KRANESHARES FTSE EMERGING MARKETS PLUS ETF (KEMP) Exchange: BATS

DELISTED - Under normal circumstances, the Fund will invest at least 80% of its assets in the securities included in the Underlying Index, depositary receipts, including American depositary receipts (“ADRs”), representing such securities and securities underlying depositary receipts in the Underlying Index. The Underlying Index is weighted based on a five-year forecast of emerging market countries' gross domestic products (“GDPs”) and includes large and mid-cap issuers. As a result of the GDP weighting, the emerging markets with the largest forecast GDPs have the heaviest weightings in the Underlying Index. Within each market, the Underlying Index weights constituents by free float and foreign ownership-adjusted market capitalization and imposes liquidity screens for investability.   The Underlying Index's China components include China A-Shares, which are equity securities issued by companies incorporated in mainland China and traded in renminbi (“RMB”) on the Shenzhen or Shanghai Stock Exchanges, and China H-Shares, which are equity securities issued by companies incorporated in mainland China and are listed and traded on the Hong Kong Stock Exchange. The Fund expects principally to obtain exposure to the China A-Share components of the Underlying Index by investing through the Shanghai-Hong Kong Stock Connect program or Shenzhen-Hong Kong Stock Connect program (“Stock Connect Programs”), by investing indirectly in A-Shares through exchange-traded funds (“ETFs”) that invest in A-Shares (including the KraneShares Bosera MSCI China A Share ETF) and by investing in B-Shares of companies whose A-Shares are in the Underlying Index. A RQFII or QFII license may also be acquired to invest directly in China A-Shares. The Fund may also invest in swaps, futures contracts and other types of derivative instruments that have economic characteristics that are substantially identical to the economic characteristics of A-Shares, including swaps on the A-Shares portion of the Underlying Index.   The Fund may invest up to 20% of its assets in instruments that are not included in the Underlying Index, but that Krane believes will help the Fund track the Underlying Index. These investments may include equity securities and depositary receipts of issuers whose securities are not components of the Underlying 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.   The following other China-related securities also may be included in the Underlying Index and/or represent investments of the Fund:   ·         China B-Shares of companies listed on the Shanghai or Shenzhen Stock Exchange but quoted and traded in foreign currencies (such as Hong Kong Dollars or U.S. Dollars), which were primarily created for trading by foreign investors.   ·         China N-Shares of companies with business operations in mainland China and listed on an American stock exchange, such as NYSE or NASDAQ (“N-Shares”).    ·         P-Chips of private sector companies with a majority of their business operations in mainland China and controlling private Chinese shareholders, which are incorporated outside of mainland China and traded on the Hong Kong Stock Exchange in Hong Kong dollars.   ·         Red Chips, which are shares of companies with a majority of their business operations in mainland China and controlled by the central, provincial or municipal governments of the PRC, whose shares are traded on the Hong Kong Stock Exchange in Hong Kong dollars.   Although the Fund reserves the right to use a replication strategy, the Fund expects to use representative sampling to track the Underlying Index. “Representative sampling” is a strategy that involves investing in a representative sample of securities that collectively have an investment profile similar to the Underlying Index.   As of June 30, 2017, the Underlying Index included 151 securities of companies with a market capitalization range of $136 million to $367 billion and an average market capitalization of $17 billion. The Underlying Index is rebalanced semi-annually. The Underlying Index is provided by FTSE International Limited (the “Index Provider”). The Index Provider is independent of the Fund and Krane.   The Fund may engage in securities lending.   To the extent the Underlying Index is concentrated in a particular industry, the Fund is expected to be concentrated in that industry. As of June 30, 2017, issuers in the financials sector (28.58%) represented a significant portion of the Underlying Index and the largest markets represented in the Underlying Index were China (37.60%), India (17.80%), Indonesia (6.05%), Russia (5.04%) and Mexico (4.18%).