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.
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. 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.

KBAB and KPDD may invest in derivatives, which are often more volatile than other investments and may magnify KBAB and KPDD’s gains or losses. 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 in 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. KBAB and KPDD are 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 not be possible to initiate, which may cause KBAB and KPDD 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 otherwise comply with the terms of the derivative.

The Underlying Stock is exposed to numerous risks that can impact its revenues and viability, such as price volatility, management, inflation, global economic conditions, and natural disasters. Its performance may be
influenced by trends in commerce, cloud computing, international trade policies, and regulatory changes. KBAB and KPDD’s daily returns rely on the Underlying Stock’s performances and volatility.
Issuer-specific factors may increase Fund investment volatility compared to the overall market. The underlying stock faces risks from competition in e-commerce, economic uncertainties, demand declines, revenue concentration, geopolitical
events, intellectual property issues, exchange rates, reliance on third-party manufacturing, shortages, cybersecurity threats, system failures, rising costs, government regulations, compliance expenses, litigation, taxes, debt, and
talent retention.
KBAB and KPDD aim for daily investment results of 200% of the daily percentage changes of the Underlying Stock. Its performances over longer periods will likely differ from the Underlying Stock due to compounded returns,
which significantly affect leveraged funds. If the Underlying Stock performs poorly, the dollar losses for shareholders will be smaller if their investments have already decreased. Conversely, if the stock performs well, future
losses will be larger as the investment values have increased. Compounding effects become more pronounced with higher volatility and longer holding periods, impacting shareholders differently based on their investment
durations and the stocks’ volatility.
Various factors can impact KBAB and KPDD’s correlations with the Underlying Stock, and achieving high correlations is not guaranteed. If KBAB and KPDD fails to achieve correlation, it may not meet their investment objectives, with NAV
changes varying significantly from 200% of the Underlying Stock’s changes. To maintain correlations, KBAB and KPDD attempts daily rebalancing for consistent exposures. Major deviations can increase leverage risks. Market
disruptions and volatility can hinder KBAB and KPDD’s ability to adjust. Target exposures fluctuate, making perfect 200% exposures unlikely, especially on volatile days. Other elements, like fees and market conditions, can also affect
correlations. KBAB and KPDD may change positions for tax efficiency, which could harm correlations. Large asset movements or trading discrepancies may lead to under- or overexposures, reducing KBAB and KPDD’s ability to meet its daily objectives.
KBAB and KPDD uses leverage to gain investment exposure beyond its net assets, leading to potential greater losses in adverse conditions than non-leveraged funds. A decline in the Underlying Stocks’ daily performance can magnify losses, decreasing KBAB and KPDD’s values by 2% for each 1% drop, excluding costs. Losses could exceed net assets if the Underlying Stock falls over 50%. Due to limited investments, KBAB and KPDD may need to limit or suspend the creation or redemption of Creation Units. During these times, shares might trade at significant premiums or discounts to their net asset values. If creations are halted, large redemptions could force KBAB and KPDD to sell securities at unfavorable prices, increasing costs and taxable distributions to shareholders.
The Underlying Stock is listed on an exchange, but an active trading market isn’t guaranteed, and trading can be halted. A halt in the Underlying Stock usually leads to a halt in KBAB and KPDD’s shares. Trading may stop due to market conditions or exchange decisions, and halts can occur from extraordinary volatility under circuit breaker rules. Extended trading halts may hinder KBAB and KPDD’s ability to arrange necessary swaps for its investment strategy.
Narrowly focused investments typically exhibit higher volatility. KBAB and KPDD’s assets are expected to be concentrated in a single stock. The securities or futures in that concentration could react similarly to market developments. Thus, KBAB and KPDD are subject to loss due to adverse occurrences that affect that concentration. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility.

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 risks from potential government interventions, and the export-driven economy is sensitive to downturns in key trading partners, impacting KBAB and KPDD. U.S.-China tensions raise concerns over tariffs and trade restrictions, which could harm China’s exports and KBAB and KPDD. China’s regulatory standards are less stringent than in the U.S., resulting in limited information about issuers. Tax laws are unclear and subject to change, potentially impacting KBAB and KPDD and leading to unexpected liabilities for foreign investors. Fluctuations in currency of foreign countries may have an adverse effect to domestic currency values. KBAB and KPDD are new and does not yet have a significant number of shares outstanding. If KBAB and KPDD do not grow in size, it will be at greater risk than larger funds of wider bid-ask spreads for its shares, trading at a greater premium or discount to NAV, liquidation and/or a trading halt. KBAB and KPDD are non-diversified.

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 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.