KraneShares Global Carbon Strategy ETF (KRBN) Exchange: NYSE ARCA

The Fund attempts to maintain exposure to carbon credit futures contracts ("carbon credit futures") that are the same as or similar to those included in the Index and to exceed the performance of the Index through direct or indirect investment in debt instruments.   The Index utilizes a rules-based methodology and is designed to track a portfolio of liquid carbon credit futures with "physical delivery" of emissions allowances issued under "cap and trade" regimes. The Index includes only carbon credit futures maturing in December of the next one to two years and that have a minimum average monthly trading volume over the previous six months of at least $10 million. The Index weights eligible carbon credit futures based on their average monthly trading volume during the relevant six month period. Weightings within the Index are subject to a 10% minimum weight per regime and a 65% maximum weight to any one of the three following geographical regions: (1) Europe, the Middle East and Africa, (2) the Americas, and (3) the Asia-Pacific. In addition, no single carbon credit futures expiring in a particular year will receive an allocation of less than 5% or more than 60% at each Index rebalancing/reconstitution.   As of February 29, 2020, eligible components of the Index include futures contracts on emission allowances issued under the European Union Emissions Trading System, California Carbon Allowance and Regional Greenhouse Gas Initiative "cap and trade" regimes. As the global carbon credit market grows, additional liquid contracts may enter the Index, and the Fund may invest in such additional carbon credit futures contracts. As noted above, any additional carbon credit futures contracts that enter the Index will have a minimum average monthly trading volume over the previous six months of at least $10 million.   The Fund will utilize a subsidiary (the "Subsidiary") for purposes of investing in carbon credit futures. The Subsidiary is a corporation operating under Cayman Islands law that is wholly-owned and controlled by the Fund. The Subsidiary is advised by the Adviser and is expected to be sub-advised by the Sub-Adviser. The Fund may invest up to 25% of its assets in the Subsidiary. The Subsidiary has the same investment objective as the Fund and will follow the same investment policies and restrictions as the Fund. Except as noted, for purposes of this Prospectus, references to the Fund's investment strategies and risks include those of its Subsidiary, and references to the Fund include the Subsidiary.   What is "cap and trade"? In a typical "cap and trade" regime, a limit (or "cap") is set by a regulator, such as a government entity or supranational organization, on the total amount of specific greenhouse gases ("GHG"), such as CO2, that can be emitted by regulated entities, such as manufacturers or energy producers. The regulator then may issue or sell individual "emission allowances" to regulated entities. These emission allowances are issued by the regulator to regulated entities, which may then buy or sell ("trade") the emission allowances on the open market. The regulator may gradually reduce the market cap on emission allowances, thereby increasing the value of such allowances and forcing regulated entities to reduce their GHG emissions. A cap on emission allowances available to the market supports the value of those allowances and is intended to incentivize regulated entities to reduce their GHG emissions, as they are permitted to sell unneeded emission allowances for profit. Commodity futures contracts linked to the value of emission allowances are known as carbon credit futures. Although the Fund seeks to maintain exposure to carbon credit futures that are the same as those included in the Index, the Fund and the Subsidiary will be actively managed and will not be required to replicate the performance of the Index. For example, while the Fund may hold carbon credit futures issued under the carbon credit regimes included in the Index but which are not currently included in the Index solely because they have different maturity dates, or hold different weightings of carbon credit futures than the Index.   The Fund may also invest in other instruments to gain exposure to the Index, including futures contracts that are not carbon credit futures, options on futures contracts, swap contracts, other investment companies and exchange-traded notes. The debt instruments in which the Fund intends to invest include government securities and corporate or other non-government fixed-income securities with maturities of up to 12 months. The Fund may invest in debt instruments indirectly through short-term bond funds and exchange-traded funds ("ETFs"). The Fund may also invest in cash and cash equivalents, including money market funds. Currently, the Fund expects to invest in ETFs to gain exposure to debt instruments.   The Commodities Futures Trading Commission (the "CFTC") has adopted certain requirements that subject registered investment companies and their advisers to regulation by the CFTC if a registered investment company invests more than a prescribed level of its net assets in CFTC-regulated futures, options and swaps, or if a registered investment company markets itself as providing investment exposure to such instruments. Due to the Fund's potential use of CFTC-regulated futures and swaps above CFTC Rule 4.5 limits, it will be considered a "commodity pool" under the Commodity Exchange Act upon commencement of operations.   The Fund is non-diversified. To the extent the Underlying Index is concentrated in a particular industry, the Fund is expected to be concentrated in that industry (using the notional value of any futures in which it invests). As of the date of this prospectus, the Index was concentrated in carbon credit futures.