Krane Shares Trust NCSR Certified annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act File Number 811-22698

KraneShares Trust

(Exact name of registrant as specified in charter)

280 Park Avenue, 32nd Floor

New York, New York 10017

(Address of principal executive offices) (Zip code)

Jonathan Krane

KraneShares Trust

280 Park Avenue, 32nd Floor

New York, New York 10017

(Name and address of agent for service)

Copy to:

Stacy L. Fuller

K&L Gates LLP

1601 K Street NW

Washington, DC 20006-1600

Registrant’s telephone number, including area code: (212) 933-0393

Date of fiscal year end: March 31, 2023

Date of reporting period: March 31, 2023

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

(a)

A copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act, as amended (the “Act”) [17 CFR § 270.30e-1], is attached hereto.

(b)	Not applicable to the Registrant.

Annual Report

KraneShares CICC China Leaders 100 Index ETF

KraneShares CSI China Internet ETF

KraneShares Bosera MSCI China A 50 Connect Index ETF

KraneShares Bloomberg China Bond Inclusion Index ETF

KraneShares MSCI All China Index ETF

KraneShares MSCI One Belt One Road Index ETF

KraneShares Emerging Markets Consumer Technology Index ETF

KraneShares MSCI China Clean Technology Index ETF

KraneShares Electric Vehicles and Future Mobility Index ETF

KraneShares MSCI All China Health Care Index ETF

KraneShares Asia Pacific High Income Bond ETF

KraneShares Emerging Markets Healthcare Index ETF

KraneShares MSCI Emerging Markets ex China Index ETF

KraneShares MSCI China ESG Leaders Index ETF

KraneShares CICC China 5G & Semiconductor Index ETF

KraneShares CICC China Consumer Leaders Index ETF

KraneShares SSE STAR Market 50 Index ETF

KraneShares Hang Seng TECH Index ETF

KraneShares China Innovation ETF

KraneShares S&P Pan Asia Dividend Aristocrats Index ETF

KraneShares China Internet and Covered Call Strategy ETF

March 31, 2023

Table of Contents

Shareholder Letter		1
Management Discussion of Fund Performance		5
Schedules of Investments
KraneShares CICC China Leaders 100 Index ETF		67
KraneShares CSI China Internet ETF		72
KraneShares Bosera MSCI China A 50 Connect Index ETF		74
KraneShares Bloomberg China Bond Inclusion Index ETF		77
KraneShares MSCI All China Index ETF		79
KraneShares MSCI One Belt One Road Index ETF.		86
KraneShares Emerging Markets Consumer Technology Index ETF		94
KraneShares MSCI China Clean Technology Index ETF		99
KraneShares Electric Vehicles and Future Mobility Index ETF		102
KraneShares MSCI All China Health Care Index ETF		107
KraneShares Asia Pacific High Income Bond ETF		111
KraneShares Emerging Markets Healthcare Index ETF		117
KraneShares MSCI Emerging Markets ex China Index ETF		122
KraneShares MSCI China ESG Leaders Index ETF		139
KraneShares CICC China 5G & Semiconductor Index ETF		145
KraneShares CICC China Consumer Leaders Index ETF		147
KraneShares SSE STAR Market 50 Index ETF		149
KraneShares Hang Seng TECH Index ETF		151
KraneShares China Innovation ETF		153
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF		154
KraneShares China Internet and Covered Call Strategy ETF		160
Glossary		161
Statements of Assets and Liabilities		162
Statements of Operations		169
Statements of Changes in Net Assets		176
Financial Highlights		196
Notes to Financial Statements		204
Report of Independent Registered Public Accounting Firm		227
Trustees and Officers of the Trust		230
Approval of Advisory Agreement		233
Disclosure of Fund Expenses		236
Notice To Shareholders		239
Supplemental Information		241

The Funds file their complete schedules of Fund holdings with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year as an exhibit to their reports on Form N-PORT. The Funds’ Form N-PORT reports are available on the Commission’s website at http://www.sec.gov.

A description of the policies and procedures that KraneShares Trust uses to determine how to vote proxies relating to Fund securities, as well as information relating to how the Funds voted proxies relating to Fund securities during the most recent 12-month year ended June 30, are available (i) without charge, upon request, by calling 855-857-2638; and (ii) on the Commission’s website at http://www.sec.gov.

Fund shares may only be purchased or redeemed from a Fund in Creation Unit aggregations. Investors who cannot transact in Creation Units of a Fund’s shares must buy or sell Fund shares in the secondary market at their market price, which may be at a premium or discount to a Fund’s net asset value, with the assistance of a broker. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying Fund shares and receive less than net asset value when selling Fund shares.

Shareholder Letter (Unaudited)

Dear Shareholders:

We are pleased to send you the Annual Report for the KraneShares Trust exchange-traded funds (ETFs) for the 12-month period ended March 31, 2023 (the Period). For the Period, the ETFs delivered the following returns:

Fund	Fund Return*			Underlying Index Return**			Morningstar Peer Group Median Return
KraneShares CICC China Leaders 100 Index ETF (KFYP)		-13.15	%		-12.51	%^(a)		-8.11	%⁽¹⁾
KraneShares CSI China Internet ETF (KWEB)		5.86	%		6.36	%^(b)		-8.11	%⁽¹⁾
KraneShares Bosera MSCI China A 50 Connect ETF (KBA)		-12.63	%		-11.57	%^(c)		-8.11	%⁽¹⁾
KraneShares Bloomberg China Bond Inclusion Index ETF (KBND)		-3.98	%		-4.82	%^(d)		-1.42	%⁽²⁾
KraneShares MSCI All China Index ETF (KALL)		-6.44	%		-6.44	%^(e)		-8.11	%⁽¹⁾
KraneShares MSCI One Belt One Road Index ETF (OBOR)		-14.98	%		-14.69	%^(f)		-6.71	%⁽³⁾
KraneShares Emerging Markets Consumer Technology Index ETF (KEMQ)		-15.30	%		-14.47	%^(g)		-9.39	%⁽⁴⁾
KraneShares MSCI China Clean Technology Index ETF (KGRN)		-20.71	%		-21.68	%^(h)		-8.11	%⁽¹⁾
KraneShares Electric Vehicles and Future Mobility Index ETF (KARS)		-21.78	%		-21.56	%⁽ⁱ⁾		-5.11	%⁽⁵⁾
KraneShares MSCI All China Health Care Index ETF (KURE)		-12.65	%		-12.43	%^(j)		-8.11	%⁽¹⁾
KraneShares Asia Pacific High Income Bond ETF (KHYB)		-0.44	%		N/A			-6.55	%⁽⁶⁾
KraneShares Emerging Markets Healthcare Index ETF (KMED)		-14.97	%		-14.90	%^(k)		-9.39	%⁽⁴⁾
KraneShares MSCI Emerging Markets ex China Index ETF (KEMX)		-12.12	%		-13.32	%^(l)		-9.39	%⁽⁴⁾
KraneShares MSCI China ESG Leaders Index ETF (KESG)		-10.38	%		-9.62	%^(m)		-8.11	%⁽¹⁾
KraneShares CICC China 5G & Semiconductor Index ETF (KFVG)		-9.62	%		-9.32	%⁽ⁿ⁾		-8.11	%⁽¹⁾
KraneShares CICC China Consumer Leaders Index ETF (KBUY)		1.64	%		2.32	%^(o)		-8.11	%⁽¹⁾
KraneShares SSE STAR Market 50 Index ETF (KSTR)		-9.97	%		-8.05	%^(p)		-8.11	%⁽¹⁾
KraneShares Hang Seng TECH Index ETF (KTEC)		-4.37	%		-5.15	%^(q)		-8.11	%⁽¹⁾
KraneShares China Innovation ETF (KGRO)		-6.60	%		N/A			-8.11	%⁽¹⁾
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF (KDIV)		6.08	%^		6.36	%^^(r)		-5.14	%⁽⁷⁾
KraneShares China Internet and Covered Call Strategy ETF (KLIP)		-3.56	%^		N/A			-8.11	%⁽¹⁾

	*	Return based on net asset value as of March 31, 2023.
	**	Return as of March 31, 2023.
	^	Return period since Fund inception (less than one-year period).

Shareholder Letter (Unaudited) (continued)

	(a)	The CSI CICC Select 100 Index.
	(b)	The CSI Overseas China Internet Index.
	(c)	The MSCI China A 50 Connect Index.
	(d)	The Bloomberg China Inclusion Focused Bond Index.
	(e)	The MSCI China All Shares Index.
	(f)	The MSCI Global China Infrastructure Exposure Index.
	(g)	The Solactive Emerging Markets Consumer Technology Index.
	(h)	The MSCI China IMI Environment 10/40 Index.
	(i)	The Bloomberg Electric Vehicles Index.
	(j)	The MSCI All Shares Health Care 10/40 Index.
	(k)	The Solactive Emerging Markets Healthcare Index.
	(l)	The MSCI Emerging Markets ex China Index.
	(m)	The MSCI China ESG Leaders 10/40 Index.
	(n)	The CICC China 5G and Semiconductor Leaders Index.
	(o)	The CICC China Consumer Leaders Index.
	(p)	The Shanghai Stock Exchange Science and Technology Innovation Board 50 Index.
	(q)	The Hang Seng TECH Index.
	(r)	The S&P Pan Asia Dividend Aristocrats Index.

Morningstar Peer Group Information

	Morningstar Peer Group Median	Morningstar Peer Group Name	Morningstar Peer Group Description
⁽¹⁾	-8.11%	U.S. ETF China Region	The Morningstar Fund China Region Category portfolios invest almost exclusively in stocks from China, Taiwan, and Hong Kong. These portfolios invest at least 70% of total assets in equities and invest at least 75% of stock assets in one specific region or a combination of China and/or Taiwan.

⁽²⁾	-1.42%	U.S. ETF Emerging Markets Local Currency Bond	The Morningstar Fund Emerging Markets Local Currency Bond Category portfolios invest more than 65% of their assets in foreign bonds from developing countries in the local currency. Funds in this category have a mandate to maintain exposure to currencies of emerging markets. The largest portion of the emerging markets bond market comes from Latin America, followed by Eastern Europe, Africa, the Middle East, and Asia.

⁽³⁾	-6.71%	U.S. ETF Infrastructure	The Morningstar Fund Infrastructure Category portfolios invest more than 60% of their assets in stocks of companies engaged in infrastructure activities. Industries considered to be part of the infrastructure sector include oil & gas midstream; waste management; airports; integrated shipping; railroads; shipping & ports; trucking; engineering & construction; infrastructure operations; and the utilities sector.

Shareholder Letter (Unaudited) (continued)

	Morningstar Peer Group Median	Morningstar Peer Group Name	Morningstar Peer Group Description
⁽⁴⁾	-9.39%	U.S. ETF Diversified Emerging Markets	The Morningstar Fund Diversified Emerging Markets Category portfolios tend to divide their assets among 20 or more nations, although they tend to focus on the emerging markets of Asia and Latin America rather than those of the Middle East, Africa, or Europe. These portfolios invest predominantly in emerging market equities, but some funds also invest in both equities and fixed income instruments among emerging markets.

⁽⁵⁾	-5.11%	U.S. ETF Industrials	The Morningstar Fund Industrials Category portfolios seek capital appreciation by investing inequity securities of U.S. or non-U.S. companies that are engaged in services related to cyclical industries. This includes and is not limited to companies in aerospace and defense, automotive, chemicals, construction, environmental services, machinery, paper, and transportation.

⁽⁶⁾	-6.55%	U.S. ETF Emerging Markets Bond	The Morningstar Fund Emerging Markets Bond portfolios invest more than 65% of their assets in foreign bonds from developing countries. The largest portion of the emerging-markets bond market comes from Latin America, followed by Eastern Europe. Africa, the Middle East, and Asia make up the rest.

(7)	-5.14%	U.S. ETF Diversified Pacific/Asia	The Morningstar Fund Diversified Pacific/Asia Category portfolios have a wider investment range than other Asia-oriented portfolios. These portfolios can invest throughout the Pacific Rim, including Australia and New Zealand. As a results, country weightings for these portfolios vary tremendously, though most retain some exposure to Japan and Hong Kong. These portfolios invest at least 70% of their total assets in equities and invest at least 75% of assets in Pacific countries, including at least 10% in Japan.

We are encouraged by recent developments in China’s capital markets. The challenging macroeconomic environment and resulting volatility in global equity markets that ensued over the past year led many U.S. and global investors to seek diversified sources of return, including China equities.

●

We believe that China’s capital markets will continue to grow and become an essential element of a well-designed investment portfolio.

●

We believe that investors should have low-cost, transparent tools to obtain exposure to China’s equity and fixed income markets.

●

China’s National Party Congress (NPC), held last year, resulted in positive policy changes including the removal of COVID restrictions and the provision of support for the real estate industry.

●

We believe the further development of China’s capital markets offers a long-term value proposition.

Shareholder Letter (Unaudited) (concluded)

●

We are dedicated to helping investors obtain more complete passive and active market exposures and more balanced investment portfolios that include exposure to China.

Thank you for investing with us.

Jonathan Krane, CEO

March 31, 2023

Management Discussion of Fund Performance (Unaudited)

KraneShares CICC China Leaders 100 Index ETF

The KraneShares CICC China Leaders 100 Index ETF (the Fund) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the CSI CICC Select 100 Index (the Underlying Index).

The Underlying Index takes a smart-beta approach to systematically investing in companies listed in Mainland China. This quantitative approach reflects CICC’s top down and bottom-up research process, seeking to deliver the 100 leading companies in Mainland China.

China A Share Leaders Review

During the 12-month period ended March 31, 2023 (the Period), the Fund’s holdings were somewhat skewed towards growth and consumer industries. As a result, they were negatively impacted by China’s pandemic lockdowns at the beginning of the Period. Furthermore, declines in the prices of equities of real estate developers in connection with the government’s campaign to deleverage real estate developers also negatively impacted the Fund’s performance for the Period.

Still, during the Period the Fund outperformed the broader China equity market, as represented by the MSCI China Index. Further, we remain confident in the smart-beta approach to investing in China’s onshore (A Share/Mainland) equity market and CICC’s research process as represented in the Underlying Index, including because the Underlying Index generated a return profile that was significantly less volatile than the MSCI China Index during the Period.

The best performing sector within the Fund was Communication Services. Meanwhile, companies in the Real Estate sector detracted the most of any single sector from the Fund’s performance.

For the Period, the NAV of the Fund decreased by -13.15% while the Underlying Index decreased by -12.51%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares CICC China Leaders 100 Index ETF (continued)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year
Return

Three Year
Return

Five Year
Return

Annualized
Inception to Date

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

KraneShares CICC China Leaders 100 Index ETF

-13.15

-12.86

%‡

4.78

%‡

5.20

%‡

0.47

%‡

0.67

%‡

7.13

%‡

7.08

%‡

Hybrid KFYP Index (Net)**

N/A

-12.51

%‡

N/A

6.54

%‡

N/A

1.66

%‡

N/A

7.47

%‡

S&P 500 Index

N/A

-7.73

%‡

N/A

18.60

%‡

N/A

11.19

%‡

N/A

11.68

%‡

	*	The Fund commenced operations on July 22, 2013.
	**	The Hybrid KFYP Index (Net) consists of the CSI China Overseas Five Year Plan Index from the inception of the Fund through May 31, 2016, the Zacks New China Index from June 1, 2016 through November 1, 2018, and the CSI CICC Select 100 Index going forward. From June 1, 2016 to November 1, 2018, the Fund sought to provide investment results that, before fees and expenses, corresponded generally to the price and yield performance of the Zacks New China Index. Prior to June 1, 2016, the Fund was known as the KraneShares CSI New China ETF and sought to provide investment results that, before fees and expenses, corresponded generally to the price and yield performance of the CSI Overseas China Five Year Plan Index. Hybrid KFYP Index (Net) reflects reinvested dividends net of withholding taxes, but reflects no deduction for fees, expenses, or other taxes.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares CICC China Leaders 100 Index ETF (concluded)

The performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, shares may be worth less than their original cost. Current performance may be lower or higher than the performance data quoted. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. For performance data current to the most recent month end, please call 855-857-2638 or visit www.kraneshares.com. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. As stated in the Fund’s prospectus, the Fund’s operating expense ratio is 0.68%. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares CSI China Internet ETF

The KraneShares CSI China Internet ETF (the Fund) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the CSI Overseas China Internet Index (the Underlying Index).

The Underlying Index is designed to measure the performance of the investable universe of publicly traded, China-based companies whose primary business or businesses are in the Internet and Internet-related sectors (China Internet Companies), as defined by the index sponsor, China Securities Index Co., Ltd. (CSI).

China Internet Review

Although global markets saw declines due to rising global interest rates, U.S. and Hong Kong-listed stocks of Chinese internet issuers saw positive catalysts during the 12-month period ended March 31, 2023 (the Period) as many of the geopolitical and policy-related issues that had been weighing on the sector in prior periods were resolved. We believe that the two most important developments for the sector during the Period were the China government’s removal of pandemic restrictions and the achievement of full access to the audit books of U.S.-listed, China-based firms by the U.S. Public Company Accounting Oversight Board (PCAOB).

Following the National Party Congress, held in October of 2022, China’s government removed all domestic, pandemic-related restrictions. This development improved the outlook for China’s consumer market and led to a rebound in the stock price of certain China Internet Companies.

On December 15th, 2022, the PCAOB announced that the agency had secured complete access to inspect and investigate China-based firms and their auditors for the first time in history. This announcement was significant for China Internet Companies, many of which are listed publicly in the U.S., because the U.S. Congress in 2022, required U.S.-listed foreign companies to allow the PCAOB to inspect their audit books to remain listed publicly on U.S. exchanges. This development significantly reduced the risk of the American depositary receipts (ADRs) of China Internet Companies being delisted from U.S. exchanges.

We see three potential positive catalysts for China Internet Companies in the year to come:

●

We believe that The People’s Bank of China (PBOC) is likely to maintain a dovish monetary policy stance, to the benefit of growth equities.

●

China retail sales increased +10.6% year-over-year (YoY) in March, setting the stage for a potential rebound in consumer spending this year, which we would expect to benefit China Internet Companies.

●

Alibaba’s recent restructuring into six separate business groups, each individually able to raise capital, indicates the company’s focus on generating shareholder value; and a resulting IPO would likely result in at least one new issuer, which would be included in the Fund in the future.

China capital market overview (April 1, 2022 to March 31, 2023)

●

China’s equity market, as measured by the MSCI China All Shares Index, was down for the Period, returning -6.44%, while China’s currency, the Renminbi (RMB) depreciated -8.4% against the U.S. dollar.

●

The best-performing sectors across China’s equity markets included Energy (+23.08%), Communication Services (+8.93%), and Utilities (+0.18%).

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares CSI China Internet ETF (continued)

●

The worst-performing sectors across China’s equity markets included Real Estate (-29.55%), Materials (-18.28%), and Information Technology (-10.98%).

For the Period, the NAV of the Fund increased by 5.86%, while the Underlying Index increased by 6.36%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares CSI China Internet ETF (continued)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year
Return

Three Year
Return

Five Year
Return

Annualized
Inception to Date

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

KraneShares CSI China Internet ETF

5.86

9.40

%‡

-9.30

%‡

-9.38

%‡

-10.61

%‡

-10.67

%‡

3.83

%‡

3.81

%‡

CSI Overseas China Internet

N/A

6.36

%‡

N/A

-8.78

%‡

N/A

-10.18

%‡

N/A

4.04

%‡

S&P 500 Index

N/A

-7.73

%‡

N/A

18.60

%‡

N/A

11.19

%‡

N/A

11.77

%‡

	*	The Fund commenced operations on July 31, 2013.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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 performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, shares may be worth less than their original cost. Current performance may be lower or higher than the performance data quoted. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. For performance data current to the most recent month end, please call 855-857-2638 or visit www.kraneshares.com. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. As stated in the Fund’s prospectus, the Fund’s operating expense ratio is 0.69%. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares CSI China Internet ETF (concluded)

Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Bosera MSCI China A 50 Connect Index ETF

The KraneShares Bosera MSCI China A 50 Connect Index ETF (the Fund) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the MSCI China A 50 Connect Index (the Underlying Index).

The Underlying Index is constructed from the MSCI China A Index (the Parent Index), a broad-based benchmark index, which captures large and mid-cap China A shares listed on the Shanghai and Shenzhen exchanges and accessible through the Northbound Stock Connect channel. The Underlying Index aims to reflect the performance of the 50 largest securities representing each Global Industry Classification Standard (GICS^®) sector and reflecting the sector weight allocation of the Parent Index.

China A Share Review

Several macroeconomic headwinds impacted the Fund’s performance during the 12-month period ended March 31, 2023 (the Period), including a slump in consumer demand stemming from pandemic restrictions in China and the strengthening of the U.S. dollar due to the most aggressive interest rate hiking cycle in history from the U.S. Federal Reserve, which weighed on the value of assets denominated in currencies other than the U.S. Dollar, including China’s Renminbi. Although pandemic restrictions were removed during the period, benefiting consumer-oriented holdings, the Fund’s holdings in other sectors, such as Information Technology and Financials, nonetheless detracted from its overall performance for the period.

We see three potential positive catalysts for China’s A share equity market in the year to come:

●

We believe that there will be continued government support for key industries that are captured by the Fund’s holdings.

●

The potential relative attractiveness of China A shares due to the dovish monetary policy stance we expect from the People’s Bank of China (PBOC) as compared to other global central banks.

●

China’s retail sales increased +10.6% year-over-year in March, setting the stage for a rebound in consumer spending during the coming year, which should, in turn, lead to increased revenue for some of the companies held by the Fund, which would contribute to Fund performance.

China capital market overview (April 1, 2022 to March 31, 2023)

●

China’s equity market, as measured by the MSCI China All Shares Index, was down for the period returning -6.44%, while China’s currency, the renminbi (RMB) depreciated -8.4% against the U.S. dollar.

●

The best-performing sectors across China’s equity markets included Energy (+23.08%), Communication Services (+8.93%), and Utilities (+0.18%).

●

The worst-performing sectors across China’s equity markets included Real Estate (-29.55%), Materials (-18.28%), and Information Technology (-10.98%).

The Fund had exposure to Communication Services and Consumer Discretionary, which contributed positively to its performance, and to Real Estate and Information Technology, which detracted from its performance. The Fund’s performance was also negatively impacted by the decline in the value of China’s currency, the Renminbi, compared to the U.S. dollar.

