbi: The version of the renminbi that is traded outside of Mainland China and is therefore not subject to Mainland currency controls and trading hours.
Correlation: is a statistical measure that calculates the strength of the relationship between the relative movements of two variables.
Average Revenue Growth Rate: The average revenue growth rate is the mean percentage increase (or decrease) in a company's revenue over a specified multi-period timeframe, typically calculated using year-over-year changes.
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/kba. 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, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.
The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses. Derivatives are also subject to liquidity and counterparty risk.
The ability of the Fund to achieve its respective investment objectives is dependent, in part, on the continuous availability of A Shares and the ability to obtain, if necessary, additional A Shares quota. The Fund is subject to political, social or economic instability within China which may cause decline in value. Emerging markets involve heightened risk related to the same factors as well as increase volatility and lower trading volume.
Narrowly focused investments typically exhibit higher volatility. The Fund's assets are expected to be concentrated in a sector, industry, market, or group of concentrations to the extent that the Underlying Index has such concentrations.
ETF shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the Fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.
The KraneShares ETFs and KFA Funds ETFs are distributed by SEI Investments Distribution Company (SIDCO), 1 Freedom Valley Drive, 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.
