Fund Description: Quadratic Interest Rate Volatility and Inflation Hedge ETF is a non-diversified actively managed exchange-traded fund or Actively Managed ETF which is a separate investment portfolio of the Krane Shares Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The Quadratic Interest Rate Volatility and Inflation Hedge ETF seeks to hedge the risk of increased fixed income volatility and rising inflation and to profit from rising long-term interest rates or falling short-term interest rates, often referred to as a steepening of the U.S. interest rate curve, while providing inflation-protected income. The Fund is an actively managed ETF and thus does not seek to replicate the performance of a specific index. Rather, the Adviser has discretion on a daily basis to actively manage the Fund’s portfolio in accordance with the Fund’s investment objective. FUND STRATEGY: The Fund seeks to achieve its investment objective primarily by investing, directly or indirectly, in a mix of U.S. Treasury Inflation-Protected Securities (TIPS) and long options tied to the shape of the U.S. interest rate curve. A long option refers to the purchase of an option, as opposed to the sale of an option not previously owned by the Fund, which would be referred to as a short option. The Fund’s strategy is designed to hedge against inflation risk and generate positive returns from the Fund’s options during periods when interest rate volatility increases and/or the U.S. interest rate curve steepens (i.e., the spread between interest rates on U.S. long-term debt instruments and U.S. shorter-term debt instruments widens). Because equity and real estate market corrections tend to be correlated with interest rate volatility and a steepening of the interest rate curve, the Fund’s strategy may also serve to hedge against the risks of such market corrections. The Fund invests in TIPS directly or through other exchange-traded funds (ETFs) that invest in TIPS. The Fund also invests in long options tied to the shape of the U.S. interest rate swap curve. When the Fund purchases an option, the Fund pays a cost (premium) to purchase the option. The Fund’s investments in options will be traded in the over-the counter market. Under normal circumstances, the Sub-Adviser generally expects to invest less than 20% of the Fund’s assets in option premiums. Investments in derivative instruments, such as options, have the economic effect of creating financial leverage in the Fund’s portfolio. FUND MANAGEMENT: Krane Funds Advisors, LLC serves as the investment adviser to the Fund. Quadratic Capital Management LLC serves as the investment sub-adviser to the Fund.