For the Period, the NAV of the Fund decreased by -12.63% while the Underlying Index decreased by -11.57%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees and currency translations.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Bosera MSCI China A 50 Connect Index ETF (continued)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year
Return

Three Year
Return

Five Year
Return

Annualized
Inception to Date

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

KraneShares Bosera MSCI China A 50 Connect Index ETF

-12.63

-12.10

%‡

6.45

%‡

6.33

%‡

1.71

%‡

1.34

%‡

6.03

%‡

6.00

%‡

Hybrid KBA Index (Net)**

N/A

-11.57

%‡

N/A

7.24

%‡

N/A

1.96

%‡

N/A

7.04

%‡

S&P 500 Index

N/A

-7.73

%‡

N/A

18.60

%‡

N/A

11.19

%‡

N/A

11.13

%‡

	*	The Fund commenced operations on March 4, 2014.
	**	The Hybrid KBA Index consists of the MSCI China A Index from the inception of the Fund through October 23, 2014, the MSCI China A International Index from October 23, 2014 through December 26, 2017, the MSCI China A Inclusion Index from December 27, 2017 to May 29, 2019, the MSCI China A Index from May 29, 2019 to January 5, 2022, and the MSCI China A 50 Connect Index going forward. From October 23, 2014 through December 26, 2017, the Fund sought investment results that, before fees and expenses, corresponded to the price and yield performance of the MSCI China A International Index. Prior to October 23, 2014, the Fund sought investment results that, before fees and expenses, corresponded to the price and yield performance of the MSCI China A Index.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Bosera MSCI China A 50 Connect Index ETF (concluded)

representation of the future results of the Fund. For performance data current to the most recent month end, please call 855-857-2638 or visit www.kraneshares.com. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. As stated in the Fund’s prospectus, as supplemented, the Fund’s gross operating expense ratio is 0.79% and its net expense ratio is 0.56% due to a Fee Waiver whereby the Fund’s investment manager, Krane Funds Advisors, LLC, has contractually agreed to reduce its management fee by 0.23% of the Fund’s average daily net assets until August 1, 2023. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Bloomberg China Bond Inclusion Index ETF

The KraneShares Bloomberg China Bond Inclusion Index ETF (the Fund) seeks to provide investment results that, before expenses and fees, correspond generally to the price and yield performance of the Bloomberg China Inclusion Focused Bond Index (the Underlying Index).

The underlying index is designed to track the performance of China’s onshore, renminbi-denominated bond market.

China Investment Grade & Government Bond Market Review

China’s high-quality bonds moved lower during the 12-month period ended March 31, 2023 (the Period) primarily due to global central banks hiking interest rates while China kept rates steady, making China’s risk-free rate less attractive to investors. Nonetheless, as the People’s Bank of China’s target rates remain relatively unchanged since the end of 2021, high quality bonds were remarkably stable during the period, especially compared to high quality bonds in the U.S., realized losses on which resulted in the collapse or near-collapse of multiple banks.

We see three potential positive catalysts for China’s investment grade and government bond market going forward:

●

Increased demand for China’s currency, the Renminbi, stemming from the recent commitments from multiple countries, especially oil-exporters, to transact in the currency as opposed to the U.S. dollar.

●

The Renminbi may also appreciate as the U.S. dollar comes down from its recent highs and as the U.S. Federal Reserve could pivot on rate hikes in the event of a recession or other market signals.

●

China’s government is currently urging businesses to increase borrowing, which may lead to an increase in issuance in the high-quality corporate bond segment, which is the focus of the Fund.

For the Period, the NAV of the Fund decreased by -3.98% while the Underlying Index decreased by -4.82%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees and the Fund sampling the Underlying Index rather than replicating it.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Bloomberg China Bond Inclusion Index ETF (continued)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year
Return

Three Year
Return

Five Year
Return

Annualized
Inception to Date

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

KraneShares Bloomberg China Bond Inclusion Index ETF

-3.98

-4.04

%‡

3.44

%‡

3.44

%‡

0.97

%‡

0.90

%‡

1.50

%‡

1.42

%‡

Bloomberg China Inclusion Focused Bond Index

N/A

-4.82

%‡

N/A

4.37

%‡

N/A

1.60

%‡

N/A

2.29

%‡

S&P U.S. Treasury Bill 3-6 Month Index**

N/A

2.57

%‡

N/A

0.90

%‡

N/A

1.49

%‡

N/A

1.12

%‡

S&P 500 Index

N/A

-7.73

%‡

N/A

18.60

%‡

N/A

11.19

%‡

N/A

10.67

%‡

Bloomberg Global Aggregate Index

N/A

-8.07

%‡

N/A

-3.43

%‡

N/A

-1.34

%‡

N/A

0.05

%‡

	*	The Fund commenced operations on December 2, 2014.
	**	Index added to provide a fixed income benchmark for fixed income funds.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Bloomberg China Bond Inclusion Index ETF (concluded)

assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. As stated in the Fund’s prospectus, the Fund’s gross operating expense ratio is 0.68% and its net expense ratio is 0.48% due to a Fee Waiver Agreement whereby the Fund’s investment manager, Krane Funds Advisors, LLC, has contractually agreed to reduce its management fee by 0.20% of the Fund’s average daily net assets until August 1, 2023. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI All China Index ETF

The KraneShares MSCI All China Index ETF (the Fund) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the MSCI China All Shares Index (the Underlying Index).

The Underlying Index seeks to track the equity market performance of companies based in China and listed in Mainland China, Hong Kong, and the United States. Companies available for inclusion must be headquartered in China and meet the market capitalization minimums required by the MSCI Global Investable Market Indexes Methodology.

Broad China Equity Market Review

Offshore China equities outpaced onshore China (Mainland/A Shares) during the 12-month period ended March 31, 2023 (the Period) due to a strong rebound from 2022 lows. Meanwhile, onshore China (Mainland/A Shares) exhibited significantly less volatility, though underperformed. We believe the past 12 months’ performance disparity between onshore China (Mainland/A Shares) and offshore China demonstrates why a balanced allocation to both is important to achieve a well-rounded China allocation.

We see three potential positive catalysts for broad China equities in the year to come:

●

Ample liquidity in Mainland China, driven by what we expect to be dovish central bank policy in China, in contrast to the hawkish policy in the U.S. and Europe.

●

The recent resolution of multiple macroeconomic headwinds that had weighed on China’s offshore equity markets in past periods. These headwinds included China’s restrictive COVID policy and the achievement of full access to the audit books of U.S.-listed China-based firms by the Public Company Accounting Oversight Board, significantly lowering the risk that certain ADRs in the Fund’s portfolio may be delisted from U.S. exchanges.

●

China retail sales increased +10.6% year-over-year in March, setting the stage for a rebound in consumer spending this year, which may benefit both onshore China (Mainland/A Shares) and offshore China equities.

China capital market overview (April 1, 2022 to March 31, 2023)

●

The best performing sectors across China’s equity markets included Energy (+23.08%), Communication Services (+8.93%), and Utilities (+0.18%).

●

The worst performing sectors across China’s equity markets included Real Estate (-29.55%), Materials (-18.28%), and Information Technology (-10.98%).

Within the Fund, as a result, the best-performing sectors for the Period were Energy and Communication Services. Meanwhile, the worst-performing sectors were Real Estate and Materials.

For the Period, the NAV of the Fund decreased by -6.44% while the Underlying Index decreased by -6.44%.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI All China Index ETF (continued)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year
Return

Three Year
Return

Five Year
Return

Annualized
Inception to Date

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

KraneShares MSCI All China Index ETF

-6.44

-5.01

%‡

1.55

%‡

1.72

%‡

-1.09

%‡

-1.33

%‡

1.44

%‡

1.48

%‡

Hybrid KALL Index (Net)**

N/A

-6.44

%‡

N/A

1.13

%‡

N/A

-1.21

%‡

N/A

1.75

%‡

S&P 500 Index

N/A

-7.73

%‡

N/A

18.60

%‡

N/A

11.19

%‡

N/A

10.74

%‡

	*	The Fund commenced operations on February 12, 2015.
	**	The Hybrid KALL Index (Net) consists of the FTSE Emerging incl. China Overseas non-R/QFII GDP Weighted Index from the inception of the Fund through July 31, 2018, and the MSCI China All Shares Index going forward. Prior to July 31, 2018, the Fund was known as the KraneShares FTSE Emerging Markets Plus ETF and sought to provide investment results that, before fees and expenses, corresponded generally to the price and yield performance of the FTSE Emerging incl. China Overseas non-R/QFII GDP Weighted Index.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI All China Index ETF (concluded)

expenses were included in the index returns, the performance would have been lower. As stated in the Fund’s prospectus, the Fund’s gross operating expense ratio is 0.68% and its net expense ratio is 0.48% due to an a Fee Waiver whereby the Fund’s investment manager, Krane Funds Advisors, LLC, has contractually agreed to reduce its management fee by 0.20% of the Fund’s average daily net assets until August 1, 2023. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI One Belt One Road Index ETF

The KraneShares MSCI One Belt One Road Index ETF (the Fund) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the MSCI Global China Infrastructure Exposure Index (the Underlying Index).

The Underlying Index aims to identify potential beneficiaries of the “Belt & Road” or “One Belt One Road” (OBOR) initiative based on how their geography, revenue, and sector attributes align with the broad theme. OBOR seeks to capture the economic growth and monetize the potential upside for the companies involved in China’s One Belt One Road initiative.

Emerging Markets/Belt & Road Review

China launched the “Belt & Road Initiative” or “One Belt One Road” (OBOR) in 2013. The Belt & Road Initiative is an infrastructure development strategy that was designed by the government to allow China to export any excess infrastructure construction capacity to other regions of the world.

The emerging markets (EM) economies included in China’s Belt & Road Initiative were adversely impacted by a steady increase in the value of the U.S. dollar during the 12-month period ended March 31, 2023 (the Period). In this regard, their U.S. dollar-denominated debts became more of a burden across the board, although certain commodity-exporting EM countries in the Belt & Road Initiative contemporaneously benefitted from rising oil prices.

The challenges faced by Belt & Road Initiative countries and issuers during the Period have included economic crises in Pakistan and Sri Lanka. These crises have threatened ongoing projects in both countries. In response, China’s Export-Import Bank has extended the deadline for repayment of principal and interest on loans to Sri Lanka by two years, and the China Development Bank has extended another $700 million in loans to Pakistan to help the country whether further challenges. Compounding the challenges for Belt & Road Initiative countries, however, has been the unclear status of Italy as a signatory within the Initiative.

Nonetheless, OBOR-related projects are likely to continue as various EM economies emerge from economic crises, and Italy’s new center-right ruling coalition may clarify the status of the partnership. Moreover, OBOR-funded energy projects in the Middle East may continue to benefit from China’s reopening and heightened prices for oil and gas.

We see three potential positive catalysts for OBOR-related equities in the year to come:

●

The International Monetary Fund has predicted that the growth gap between developed and emerging markets will reverse in favor of EM for the first time in nearly a decade, forecasting growth of 4% for EM in 2023 compared to 1.2% for developed markets.

●

Recent events suggest to us that key state-backed lenders are ready and willing to extend additional credit and restructure debt agreements when necessary to ensure that projects are completed, which could benefit OBOR-related companies.

●

The significant rise in the value of the U.S. dollar over the past year makes borrowing in Renminbi more attractive to developing countries, which may lead to continued demand for China-originated financing for infrastructure projects across the developing world, a key component of the OBOR initiative.

Emerging Markets Overview (April 1, 2022 to March 31, 2023)

Emerging Market equities, as measured by the MSCI Emerging Markets Index, were down for the period, returning -10.39%.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI One Belt One Road Index ETF (continued)

The best performing sectors across the Emerging Market equity market included Energy (+4.22%), Consumer Staples (-0.08%), and Consumer Discretionary (-3.86%).

The worst performing sectors across the Emerging Market equity market included Health Care (-15.02%), Materials (-15.21%), and Real Estate (-16.16%).

Within the Fund, the best-performing sectors for the period were Energy and Industrials. Meanwhile, the worst-performing sectors were Consumer Staples and Materials. At the end of the Period, the top country weights within the Fund were China, Singapore, and Kuwait.

For the Period, the NAV of the Fund decreased by -14.98% while the Underlying Index decreased by -14.69%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI One Belt One Road Index ETF (continued)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year
Return

Three Year
Return

Five Year
Return

Annualized
Inception to Date

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

KraneShares MSCI One Belt Road Index ETF

-14.98

-15.53

%‡

11.71

%‡

12.05

%‡

0.72

%‡

0.32

%‡

1.13

%‡

1.05

%‡

MSCI Global China Infrastructure Exposure Index (Net)

N/A

-14.69

%‡

N/A

12.25

%‡

N/A

1.81

%‡

N/A

2.18

%‡

S&P 500 Index

N/A

-7.73

%‡

N/A

18.60

%‡

N/A

11.19

%‡

N/A

11.58

%‡

	*	The Fund commenced operations on September 7, 2017.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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 performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, shares may be worth less than their original cost. Current performance may be lower or higher than the performance data quoted. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. For performance data current to the most recent month end, please call 855-857-2638 or visit www.kraneshares.com. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. As stated in the Fund’s prospectus, the Fund’s operating expense ratio is 0.78%. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI One Belt One Road Index ETF (concluded)

not be considered recommendations to buy individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Emerging Markets Consumer Technology Index ETF

The KraneShares Emerging Markets Consumer Technology Index ETF (the Fund) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Solactive Emerging Markets Consumer Technology Index (the Underlying Index).

The Underlying Index selects companies from 26 eligible countries within emerging markets whose primary business or businesses are internet retail, internet software/services, purchase, payment processing, or software for internet and E-Commerce transactions.

Emerging Markets Consumer Technology Review

Many emerging markets (EM) countries were adversely impacted by a steady increase in the value of the U.S. dollar during the 12-month period ended March 31, 2023 (the Period), which meant that their U.S. dollar-denominated debts became more of a burden. However, certain commodity-exporting EM countries benefitted from rising oil prices, and e-commerce companies held by the Fund, especially those which derive significant revenues from China, experienced a recovery during the Period when China removed pandemic restrictions.

The International Monetary Fund has predicted that the growth gap between developed and emerging markets will favor the latter for the first time in nearly a decade. Developed economies are anticipated to experience a slowdown in growth from 2.7% in 2022 to 1.2% and 1.4% in 2023 and 2024, respectively. On the other hand, EM economies are expected to experience growth, increasing from 3.9% in 2022 to 4.0% in 2023 and 4.3% in 2024.

We see three potential positive catalysts for EM consumer technology companies in the year to come:

●

The U.S. dollar may see declines in the year ahead given its current high level versus EM currencies, which may improve the economic outlook for many EM countries.

●

China retail sales increased +10.6% year-over-year (YoY) in March, setting the stage for a rebound in consumer spending this year, which we expect to benefit consumer technology companies, among others.

●

Alibaba’s recent restructuring into six separate business groups, each individually able to raise capital, indicates the company’s focus on generating shareholder value; and a resulting IPO would likely result in a new issuer, which would be included in the Underlying Index and Fund in the future.

Emerging Markets Overview (April 1, 2022 to March 31, 2023)

●

Emerging Market equities, as measured by the MSCI Emerging Markets Index, were down for the period, returning -10.39%.

●

The best performing sectors across EM equity markets included Energy (+4.22%), Consumer Staples (-0.08%), and Consumer Discretionary (-3.86%).

●

The worst performing sectors across EM equity markets included Health Care (-15.02%), Materials (-15.21%), and Real Estate (-16.16%).

Within the Fund, exposure to the Consumer Discretionary and Consumer Staples sectors contributed positively to performance, while its exposure to the Communication Services and Financials sectors detracted from performance.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Emerging Markets Consumer Technology Index ETF (continued)

For the Period, the NAV of the Fund decreased by -15.30% while the Underlying Index decreased by -14.47%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees and currency translations.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Emerging Markets Consumer Technology Index ETF (continued)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year
Return

Three Year
Return

Five Year
Return

Annualized
Inception to Date

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

KraneShares Emerging Markets Consumer Technology Index ETF

-15.30

-14.60

%‡

-7.08

%‡

-7.32

%‡

-9.63

%‡

-9.89

%‡

-7.88

%‡

-7.96

%‡

Solactive Emerging Markets Consumer Technology Index

N/A

-14.47

%‡

N/A

-6.00

%‡

N/A

-8.76

%‡

N/A

-6.73

%‡

S&P 500 Index

N/A

-7.73

%‡

N/A

18.60

%‡

N/A

11.19

%‡

N/A

11.02

%‡

	*	The Fund commenced operations on October 11, 2017.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Emerging Markets Consumer Technology Index ETF (concluded)

is 0.59% due to a Fee Waiver whereby the Fund’s investment manager, Krane Funds Advisors, LLC, has contractually agreed to reduce its management fee by 0.20% of the Fund’s average daily net assets until August 1, 2023.

Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI China Clean Technology Index ETF

The KraneShares MSCI China Clean Technology Index ETF (the Fund) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the MSCI China IMI Environment 10/40 Index (the Underlying Index).

The Underlying Index is comprised of securities that derive at least 50% of their revenues from environmentally beneficial products and services. The Underlying Index is based on five key Clean Technology environmental themes: Alternative Energy, Sustainable Water, Green Building, Pollution Prevention, and Energy Efficiency. The Underlying Index aims to serve as a benchmark for investors seeking exposure to Chinese companies 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. Constituent selection is based on data from MSCI Environment, Social, and Governance (ESG).

China Clean Technology Review:

Several macroeconomic headwinds impacted the Fund’s performance during the 12-month period ending March 31, 2023 (the Period), including the most aggressive interest rate hiking cycle in history from the U.S. Federal Reserve. On the other hand, the passage of the Inflation Reduction Act (IRA) in the U.S. favors U.S. suppliers of clean energy technologies, such as solar panels, and the clean technology companies generally held by the Fund.

The best-performing sector within the Fund was Information Technology, while the worst-performing sectors were Real Estate and Utilities. Information technology company Kingsoft Cloud was one of the best-performing companies in the Fund. Meanwhile, real estate developers YueXiu and Soho saw declines following a slump in China’s real estate sector.

We see three potential positive catalysts for China’s clean technology equities in the year to come:

●

Increasing domestic demand for solar panels as China ramps up its efforts to achieve peak carbon emissions by 2030 and net zero emissions by 2060. Solar currently makes up less than 5% of China’s total energy mix, but we believe that sales have the potential to increase.

●

A rebound in China’s real estate development industry, which may uplift sustainable developers as well.

●

China’s continued leadership in the transition to electric vehicles (EVs) as 6 million EVs were sold in the country in 2022 compared to only 2.6 million in Europe and 800,000 in the U.S.

For the Period, the NAV of the Fund decreased by -20.71% while the Underlying Index decreased by -21.68%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees and currency translations.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI China Clean Technology Index ETF (continued)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year
Return

Three Year
Return

Five Year
Return

Annualized
Inception to Date

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

KraneShares MSCI China Clean Technology Index ETF

-20.71

-20.31

%‡

20.76

%‡

20.82

%‡

5.81

%‡

5.53

%‡

4.40

%‡

4.45

%‡

MSCI China IMI Environment 10/40 Index (Net)

N/A

-21.68

%‡

N/A

17.38

%‡

N/A

4.21

%‡

N/A

3.01

%‡

S&P 500 Index

N/A

-7.73

%‡

N/A

18.60

%‡

N/A

11.19

%‡

N/A

11.06

%‡

	*	The Fund commenced operations on October 12, 2017.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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 performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, shares may be worth less than their original cost. Current performance may be lower or higher than the performance data quoted. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. For performance data current to the most recent month end, please call 855-857-2638 or visit www.kraneshares.com. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. As stated in the Fund’s prospectus, the Fund’s gross operating expense ratio is 0.78%. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI China Clean Technology Index ETF (concluded)

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Electric Vehicles and Future Mobility Index ETF

The KraneShares Electric Vehicle and Future Mobility Index ETF (the Fund) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Bloomberg Electric Vehicles Index (the Underlying Index).

The Underlying Index seeks to measure the performance of companies that are engaged in the production of electric vehicles, their components, or other initiatives that may change the future of mobility. This includes issuers engaged in electric vehicles, autonomous driving, lithium and/ or copper production, lithium-ion/lead acid battery production, hydrogen fuel cell manufacturing, and/or electric infrastructure businesses.

Global Electric Vehicle Market Review:

Global electric vehicles equities were mostly flat during the 12-month period ended March 31, 2023 (the Period) as higher U.S. interest rates made growth equities appear less attractive. Nonetheless, sales of electric vehicles (EVs) continued to rise. EV sales increased +60% to reach 10.3 million vehicles in 2022, up from 6.5 million vehicles in 2021. China continued to lead in sales as 6 million EVs were sold in China during 2022. Meanwhile, Europe and the U.S. tracked behind, logging sales of 2.6 million and 800,000 EVs, respectively.

We see three potential positive catalysts for EV equities in the year to come:

●

The passage of the Inflation Reduction Act (IRA) in the United States, which includes over $300 billion in investment in the transition from fossil fuels to renewable energy, including incentives for manufacturers and buyers of EVs.

●

At least six provinces in China have launched their own EV subsidy programs following the expiration at the end of 2022 of national subsidies for purchases of new EVs.

●

The potential for a pivot from the U.S. Federal Reserve on interest rate hikes and for new metals supply to come online, both of which would provide support to EV manufacturers on both a fundamental and sentimental level.

For the Period, the NAV of the Fund decreased by -21.78% while the Underlying Index decreased by -21.56%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees.

Companies involved in battery production were among the best performing of the Fund’s holdings during the Period. Meanwhile, companies involved in hydrogen and fuel cell technologies, charging technologies, and vehicle production detracted the most from the Fund’s performance for the period.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Electric Vehicles and Future Mobility Index ETF (continued)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year
Return

Three Year
Return

Five Year
Return

Annualized
Inception to Date

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

KraneShares Electric Vehicles and Future Mobility Index ETF

-21.78

-21.35

%‡

20.30

%‡

20.81

%‡

7.97

%‡

7.77

%‡

6.20

%‡

6.26

%‡

Hybrid KARS Index (Net)**

N/A

-21.56

%‡

N/A

21.70

%‡

N/A

8.68

%‡

N/A

6.80

%‡

S&P 500 Index

N/A

-7.73

%‡

N/A

18.60

%‡

N/A

11.19

%‡

N/A

9.59

%‡

	*	The Fund commenced operations on January 18, 2018.
	**	The Hybrid KARS Index consists of the Solactive Electric Vehicles and Future Mobility Index from the inception of the Fund through June 15, 2021 and the Bloomberg Electric Vehicles Total Return Index going forward.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Electric Vehicles and Future Mobility Index ETF (concluded)

one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI All China Health Care Index ETF

The KraneShares MSCI All China Health Care Index ETF (the Fund) seeks to provide investment results that, before fees and expenses, track the price and yield performance of the MSCI China All Shares Health Care 10/40 Index (the Underlying Index).

The Underlying Index is a free float-adjusted market capitalization weighted index designed to track the equity market performance of Chinese companies engaged in the health care sector. The securities in the Index include all types of publicly issued shares of Chinese issuers, which are listed in Mainland China, Hong Kong, and the United States. Issuers eligible for inclusion must be classified under the Global Industry Classification Standard (GICS^®) as engaged in the healthcare sector. The issuers included in the Underlying Index may include small-cap, mid-cap, and large-cap companies.

China Health Care Review:

Several macroeconomic headwinds impacted the Fund’s performance during the 12-month period ended March 31, 2023 (the Period), including an aggressive rate hiking cycle pursued by global central banks, which made growth equities appear less attractive due to the resulting increase in the risk-free rates in many countries, the placement of some China-based pharmaceutical companies on the U.S. “unverified list,” indicating that the end-use of imported materials could not be verified by U.S. inspectors due to COVID restrictions, and regulatory changes to China’s central procurement program, especially the inclusion of medical devices in the program.

