Fund Description: KraneShares MSCI China Environment Index ETF is an exchange-traded index fund or Index ETF which is a separate investment portfolio of KraneShares Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The KraneShares MSCI China Environment Index ETF seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MSCI China IMI Environment 10/40 Index. INDEX DESCRIPTION: The MSCI China IMI Environment 10/40 Index is a free float adjusted market capitalization weighted index designed to track the equity market performance of Chinese companies that derive at least a majority of their revenues from environmentally beneficial products and services, as determined by MSCI Inc., the provider of the Index. The Index is intended to provide exposure to Chinese issuers that focus on contributing to a more environmentally sustainable economy by making efficient use of scarce natural resources or by mitigating the impact of environmental degradation. The Index aims to include companies with exposure to one or more of the following five themes: (1) alternative energy; (2) sustainable water; (3) green building; (4) pollution prevention; and (5) energy efficiency. The issuers included in the Index may include small-cap, mid-cap and large-cap companies. The China-related securities that may be included in the Index and/or represent investments of the Fund: China A-Shares; China B-Shares; China H-Shares, China N-Shares, P Chips & Red Chips. FUND STRATEGY: Under normal circumstances, the Fund will invest at least 80% of its total assets in components of the Index, depositary receipts, including American depositary receipts (ADRs), representing such components and securities depositary receipts in the Index. The Fund may invest up to 20% of its assets in instruments that are not included in the Index, but that Krane believes will help the Fund track the Index. These investments may include equity securities and depositary receipts of issuers whose securities are not components of the Index, derivative instruments (including swaps, futures and options contracts), other investment companies (including ETFs) and cash or cash equivalents (including money market funds). The other investment companies in which the Fund may invest may be advised, sponsored or otherwise serviced by Krane and/or its affiliates. Although the Fund reserves the right to use a replication strategy, the Fund expects to use representative sampling to track the Index. The Fund is non-diversified. FUND MANAGEMENT: Krane Funds Advisors LLC serves as the investment adviser to the Fund.