We see three potential positive catalysts for China’s healthcare equities in the year to come:

●

Wuxi Biologics has been removed from the U.S. “unverified list,” which is a list of companies that import sensitive materials from the U.S. and are unable to submit to inspections. Wuxi Biologics was removed from the unverified list following the end of China’s pandemic restrictions, which enabled U.S. inspectors to gain access to Wuxi’s facilities. We believe that this means that being added to the unverified list is no longer a material risk to China’s pharmaceutical companies as COVID restrictions were the only reason for the companies’ inclusion on the list.

●

On December 15th, 2022, the Public Company Accounting Oversight Board (PCAOB) announced that the agency had secured complete access to inspect and investigate China-based firms and their auditors for the first time in history. This announcement was significant for China healthcare companies, many of which are listed publicly in the U.S., because the U.S. Congress in 2022 required U.S.-listed foreign companies to allow the PCAOB to inspect their audit books to remain listed publicly on U.S. exchanges. Thus, the achievement of full access to the audit books of U.S.-listed China-based firms by the PCAOB significantly lowers the risk that certain ADRs in the Fund’s portfolio may be delisted from U.S. exchanges.

●

According to a paper published by Lancet Public Health this year, life expectancy in China is likely to increase to over 80 by 2035 and to potentially as high as 90 for women in certain areas. This could create long-term, steadily growing demand for healthcare in China for the foreseeable future.

The best-performing industries within the Fund were medical/nursing services and medical distributors. Meanwhile, pharmaceuticals and biotechnology were the worst-performing industries within the Fund.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI All China Health Care Index ETF (continued)

For the Period, the NAV of the Fund decreased by -12.65% while the Underlying Index decreased by -12.43%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI All China Health Care Index ETF (continued)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year
Return

Three Year
Return

Five Year
Return

Annualized
Inception to Date

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

KraneShares MSCI All China Health Care Index ETF

-12.65

-11.85

%‡

0.02

%‡

-0.35

%‡

-2.11

%‡

-2.69

%‡

-0.82

%‡

-1.04

%‡

MSCI China All Shares Health Care 10/40 Index

N/A

-12.43

%‡

N/A

1.00

%‡

N/A

-1.54

%‡

N/A

-0.11

%‡

S&P 500 Index

N/A

-7.73

%‡

N/A

18.60

%‡

N/A

11.19

%‡

N/A

9.46

%‡

	*	The Fund commenced operations on January 31, 2018.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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 performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, shares may be worth less than their original cost. Current performance may be lower or higher than the performance data quoted. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. For performance data current to the most recent month end, please call 855-857-2638 or visit www.kraneshares.com. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. As stated in the Fund’s prospectus, the Fund’s gross operating expense ratio is 0.79% and its net expense ratio is 0.65% due to a Fee Waiver whereby the Fund’s investment manager, Krane Funds Advisors, LLC, has contractually agreed to reduce its management fee by 0.14% of the Fund’s average daily

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI All China Health Care Index ETF (concluded)

net assets until August 1, 2023. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Asia Pacific High Income Bond ETF

The KraneShares Asia Pacific High Income Bond ETF (the Fund) seeks to provide a total return that, before fees and expenses, exceeds that of the JP Morgan Asia Credit Index (JACI) Non-Investment Grade Corporate Index (the Benchmark Index) over a complete market cycle.

The Benchmark Index is comprised of liquid U.S. dollar denominated debt instruments issued out of Asia ex-Japan. It is based on the composition and established methodology of the J.P. Morgan Asia Credit Index (JACI), which is market capitalization weighted. The Benchmark Index is limited to issuers classified as non-investment grade based on the middle rating among Moody’s, Fitch, and S&P.

Asia High Yield Bond Market Review:

Asia’s high yield bond market was relatively unchanged from the prior year during the 12-month period ended March 31, 2023 (the Period) as the slump in China’s real estate market, stemming from tightening government policies that were introduced in 2021 and included the “three red lines” policy limiting developer leverage, continued to weigh on the performance of Asia’s high yield bond market. However, positive signs of a recovery emerged in the first quarter of 2023, including the stabilization of home prices in January following 16 consecutive months of price declines.

Portfolio manager Wai Hoong Leong and his Singapore-based team reversed from their high cash position of 18% in the second quarter of 2022 to under 10% by the end of the Period due to improving credit conditions. The team also reversed its underweights versus the benchmark to the Real Estate and Consumer Discretionary sectors from the beginning of the Period, while keeping duration lower than the Benchmark Index.

We see three potential positive catalysts for the Asia high yield bond market going forward:

●

The potential for a recession in the U.S. or other market changes that cause the U.S. Federal Reserve to end its rate hike cycle, the most aggressive in history, making high yield securities more attractive. This may also cause emerging Asian economies to appear relatively more attractive sources of growth compared to the U.S. and developed economies. Both of these developments should benefit the Fund.

●

The potential for a sustained recovery in China’s real estate sector as the government has become more supportive of the sector in recent months.

●

Issuance may increase in Asia’s high yield bond market following a slump over the past 12 months as market participants gain confidence in the outlooks for their businesses, especially in the Consumer [Staples] [Discretionary] sector following China’s removal of pandemic restrictions, which dampened Chinese consumer activity.

For the Period, the NAV of the Fund decreased by -0.44% while the Benchmark Index decreased by -0.62%.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Asia Pacific High Income Bond ETF (continued)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*,^†

One Year
Return

Three Year
Return

Annualized
Inception to Date

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

KraneShares Asia Pacific High Income Bond ETF

-0.44

-0.66

%‡

-3.54

%‡

-3.99

%‡

-1.88

%‡

-1.85

%‡

J.P. Morgan Asia Credit (JACI) Non-Investment Grade Corporates Index

N/A

-0.62

%‡

N/A

-4.26

%‡

N/A

-1.65

%‡

Lipper China Region Funds Classification

N/A

-8.18

%‡

N/A

3.39

%‡

N/A

Bloomberg Global Aggregate Index

N/A

-8.06

%‡

N/A

-3.43

%‡

N/A

-0.79

%‡

	*	The Fund commenced operations on June 26, 2018.
	†	Prior to August 1, 2021, the Fund previously sought to track the performance of the Solactive USD China Corporate High Yield Bond Index, before fees and expenses. Its performance prior to that date would have been different if the current goal and principal investment strategies had been in effect.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Asia Pacific High Income Bond ETF (concluded)

As stated in the Fund’s prospectus, the Fund’s operating expense ratio is 0.69%. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Emerging Markets Healthcare Index ETF

The KraneShares Emerging Markets Healthcare Index ETF (the Fund) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Solactive Emerging Markets Healthcare Index (the Underlying Index).

The Underlying Index seeks to track the equity market performance of companies engaged in the health care sector in various emerging markets. The issuers include small-cap, mid-cap, and large-cap companies involved in hospital management, healthcare management, pharmaceutical manufacturing, and biotechnology, among other sub-industries.

Emerging Markets Healthcare Review:

During the 12-month period ended March 31, 2023 (the Period), emerging market (EM) healthcare companies continued to build on the progress made in response to the pandemic. They continued to rapidly expand their virtual health services for patients and establish partnerships with developed market companies to produce and/or acquire vaccines, treatments, and equipment. Within the Fund, the best-performing holdings were mainly involved in the healthcare technology and medical devices industries. Meanwhile, the worst-performing holdings were mainly those involved in healthcare facilities management and biotechnology industries.

The Fund was down for the Period as a strong U.S. dollar and rising U.S. interest rates continued to weigh on EM and growth equities. Meanwhile, waning demand for COVID vaccines and concerns over future funding both had a negative impact on the global biotechnology industry. Brazil’s private healthcare industry was particularly hard-hit as provider Hapvida has had to grapple with tightening credit conditions and newly elected President Lula da Silva’s plans to make public healthcare more competitive with private alternatives.

We see three potential positive catalysts for EM healthcare equities in the year to come:

●

The achievement of full access to the audit books of U.S.-listed China-based firms by the U.S. Public Company Accounting Oversight Board (PCAOB) significantly lowers the risk of the ADRs issued by companies in the Fund from being removed from U.S. exchanges.

Emerging Markets Overview (March 31, 2022 to March 31, 2023)

●

Emerging Market equities, as measured by the MSCI Emerging Markets Index, were down for the period, returning -10.39%.

●

The best performing sectors across the Emerging Market equity market included Consumer Staples (+0.08%), Consumer Discretionary (-3.86%), and Energy (+4.22%).

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Emerging Markets Healthcare Index ETF (continued)

●

The worst performing sectors across the Emerging Market equity market included Health Care (-15.02%), Materials (-15.21%), and Real Estate (-16.16%).

For the Period, the NAV of the Fund decreased by -14.97% while the Underlying Index decreased by -14.90%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Emerging Markets Healthcare Index ETF (continued)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year
Return

Three Year
Return

Annualized
Inception to Date

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

KraneShares Emerging Markets Healthcare Index ETF

-14.97

-14.19

%‡

0.37

%‡

0.42

%‡

-3.29

%‡

-3.26

%‡

Solactive Emerging Markets Healthcare Index

N/A

-14.90

%‡

N/A

0.88

%‡

N/A

-2.76

%‡

S&P 500 Index

N/A

-7.73

%‡

N/A

18.60

%‡

N/A

9.68

%‡

	*	The Fund commenced operations on August 29, 2018.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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 performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, shares may be worth less than their original cost. Current performance may be lower or higher than the performance data quoted. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. For performance data current to the most recent month end, please call 855-857-2638 or visit www.kraneshares.com. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. As stated in the Fund’s prospectus, the Fund’s operating expense ratio is 0.79%. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Emerging Markets Healthcare Index ETF (concluded)

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI Emerging Markets ex China Index ETF

The KraneShares MSCI Emerging Markets ex China Index ETF (the Fund) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the MSCI Emerging Markets ex China Index (the Underlying Index).

The Underlying Index is a free float-adjusted market capitalization weighted index designed to track the equity market performance of mid- and large-cap companies of emerging market countries, excluding China. The Underlying Index is based on the MSCI Emerging Markets Index (universe) but excludes the securities of Chinese issuers.

Emerging Markets ex China Review:

Emerging markets (EM) excluding China (EM ex China) were adversely impacted by a steady increase in the value of the U.S. Dollar during the 12-month period ended March 31, 2023 (the Period), which meant that their U.S. Dollar-denominated debts became more of a burden. However, many commodity-exporting EM countries benefitted from heightened oil prices; and consumer-oriented stocks recovered somewhat. Meanwhile, South Korea and Taiwan lagged due to slowing global demand for their semiconductor exports. Due to the latter’s higher weight in the Fund’s Underlying Index, these opposing forces negatively impacted the Fund’s performance.

We see three potential positive catalysts for EM ex China equities in the year to come:

●

The International Monetary Fund has predicted that the growth gap between developed and emerging markets will reverse to favor the latter for the first time in nearly a decade, forecasting growth of 4% for EM in 2023 compared to 1.2% for developed markets.

●

Although China’s equity valuations saw a significant increase compared to other EM equity valuations in the fourth quarter of 2022, we believe the latter may close this gap over the next 12 months as EM ex China economies rebound and benefit from the Chinese population’s increased spending on energy, travel, and raw materials.

●

The U.S. dollar may see declines in the year ahead given its current high level versus EM currencies, which may improve the economic outlook for many EM countries to the extent that it mitigates the drag of their U.S. dollar denominated debt burden.

Emerging Markets Overview (April 1, 2022 to March 31, 2023)

●

Emerging Market equities, as measured by the MSCI Emerging Markets Index, were down for the period, returning -10.39%.

●

The best performing sectors across the EM equity market included Energy (+4.22%), Consumer Staples (-0.08%), and Consumer Discretionary (-3.86%).

●

The worst performing sectors across the EM equity market included Health Care (-15.02%), Materials (-15.21%), and Real Estate (-16.16%).

Within the Fund, exposure for the Period to the Consumer Discretionary and Consumer Staples sectors benefitted the Fund, while exposure to the Communication Services and Financials sectors detracted from Fund performance. The best-performing country exposure for the Fund was Turkey, and the worst-performing country exposure was Colombia.

For the Period, the NAV of the Fund decreased by -12.12% while the Underlying Index decreased by -13.32%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees and the Fund’s usage of representative sampling to seek to track the Underlying Index’s performance.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year
Return

Three Year
Return

Annualized
Inception to Date

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

KraneShares MSCI Emerging Markets ex China Index ETF

-12.12

-11.40

%‡

14.80

%‡

14.88

%‡

3.47

%‡

3.72

%‡

MSCI Emerging Markets Ex China Index

N/A

-13.32

%‡

N/A

14.30

%‡

N/A

2.44

%‡

S&P 500 Index

N/A

-7.73

%‡

N/A

18.60

%‡

N/A

11.15

%‡

	*	The Fund commenced operations on April 12, 2019.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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 performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, shares may be worth less than their original cost. Current performance may be lower or higher than the performance data quoted. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. For performance data current to the most recent month end, please call 855-857-2638 or visit www.kraneshares.com. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. As stated in the Fund’s prospectus, as supplemented, the Fund’s gross operating expense ratio is 0.59% and its net expense ratio is 0.23% due to a Fee Waiver whereby the Fund’s investment manager, Krane Funds Advisors, LLC, has contractually agreed to reduce its management fee by 0.35% of the Fund’s average daily net assets until August 1, 2022. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI Emerging Markets ex China Index ETF (concluded)

The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI China ESG Leaders Index ETF

The KraneShares MSCI China ESG Leaders Index ETF (the Fund) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the MSCI China ESG Leaders 10/40 Index (the Underlying Index).

The Underlying Index is designed to measure the performance of Chinese companies with high Environmental, Social and Governance (ESG) ratings relative to their sector peers. The Underlying Index consists of small-cap, mid-cap and large-cap companies in China. In order to ensure diversification, the Underlying Index limits individual constituent weights to 10% and the cumulative weight of all constituents with a weight of over 5% to 40% of its composition.

China ESG Review:

Chinese companies with the highest MSCI ESG rankings tend to be highly concentrated in growth sectors and, as such, were caught up in the global growth selloff during the 12-month period ended March 31, 2023 (the Period). Nonetheless, we continue to see strong client interest in strategies that consider ESG factors. Furthermore, we are encouraged by the Fund’s performance since inception, which has outpaced the broader China equity market, as represented by the MSCI China Index. These performance results reinforce our thesis that ESG considerations may lead to outperformance in China.

President Xi’s pledge last year to promote “common prosperity” in the government’s oversight of private businesses led to investor enthusiasm for Chinese companies with high ESG rankings. With Xi installed for a third term, we believe this emphasis may continue.

We see three potential positive catalysts for China ESG equities in the year to come:

●

We believe that The People’s Bank of China (PBOC) is likely to maintain a dovish monetary policy stance, to the benefit of growth equities.

●

China retail sales increased +3.5% year-over-year in the first two months of 2023, setting the stage for a rebound in consumer spending this year, which could benefit consumer-oriented ESG equities.

●

New regulations globally surrounding ESG disclosure and adherence to sustainability standards in investment processes may cause more investors to seek ESG characteristics in their China investments. Meanwhile, China’s government continues to support industries with a high concentration of companies with high ESG ratings, such as manufacturers of electric vehicles and solar panels.

Communication Services was the best-performing sector within the Fund. Meanwhile, Real Estate was the worst-performing sector.

For the Period, the NAV of the Fund decreased by -10.38% while the Underlying Index decreased by -9.62%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares MSCI China ESG Leaders Index ETF (concluded)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year
Return

Annualized
Inception to Date

Net
Asset
Value

Market
Price^

Net
Asset
Value

Market
Price^

KraneShares MSCI China ESG Leaders Index ETF

-10.38

-8.64

%‡

-6.44

%‡

-6.53

%‡

MSCI China ESG Leaders 10/40 Index

N/A

-9.62

%‡

N/A

-5.77

%‡

	*	The Fund commenced operations on July 28, 2020.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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 performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, shares may be worth less than their original cost. Current performance may be lower or higher than the performance data quoted. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. For performance data current to the most recent month end, please call 855-857-2638 or visit www.kraneshares.com. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. As stated in the Fund’s prospectus, the Fund’s operating expense ratio is 0.59%. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares CICC China 5G & Semiconductor Index ETF

The KraneShares CICC China 5G & Semiconductor Index ETF (the Fund) seeks to provide investment results that, before expenses and fees, correspond generally to the price and yield performance of the CICC China 5G and Semiconductor Leaders Index (the Underlying Index).

The Underlying Index is designed to track the performance of companies engaged in 5G and semiconductor related businesses, including 5G equipment, semiconductors, electronic components, and data centers.

China 5G & Semiconductor Market Review:

China’s 5G and semiconductor-related equities were down for the 12-month period ending March 31, 2023 (the Period) due to a global risk-off environment and geopolitical concerns that led to negative sentiment towards the semiconductor industry.

Regarding the semiconductor component of the strategy, in late 2022, the U.S. government implemented a series of restrictions on the export of certain varieties of high-end semiconductors to Mainland China. China’s share of U.S. semiconductor exports declined from $7 billion in 2021 to $5 billion in 2022. These restrictions were initially viewed as negative for China’s industry, but they have likely accelerated the timeline in which China could become self-sufficient in producing semiconductors. A self-sufficient China semiconductor industry would lead to a significant increase in the revenues of China’s leading semiconductor manufacturers and catalyze the Fund’s performance.

Regarding the 5G component of the strategy, the Fund’s performance benefited from holding stocks of companies mainly involved in the production of telecommunications equipment. We believe that the relative outperformance of these names was tied partially to the Chinese government’s reiteration of its goal to increase the nation’s 5G penetration rate as part of the 14th Five Year Plan.

We see three potential positive catalysts for China’s 5G & semiconductor companies in the year to come.

●

China’s imports of U.S.-made and/or designed semiconductors are likely to continue to fall given new export restrictions, representing a significant opportunity for local semiconductor manufacturers to grow their business.

●

We expect ample liquidity in China’s equity markets driven by dovish central bank policy in China, in contrast to the hawkish policy in the U.S. and Europe. We believe that such dovish policies are likely to benefit growth-oriented technology stocks, such as those of 5G and semiconductor issuers, listed in Mainland China.

●

According to a report from UBS, China is projected to have over 400 million 5G users by 2025, accounting for 40% of total global use and driving China’s 5G industry forward.

For the Period, the NAV of the Fund decreased by -9.62% while the Underlying Index decreased by -9.32%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares CICC China 5G & Semiconductor Index ETF (continued)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year

Annualized

Return

Inception to Date

Net

Asset

Market

Asset

Market

Value

Price^

Value

Price^

KraneShares CICC China 5G & Semiconductor Index ETF

-9.62

-8.72

%‡

-13.41

%‡

-13.51

%‡

CICC China 5G And Semiconductor Leaders Index

N/A

-9.32

%‡

N/A

-12.21

%‡

S&P 500 Index

N/A

-7.73

%‡

N/A

	*	The Fund commenced operations on November 23, 2020.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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 performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, shares may be worth less than their original cost. Current performance may be lower or higher than the performance data quoted. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. For performance data current to the most recent month end, please call 855-857-2638 or visit www.kraneshares.com. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. As stated in the Fund’s prospectus, the Fund’s gross operating expense ratio is 0.79% and its net expense ratio is 0.64% due to a Fee Waiver whereby the Fund’s investment manager, Krane Funds Advisors, LLC, has contractually agreed to reduce its management fee by 0.14% of the Fund’s average daily net assets until August 1, 2022. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares CICC China 5G & Semiconductor Index ETF (concluded)

individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares CICC China Consumer Leaders Index ETF

The KraneShares CICC China Consumer Leaders Index ETF (the Fund) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the CICC China Consumer Leaders Index (the Underlying Index).

The Underlying Index consists of the investable universe of publicly traded China-based companies whose primary business or businesses are in the consumption-related industries such as home appliance, food & beverage, apparel & clothing, hotels, restaurants, and duty-free goods.

China Consumer Leaders Review:

The stocks of China’s local consumer brands moved higher during the 12-month period ended March 31, 2023 (the Period), mostly due to the lifting of pandemic restrictions following China’s National Party Congress in October 2022, which led to an increase in consumer spending compared to one year earlier. The first evidence of this increase in consumer spending was reported by China’s Tourism Ministry in data from the Chinese Lunar New Year holiday in late January 2023, which signaled a rebound in consumer activities following the lifting of the pandemic restrictions. The data indicated a +23% rise in domestic trips taken during the seven-day holiday in 2022 as compared to the same holiday in 2021.

We believe that with the lifting of pandemic restrictions, China can return to normal and that consumption-related companies will be direct beneficiaries of the country’s reopening. We also believe that a recovery in the service sector (e.g., travel as evidenced by the activity around the Chinese Lunar New Year) will likely lead to a resurgence of demand for consumer products. As China’s inflation remains low and its high target for GDP growth remains intact, there appears to be significant policy support for China’s consumer market. In time, we expect China to strive to rebalance its economy through consumption rather than investments and exports, which will create a long-term opportunity for the leading consumer brands in China.

We see three potential positive catalysts for China’s consumer brands in the year to come:

●

China retail sales increased +10.6% year-over-year in March, setting the stage for a rebound in consumer spending this year, which may benefit both onshore and offshore China equities.

●

According to sources on the ground in China, consumers are beginning to perceive many local brands on equal footing with foreign brands, which, in the past, had been perceived as higher quality and more fashionable.

●

Many global banks have upgraded their 2023 GDP growth estimates for China to above 6% year-over-year, mostly owing to the heightened level of consumption, which may benefit the leading local China brands.

Within the Fund, the best-performing sectors during the Period were Consumer Discretionary and Consumer Staples. Meanwhile, the worst-performing sectors were Materials and Information Technology.

For the Period, the NAV of the Fund increased by 1.64% while the Underlying Index increased by 2.32%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares CICC China Consumer Leaders Index ETF (concluded)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year

Annualized

Return

Inception to Date

Net

Asset

Market

Asset

Market

Value

Price^

Value

Price^

KraneShares CICC China Consumer Leaders Index ETF

1.64

2.85

%‡

-8.78

%‡

-8.82

%‡

CICC China Consumer Leaders Index

N/A

2.32

%‡

N/A

-7.77

%‡

S&P 500 Index

N/A

-7.73

%‡

N/A

	*	The Fund commenced operations on December 8, 2020.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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 performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, shares may be worth less than their original cost. Current performance may be lower or higher than the performance data quoted. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. For performance data current to the most recent month end, please call 855-857-2638 or visit www.kraneshares.com. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. As stated in the Fund’s prospectus, the Fund’s operating expense ratio is 0.69%. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares SSE STAR Market 50 Index ETF

The KraneShares SSE STAR Market 50 Index ETF (the Fund) seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the Shanghai Stock Exchange (SSE) Science and Technology Innovation Board 50 Index (the Underlying Index).

The Underlying Index is comprised of the 50 largest companies listed on the SSE Science and Technology Innovation Board (STAR Market) as determined by market capitalization and liquidity.

STAR Market Review:

China’s STAR Market was not spared the global selloff in growth equities during the 12-month period ended March 31, 2023 (the Period). Nonetheless, the STAR market continues to attract new listings, accounting for 41% of the total capital raised through new listings in Mainland China in 2022. Since its launch in 2019, the STAR market has allowed 486 companies, mostly in the technology industry, to raise a total of 102 billion USD in capital.

We see three potential positive catalysts for the STAR Market in the years to come:

●

Ample liquidity driven by what we expect to be a dovish central bank policy in China, in contrast to the hawkish policy in the U.S. and Europe, which is likely to create the conditions for a vibrant IPO market in China over the next few years and lead to new listings on the STAR market.

●

China’s increasing support for high technology companies, such as semiconductor manufacturing, which represent a majority of companies in the Underlying Index and Fund portfolio, after restrictions on the export of high-end chips to China implemented by the U.S. last year.

●

The potential revival of financial technology company Ant Group’s IPO on the STAR Market.

The best-performing holdings for the period were mainly in the software industry. Beijing Kingsoft Office Software was the top-performing holding in the Fund. Meanwhile, pharmaceuticals, including Shanghai Junshi Biosciences Co., were the primary detractors from the Fund’s performance.

For the Period, the NAV of the Fund decreased by -9.97% while the Underlying Index decreased by -8.05%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees and the Underlying Index’s inclusion of an issuer that cannot be held by the Fund due to restrictions imposed by the U.S. Department of Treasury.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares SSE STAR Market 50 Index ETF (concluded)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year

Annualized

Return

Inception to Date

Net

Asset

Market

Asset

Market

Value

Price^

Value

Price^

KraneShares SSE Star Market 50 Index ETF

-9.97

-8.81

%‡

-16.50

%‡

-16.29

%‡

SSE Science & Technology Innovation Board 50 Index

N/A

-8.05

%‡

N/A

-15.42

%‡

	*	The Fund commenced operations on January 26, 2021.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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 performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, shares may be worth less than their original cost. Current performance may be lower or higher than the performance data quoted. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. For performance data current to the most recent month end, please call 855-857-2638 or visit www.kraneshares.com. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. As stated in the Fund’s prospectus, the Fund’s operating expense ratio is 0.88%. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Hang Seng TECH Index ETF

The KraneShares Hang Seng TECH Index ETF (the Fund) seeks to provide investment results that, before expenses and fees, correspond generally to the price and yield performance of the Hang Seng TECH Index (the Underlying Index).

The Underlying Index is designed to track the performance of the 30 largest technology companies listed in Hong Kong that have high business exposure to technology themes and pass the Underlying Index’s screening criteria.

Hong Kong-listed Technology Market Review:

During the 12-month period ended March 31, 2023 (Period), global markets saw declines due to rising global interest rates; and Hong Kong-listed technology stocks were not spared the downdraft in growth equities. Following China’s National Party Congress, held in October 2022, China’s government removed all domestic pandemic-related restrictions. This development improved the outlook for China’s consumer market and led to a rebound in many of China’s Hong Kong-listed, consumer and internet-related equities. As a result, stocks of internet and consumer companies were the best performing among the Fund’s holdings, while electric vehicle companies and data center operators detracted from the Fund’s performance.

We see three potential positive catalysts for Hong Kong-listed technology equities in the year to come:

●

We believe that The People’s Bank of China (PBOC) is likely to maintain a dovish monetary policy stance, to the benefit of growth equities.

●

China retail sales increased +3.5% year-over-year in the first two months of 2023, setting the stage for a rebound in consumer spending this year.

●

Alibaba’s recent restructuring into six separate business groups, each individually able to raise capital, indicates the company’s focus on generating shareholder value; and a resulting IPO would likely result in a new issuer, which would be included in the Underlying Index and Fund portfolio in the future.

For the Period, the NAV of the Fund decreased by -4.37% while the Underlying Index decreased by -5.15%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares Hang Seng TECH Index ETF (concluded)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year

Annualized

Return

Inception to Date

Net

Asset

Market

Asset

Market

Value

Price^

Value

Price^

KraneShares Hang Seng TECH Index ETF

-4.37

-1.85

%‡

-29.36

%‡

-29.74

%‡

Hang Seng TECH Index

N/A

-5.15

%‡

N/A

-28.98

%‡

	*	The Fund commenced operations on June 8, 2021.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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 performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, shares may be worth less than their original cost. Current performance may be lower or higher than the performance data quoted. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. For performance data current to the most recent month end, please call 855-857-2638 or visit www.kraneshares.com. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. As stated in the Fund’s prospectus, the Fund’s operating expense ratio is 0.69%. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares China Innovation ETF

The KraneShares China Innovation ETF (KGRO) is an active ETF which provides investors with core exposure to the brightest high-growth areas within China’s economy by combining “New China” growth sectors. KGRO primarily invests in the following ETFs:

●

KraneShares CSI China Internet ETF (KWEB)

●

KraneShares MSCI All China Health Care Index ETF (KURE)

●

KraneShares MSCI China Clean Technology Index ETF (KGRN)

●

KraneShares CICC China 5G & Semiconductor Index ETF (KFVG)

●

KraneShares SSE STAR Market 50 Index ETF (KSTR)

In addition to investments in these ETFs, KGRO may invest up to 15% of its net assets in the securities of private companies that align with the themes represented by the ETFs or appear to be attractive opportunities, including those that may be preparing for an initial public offering.

China Innovation Review:

China’s growth equities were down for the 12-month period ended March 31, 2023 (Period) as global central banks engaged in the most aggressive interest rate hiking cycle in decades. This is reflected in the Fund’s performance for the Period. Nonetheless, internet and e-commerce outperformed during the Period as several of the macroeconomic and geopolitical headwinds that had weighed on such issuers in previous periods were resolved, including as a result of China removing pandemic restrictions following the National Party Congress. Technology companies also saw a significant rebound in the first quarter of 2023 on significant policy support for key industries, such as semiconductors, although the sector was still down for the overall Period.

The best performing ETF in the portfolio was the KraneShares CSI China Internet ETF, reflecting the rebound in internet and e-commerce stocks during the Period thanks to the removal of pandemic restrictions. Meanwhile, the worst-performing ETF was the KraneShares MSCI China Clean Technology Index ETF, reflecting the underperformance of the Information Technology sector for the Period.

We see three potential positive catalysts for China growth equities in the year to come:

●

We believe that The People’s Bank of China (PBOC) is likely to maintain a dovish monetary policy stance, to the benefit of growth equities.

●

China retail sales increased +3.5% year-over-year in the first two months of 2023, setting the stage for a rebound in consumer spending this year.

●

Alibaba’s recent restructuring into six separate business groups, each individually able to raise capital, indicates the company’s focus on generating shareholder value; and a resulting IPO would likely result in a new issuer, which would be included in the Underlying Index and Fund portfolio in the future.

For the Period, the NAV of the Fund decreased by -6.60% while the Underlying Index decreased by -6.44%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares China Innovation ETF (concluded)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

One Year

Annualized

Return

Inception to Date

Net

Asset

Market

Asset

Market

Value

Price^

Value

Price^

KraneShares China Innovation ETF

-6.60

-6.91

%‡

-20.74

%‡

-20.70

%‡

China All Shares Index

N/A

-6.44

%‡

N/A

-14.49

%‡

	*	The Fund commenced operations on October 5, 2021.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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 performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, shares may be worth less than their original cost. Current performance may be lower or higher than the performance data quoted. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. For performance data current to the most recent month end, please call 855-857-2638 or visit www.kraneshares.com. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. As stated in the Fund’s prospectus, the Fund’s operating expense ratio is 0.64%, which includes fees and expenses incurred indirectly as a result of investments in underlying Funds. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares S&P Pan Asia Dividend Aristocrats Index ETF

The KraneShares S&P Pan Asia Dividend Aristocrats Index ETF seeks to provide investment results that, before fees and expenses, correspond generally to the price and yield performance of the S&P Pan Asia Dividend Aristocrats Index (the Underlying Index).

The Underlying Index is designed to measure the performance of constituents in the S&P Pan Asia BMI Index that have followed a policy of consistently increasing dividends every year for the last seven years (Asia dividend growers). The S&P Pan Asia BMI Index is a comprehensive benchmark index that includes securities of companies from the Asia-Pacific region, including developed and emerging market countries.

Asia Dividend Growers Review:

Asia dividend growers outpaced by a wide margin global equities, as measured by the MSCI All Country World Index (ACWI), from the Fund’s inception on September 15, 2022 to the Fund’s fiscal year end on March 31, 2023 (the Period). This significant outperformance was likely due to the relative attractiveness of the companies’ dividend payments amid rising U.S. interest rates and the global risk-off environment, which broadly favored value-oriented companies with strong cash flows and balance sheets.

We see three potential positive catalysts for Asia dividend growers in the year to come:

●

China’s reopening is likely to contribute to strong economic growth in the Asia Pacific region this year compared to other regions globally.

●

Dividend yields in Japan, which made up approximately 31% of the portfolio as of the end of the period, are expected to remain elevated over the next year compared to other developed markets, with Nikko forecasting a 2.6% dividend yield for 2023 compared to 2.1% for the MSCI World Index.

●

We believe that investors may continue to search for yield and diversification over the year to come, which may continue to benefit Asia dividend growers.

For the Period, the NAV of the Fund increased by 6.08% while the Underlying Index increased by 6.36%. The deviation between the Fund’s performance and that of the Underlying Index can be mainly attributed to management fees.

Within the Fund, the best-performing sectors during the Period were Healthcare and Consumer Staples. Meanwhile, the worst-performing sectors were Financials and Utilities.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares S&P Pan Asia Dividend Aristocrats Index ETF (concluded)

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

	Cumulative
	Inception to Date
	Net Asset		Market
	Value		Price^
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF	6.08	%		-6.33	%‡
S&P Pan Asia Dividend Aristocrats Index	N/A			6.36	%‡

	*	The Fund commenced operations on September 14, 2022.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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 performance data quoted herein represents past performance and the return and value of an investment in the Fund will fluctuate so that, when redeemed, shares may be worth less than their original cost. Current performance may be lower or higher than the performance data quoted. Past performance is no guarantee of future performance and should not be considered as a representation of the future results of the Fund. For performance data current to the most recent month end, please call 855-857-2638 or visit www.kraneshares.com. The Fund’s performance assumes the reinvestment of all dividends and all capital gains. Index returns assume reinvestment of dividends and, unlike a Fund’s returns, do not reflect any fees or expenses. If such fees and expenses were included in the index returns, the performance would have been lower. As stated in the Fund’s prospectus, the Fund’s operating expense ratio is 0.68%, which includes fees and expenses incurred indirectly as a result of investments in underlying Funds. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares China Internet and Covered Call Strategy ETF

The KraneShares China Internet and Covered Call Strategy ETF (the Fund) seeks to provide current income by following a “covered call” or “buy-write” strategy. The Fund buys shares of the KraneShares CSI China Internet ETF and “writes” or “sells” corresponding call options on the KraneShares CSI China Internet ETF, which seeks to provide investment results that, before expenses and fees, correspond generally to the price and yield performance of the CSI Overseas China Internet Index (the Underlying Index).

The Underlying Index is designed to measure the performance of the investable universe of publicly traded China-based companies whose primary business or businesses are in the Internet and Internet-related sectors (China Internet Companies), as defined by the index sponsor, China Securities Index Co., Ltd. (CSI).

China Internet Review

Despite the rebound in the prices of China Internet Companies during the Period, U.S. and Hong Kong-listed shares of such companies continued to exhibit a high level of volatility. As a result, from the Fund’s inception on January 12, 2023, the Fund was able to generate a significant premium income, which tends to be directly correlated to the volatility of the reference asset, which in this case us the KraneShares CSI China Internet ETF (KWEB). In March, the Fund paid out a distribution of approximately $1.10 per share, reflecting the premium income received.

We see four potential positive catalysts for the Fund in the year to come:

●

We believe that The People’s Bank of China (PBOC) is likely to maintain a dovish monetary policy stance, to the benefit of growth equities.

●

China retail sales increased +10.6% year-over-year (YoY) in March, setting the stage for a potential rebound in consumer spending this year, which we would expect to benefit China Internet Companies.

●

Alibaba’s recent restructuring into six separate business groups, each individually able to raise capital, indicates the company’s focus on generating shareholder value; and a resulting IPO

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares China Internet and Covered Call Strategy ETF (continued)

would likely result in a new issuers, which would be included in the Underlying Index and Fund portfolio in the future.

●

The potential for a continuation of the heightened level of volatility of KWEB seen during the Period due to continued U.S.-China tensions, which may allow the Fund to continue to earn significant option premiums.

From the Fund’s inception on January 12, 2023 to the Fund’s fiscal year end on March 31, 2023, the NAV of the Fund decreased by 3.56%.

Growth of a $10,000 Investment‡

(at Net Asset Value)‡

AVERAGE ANNUAL TOTAL RETURNS FOR THE PERIOD ENDED MARCH 31, 2023*

	Cumulative
	Inception to Date
	Net Asset		Market
	Value		Price^
KraneShares China Internet and Covered Call Strategy ETF	-3.56	%		-3.48	%‡
CSI Overseas China Internet Index	N/A			-9.48	%‡

	*	The Fund commenced operations on January 12, 2023.
	‡	Unaudited.
	^	Beginning December 23, 2020, market price returns are based on the official closing price of an ETF share or, if it more accurately reflects the market value of an ETF share at the time as of which the ETF calculates current NAV per share, the midpoint between the national best bid and national best offer (“NBBO”) as of that time. 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.

Management Discussion of Fund Performance (Unaudited) (continued)

KraneShares China Internet and Covered Call Strategy ETF (concluded)

in the Fund’s prospectus, the Fund’s operating expense ratio is 0.26%, which includes fees and expenses incurred indirectly as a result of investments in underlying Funds. Please note that one cannot invest directly in an unmanaged index. There are no assurances that the Fund will meet its stated objectives. The Fund’s holdings and allocations are subject to change and should not be considered recommendations to buy individual securities. For further information on the Fund’s objectives, risks, and strategies, see the Fund’s prospectus. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Schedule of Investments March 31, 2023

KraneShares CICC China Leaders 100 Index ETF

	Shares		Value
COMMON STOCK — 100.0%^‡
CHINA — 100.0%
Communication Services — 0.8%
China South Publishing & Media Group, Cl A		9,100‌	$	15,425‌
G-bits Network Technology Xiamen, Cl A		500‌		34,712‌
				50,137‌
Consumer Discretionary — 17.6%
Changchun Faway Automobile Components, Cl A		7,500‌		9,534‌
Chongqing Department Store, Cl A		2,600‌		10,268‌
Chongqing Zongshen Power Machinery, Cl A		8,500‌		9,122‌
FAWER Automotive Parts, Cl A		9,000‌		6,304‌
Fuyao Glass Industry Group, Cl A		19,900‌		100,727‌
Gree Electric Appliances of Zhuhai, Cl A		55,800‌		298,611‌
Guangdong Vanward New Electric, Cl A		3,600‌		4,707‌
Guangdong Xinbao Electrical Appliances Holdings, Cl A		4,200‌		10,421‌
Guangzhou Automobile Group, Cl A		27,400‌		44,448‌
Hisense Home Appliances Group, Cl A		5,600‌		17,084‌
HLA Group, Cl A		21,600‌		19,627‌
Huayu Automotive Systems, Cl A		19,600‌		47,778‌
IKD, Cl A		4,500‌		15,845‌
Jiangsu Changshu Automotive Trim Group, Cl A		3,200‌		9,063‌
KingClean Electric, Cl A		1,500‌		6,391‌
Loncin Motor, Cl A		12,700‌		9,543‌
Midea Group, Cl A		43,000‌		336,934‌
Ningbo Huaxiang Electronic, Cl A		6,200‌		13,371‌
Wuchan Zhongda Group, Cl A		38,600‌		27,261‌
Zhejiang Hangmin, Cl A		7,800‌		9,507‌
Zhejiang Supor, Cl A		2,100‌		16,559‌
Zhejiang Wanfeng Auto Wheel, Cl A*		19,400‌		17,571‌
Zhejiang Weixing Industrial Development, Cl A		7,900‌		10,791‌
				1,051,467‌

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares CICC China Leaders 100 Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Consumer Staples — 4.9%
Heilongjiang Agriculture, Cl A		9,100	$	17,783
Henan Shuanghui Investment & Development, Cl A		13,000		49,105
Jiangsu Yanghe Brewery JSC, Cl A		7,500		180,704
Meihua Holdings Group, Cl A		26,500		37,740
Shanghai Flyco Electrical Appliance, Cl A		600		7,224
				292,556
Energy — 4.6%
China Shenhua Energy, Cl A		41,000		168,184
Shanxi Lu’an Environmental Energy Development, Cl A		14,800		47,284
Yankuang Energy Group, Cl A		11,400		59,047
				274,515
Financials — 33.6%
Agricultural Bank of China, Cl A		396,600		179,609
Bank of China, Cl A		261,900		128,904
Bank of Communications, Cl A		340,400		253,294
China Construction Bank, Cl A		83,300		72,052
China Merchants Bank, Cl A		63,900		318,881
Industrial & Commercial Bank of China, Cl A		436,800		283,682
Industrial Bank, Cl A		119,100		292,924
Jiangsu Financial Leasing, Cl A		14,800		12,694
Ping An Bank, Cl A		119,500		218,038
Postal Savings Bank of China, Cl A		134,800		91,276
Shanghai Pudong Development Bank, Cl A		145,700		152,546
				2,003,900
Health Care — 4.0%
Anhui Anke Biotechnology Group, Cl A		14,600		23,492
China Animal Healthcare*^(A)		4,000		—
Hubei Jumpcan Pharmaceutical, Cl A		4,700		19,492
Jointown Pharmaceutical Group, Cl A		11,700		25,454
Shandong Buchang Pharmaceuticals, Cl A		7,000		20,223
Sichuan Kelun Pharmaceutical, Cl A		14,300		59,180
Sunflower Pharmaceutical Group, Cl A		3,700		11,859
Wuhan Easydiagnosis Biomedicine, Cl A		1,200		9,675
Yunnan Baiyao Group, Cl A		9,000		71,688
				241,063
Industrials — 18.4%
Anhui Construction Engineering Group, Cl A		15,000		13,193
Anhui Heli, Cl A		6,300		16,476
China Railway Group, Cl A		129,100		129,339
China State Construction Engineering, Cl A		260,900		220,352
CNPC Capital, Cl A		31,900		32,424
CRRC, Cl A		150,600		134,212
Daqin Railway, Cl A		74,200		77,687
Hangcha Group, Cl A		4,400		12,609

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares CICC China Leaders 100 Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Industrials (continued)
Hefei Meiya Optoelectronic Technology, Cl A		4,400	$	20,695
Jiangsu Guotai International Group, Cl A		12,400		14,824
Jingjin Equipment, Cl A		3,600		14,678
Long Yuan Construction Group, Cl A		13,300		9,567
Shanghai International Port Group, Cl A		37,500		30,252
Shanghai Mechanical and Electrical Industry, Cl A		3,900		7,377
Shanghai Pudong Construction, Cl A		8,500		8,677
Shanghai Tunnel Engineering, Cl A		27,900		23,158
Shenzhen Tagen Group, Cl A		16,300		12,722
Sichuan Road & Bridge, Cl A		23,200		46,621
Sinotrans, Cl A		19,600		11,873
Sumec, Cl A		6,400		6,011
Tian Di Science & Technology, Cl A		21,000		15,535
XCMG Construction Machinery, Cl A		73,700		74,373
Xiamen C & D, Cl A		18,600		32,691
Xiamen ITG Group, Cl A		19,200		24,100
Xiamen Xiangyu, Cl A		14,300		22,385
Zhejiang Chint Electrics, Cl A		13,300		54,170
Zhejiang Weixing New Building Materials, Cl A		8,100		28,674
				1,094,675
Information Technology — 7.1%
Avary Holding Shenzhen, Cl A		8,600		38,847
China Railway Signal & Communication, Cl A		32,114		25,346
Foxconn Industrial Internet, Cl A		46,900		117,603
Hanergy Thin Film Power Group*^(A)		65,064		—
Olympic Circuit Technology		2,700		7,222
Tongwei, Cl A		33,400		189,244
Universal Scientific Industrial Shanghai, Cl A		8,400		21,638
Yangling Metron New Material, Cl A		2,400		15,699
Zhejiang Jiecang Linear Motion Technology, Cl A		2,500		8,963
				424,562
Materials — 1.5%
Anhui Jinhe Industrial, Cl A		4,200		18,397
China Lumena New Materials*^(A)		718		—
Gansu Qilianshan Cement Group, Cl A*		7,900		12,183
Huaibei Mining Holdings, Cl A		12,300		24,287
Jiangsu Asia-Pacific Light Alloy Technology, Cl A		7,700		6,660
Nantong Jiangshan Agrochemical & Chemical, Cl A		2,200		12,773
Shanghai Zijiang Enterprise Group, Cl A		15,100		12,467
Tianhe Chemicals Group*^(A)		40,000		—
				86,767
Real Estate — 4.4%
China Vanke, Cl A		84,300		187,079
Gemdale, Cl A		39,100		47,827

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares CICC China Leaders 100 Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Real Estate (continued)
Hangzhou Binjiang Real Estate Group, Cl A		15,800	$	21,052
Rongan Property, Cl A		11,800		4,914
				260,872
Utilities — 3.1%
China National Nuclear Power, Cl A		117,000		108,868
Fujian Funeng, Cl A		9,500		16,960
SDIC Power Holdings, Cl A		37,200		58,558
				184,386
TOTAL CHINA				5,964,900

TOTAL COMMON STOCK (Cost $5,950,237)				5,964,900

TOTAL INVESTMENTS — 100.0% (Cost $5,950,237)				5,964,900
OTHER ASSETS LESS LIABILITIES – 0.0%				(325	)
NET ASSETS - 100%			$	5,964,575

	‡	Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.
	*	Non-income producing security.
	(A)	Level 3 security in accordance with fair value hierarchy.

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares CICC China Leaders 100 Index ETF (concluded)

The following summarizes the market value of the Fund’s investments used as of March 31, 2023, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3^			Total
Common Stock
China
Communication Services	$	50,137	$	—	$	—		$	50,137
Consumer Discretionary		1,051,467		—		—			1,051,467
Consumer Staples		292,556		—		—			292,556
Energy		274,515		—		—			274,515
Financials		2,003,900		—		—			2,003,900
Health Care		241,063		—		—	^‡‡		241,063
Industrials		1,094,675		—		—			1,094,675
Information Technology		424,562		—		—	^‡‡		424,562
Materials		86,767		—		—	^‡‡		86,767
Real Estate		260,872		—		—			260,872
Utilities		184,386		—		—			184,386
Total Common Stock		5,964,900		—		—			5,964,900
Total Investments in Securities	$	5,964,900	$	—	$	—		$	5,964,900

	^	A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets.
	‡‡	Security or securities with a market value of $0.

Amounts designated as “—” are $0 or have been rounded to $0.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares CSI China Internet ETF

	Shares		Value
COMMON STOCK — 100.0%^‡
CHINA — 100.0%
Communication Services — 45.0%
Autohome ADR		2,352,891	$	78,751,262
Baidu, Cl A*		15,677,034		296,966,854
Bilibili, Cl Z*		8,943,144		216,003,937
China Literature*		15,298,000		78,926,490
iQIYI ADR*		12,407,979		90,330,087
JOYY ADR		1,541,752		48,071,827
Kanzhun ADR*		10,760,196		204,766,530
Kingsoft		32,814,200		161,563,937
Kuaishou Technology, Cl B*		29,490,300		227,095,540
NetEase		16,600,805		291,837,667
Tencent Holdings		14,748,675		724,850,326
Tencent Music Entertainment Group ADR*		32,313,996		267,559,887
Weibo ADR*		3,019,704		60,575,262
				2,747,299,606
Consumer Discretionary — 36.7%
Alibaba Group Holding*		44,419,464		568,120,075
JD.com, Cl A		13,290,990		291,218,456
Meituan, Cl B*		23,025,848		420,921,040
PDD Holdings ADR*		4,068,795		308,821,540
TAL Education Group ADR*		15,923,703		102,070,936
Tongcheng Travel Holdings*		42,280,600		91,994,554
Trip.com Group*		6,913,400		258,747,753
Vipshop Holdings ADR*		13,215,343		200,608,907
				2,242,503,261
Consumer Staples — 6.0%
Alibaba Health Information Technology*		173,194,000		125,318,240
Dada Nexus ADR*		3,153,018		26,706,062
JD Health International*		23,151,850		172,239,064

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares CSI China Internet ETF (concluded)

	Shares		Value
COMMON STOCK (continued)
Consumer Staples (continued)
Ping An Healthcare and Technology*^(A)		17,991,400	$	45,517,386
				369,780,752
Financials — 3.3%
360 DigiTech ADR		3,833,709		74,373,955
Lufax Holding ADR		28,333,266		57,799,863
ZhongAn Online P&C Insurance, Cl H*^(A)		22,309,900		70,340,578
				202,514,396
Industrials — 3.5%
Full Truck Alliance ADR*		28,012,923		213,178,344

Information Technology — 1.0%
Chindata Group Holdings ADR*		5,666,237		39,606,996
Ming Yuan Cloud Group Holdings^(A)		35,823,000		22,954,247
				62,561,243
Real Estate — 4.5%
KE Holdings ADR*		14,472,227		272,656,757
TOTAL CHINA				6,110,494,359

TOTAL COMMON STOCK (Cost $7,130,394,689)				6,110,494,359

SHORT-TERM INVESTMENT — 0.5%
Invesco Government & Agency Portfolio, Cl Institutional, 4.430%^(B)(C)		31,393,462		31,393,462
TOTAL SHORT-TERM INVESTMENT (Cost $31,393,462)				31,393,462

TOTAL INVESTMENTS — 100.5% (Cost $7,161,788,151)				6,141,887,821
OTHER ASSETS LESS LIABILITIES – (0.5)%				(30,218,433	)
NET ASSETS - 100%			$	6,111,669,388

‡	Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.
*	Non-income producing security.

	(A)	This security or a partial position of this security is on loan at March 31, 2023. The total market value of securities on loan at March 31, 2023 was $29,815,441.
	(B)	The rate shown is the 7-day effective yield as of March 31, 2023.
	(C)	This security was purchased with cash collateral held from securities on loan. The total value of such security as of March 31, 2023 was $31,393,462.

As of March 31, 2023, all of the Fund’s investments were considered Level 1 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares Bosera MSCI China A 50 Connect Index ETF

	Shares		Value
COMMON STOCK — 99.9%^‡
CHINA — 99.9%
Communication Services — 1.4%
China United Network Communications, Cl A		5,352,800	$	4,224,684
Focus Media Information Technology, Cl A		2,430,602		2,431,558
				6,656,242
Consumer Discretionary — 6.1%
BYD, Cl A		436,989		16,291,399
China Tourism Group Duty Free, Cl A		470,632		12,557,862
				28,849,261
Consumer Staples — 16.4%
Foshan Haitian Flavouring & Food, Cl A		430,720		4,800,619
Inner Mongolia Yili Industrial Group, Cl A		713,612		3,025,990
Jiangsu Yanghe Brewery JSC, Cl A		168,122		4,050,713
Kweichow Moutai, Cl A		140,189		37,153,464
Luzhou Laojiao, Cl A		164,146		6,090,132
Muyuan Foods, Cl A		593,545		4,235,100
Shanxi Xinghuacun Fen Wine Factory, Cl A		136,016		5,395,244
Wuliangye Yibin, Cl A		432,879		12,417,859
				77,169,121
Energy — 3.2%
China Shenhua Energy, Cl A		1,783,047		7,314,146
Shaanxi Coal Industry, Cl A		2,620,716		7,762,201
				15,076,347
Financials — 17.5%
Agricultural Bank of China, Cl A		13,291,307		6,019,246
Bank of Communications, Cl A		6,127,999		4,559,881
Bank of Ningbo, Cl A		1,031,818		4,103,352
China Merchants Bank, Cl A		3,220,758		16,072,602
China Pacific Insurance Group, Cl A		1,068,714		4,033,764
CITIC Securities, Cl A		1,911,922		5,701,828

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares Bosera MSCI China A 50 Connect Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Financials (continued)
East Money Information, Cl A		2,062,994	$	6,017,177
Industrial & Commercial Bank of China, Cl A		9,821,826		6,378,831
Industrial Bank, Cl A		3,243,522		7,977,383
Ping An Bank, Cl A		3,029,771		5,528,087
Ping An Insurance Group of China, Cl A		1,691,298		11,230,496
Shanghai Pudong Development Bank, Cl A		4,582,646		4,797,989
				82,420,636
Health Care — 9.2%
Aier Eye Hospital Group, Cl A		1,548,467		7,005,789
Chongqing Zhifei Biological Products, Cl A		345,270		4,119,227
Jiangsu Hengrui Pharmaceuticals, Cl A		1,376,239		8,581,328
Shenzhen Mindray Bio-Medical Electronics, Cl A		261,694		11,878,415
WuXi AppTec, Cl A		553,382		6,406,284
Zhangzhou Pientzehuang Pharmaceutical, Cl A		130,150		5,389,609
				43,380,652
Industrials — 15.6%
China State Construction Engineering, Cl A		9,130,858		7,711,761
Contemporary Amperex Technology, Cl A		531,753		31,441,513
COSCO SHIPPING Holdings, Cl A		2,773,960		4,455,431
Eve Energy, Cl A		444,469		4,511,160
NARI Technology, Cl A		1,457,576		5,754,064
SF Holding, Cl A		1,065,959		8,596,219
Shenzhen Inovance Technology, Cl A		578,778		5,924,904
Sungrow Power Supply, Cl A		323,438		4,938,725
				73,333,777
Information Technology — 13.7%
BOE Technology Group, Cl A		19,508,345		12,612,971
LONGi Green Energy Technology, Cl A		3,798,591		22,352,465
Luxshare Precision Industry, Cl A		3,692,550		16,297,699
Tongwei, Cl A		2,341,605		13,267,492
				64,530,627
Materials — 12.1%
Wanhua Chemical Group, Cl A		2,398,899		33,492,994
Zijin Mining Group, Cl A		12,929,792		23,327,963
				56,820,957
Real Estate — 1.6%
China Vanke, Cl A		1,567,600		3,478,838
Poly Developments and Holdings Group, Cl A		1,929,677		3,970,459
				7,449,297
Utilities — 3.1%
China Three Gorges Renewables Group, Cl A		4,448,000		3,549,436

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares Bosera MSCI China A 50 Connect Index ETF (concluded)

	Shares		Value
COMMON STOCK (continued)
Utilities (continued)
China Yangtze Power, Cl A		3,534,394	$	10,936,739
				14,486,175
TOTAL CHINA				470,173,092

TOTAL COMMON STOCK (Cost $530,344,133)				470,173,092

RIGHT — 0.0%
CHINA — 0.0%
Health Care — 0.0%
Kangmei Pharma^‡‡*(A)		66,139		—
TOTAL CHINA				—

TOTAL RIGHT (Cost $–)				—

TOTAL INVESTMENTS — 99.9% (Cost $530,344,133)				470,173,092
OTHER ASSETS LESS LIABILITIES – 0.1%				699,975
NET ASSETS - 100%			$	470,873,067

	‡	Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.
	*	Non-income producing security.
	(A)	Level 3 security in accordance with fair value hierarchy.
	‡‡	Expiration date not available.

The following summarizes the market value of the Fund’s investments used as of March 31, 2023, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3^			Total
Common Stock
China	$	470,173,092	$	—	$	—		$	470,173,092
Total Common Stock		470,173,092		—		—			470,173,092
Right		—		—		—	^‡‡		—
Total Investments in Securities	$	470,173,092	$	—	$	—		$	470,173,092

	^	A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets.
	‡‡	Security or securities with a market value of $0.

Amounts designated as “—” are $0 or have been rounded to $0.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares Bloomberg China Bond Inclusion Index ETF

	Face Amount^(A)		Value
GLOBAL BONDS — 47.4%
CHINA — 47.4%
Agricultural Development Bank of China
3.350%, 03/24/2026		930,000	$	137,408
3.060%, 08/05/2023		3,500,000		510,822
China Development Bank
4.040%, 04/10/2027		1,650,000		249,976
4.040%, 07/06/2028		1,650,000		253,223
3.430%, 01/14/2027		3,450,000		512,981
3.300%, 03/03/2026		2,360,000		349,603
3.090%, 06/18/2030		820,000		119,908
China Government Bond
4.080%, 10/22/2048		1,190,000		197,796
3.530%, 10/18/2051		2,700,000		412,510
3.290%, 05/23/2029		1,600,000		241,137
3.020%, 10/22/2025		2,500,000		369,143
2.690%, 08/15/2032		2,000,000		286,517
2.680%, 05/21/2030		1,800,000		258,966
2.260%, 02/24/2025		3,000,000		435,412
2.180%, 08/25/2025		2,000,000		289,022
Export-Import Bank of China
3.860%, 05/20/2029		1,030,000		157,610
3.230%, 03/23/2030		1,160,000		171,183
3.180%, 03/11/2032		1,000,000		147,164
2.930%, 03/02/2025		1,240,000		181,616
				5,281,997
TOTAL GLOBAL BONDS (Cost $5,544,072)				5,281,997

CORPORATE OBLIGATIONS — 19.8%
CHINA — 15.9%
Basic Materials — 5.2%
China Baowu Steel Group, MTN
2.370%, 05/22/2023		4,000,000		582,291

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares Bloomberg China Bond Inclusion Index ETF (concluded)

	Face Amount^(A)		Value
CORPORATE OBLIGATIONS (continued)
Consumer, Cyclical — 5.2%
Zhejiang Geely Holding Group, MTN
3.300%, 03/28/2025		4,000,000	$	574,259

Utilities — 5.5%
State Grid Corp of China, MTN
2.880%, 08/30/2027		4,300,000		618,824
TOTAL CHINA				1,775,374

SUPRANATIONAL — 3.9%
Government — 3.9%
New Development Bank
2.450%, 01/27/2025		3,000,000		433,766

TOTAL CORPORATE OBLIGATIONS (Cost $2,237,746)				2,209,140

TOTAL INVESTMENTS — 67.2% (Cost $7,781,818)				7,491,137
OTHER ASSETS LESS LIABILITIES – 32.8%				3,654,011
NET ASSETS - 100%			$	11,145,148

(A)

In CNY unless otherwise indicated.

As of March 31, 2023, all of the Fund’s investments were considered Level 2 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares MSCI All China Index ETF

	Shares		Value
COMMON STOCK — 99.8%^‡
CHINA — 99.6%
Communication Services — 13.5%
Autohome ADR		520	$	17,404
Baidu, Cl A*		6,550		124,075
Bilibili, Cl Z*		1,260		30,433
Focus Media Information Technology, Cl A		28,500		28,511
iQIYI ADR*		2,698		19,642
Kingsoft		14,400		70,900
Kuaishou Technology, Cl B*		5,600		43,124
NetEase		3,900		68,561
Tencent Holdings		15,358		754,797
Tencent Music Entertainment Group ADR*		3,636		30,106
				1,187,553
Consumer Discretionary — 22.9%
Alibaba Group Holding*		41,124		525,971
ANTA Sports Products		4,600		66,803
BYD, Cl A		2,300		85,746
BYD, Cl H		3,500		102,459
China Tourism Group Duty Free, Cl A		2,300		61,371
Chongqing Changan Automobile, Cl A		27,838		48,320
Fuyao Glass Industry Group, Cl A		8,100		41,000
Geely Automobile Holdings		23,000		29,593
Great Wall Motor, Cl H		16,500		20,368
Guangzhou Automobile Group, Cl H		18,000		11,350
H World Group ADR*		777		38,057
Haier Smart Home, Cl A		8,500		28,072
Haier Smart Home, Cl H		11,200		35,241
Huayu Automotive Systems, Cl A		4,600		11,213
JD.com, Cl A		5,522		120,988
Li Auto, Cl A*		3,500		43,695

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares MSCI All China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Consumer Discretionary (continued)
Li Ning		7,500	$	59,141
Meituan, Cl B*		12,266		224,223
New Oriental Education & Technology Group*		5,700		22,219
NIO ADR*		4,568		48,010
PDD Holdings ADR*		1,368		103,831
SAIC Motor, Cl A		11,557		24,167
Shenzhen Overseas Chinese Town, Cl A*		27,400		19,271
Shenzhou International Group Holdings		3,800		39,888
TAL Education Group ADR*		2,876		18,435
TravelSky Technology, Cl H		7,000		13,073
Trip.com Group ADR*		1,915		72,138
Vipshop Holdings ADR*		1,837		27,886
Yum China Holdings		1,204		76,322
				2,018,851
Consumer Staples — 11.2%
Alibaba Health Information Technology*		18,000		13,024
Anhui Gujing Distillery, Cl A		1,400		60,344
China Mengniu Dairy		14,000		57,427
China Resources Beer Holdings		4,000		32,102
Foshan Haitian Flavouring & Food, Cl A		4,779		53,263
Guangdong Haid Group, Cl A		4,900		41,620
Henan Shuanghui Investment & Development, Cl A		5,200		19,642
Inner Mongolia Yili Industrial Group, Cl A		7,700		32,651
Jiangsu Yanghe Brewery JSC, Cl A		1,600		38,550
Kweichow Moutai, Cl A		1,000		265,024
Luzhou Laojiao, Cl A		2,300		85,334
Muyuan Foods, Cl A		8,602		61,378
New Hope Liuhe, Cl A*		13,500		26,008
Shanxi Xinghuacun Fen Wine Factory, Cl A		1,660		65,846
Tingyi Cayman Islands Holding		14,000		23,328
Want Want China Holdings		23,000		14,796
Wuliangye Yibin, Cl A		3,200		91,797
				982,134
Energy — 3.7%
China Oilfield Services, Cl H		16,000		16,408
China Petroleum & Chemical, Cl A		46,600		38,136
China Petroleum & Chemical, Cl H		96,500		57,040
China Shenhua Energy, Cl H		11,500		36,185
PetroChina, Cl A		22,400		19,310
PetroChina, Cl H		67,984		40,271
Shaanxi Coal Industry, Cl A		11,900		35,246
Shanxi Lu’an Environmental Energy Development, Cl A		7,600		24,281

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares MSCI All China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Energy (continued)
Yankuang Energy Group, Cl H		16,000	$	57,274
				324,151
Financials — 20.1%
Agricultural Bank of China, Cl A		87,500		39,626
Agricultural Bank of China, Cl H		104,397		38,700
Bank of Beijing, Cl A		28,100		18,004
Bank of China, Cl A		34,700		17,079
Bank of China, Cl H		240,396		92,178
Bank of Communications, Cl A		43,600		32,443
Bank of Communications, Cl H		32,000		20,138
Bank of Hangzhou, Cl A		14,200		24,007
Bank of Jiangsu, Cl A		22,200		22,694
Bank of Nanjing, Cl A		14,000		18,266
Bank of Ningbo, Cl A		7,200		28,633
Bank of Shanghai, Cl A		18,604		16,227
China CITIC Bank, Cl H		32,000		16,102
China Construction Bank, Cl A		12,000		10,380
China Construction Bank, Cl H		275,000		178,313
China Everbright Bank, Cl A		54,900		24,063
China Galaxy Securities, Cl H		38,000		19,121
China Life Insurance, Cl H		23,483		38,590
China Merchants Bank, Cl A		17,800		88,828
China Merchants Bank, Cl H		13,000		66,408
China Merchants Securities, Cl A		9,500		19,077
China Minsheng Banking, Cl A		50,900		25,571
China Minsheng Banking, Cl H		29,500		10,109
China Pacific Insurance Group, Cl A		7,200		27,176
China Pacific Insurance Group, Cl H		10,800		28,686
CITIC Securities, Cl A		15,845		47,254
CITIC Securities, Cl H		8,000		17,080
East Money Information, Cl A		13,000		37,917
Everbright Securities, Cl A		10,300		22,858
GF Securities, Cl A		10,000		22,964
Guosen Securities, Cl A		10,900		14,872
Guotai Junan Securities, Cl A		8,300		17,356
Haitong Securities, Cl A		12,600		16,164
Huatai Securities, Cl A		11,900		22,128
Huatai Securities, Cl H		9,200		10,513
Huaxia Bank, Cl A		18,500		14,493
Industrial & Commercial Bank of China, Cl A		66,900		43,449
Industrial & Commercial Bank of China, Cl H		211,441		112,590
Industrial Bank, Cl A		20,000		49,190
Industrial Securities, Cl A		27,569		24,569
New China Life Insurance, Cl A		4,000		17,765

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares MSCI All China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Financials (continued)
New China Life Insurance, Cl H		3,700	$	8,795
Orient Securities, Cl A		14,100		20,101
People’s Insurance Group of China, Cl H		54,452		18,174
PICC Property & Casualty, Cl H		29,510		30,112
Ping An Bank, Cl A		19,891		36,293
Ping An Insurance Group of China, Cl A		10,200		67,730
Ping An Insurance Group of China, Cl H		19,000		123,682
Shanghai Pudong Development Bank, Cl A		28,600		29,944
Shenwan Hongyuan Group, Cl A		32,800		19,917
				1,766,329
Health Care — 5.3%
Beijing Tongrentang, Cl A		2,144		17,215
Changchun High & New Technology Industry Group, Cl A		1,400		33,291
China Medical System Holdings		9,000		14,217
CSPC Pharmaceutical Group		45,520		44,766
Genscript Biotech*		14,000		29,962
Guangzhou Baiyunshan Pharmaceutical Holdings, Cl A		2,300		11,079
Huadong Medicine, Cl A		2,980		20,109
Jiangsu Hengrui Pharmaceuticals, Cl A		5,616		35,018
Shanghai Fosun Pharmaceutical Group, Cl A		3,900		18,395
Shanghai Pharmaceuticals Holding, Cl A		7,600		22,543
Shenzhen Mindray Bio-Medical Electronics, Cl A		1,100		49,929
Sinopharm Group, Cl H		6,400		19,363
Wuxi Biologics Cayman*		11,500		71,198
Yunnan Baiyao Group, Cl A		2,140		17,046
Zai Lab ADR*		374		12,439
Zhangzhou Pientzehuang Pharmaceutical, Cl A		700		28,988
Zhejiang NHU, Cl A		7,032		18,380
				463,938
Industrials — 6.9%
AECC Aviation Power, Cl A		3,900		24,505
China Conch Venture Holdings		8,000		13,962
China Eastern Airlines, Cl A*		24,400		18,298
China Energy Engineering, Cl A		79,637		27,948
China Merchants Port Holdings		16,734		25,666
China Railway Group, Cl H		23,000		14,035
China Southern Airlines, Cl A*		23,000		26,358
CITIC		23,780		27,809
Contemporary Amperex Technology, Cl A		2,000		118,256
COSCO SHIPPING Holdings, Cl A		24,420		39,223
Daqin Railway, Cl A		15,500		16,228
Fosun International		11,500		8,438
Metallurgical Corp of China, Cl A		40,600		23,057
Power Construction Corp of China, Cl A		18,600		19,312

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares MSCI All China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Industrials (continued)
Sany Heavy Industry, Cl A		13,500	$	33,596
SF Holding, Cl A		4,400		35,483
Shanghai International Airport, Cl A*		1,600		12,985
Shanghai International Port Group, Cl A		12,700		10,245
Weichai Power, Cl A		17,188		31,561
Zhejiang Chint Electrics, Cl A		3,800		15,477
Zhuzhou CRRC Times Electric, Cl H		3,100		13,486
Zoomlion Heavy Industry Science and Technology, Cl A		16,100		14,559
ZTO Express Cayman ADR*		1,406		40,296
				610,783
Information Technology — 5.1%
BOE Technology Group, Cl A		47,800		30,905
GDS Holdings, Cl A*		9,500		22,994
Hanergy Thin Film Power Group*^(A)		4,364		—
Iflytek, Cl A		3,200		29,673
Kingboard Holdings		4,500		13,815
Kingdee International Software Group*		16,000		25,926
Lenovo Group		32,000		34,650
LONGi Green Energy Technology, Cl A		9,629		56,660
Luxshare Precision Industry, Cl A		11,774		51,966
Sunny Optical Technology Group		3,000		36,287
Unigroup Guoxin Microelectronics, Cl A*		2,320		37,543
Xiaomi, Cl B*		42,600		65,664
Yonyou Network Technology, Cl A		5,325		19,502
ZTE, Cl H		7,600		22,268
				447,853
Materials — 4.1%
Anhui Conch Cement, Cl A		3,800		15,632
Anhui Conch Cement, Cl H		7,000		24,255
Baoshan Iron & Steel, Cl A		28,400		25,806
China National Building Material, Cl H		18,000		14,767
China Northern Rare Earth Group High-Tech, Cl A		10,500		39,891
CMOC Group, Cl H		54,000		32,675
Ganfeng Lithium Group, Cl A		3,120		30,199
Inner Mongolia BaoTou Steel Union, Cl A		63,900		17,586
Rongsheng Petrochemical, Cl A		12,450		27,430
Shandong Hualu Hengsheng Chemical, Cl A		5,440		27,924
Tianqi Lithium, Cl A		1,540		16,936
Wanhua Chemical Group, Cl A		2,900		40,489
Zhejiang Huayou Cobalt, Cl A		1,704		13,647
Zijin Mining Group, Cl A		17,900		32,295
				359,532

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares MSCI All China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Real Estate — 3.4%
China Evergrande Group*^(A)		13,000	$	631
China Merchants Shekou Industrial Zone Holdings, Cl A		9,100		18,048
China Overseas Land & Investment		16,839		40,671
China Resources Land		14,214		64,824
China Vanke, Cl A		10,443		23,175
China Vanke, Cl H		9,300		14,667
Country Garden Holdings*		53,612		15,093
Gemdale, Cl A		10,600		12,966
KE Holdings ADR*		2,141		40,337
Longfor Group Holdings		8,000		22,573
Poly Developments and Holdings Group, Cl A		12,700		26,131
Seazen Holdings, Cl A*		6,400		15,228
Shimao Group Holdings*^(A)		17,500		2,242
Sunac China Holdings*^(A)		13,000		1,726
				298,312
Utilities — 3.4%
China Gas Holdings		11,000		15,498
China Longyuan Power Group, Cl H		16,000		18,283
China Resources Gas Group		7,600		28,028
China Resources Power Holdings		14,000		29,819
China Yangtze Power, Cl A		21,400		66,220
ENN Energy Holdings		2,382		32,650
Guangdong Investment		16,000		16,367
Huadian Power International, Cl A		50,700		42,747
Huaneng Power International, Cl H*		45,077		23,659
Sichuan Chuantou Energy, Cl A		13,500		25,988
				299,259
TOTAL CHINA				8,758,695

HONG KONG — 0.2%
Health Care — 0.2%
Sino Biopharmaceutical		36,500		20,459
TOTAL HONG KONG				20,459

TOTAL COMMON STOCK (Cost $10,372,666)				8,779,154

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares MSCI All China Index ETF (concluded)

	Shares		Value
RIGHT — 0.0%
CHINA — 0.0%
Health Care — 0.0%
Kangmei Pharma^‡‡*^(A)		480	$	—
TOTAL CHINA				—

TOTAL RIGHT (Cost $–)				—

TOTAL INVESTMENTS — 99.8% (Cost $10,372,666)				8,779,154
OTHER ASSETS LESS LIABILITIES – 0.2%				15,367
NET ASSETS - 100%			$	8,794,521

	‡	Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.
	*	Non-income producing security.
	‡‡	Expiration date not available.
	(A)	Level 3 security in accordance with fair value hierarchy.

The following summarizes the market value of the Fund’s investments used as of March 31, 2023, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3^			Total
Common Stock
China
Communication Services	$	1,187,553	$	—	$	—		$	1,187,553
Consumer Discretionary		2,018,851		—		—			2,018,851
Consumer Staples		982,134		—		—			982,134
Energy		324,151		—		—			324,151
Financials		1,766,329		—		—			1,766,329
Health Care		463,938		—		—			463,938
Industrials		610,783		—		—			610,783
Information Technology		447,853		—		—	^‡‡		447,853
Materials		359,532		—		—			359,532
Real Estate		293,713		—		4,599			298,312
Utilities		299,259		—		—			299,259
Hong Kong		20,459		—		—			20,459
Total Common Stock		8,774,555		—		4,599			8,779,154
Right		—		—		—	^‡‡		—
Total Investments in Securities	$	8,774,555	$	—	$	4,599		$	8,779,154

	^	A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets.
	‡‡	Security or securities with a market value of $0.

Amounts designated as “—” are $0 or have been rounded to $0.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares MSCI One Belt One Road Index ETF

	Shares		Value
COMMON STOCK — 99.2%^‡
CHINA — 47.7%
Energy — 0.4%
Guanghui Energy, Cl A		14,700	$	19,800

Financials — 4.5%
Bank of Changsha, Cl A		9,200		10,597
Bank of Chengdu, Cl A		8,400		16,586
Bank of Guiyang, Cl A		8,427		6,761
Bank of Hangzhou, Cl A		13,500		22,823
Bank of Jiangsu, Cl A		33,655		34,404
Bank of Nanjing, Cl A		23,591		30,780
Bank of Ningbo, Cl A		14,846		59,040
Bank of Suzhou, Cl A		8,400		8,513
Chongqing Rural Commercial Bank, Cl A		20,500		10,956
				200,460
Industrials — 22.1%
Beijing New Building Materials, Cl A		3,908		15,274
Beijing-Shanghai High Speed Railway, Cl A		92,100		70,007
China Conch Venture Holdings		12,500		21,815
China Energy Engineering, Cl A		72,900		25,584
China First Heavy Industries, Cl A*		15,500		7,200
China Lesso Group Holdings		9,000		8,048
China Railway Group, Cl H		31,500		19,221
China State Construction Engineering, Cl A		94,700		79,982
CRRC, Cl H		33,000		17,992
Dajin Heavy Industry, Cl A		1,300		6,669
Daqin Railway, Cl A		33,832		35,422
Dongfang Electric, Cl A		6,500		17,946
Fangda Carbon New Material, Cl A*		8,700		8,159
Farasis Energy Gan Zhou, Cl A*		2,747		9,396
Gotion High-tech, Cl A		3,900		16,929

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares MSCI One Belt One Road Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Industrials (continued)
Guangdong Kinlong Hardware Products, Cl A		800	$	9,367
Guangzhou Great Power Energy & Technology, Cl A		1,100		9,129
Jiangsu Expressway, Cl H		10,000		9,325
Jiangsu Hengli Hydraulic, Cl A		3,000		28,928
Jiangxi Special Electric Motor, Cl A*		4,000		8,964
Liaoning Port, Cl A		43,200		10,065
Luoyang Xinqianglian Slewing Bearing, Cl A		850		5,632
Metallurgical Corp of China, Cl A		39,700		22,546
Ming Yang Smart Energy Group, Cl A		5,000		16,389
NARI Technology, Cl A		14,960		59,057
Ningbo Deye Technology, Cl A		400		15,025
Ningbo Orient Wires & Cables, Cl A		1,600		11,489
Ningbo Ronbay New Energy Technology, Cl A		1,116		11,116
North Industries Group Red Arrow, Cl A		3,100		10,310
Power Construction Corp of China, Cl A		39,100		40,596
Riyue Heavy Industry, Cl A		2,200		7,125
Shanghai Construction Group, Cl A		20,000		7,951
Shanghai Electric Group, Cl A*		28,400		18,279
Shanghai International Port Group, Cl A		21,210		17,111
Shenzhen Inovance Technology, Cl A		6,150		62,957
Shenzhen International Holdings		10,993		9,719
Shuangliang Eco-Energy Systems, Cl A*		4,200		9,596
Sichuan Road & Bridge, Cl A		11,700		23,511
Sieyuan Electric, Cl A		1,800		11,984
Suzhou Maxwell Technologies, Cl A		440		19,542
TBEA, Cl A		8,675		27,425
Titan Wind Energy Suzhou, Cl A		4,100		8,812
Wuxi Shangji Automation, Cl A		900		13,382
XCMG Construction Machinery, Cl A		27,248		27,497
Xiangtan Electric Manufacturing, Cl A*		3,000		8,995
Yangzijiang Shipbuilding Holdings		22,900		20,669
Zhefu Holding Group, Cl A		12,200		7,230
Zhejiang Expressway, Cl H		12,000		9,539
Zhejiang Weixing New Building Materials, Cl A		3,700		13,098
Zhuzhou CRRC Times Electric, Cl H		4,100		17,836
Zhuzhou Kibing Group, Cl A		6,000		9,113
Zoomlion Heavy Industry Science and Technology, Cl A		16,000		14,469
				993,422
Materials — 4.9%
Anhui Conch Cement, Cl H		9,500		32,918
Chengtun Mining Group, Cl A		7,200		5,997
China National Building Material, Cl H		29,000		23,791
China Northern Rare Earth Group High-Tech, Cl A		8,224		31,244
China Rare Earth Resources And Technology, Cl A*		2,300		11,310
China Resources Cement Holdings		20,000		9,809

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares MSCI One Belt One Road Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Materials (continued)
Henan Shenhuo Coal & Power, Cl A		5,100	$	13,160
Huaxin Cement, Cl A		3,100		7,020
Jinduicheng Molybdenum, Cl A		6,100		10,357
Shenghe Resources Holding, Cl A		4,000		8,242
Tangshan Jidong Cement, Cl A		6,100		7,710
Western Mining, Cl A		5,500		10,147
Xiamen Tungsten, Cl A		3,300		9,793
Yintai Gold, Cl A		6,600		12,658
Youngy, Cl A		600		6,620
Yunnan Chihong Zinc & Germanium, Cl A		11,600		8,750
Yunnan Tin, Cl A		3,800		8,223
				217,749
Utilities — 15.8%
Beijing Enterprises Holdings		4,000		14,395
CECEP Solar Energy, Cl A		9,200		9,177
CECEP Wind-Power, Cl A		14,800		8,340
CGN Power, Cl H		81,000		19,399
China Gas Holdings		22,200		31,278
China Longyuan Power Group, Cl H		26,000		29,710
China National Nuclear Power, Cl A		42,300		39,360
China Power International Development		38,000		15,103
China Resources Gas Group		7,000		25,816
China Resources Power Holdings		14,635		31,172
China Three Gorges Renewables Group, Cl A		65,100		51,949
China Yangtze Power, Cl A		51,600		159,670
ENN Energy Holdings		6,000		82,243
ENN Natural Gas, Cl A		6,000		18,217
GD Power Development, Cl A*		40,500		22,410
Huadian Power International, Cl A		18,242		15,380
Huaneng Power International, Cl H*		31,000		16,270
Kunlun Energy		30,000		23,465
SDIC Power Holdings, Cl A		16,906		26,612
Shanghai Electric Power, Cl A		6,500		9,399
Shenergy, Cl A		11,419		9,744
Shenzhen Energy Group, Cl A		10,800		9,609
Sichuan Chuantou Energy, Cl A		8,384		16,140
Wintime Energy, Cl A*		50,800		11,392
Zhejiang Zheneng Electric Power, Cl A*		25,300		13,189
				709,439
TOTAL CHINA				2,140,870

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares MSCI One Belt One Road Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
HONG KONG — 0.2%
Industrials — 0.2%
Hutchison Port Holdings Trust, Cl U		45,900	$	8,583
TOTAL HONG KONG				8,583

INDIA — 2.5%
Energy — 0.3%
Great Eastern Shipping		1,669		13,090

Industrials — 0.6%
AIA Engineering		785		27,730

Materials — 1.6%
Fine Organic Industries		143		7,494
PI Industries		1,397		51,510
Vinati Organics		464		10,210
				69,214
TOTAL INDIA				110,034

INDONESIA — 4.3%
Energy — 2.2%
Adaro Energy Indonesia		256,400		49,589
Bukit Asam		71,400		18,999
Indo Tambangraya Megah		7,200		18,919
Medco Energi Internasional		134,800		9,080
				96,587
Materials — 2.1%
Indah Kiat Pulp & Paper		48,600		24,309
Merdeka Copper Gold*		217,500		60,777
Pabrik Kertas Tjiwi Kimia		25,000		11,213
				96,299
TOTAL INDONESIA				192,886

ISRAEL — 5.1%
Industrials — 2.7%
Elbit Systems		485		82,031
ZIM Integrated Shipping Services		1,629		38,412
				120,443
Materials — 2.4%
ICL Group		12,809		85,840
Israel		73		23,881
				109,721
TOTAL ISRAEL				230,164

JORDAN — 0.3%
Financials — 0.3%
Arab Bank		1,854		12,382
TOTAL JORDAN				12,382

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares MSCI One Belt One Road Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
KAZAKHSTAN — 0.8%
Energy — 0.8%
NAC Kazatomprom JSC GDR		1,195	$	35,252
TOTAL KAZAKHSTAN				35,252

KUWAIT — 8.4%
Financials — 8.4%
Kuwait Finance House		133,528		359,439
Kuwait Projects Holding*		37,515		15,038
TOTAL KUWAIT				374,477

MALAYSIA — 2.7%
Industrials — 1.2%
Malaysia Airports Holdings		12,200		18,774
Pentamaster		9,000		9,994
Sime Darby		48,500		23,632
				52,400
Materials — 1.5%
Petronas Chemicals Group		43,300		69,378
TOTAL MALAYSIA				121,778

PHILIPPINES — 3.2%
Industrials — 3.2%
Aboitiz Equity Ventures		30,610		27,251
International Container Terminal Services		18,330		71,951
JG Summit		52,402		46,171
TOTAL PHILIPPINES				145,373

POLAND — 1.6%
Materials — 1.6%
KGHM Polska Miedz		2,527		71,709
TOTAL POLAND				71,709

RUSSIA — 0.0%
Energy — 0.0%
Rosneft Oil PJSC^(A)		33,666		—
Sovcomflot PJSC*^(A)		9,110		—
Surgutneftegas PJSC^(A)		143,400		—
				—
Materials — 0.0%
MMC Norilsk Nickel PJSC^(A)		1,239		—
Polymetal International*^(A)		7,154		—
Segezha Group PJSC^(A)		78,500		—
				—
TOTAL RUSSIA				—

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares MSCI One Belt One Road Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
SINGAPORE — 9.8%
Financials — 6.1%
Oversea-Chinese Banking		29,512	$	274,577

Industrials — 3.7%
Keppel		12,800		54,202
Sembcorp Marine*		248,114		22,207
Singapore Airlines		11,700		50,424
Singapore Technologies Engineering		13,600		37,438
				164,271
TOTAL SINGAPORE				438,848

SOUTH AFRICA — 5.0%
Materials — 5.0%
Anglo American Platinum		962		51,726
Impala Platinum Holdings		15,461		142,763
Kumba Iron Ore		1,203		30,491
TOTAL SOUTH AFRICA				224,980

THAILAND — 4.5%
Energy — 3.8%
PTT		184,100		169,591

Materials — 0.7%
Indorama Ventures*		31,100		31,377
TOTAL THAILAND				200,968

TURKEY — 2.5%
Industrials — 1.6%
Kontrolmatik Enerji Ve Muhendislik		1,334		9,868
Turk Hava Yollari AO*		9,993		61,692
				71,560
Materials — 0.9%
Sasa Polyester Sanayi*		8,029		41,996
TOTAL TURKEY				113,556

UNITED ARAB EMIRATES — 0.6%
Industrials — 0.6%
Air Arabia PJSC		48,174		27,809
TOTAL UNITED ARAB EMIRATES				27,809

TOTAL COMMON STOCK (Cost $5,435,115)				4,449,669

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares MSCI One Belt One Road Index ETF (continued)

	Shares		Value
PREFERRED STOCK — 0.0%
RUSSIA— 0.0%
Energy — 0.0%
Surgutneftegas PJSC^(A)(B)		136,600	$	—

TOTAL PREFERRED STOCK (Cost $74,846)				—

TOTAL INVESTMENTS — 99.2% (Cost $5,509,961)				4,449,669
OTHER ASSETS LESS LIABILITIES – 0.8%				35,564
NET ASSETS - 100%			$	4,485,233

‡	Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.
*	Non-income producing security.
(A)	Level 3 security in accordance with fair value hierarchy.
(B)	Currently, no stated interest rate.

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares MSCI One Belt One Road Index ETF (concluded)

The following summarizes the market value of the Fund’s investments used as of March 31, 2023, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3^			Total
Common Stock
China	$	2,140,870	$	—	$	—		$	2,140,870
Hong Kong		8,583		—		—			8,583
India		110,034		—		—			110,034
Indonesia		192,886		—		—			192,886
Israel		230,164		—		—			230,164
Jordan		12,382		—		—			12,382
Kazakhstan		35,252		—		—			35,252
Kuwait		374,477		—		—			374,477
Malaysia		121,778		—		—			121,778
Philippines		145,373		—		—			145,373
Poland		71,709		—		—			71,709
Russia
Energy		—		—		—	^‡‡		—
Materials		—		—		—	^‡‡		—
Singapore		438,848		—		—			438,848
South Africa		224,980		—		—			224,980
Thailand		200,968		—		—			200,968
Turkey		113,556		—		—			113,556
United Arab Emirates		27,809		—		—			27,809
Total Common Stock		4,449,669		—		—			4,449,669
Preferred Stock
Russia			��
Energy		—		—		—	^‡‡		—
Total Preferred Stock		—		—		—			—
Total Investments in Securities	$	4,449,669	$	—	$	—		$	4,449,669

	^	A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets.
	‡‡	Security or securities with a market value of $0.

Amounts designated as “—” are $0 or have been rounded to $0.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares Emerging Markets Consumer Technology Index ETF

	Shares		Value
COMMON STOCK — 99.8%^‡
BRAZIL — 10.9%
Consumer Discretionary — 3.7%
MercadoLibre*		850	$	1,120,351‌

Financials — 4.6%
Cielo		239,100‌		228,713‌
Pagseguro Digital, Cl A*		26,049‌		223,240‌
StoneCo, Cl A*		25,304‌		241,400‌
XP, Cl A*		60,541‌		718,622‌
				1,411,975‌
Information Technology — 2.6%
TOTVS		144,400‌		801,993‌
TOTAL BRAZIL				3,334,319‌

CHINA — 40.8%
Communication Services — 14.5%
Baidu, Cl A*		58,514‌		1,108,419‌
JOYY ADR		7,607‌		237,186‌
Kuaishou Technology, Cl B*		107,800‌		830,134‌
NetEase		62,400‌		1,096,975‌
Tencent Holdings		23,675‌		1,163,551‌
				4,436,265‌
Consumer Discretionary — 18.9%
Alibaba Group Holding*		95,200‌		1,217,598‌
JD.com, Cl A		45,225‌		990,924‌
Meituan, Cl B*		63,798‌		1,166,242‌
PDD Holdings ADR*		11,472‌		870,725‌
Trip.com Group*		19,200‌		718,598‌

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares Emerging Markets Consumer Technology Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Consumer Discretionary (continued)
Vipshop Holdings ADR*		52,825	$	801,883
				5,765,970
Consumer Staples — 4.9%
Alibaba Health Information Technology*		1,030,000		745,278
JD Health International*		102,350		761,437
				1,506,715
Real Estate — 2.5%
KE Holdings, Cl A*		121,500		748,352
TOTAL CHINA				12,457,302

EGYPT — 0.7%
Financials — 0.7%
E-Finance for Digital & Financial Investments		404,595		226,468
TOTAL EGYPT				226,468

INDIA — 8.5%
Consumer Discretionary — 5.2%
FSN E-Commerce Ventures*		421,118		636,680
MakeMyTrip*		9,001		220,254
Zomato*		1,167,735		724,661
				1,581,595
Financials — 3.3%
One 97 Communications*		100,695		780,246
PB Fintech*		31,754		246,861
				1,027,107
TOTAL INDIA				2,608,702

INDONESIA — 0.7%
Consumer Discretionary — 0.7%
Bukalapak.com*		13,594,500		224,845
TOTAL INDONESIA				224,845

JAPAN — 2.6%
Communication Services — 2.6%
Nexon		33,900		803,625
TOTAL JAPAN				803,625

MALAYSIA — 0.8%
Industrials — 0.8%
My EG Services		1,364,000		236,478
TOTAL MALAYSIA				236,478

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares Emerging Markets Consumer Technology Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
RUSSIA — 0.0%
Communication Services — 0.0%
VK GDR*^(A)		49,503	$	—
Yandex, Cl A*^(A)		31,479		—
				—
Consumer Discretionary — 0.0%
Ozon Holdings PLC ADR*^(A)		58,005		—

Industrials — 0.0%
HeadHunter Group PLC ADR*^(A)		11,746		—
TOTAL RUSSIA				—

SINGAPORE — 3.8%
Communication Services — 3.8%
Sea ADR*		13,423		1,161,761
TOTAL SINGAPORE				1,161,761

SOUTH AFRICA — 3.7%
Consumer Discretionary — 3.7%
Naspers, Cl N		6,094		1,131,030
TOTAL SOUTH AFRICA				1,131,030

SOUTH KOREA — 21.6%
Communication Services — 18.1%
Kakao		16,454		772,239
Kakao Games*^(B)		21,997		704,593
Krafton*		5,980		842,901
NAVER		4,796		744,165
NCSoft		2,409		687,440
Neowiz*		6,844		210,285
Netmarble*		16,866		858,944
Pearl Abyss*^(B)		7,160		254,369
Studio Dragon*		3,862		208,548
Wemade^(B)		6,090		234,834
				5,518,318
Consumer Discretionary — 2.9%
Coupang, Cl A*		55,021		880,336

Information Technology — 0.6%
Douzone Bizon		7,085		190,751
TOTAL SOUTH KOREA				6,589,405

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares Emerging Markets Consumer Technology Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
SWEDEN — 0.7%
Information Technology — 0.7%
Truecaller, Cl B*^(B)		72,494	$	213,017
TOTAL SWEDEN				213,017

TAIWAN — 2.8%
Consumer Discretionary — 2.8%
momo.com		29,000		860,071
TOTAL TAIWAN				860,071

THAILAND — 0.6%
Information Technology — 0.6%
Forth		209,800		196,333
TOTAL THAILAND				196,333

UNITED ARAB EMIRATES — 0.7%
Financials — 0.7%
Network International Holdings PLC*		70,629		213,781
TOTAL UNITED ARAB EMIRATES				213,781

URUGUAY — 0.9%
Financials — 0.9%
Dlocal, Cl A*		15,936		258,482
TOTAL URUGUAY				258,482

TOTAL COMMON STOCK (Cost $45,317,060)				30,515,619

SHORT-TERM INVESTMENT — 2.3%
Invesco Government & Agency Portfolio, Cl Institutional, 4.430%^(C)(D)		696,591		696,591

TOTAL SHORT-TERM INVESTMENT (Cost $696,591)				696,591

TOTAL INVESTMENTS — 102.1% (Cost $46,013,651)				31,212,210
OTHER ASSETS LESS LIABILITIES – (2.1)%				(650,637	)
NET ASSETS - 100%			$	30,561,573

‡	Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.
*	Non-income producing security.
(A)	Level 3 security in accordance with fair value hierarchy.
(B)	This security or a partial position of this security is on loan at March 31, 2023. The total market value of securities on loan at March 31, 2023 was $632,846.
(C)	The rate shown is the 7-day effective yield as of March 31, 2023.
(D)	This security was purchased with cash collateral held from securities on loan. The total value of such security as of March 31, 2023 was $696,591.

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares Emerging Markets Consumer Technology Index ETF (concluded)

The following summarizes the market value of the Fund’s investments used as of March 31, 2023, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3^			Total
Common Stock
Brazil	$	3,334,319	$	—	$	—		$	3,334,319
China		12,457,302		—		—			12,457,302
Egypt		226,468		—		—			226,468
India		2,608,702		—		—			2,608,702
Indonesia		224,845		—		—			224,845
Japan		803,625		—		—			803,625
Malaysia		236,478		—		—			236,478
Russia
Communication Services		—		—		—	^‡‡		—
Consumer Discretionary		—		—		—	^‡‡		—
Industrials		—		—		—	^‡‡		—
Singapore		1,161,761		—		—			1,161,761
South Africa		1,131,030		—		—			1,131,030
South Korea		6,589,405		—		—			6,589,405
Sweden		213,017		—		—			213,017
Taiwan		860,071		—		—			860,071
Thailand		196,333		—		—			196,333
United Arab Emirates		213,781		—		—			213,781
Uruguay		258,482		—		—			258,482
Total Common Stock		30,515,619		—		—			30,515,619
Short-Term Investment		696,591		—		—			696,591
Total Investments in Securities	$	31,212,210	$	—	$	—		$	31,212,210

	^	A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets.
	‡‡	Security or securities with a market value of $0.

Amounts designated as “—” are $0 or have been rounded to $0.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares MSCI China Clean Technology Index ETF

	Shares		Value
COMMON STOCK — 100.0%^‡
CHINA — 97.3%
Consumer Discretionary — 39.8%
BYD, Cl A		33,900	$	1,263,827
BYD, Cl H		259,000		7,581,985
Li Auto, Cl A*		685,900		8,562,882
NIO ADR*		863,565		9,076,068
Tianneng Power International		1,159,885		1,372,663
XPeng, Cl A*		927,000		5,166,434
Yadea Group Holdings		1,964,694		5,068,192
				38,092,051
Industrials — 28.5%
Beijing Easpring Material Technology, Cl A		50,700		424,660
China Conch Venture Holdings		2,227,000		3,886,636
China Everbright Environment Group		6,324,216		2,714,999
Contemporary Amperex Technology, Cl A		137,750		8,144,888
CT Environmental Group*^(A)		329,000		—
Dajin Heavy Industry, Cl A		66,600		341,665
Dynagreen Environmental Protection Group, Cl H		648,000		219,579
Emeren Group ADR*		53,968		240,158
Ginlong Technologies, Cl A*		39,150		761,530
GoodWe Technologies, Cl A		12,034		507,221
Gotion High-tech, Cl A		179,100		777,448
Ming Yang Smart Energy Group, Cl A		227,100		744,400
Pylon Technologies, Cl A		17,380		621,320
Riyue Heavy Industry, Cl A		104,000		336,808
Sungrow Power Supply, Cl A		148,800		2,272,096
Titan Wind Energy Suzhou, Cl A		179,109		384,962
Xinjiang Goldwind Science & Technology, Cl A		346,135		556,453
Zhejiang Weiming Environment Protection, Cl A		171,100		454,452

The accompanying notes are an integral part of the financial statements.

Schedule of Investments March 31, 2023

KraneShares MSCI China Clean Technology Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Industrials (continued)
Zhuzhou CRRC Times Electric, Cl H		888,500	$	3,865,283
				27,254,558
Information Technology — 16.7%
China Railway Signal & Communication, Cl A		717,532		566,310
Chindata Group Holdings ADR*		220,394		1,540,554
Hengdian Group DMEGC Magnetics, Cl A		157,500		471,539
JA Solar Technology, Cl A		225,620		1,883,863
Kingsoft Cloud Holdings ADR*		181,675		1,615,091
LONGi Green Energy Technology, Cl A		686,946		4,042,272
Shanghai Aiko Solar Energy, Cl A*		128,300		618,586
Tuya ADR*		344,452		651,014
Xinyi Solar Holdings		3,845,588		4,609,836
				15,999,065
Real Estate — 2.0%
China Evergrande Group*^(A)		7,881,000		382,458
Guangzhou R&F Properties, Cl H*		2,859,600		615,637
Shimao Group Holdings*^(A)		2,540,500		325,484
SOHO China*		3,470,000		579,074
				1,902,653
Utilities — 10.3%
Beijing Enterprises Water Group		6,642,500		1,658,520
CECEP Solar Energy, Cl A		390,700		389,716
CECEP Wind-Power, Cl A		652,800		367,879
China Datang Renewable Power, Cl H		3,769,000		1,349,167
China Everbright Greentech		982,000		201,405
China Longyuan Power Group, Cl H		3,133,800		3,580,938
China Three Gorges Renewables Group, Cl A		2,857,800		2,280,480
				9,828,105
TOTAL CHINA				93,076,432

HONG KONG — 2.7%
Industrials — 0.2%
China High Speed Transmission Equipment Group*		640,000		238,881

Real Estate — 1.1%
Yuexiu Real Estate Investment Trust^†		3,961,000		1,009,178

Utilities — 1.4%
Canvest Environmental Protection Group		837,000		387,048
Concord New Energy Group		10,460,000		932,745
				1,319,793
TOTAL HONG KONG				2,567,852

The accompanying notes are an integral part of the financial statements.

100

Schedule of Investments March 31, 2023

KraneShares MSCI China Clean Technology Index ETF (concluded)

	Shares	Value
COMMON STOCK (continued)
Utilities (continued)
TOTAL COMMON STOCK (Cost $125,747,403)		$	95,644,284

TOTAL INVESTMENTS — 100.0% (Cost $125,747,403)			95,644,284
OTHER ASSETS LESS LIABILITIES – 0.0%			(33,743	)
NET ASSETS - 100%		$	95,610,541

	‡	Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.
	*	Non-income producing security.
	†	Real Estate Investment Trust
	(A)	Level 3 security in accordance with fair value hierarchy.

The following summarizes the market value of the Fund’s investments used as of March 31, 2023, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3^			Total
Common Stock
China
Consumer Discretionary	$	38,092,051	$	—	$	—		$	38,092,051
Industrials		27,254,558		—		—	^‡‡		27,254,558
Information Technology		15,999,065		—		—			15,999,065
Real Estate		1,194,711		—		707,942			1,902,653
Utilities		9,828,105		—		—			9,828,105
Hong Kong		2,567,852		—		—			2,567,852
Total Common Stock		94,936,342		—		707,942			95,644,284
Total Investments in Securities	$	94,936,342	$	—	$	707,942		$	95,644,284

	^	A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets.
	‡‡	Security or securities with a market value of $0.

Amounts designated as “—” are $0 or have been rounded to $0.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

101

Schedule of Investments March 31, 2023

KraneShares Electric Vehicles and Future Mobility Index ETF

	Shares		Value
COMMON STOCK — 94.4%^‡
AUSTRALIA — 8.3%
Materials — 8.3%
Allkem*		380,537	$	3,027,801
IGO		473,429		4,049,112
Lynas Rare Earths*		580,137		2,463,394
Mineral Resources		33,203		1,792,142
Pilbara Minerals		1,495,031		3,945,122
TOTAL AUSTRALIA				15,277,571

BELGIUM — 2.4%
Materials — 2.4%
Umicore		130,650		4,430,089
TOTAL BELGIUM				4,430,089

CANADA — 3.7%
Industrials — 2.9%
Ballard Power Systems*^(A)		150,931		840,891
Magna International		86,954		4,651,125
				5,492,016
Materials — 0.8%
Lithium Americas*^(A)		65,729		1,427,888
TOTAL CANADA				6,919,904

CHINA — 32.5%
Consumer Discretionary — 15.7%
BYD, Cl A		193,000		7,195,238
Geely Automobile Holdings		3,222,000		4,145,530
Guangzhou Automobile Group, Cl H		1,724,000		1,087,115
Li Auto, Cl A*		400,700		5,002,401
NIO ADR*		476,826		5,011,441

The accompanying notes are an integral part of the financial statements.

102

Schedule of Investments March 31, 2023

KraneShares Electric Vehicles and Future Mobility Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Consumer Discretionary (continued)
Shenzhen Kedali Industry, Cl A		40,736	$	766,933
XPeng, Cl A*		712,700		3,972,080
Yadea Group Holdings		716,000		1,847,018
				29,027,756
Industrials — 8.0%
Beijing Easpring Material Technology, Cl A		91,300		764,722
China Baoan Group, Cl A		459,107		760,131
Contemporary Amperex Technology, Cl A		120,289		7,112,453
Eve Energy, Cl A		365,360		3,708,239
Gotion High-tech, Cl A		319,189		1,385,555
Guangzhou Great Power Energy & Technology, Cl A		81,200		673,859
Qingdao TGOOD Electric, Cl A		187,600		482,160
				14,887,119
Materials — 8.8%
Chengxin Lithium Group, Cl A		163,500		822,107
CMOC Group, Cl A		3,144,500		2,742,789
Ganfeng Lithium Group, Cl A		288,858		2,795,914
GEM, Cl A		917,540		998,067
Guangzhou Tinci Materials Technology, Cl A		344,294		2,103,676
Ningbo Shanshan, Cl A		407,100		1,021,411
Shanghai Putailai New Energy Technology, Cl A		247,862		1,801,406
Tianqi Lithium, Cl H		64,200		432,228
Xiamen Tungsten, Cl A		253,451		752,163
Youngy, Cl A		46,600		514,159
Zhejiang Huayou Cobalt, Cl A		287,263		2,300,682
				16,284,602
TOTAL CHINA				60,199,477

GERMANY — 3.2%
Consumer Discretionary — 2.1%
Mercedes-Benz Group		25,419		1,954,692
Volkswagen		10,984		1,885,501
				3,840,193
Information Technology — 1.1%
Infineon Technologies		51,306		2,100,334
TOTAL GERMANY				5,940,527

INDONESIA — 0.7%
Materials — 0.7%
Aneka Tambang		5,316,900		741,093
Vale Indonesia*		1,329,700		589,717
TOTAL INDONESIA				1,330,810

The accompanying notes are an integral part of the financial statements.

103

Schedule of Investments March 31, 2023

KraneShares Electric Vehicles and Future Mobility Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
JAPAN — 8.5%
Consumer Discretionary — 4.2%
Panasonic Holdings		869,600	$	7,723,099

Industrials — 4.2%
Nidec		150,200		7,724,991

Materials — 0.1%
W-Scope*		31,100		293,030
TOTAL JAPAN				15,741,120

NETHERLANDS — 0.6%
Industrials — 0.6%
Alfen Beheer BV*		13,946		1,107,886
TOTAL NETHERLANDS				1,107,886

SOUTH KOREA — 12.3%
Industrials — 5.7%
Ecopro		31,596		5,448,632
LG Energy Solution*		11,520		5,167,784
				10,616,416
Information Technology — 6.2%
L&F		15,411		3,711,141
Samsung SDI		13,631		7,695,806
				11,406,947
Materials — 0.4%
SK IE Technology*^(A)		11,552		631,795
TOTAL SOUTH KOREA				22,655,158

SWEDEN — 0.7%
Consumer Discretionary — 0.7%
Volvo Car, Cl B*		313,222		1,365,157
TOTAL SWEDEN				1,365,157

UNITED STATES — 21.5%
Consumer Discretionary — 12.6%
Aptiv*		63,684		7,144,708
Ford Motor		150,893		1,901,252
Lucid Group*^(A)		351,119		2,822,997
Rivian Automotive, Cl A*		237,745		3,680,293
Tesla*		37,166		7,710,458
				23,259,708
Industrials — 3.2%
Blink Charging*^(A)		27,343		236,517

The accompanying notes are an integral part of the financial statements.

104

Schedule of Investments March 31, 2023

KraneShares Electric Vehicles and Future Mobility Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Industrials (continued)
ChargePoint Holdings*^(A)		180,966	$	1,894,714
Nikola*^(A)		242,001		292,821
Plug Power*^(A)		293,396		3,438,601
				5,862,653
Information Technology — 0.9%
SolarEdge Technologies*		5,675		1,724,916

Materials — 4.8%
Albemarle		29,199		6,454,147
Livent*		113,829		2,472,366
				8,926,513
TOTAL UNITED STATES				39,773,790

TOTAL COMMON STOCK (Cost $216,111,084)				174,741,489

PREFERRED STOCK — 5.0%
CHILE— 2.3%
Materials — 2.3%
Sociedad Quimica y Minera de Chile^(B)		53,737		4,336,425

GERMANY— 2.7%
Consumer Discretionary — 2.7%
Dr Ing hc F Porsche*^(B)		39,415		5,053,040

TOTAL PREFERRED STOCK (Cost $8,818,572)				9,389,465

SHORT-TERM INVESTMENT — 4.6%
Invesco Government & Agency Portfolio, Cl Institutional, 4.430%^(C)(D)		8,431,059		8,431,059

TOTAL SHORT-TERM INVESTMENT (Cost $8,431,059)				8,431,059

TOTAL INVESTMENTS — 104.0% (Cost $233,360,715)				192,562,013
OTHER ASSETS LESS LIABILITIES – (4.0)%				(7,456,273	)
NET ASSETS - 100%			$	185,105,740

‡	Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.
*	Non-income producing security.
(A)	This security or a partial position of this security is on loan at March 31, 2023. The total market value of securities on loan at March 31, 2023 was $8,113,787.
(B)	Currently, no stated interest rate.
(C)	The rate shown is the 7-day effective yield as of March 31, 2023.
(D)	This security was purchased with cash collateral held from securities on loan. The total value of such security as of March 31, 2023 was $8,431,059.

The accompanying notes are an integral part of the financial statements.

105

Schedule of Investments March 31, 2023

KraneShares Electric Vehicles and Future Mobility Index ETF (concluded)

As of March 31, 2023, all of the Fund’s investments were considered Level 1 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

106

Schedule of Investments March 31, 2023

KraneShares MSCI All China Health Care Index ETF

	Shares		Value
COMMON STOCK — 100.0%^‡
CHINA — 96.6%
Health Care — 96.6%
3SBio		568,000	$	565,833
Aier Eye Hospital Group, Cl A		811,137		3,669,860
Akeso*		181,000		931,522
Apeloa Pharmaceutical, Cl A		136,892		424,592
Asymchem Laboratories Tianjin, Cl A		39,024		757,663
Autobio Diagnostics, Cl A		62,530		554,887
BeiGene*		237,018		3,907,048
Beijing Tiantan Biological Products, Cl A		186,942		675,650
Beijing Tongrentang, Cl A		153,890		1,235,638
Beijing Wantai Biological Pharmacy Enterprise, Cl A		68,530		1,159,081
Betta Pharmaceuticals, Cl A		47,063		402,694
BGI Genomics, Cl A		47,127		473,514
Bloomage Biotechnology, Cl A		55,945		923,822
Changchun High & New Technology Industry Group, Cl A		45,608		1,084,529
China Medical System Holdings		511,000		807,190
China Meheco, Cl A		168,000		335,643
China National Medicines, Cl A		84,455		458,106
China Resources Pharmaceutical Group		604,000		478,586
China Resources Sanjiu Medical & Pharmaceutical, Cl A		110,990		928,513
China Traditional Chinese Medicine Holdings		1,068,000		559,173
Chongqing Zhifei Biological Products, Cl A		181,749		2,168,348
CSPC Pharmaceutical Group		3,428,889		3,372,126
Daan Gene, Cl A		157,947		370,528
Dong-E-E-Jiao, Cl A		74,640		575,943
Genscript Biotech*		444,000		950,223
Guangzhou Baiyunshan Pharmaceutical Holdings, Cl A		157,740		759,839
Guangzhou Kingmed Diagnostics Group, Cl A		51,399		659,393
Hangzhou Tigermed Consulting, Cl A		42,350		590,235
Hangzhou Tigermed Consulting, Cl H		46,400		435,631
Hansoh Pharmaceutical Group		450,000		781,916
Huadong Medicine, Cl A		197,641		1,333,666
Hualan Biological Engineering, Cl A		208,047		661,347
Hubei Jumpcan Pharmaceutical, Cl A		106,300		440,846
Humanwell Healthcare Group, Cl A		184,300		718,704
Hygeia Healthcare Holdings*		127,600		907,022
Imeik Technology Development, Cl A		24,200		1,969,005

The accompanying notes are an integral part of the financial statements.

107

Schedule of Investments March 31, 2023

KraneShares MSCI All China Health Care Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Health Care (continued)
Innovent Biologics*		409,500	$	1,833,633
iRay Technology, Cl A		8,164		430,152
Jafron Biomedical, Cl A		91,390		403,898
Jiangsu Hengrui Pharmaceuticals, Cl A		716,928		4,470,295
Jiangsu Yuyue Medical Equipment & Supply, Cl A		114,910		532,776
Joincare Pharmaceutical Group Industry, Cl A		210,545		403,780
Joinn Laboratories China, Cl A		51,324		391,322
Jointown Pharmaceutical Group, Cl A		210,606		458,180
Lepu Medical Technology Beijing, Cl A		202,800		684,534
Livzon Pharmaceutical Group, Cl A		70,059		381,344
Meinian Onehealth Healthcare Holdings, Cl A*		434,683		475,998
Microport Scientific*		242,300		569,794
Nanjing King-Friend Biochemical Pharmaceutical, Cl A		186,484		442,631
Ovctek China, Cl A		102,293		493,344
Pharmaron Beijing, Cl A		112,050		799,017
Pharmaron Beijing, Cl H		75,300		316,070
Porton Pharma Solutions, Cl A		62,100		335,399
Shandong Buchang Pharmaceuticals, Cl A		125,583		362,816
Shandong Weigao Group Medical Polymer, Cl H		983,200		1,570,625
Shanghai Fosun Pharmaceutical Group, Cl A		240,829		1,135,883
Shanghai Fosun Pharmaceutical Group, Cl H		189,500		538,328
Shanghai Junshi Biosciences, Cl A*		87,220		610,145
Shanghai Medicilon, Cl A		10,150		230,626
Shanghai Pharmaceuticals Holding, Cl A		311,794		924,853
Shanghai Pharmaceuticals Holding, Cl H		295,500		551,102
Shanghai RAAS Blood Products, Cl A		765,234		716,505
Shenzhen Kangtai Biological Products, Cl A		127,577		587,790
Shenzhen Mindray Bio-Medical Electronics, Cl A		137,255		6,230,069
Shenzhen New Industries Biomedical Engineering, Cl A		88,200		785,635
Shenzhen Salubris Pharmaceuticals, Cl A		125,365		645,510
Shijiazhuang Yiling Pharmaceutical, Cl A		191,450		811,543
Sichuan Kelun Pharmaceutical, Cl A		158,715		656,835
Sinopharm Group, Cl H		515,200		1,558,736
Tonghua Dongbao Pharmaceutical, Cl A		226,991		391,358
Topchoice Medical, Cl A*		38,441		723,669
Walvax Biotechnology, Cl A		183,000		919,090
WuXi AppTec, Cl A		290,620		3,364,392
WuXi AppTec, Cl H		134,784		1,411,378
Wuxi Biologics Cayman*		1,337,135		8,278,366
Yunnan Baiyao Group, Cl A		203,723		1,622,712
Zai Lab ADR*		32,708		1,087,868
Zhangzhou Pientzehuang Pharmaceutical, Cl A		67,934		2,813,197
Zhejiang Huahai Pharmaceutical, Cl A		167,872		493,058
Zhejiang Jiuzhou Pharmaceutical, Cl A		101,200		490,431
Zhejiang NHU, Cl A		353,730		924,591

The accompanying notes are an integral part of the financial statements.

108

Schedule of Investments March 31, 2023

KraneShares MSCI All China Health Care Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Health Care (continued)
Zhejiang Wolwo Bio-Pharmaceutical, Cl A		59,136	$	409,895
TOTAL CHINA				91,297,489

HONG KONG — 2.3%
Health Care — 2.3%
Sino Biopharmaceutical		3,916,750		2,195,390
TOTAL HONG KONG				2,195,390

UNITED STATES — 1.1%
Health Care — 1.1%
Legend Biotech ADR*		21,431		1,033,403
TOTAL UNITED STATES				1,033,403

TOTAL COMMON STOCK (Cost $112,170,471)				94,526,282

RIGHT — 0.0%
CHINA — 0.0%
Health Care — 0.0%
Kangmei Pharma^‡‡*^(A)		118,157		—
TOTAL CHINA				—

TOTAL RIGHT (Cost $–)				—

TOTAL INVESTMENTS — 100.0% (Cost $112,170,471)				94,526,282
OTHER ASSETS LESS LIABILITIES – 0.0%				(34,242	)
NET ASSETS - 100%			$	94,492,040

‡	Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.
*	Non-income producing security.
(A)	Level 3 security in accordance with fair value hierarchy.
‡‡	Expiration date not available.

The accompanying notes are an integral part of the financial statements.

109

Schedule of Investments March 31, 2023

KraneShares MSCI All China Health Care Index ETF (concluded)

The following summarizes the market value of the Fund’s investments used as of March 31, 2023, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3^			Total
Common Stock										��
China	$	91,297,489	$	—	$	—		$	91,297,489
Hong Kong		2,195,390		—		—			2,195,390
United States		1,033,403		—		—			1,033,403
Total Common Stock		94,526,282		—		—			94,526,282
Right		—		—		—	^‡‡		—
Total Investments in Securities	$	94,526,282	$	—	$	—		$	94,526,282

	^	A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets.
	‡‡	Security or securities with a market value of $0.

Amounts designated as “—” are $0 or have been rounded to $0.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

110

Schedule of Investments March 31, 2023

KraneShares Asia Pacific High Income Bond ETF

	Face Amount		Value
CORPORATE OBLIGATIONS — 94.1%
AUSTRALIA — 0.9%
Real Estate — 0.9%
Scentre Group Trust 2
4.750%, US Treas Yield Curve Rate T Note Const Mat 5 Yr + 4.379%, 09/24/2080^(A)	$	200,000	$	180,055

CHINA — 33.1%
Consumer Discretionary — 4.2%
Fortune Star BVI
6.750%, 07/02/2023		300,000		290,910
Golden Eagle Retail Group
4.625%, 05/21/2023		200,000		197,506
Health & Happiness H&H International Holdings
5.625%, 10/24/2024		400,000		351,700
				840,116
Financials — 2.5%
Huarong Finance II, MTN
5.000%, 11/19/2025		200,000		172,775
ZhongAn Online P&C Insurance
3.125%, 07/16/2025		400,000		337,646
				510,421
Materials — 3.2%
China Hongqiao Group
7.375%, 05/02/2023		400,000		399,440
6.250%, 06/08/2024		250,000		240,445
				639,885

The accompanying notes are an integral part of the financial statements.

111

Schedule of Investments March 31, 2023

KraneShares Asia Pacific High Income Bond ETF (continued)

	Face Amount		Value
CORPORATE OBLIGATIONS (continued)
Real Estate — 23.2%
Country Garden Holdings
8.000%, 01/27/2024	$	250,000	$	216,425
6.150%, 09/17/2025		250,000		159,829
5.625%, 12/15/2026		200,000		113,853
5.125%, 01/17/2025		270,000		173,953
Gemdale Ever Prosperity Investment, MTN
4.950%, 08/12/2024		200,000		183,150
Greentown China Holdings
5.650%, 07/13/2025		200,000		184,100
4.700%, 04/29/2025		200,000		182,350
Hopson Development Holdings
7.000%, 05/18/2024		300,000		259,284
New Metro Global
6.800%, 08/05/2023		200,000		186,100
4.800%, 12/15/2024		200,000		143,800
4.500%, 05/02/2026		200,000		125,838
RKPF Overseas 2019 A
6.700%, 09/30/2024		200,000		183,966
6.000%, 09/04/2025		250,000		197,323
RKPF Overseas 2019 E
7.750%, US Treas Yield Curve Rate T Note Const Mat 5 Yr+ 6.003%^{‡ (A)}		200,000		122,187
RKPF Overseas 2020 A
5.200%, 01/12/2026		200,000		142,505
Seazen Group
6.150%, 04/15/2023		200,000		195,190
6.000%, 08/12/2024		200,000		150,200
4.450%, 07/13/2025		200,000		130,046
Shui On Development Holding
6.150%, 08/24/2024		200,000		179,900
5.750%, 11/12/2023		500,000		488,600
5.500%, 06/29/2026		200,000		152,090
Wanda Properties Overseas
6.875%, 07/23/2023		200,000		190,100
Yanlord Land HK
6.800%, 02/27/2024		431,000		417,398
5.125%, 05/20/2026		200,000		166,002
				4,644,189
TOTAL CHINA				6,634,611

HONG KONG — 16.1%
Communication Services — 1.7%
HKT Capital No. 6
3.000%, 01/18/2032		400,000		339,376

The accompanying notes are an integral part of the financial statements.

112

Schedule of Investments March 31, 2023

KraneShares Asia Pacific High Income Bond ETF (continued)

	Face Amount		Value
CORPORATE OBLIGATIONS (continued)
Consumer Discretionary — 6.8%
Li & Fung, MTN
5.000%, 08/18/2025	$	250,000	$	232,625
LS Finance 2025
4.500%, 06/26/2025		400,000		343,120
Melco Resorts Finance
5.625%, 07/17/2027		200,000		176,000
5.250%, 04/26/2026		200,000		180,250
4.875%, 06/06/2025		450,000		423,225
				1,355,220
Financials — 2.1%
Bank of East Asia, MTN
6.750%, US Treas Yield Curve Rate T Note Const Mat 1 Yr+ 2.100%, 03/15/2027		250,000		248,368
FWD Group
6.375%, US Treas Yield Curve Rate T Note Const Mat 5 Yr+ 4.876%^{‡ (A)}		200,000		183,600
				431,968
Health Care — 0.9%
PCGI Intermediate, MTN
4.750%, 10/28/2024		200,000		189,600

Industrials — 2.8%
Celestial Dynasty
4.250%, 06/27/2029		200,000		173,400
Celestial Miles
5.750%, US Treas Yield Curve Rate T Note Const Mat 5 Yr+ 8.205%^{‡ (A)}		400,000		391,480
				564,880
Real Estate — 1.8%
NWD, MTN
4.500%, 05/19/2030		200,000		167,169
NWD Finance BVI
6.150%, US Treas Yield Curve Rate T Note Const Mat 3 Yr+ 6.201%^‡		200,000		185,000
				352,169
TOTAL HONG KONG				3,233,213

INDIA — 15.1%
Energy — 6.2%
Clean Renewable Power Mauritius Pte
4.250%, 03/25/2027		186,000		160,905
Continuum Energy Levanter Pte
4.500%, 02/09/2027		186,000		163,785
Greenko Solar Mauritius
5.550%, 01/29/2025		400,000		383,000

The accompanying notes are an integral part of the financial statements.

113

Schedule of Investments March 31, 2023

KraneShares Asia Pacific High Income Bond ETF (continued)

	Face Amount		Value
CORPORATE OBLIGATIONS (continued)
Energy (continued)
HPCL-Mittal Energy
5.250%, 04/28/2027	$	400,000	$	375,000
ReNew Wind Energy AP2
4.500%, 07/14/2028		200,000		167,941
				1,250,631
Financials — 1.4%
Shriram Finance, MTN
4.150%, 07/18/2025		300,000		276,750

Industrials — 5.6%
India Airport Infrastructure
6.250%, 10/25/2025		250,000		236,109
JSW Steel
5.050%, 04/05/2032		200,000		163,682
Magnum Holdings
5.375%, 10/31/2026		400,000		350,282
Periama Holdings
5.950%, 04/19/2026		400,000		377,224
				1,127,297
Materials — 1.9%
Vedanta Resources
7.125%, 05/31/2023		200,000		185,831
Vedanta Resources Finance II
8.000%, 04/23/2023		200,000		190,500
				376,331
TOTAL INDIA				3,031,009

INDONESIA — 6.1%
Energy — 3.7%
Medco Bell Pte
6.375%, 01/30/2027		600,000		540,400
Saka Energi Indonesia
4.450%, 05/05/2024		200,000		190,624
				731,024
Financials — 1.6%
Bank Negara Indonesia Persero
4.300%, US Treas Yield Curve Rate T Note Const Mat 5 Yr+ 3.466%^{‡ (A)}		400,000		324,200

Industrials — 0.8%
Japfa Comfeed Indonesia
5.375%, 03/23/2026		200,000		167,760
TOTAL INDONESIA				1,222,984

The accompanying notes are an integral part of the financial statements.

114

Schedule of Investments March 31, 2023

KraneShares Asia Pacific High Income Bond ETF (continued)

	Face Amount		Value
CORPORATE OBLIGATIONS (continued)
JAPAN — 1.0%
Communication Services — 1.0%
SoftBank Group
5.500%, 04/20/2023	$	200,000	$	199,020

MACAU — 11.8%
Consumer Discretionary — 11.8%
Champion Path Holdings
4.500%, 01/27/2026		200,000		176,000
MGM China Holdings
5.875%, 05/15/2026		200,000		188,260
5.375%, 05/15/2024		200,000		195,307
5.250%, 06/18/2025		200,000		189,499
4.750%, 02/01/2027		200,000		179,142
Sands China
5.625%, 08/08/2025		300,000		292,007
4.875%, 06/18/2030		200,000		176,942
Studio City
7.000%, 02/15/2027		200,000		188,677
Studio City Finance
6.500%, 01/15/2028		200,000		168,302
6.000%, 07/15/2025		250,000		229,075
Wynn Macau
5.500%, 10/01/2027		200,000		174,512
5.125%, 12/15/2029		250,000		204,750
				2,362,473
TOTAL MACAU				2,362,473

MALAYSIA — 0.8%
Energy — 0.8%
Petronas Capital, MTN
2.480%, 01/28/2032		200,000		170,007

PHILIPPINES — 2.8%
Energy — 1.9%
Petron
4.600%, US Treas Yield Curve Rate T Note Const Mat 5 Yr+ 4.769%^{‡ (A)}		400,000		380,680

Financials — 0.9%
Rizal Commercial Banking
6.500%, US Treas Yield Curve Rate T Note Const Mat 5 Yr+ 6.236%^{‡ (A)}		200,000		175,942
TOTAL PHILIPPINES				556,622

The accompanying notes are an integral part of the financial statements.

115

Schedule of Investments March 31, 2023

KraneShares Asia Pacific High Income Bond ETF (concluded)

	Face Amount		Value
CORPORATE OBLIGATIONS (continued)
SOUTH KOREA — 0.9%
Financials — 0.9%
Kookmin Bank, MTN
4.350%, US Treas Yield Curve Rate T Note Const Mat 5 Yr+ 2.639%^{‡ (A)}	$	200,000	$	189,305

THAILAND — 4.4%
Financials — 4.4%
Kasikornbank, MTN
5.275%, US Treas Yield Curve Rate T Note Const Mat 5 Yr+ 4.940%^{‡ (A)}		200,000		182,624
4.000%, US Treas Yield Curve Rate T Note Const Mat 5 Yr+ 3.337%^{‡ (A)}		400,000		331,200
Krung Thai Bank
4.400%, US Treas Yield Curve Rate T Note Const Mat 5 Yr+ 3.530%^{‡ (A)}		200,000		176,060
TMBThanachart Bank, MTN
4.900%, US Treas Yield Curve Rate T Note Const Mat 5 Yr+ 3.256%^{‡ (A)}		200,000		183,048
				872,932
TOTAL THAILAND				872,932

VIETNAM — 1.1%
Energy — 1.1%
Mong Duong Finance Holdings BV
5.125%, 05/07/2029		250,000		211,184

TOTAL CORPORATE OBLIGATIONS (Cost $19,252,157)				18,863,415

TOTAL INVESTMENTS — 94.1% (Cost $19,252,157)				18,863,415
OTHER ASSETS LESS LIABILITIES – 5.9%				1,181,858
NET ASSETS - 100%			$	20,045,273

	‡	Perpetual security with no stated maturity date.
	(A)	Variable or floating rate security. The rate shown is the effective interest rate as of period end. The rates for certain securities are not based on published reference rates and spreads and are either determined by the issuer or agent based on current market conditions; by using a formula based on the rates of underlying loans; or by adjusting periodically based on prevailing interest rates.

As of March 31, 2023, all of the Fund’s investments were considered Level 2 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

116

Schedule of Investments March 31, 2023

KraneShares Emerging Markets Healthcare Index ETF

	Shares		Value
COMMON STOCK — 100.0%^‡
BRAZIL — 5.4%
Health Care — 5.4%
Blau Farmaceutica		1,000	$	4,753
Fleury		2,200		6,300
Hapvida Participacoes e Investimentos*		49,404		25,529
Hypera		3,600		26,768
Rede D’Or Sao Luiz		11,800		49,432
TOTAL BRAZIL				112,782

CHINA — 44.6%
Consumer Staples — 2.3%
JD Health International*		6,400		47,613

Health Care — 42.3%
3SBio		5,500		5,479
Aier Eye Hospital Group, Cl A		17,096		77,348
AK Medical Holdings		2,000		2,334
Akeso*		2,000		10,293
Angelalign Technology		400		5,946
Beijing Tongrentang, Cl A		3,400		27,300
CanSino Biologics, Cl H		200		1,070
Changchun High & New Technology Industry Group, Cl A		1,000		23,779
China Evergrande New Energy Vehicle Group*^(A)		16,000		1,504
China Medical System Holdings		6,000		9,478
China Resources Sanjiu Medical & Pharmaceutical, Cl A		2,300		19,241
Chongqing Zhifei Biological Products, Cl A		4,113		49,070
CSPC Pharmaceutical Group		28,000		27,537
Genscript Biotech*		4,000		8,561
Hansoh Pharmaceutical Group		14,000		24,326
Huadong Medicine, Cl A		4,340		29,286
Hygeia Healthcare Holdings		1,200		8,530
InnoCare Pharma*		4,000		4,265
Innovent Biologics*		3,500		15,672
Jiangsu Hengrui Pharmaceuticals, Cl A		16,259		101,381
Jinxin Fertility Group		5,000		3,350

The accompanying notes are an integral part of the financial statements.

117

Schedule of Investments March 31, 2023

KraneShares Emerging Markets Healthcare Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Health Care (continued)
Lepu Medical Technology Beijing, Cl A		4,200	$	14,177
Lifetech Scientific*		10,000		3,554
Luye Pharma Group*		8,000		3,710
Microport Scientific*		4,000		9,406
New Horizon Health*		1,000		3,465
Remegen, Cl H*		500		2,666
Shandong Weigao Group Medical Polymer, Cl H		10,800		17,253
Shanghai Fosun Pharmaceutical Group, Cl H		1,500		4,261
Shanghai Pharmaceuticals Holding, Cl H		2,200		4,103
Shenzhen Mindray Bio-Medical Electronics, Cl A		2,200		99,859
Shenzhen New Industries Biomedical Engineering, Cl A		2,100		18,706
Shenzhen Salubris Pharmaceuticals, Cl A		2,700		13,902
Shijiazhuang Yiling Pharmaceutical, Cl A		4,000		16,956
Simcere Pharmaceutical Group		7,000		7,357
Sinopharm Group, Cl H		3,200		9,682
Topchoice Medical, Cl A*		700		13,178
Walvax Biotechnology, Cl A		3,800		19,085
WuXi AppTec, Cl H		858		8,984
Wuxi Biologics Cayman*		9,281		57,460
Yunnan Baiyao Group, Cl A		1,980		15,771
Zai Lab*		2,000		6,637
Zhangzhou Pientzehuang Pharmaceutical, Cl A		1,500		62,116
Zhejiang NHU, Cl A		7,524		19,666
				887,704
TOTAL CHINA				935,317

HUNGARY — 1.0%
Health Care — 1.0%
Richter Gedeon Nyrt		1,042		21,802
TOTAL HUNGARY				21,802

INDIA — 12.7%
Health Care — 12.7%
Apollo Hospitals Enterprise		739		38,764
Divi’s Laboratories		1,431		49,161
Dr Reddy’s Laboratories		927		52,144
Max Healthcare Institute*		5,580		29,950
Sun Pharmaceutical Industries		8,025		95,998
TOTAL INDIA				266,017

INDONESIA — 3.1%
Consumer Staples — 0.4%
Industri Jamu Dan Farmasi Sido Muncul		154,300		8,953

The accompanying notes are an integral part of the financial statements.

118

Schedule of Investments March 31, 2023

KraneShares Emerging Markets Healthcare Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Health Care — 2.7%
Kalbe Farma		245,600	$	34,397
Metro Healthcare Indonesia TBK*		186,700		6,151
Mitra Keluarga Karyasehat		80,400		15,710
				56,258
TOTAL INDONESIA				65,211

MALAYSIA — 3.3%
Health Care — 3.3%
IHH Healthcare		47,500		61,898
Top Glove*		38,400		8,180
TOTAL MALAYSIA				70,078

SOUTH AFRICA — 1.9%
Health Care — 1.9%
Aspen Pharmacare Holdings		2,343		24,190
Life Healthcare Group Holdings		8,299		9,023
Netcare		8,325		6,949
TOTAL SOUTH AFRICA				40,162

SOUTH KOREA — 16.0%
Health Care — 16.0%
Alteogen*		245		7,462
Celltrion		734		84,412
Celltrion Healthcare		874		40,393
Celltrion Pharm*		197		12,561
Daewoong Pharmaceutical		59		4,768
Green Cross		54		5,065
Hanmi Pharm		64		12,492
Hanmi Science		367		10,986
Hugel*		66		6,484
Samsung Biologics*		147		88,978
Seegene		243		4,629
SK Biopharmaceuticals*		345		16,775
SK Bioscience*		348		19,273
ST Pharm		96		5,457
Yuhan		392		15,227
TOTAL SOUTH KOREA				334,962

THAILAND — 6.2%
Health Care — 6.2%
Bangkok Chain Hospital		12,100		7,219
Bangkok Dusit Medical Services, Cl F		80,600		69,534
Bumrungrad Hospital		4,000		26,437
Chularat Hospital, Cl F		54,100		5,727
Mega Lifesciences		3,700		4,517

The accompanying notes are an integral part of the financial statements.

119

Schedule of Investments March 31, 2023

KraneShares Emerging Markets Healthcare Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Health Care (continued)
Ramkhamhaeng Hospital		5,400	$	8,409
Thonburi Healthcare Group		3,600		7,159
TOTAL THAILAND				129,002

UNITED ARAB EMIRATES — 4.8%
Industrials — 4.8%
International Holding PJSC*		922		99,418
TOTAL UNITED ARAB EMIRATES				99,418

UNITED STATES — 1.0%
Health Care — 1.0%
Legend Biotech ADR*		425		20,493
TOTAL UNITED STATES				20,493

TOTAL COMMON STOCK (Cost $2,894,498)				2,095,244

RIGHT — 0.0%
CHINA — 0.0%
Health Care — 0.0%
Kangmei Pharma^‡‡*^(A)		5,516		—
TOTAL CHINA				—

TOTAL RIGHT (Cost $–)				—

TOTAL INVESTMENTS — 100.0% (Cost $2,894,498)				2,095,244
OTHER ASSETS LESS LIABILITIES – 0.0%				(174	)
NET ASSETS - 100%			$	2,095,070

	‡	Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.
	*	Non-income producing security.
	(A)	Level 3 security in accordance with fair value hierarchy.
	‡‡	Expiration date not available.

The accompanying notes are an integral part of the financial statements.

120

Schedule of Investments March 31, 2023

KraneShares Emerging Markets Healthcare Index ETF (concluded)

The following summarizes the market value of the Fund’s investments used as of March 31, 2023, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3^			Total
Common Stock
Brazil	$	112,782	$	—	$	—		$	112,782
China
Consumer Staples		47,613		—		—			47,613
Health Care		886,200		—		1,504			887,704
Hungary		21,802		—		—			21,802
India		266,017		—		—			266,017
Indonesia		65,211		—		—			65,211
Malaysia		70,078		—		—			70,078
South Africa		40,162		—		—			40,162
South Korea		334,962		—		—			334,962
Thailand		129,002		—		—			129,002
United Arab Emirates		99,418		—		—			99,418
United States		20,493		—		—			20,493
Total Common Stock		2,093,740		—		1,504			2,095,244
Right		—		—		—	^‡‡		—
Total Investments in Securities	$	2,093,740	$	—	$	1,504		$	2,095,244

^	A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets.
‡‡	Security or securities with a market value of $0.

Amounts designated as “—” are $0 or have been rounded to $0.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

121

Schedule of Investments March 31, 2023

KraneShares MSCI Emerging Markets ex China Index ETF

	Shares		Value
COMMON STOCK — 95.8%^‡
AUSTRALIA — 0.3%
Materials — 0.3%
AngloGold Ashanti		3,843	$	93,441
TOTAL AUSTRALIA				93,441

BRAZIL — 5.4%
Communication Services — 0.1%
Telefonica Brasil		4,700		35,837

Consumer Discretionary — 0.2%
Lojas Renner		8,225		26,880
Magazine Luiza*		37,000		24,154
				51,034
Consumer Staples — 0.6%
Ambev		44,300		125,205
Raia Drogasil		11,700		56,420
				181,625
Energy — 0.7%
Petroleo Brasileiro		36,600		191,220
Ultrapar Participacoes		10,700		29,461
				220,681
Financials — 0.8%
B3 - Brasil Bolsa Balcao		49,000		100,025
Banco Bradesco		12,288		28,718
Banco do Brasil		8,200		63,252
Banco Santander Brasil		3,600		19,029
BB Seguridade Participacoes		5,900		37,830
				248,854

The accompanying notes are an integral part of the financial statements.

122

Schedule of Investments March 31, 2023

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Industrials — 0.8%
CCR		9,400	$	23,731
Localiza Rent a Car		6,920		72,881
Rumo		9,400		34,947
WEG		14,100		112,767
				244,326
Materials — 1.9%
Klabin		5,900		21,050
Suzano		6,900		56,613
Vale		30,900		489,317
				566,980
Utilities — 0.3%
Cia de Saneamento Basico do Estado de Sao Paulo		2,400		23,956
Equatorial Energia		10,500		55,832
				79,788
TOTAL BRAZIL				1,629,125

CHILE — 0.6%
Consumer Discretionary — 0.0%
Falabella		6,017		13,912

Energy — 0.1%
Empresas Copec		3,138		22,267

Financials — 0.3%
Banco de Chile		532,555		52,002
Banco de Credito e Inversiones		461		13,585
Banco Santander Chile		531,412		23,694
				89,281
Materials — 0.1%
Empresas CMPC		10,138		17,034

Utilities — 0.1%
Enel Americas		227,921		30,183
Enel Chile		225,362		12,360
				42,543
TOTAL CHILE				185,037

COLOMBIA — 0.0%
Financials — 0.0%
Bancolombia		1,787		13,420
TOTAL COLOMBIA				13,420

The accompanying notes are an integral part of the financial statements.

123

Schedule of Investments March 31, 2023

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
CZECH REPUBLIC — 0.3%
Financials — 0.1%
Komercni Banka		581	$	19,291

Utilities — 0.2%
CEZ		1,238		60,213
TOTAL CZECH REPUBLIC				79,504

EGYPT — 0.1%
Financials — 0.1%
Commercial International Bank Egypt SAE		21,159		35,043
TOTAL EGYPT				35,043

GREECE — 0.1%
Communication Services — 0.1%
Hellenic Telecommunications Organization		1,858		27,231
TOTAL GREECE				27,231

HUNGARY — 0.3%
Energy — 0.1%
MOL Hungarian Oil & Gas		2,888		21,151

Financials — 0.1%
OTP Bank Nyrt		1,773		50,554

Health Care — 0.1%
Richter Gedeon Nyrt		1,430		29,921
TOTAL HUNGARY				101,626

INDIA — 18.1%
Communication Services — 0.6%
Bharti Airtel		17,930		163,412

Consumer Discretionary — 1.4%
Bajaj Auto		659		31,151
Eicher Motors		1,053		37,783
Mahindra & Mahindra		7,433		104,799
Maruti Suzuki India		995		100,395
Tata Motors*		14,563		74,567
Titan		2,492		76,259
				424,954
Consumer Staples — 1.8%
Dabur India		4,204		27,874
Godrej Consumer Products*		2,889		34,034
Hindustan Unilever		7,270		226,493
ITC		34,945		163,069

The accompanying notes are an integral part of the financial statements.

124

Schedule of Investments March 31, 2023

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Consumer Staples (continued)
Nestle India		327	$	78,403
				529,873
Energy — 2.4%
Bharat Petroleum		6,073		25,443
Indian Oil		48,606		46,073
Oil & Natural Gas		20,662		37,976
Reliance Industries		22,023		624,667
				734,159
Financials — 4.6%
Axis Bank		22,139		231,270
Bajaj Finance		2,026		138,467
Bajaj Finserv		3,101		47,789
Housing Development Finance		14,731		470,614
ICICI Bank		37,325		398,422
State Bank of India		17,464		111,298
				1,397,860
Health Care — 0.6%
Aurobindo Pharma		2,098		13,226
Dr Reddy’s Laboratories		913		51,356
Sun Pharmaceutical Industries		8,726		104,384
				168,966
Industrials — 0.5%
Larsen & Toubro		5,783		152,290

Information Technology — 4.2%
HCL Technologies		10,489		138,511
Infosys ADR		36,755		641,007
Tata Consultancy Services		8,726		340,397
Tech Mahindra		6,022		80,739
Wipro		14,557		64,697
				1,265,351
Materials — 1.5%
Asian Paints		3,279		110,187
Grasim Industries		2,635		52,349
Hindalco Industries		16,255		80,175
JSW Steel		6,893		57,714
UltraTech Cement		936		86,811
UPL		4,339		37,890
Vedanta		10,584		35,345
				460,471

The accompanying notes are an integral part of the financial statements.

125

Schedule of Investments March 31, 2023

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Utilities — 0.5%
GAIL India		24,471	$	31,310
NTPC		28,281		60,256
Power Grid Corp of India		24,855		68,260
				159,826
TOTAL INDIA				5,457,162

INDONESIA — 3.4%
Communication Services — 0.5%
Telkom Indonesia Persero		535,300		144,941

Consumer Discretionary — 0.3%
Astra International		232,400		92,994

Consumer Staples — 0.2%
Charoen Pokphand Indonesia		73,100		24,327
Unilever Indonesia		75,500		21,903
				46,230
Energy — 0.2%
Adaro Energy Indonesia		122,100		23,615
United Tractors		17,100		33,186
				56,801
Financials — 2.2%
Bank Central Asia		506,000		295,275
Bank Mandiri Persero		209,300		144,121
Bank Negara Indonesia Persero		77,800		48,513
Bank Rakyat Indonesia Persero		581,400		183,402
				671,311
TOTAL INDONESIA				1,012,277

MALAYSIA — 2.4%
Communication Services — 0.2%
CelcomDigi Bhd		34,900		34,326
Maxis		34,900		32,666
				66,992
Consumer Discretionary — 0.1%
Genting		22,900		24,184

Consumer Staples — 0.1%
Sime Darby Plantation		26,500		25,644

Financials — 1.3%
CIMB Group Holdings		95,455		114,871
Hong Leong Bank		5,900		27,037
Malayan Banking		64,916		126,080

The accompanying notes are an integral part of the financial statements.

126

Schedule of Investments March 31, 2023

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Financials (continued)
Public Bank		150,900	$	136,793
				404,781
Health Care — 0.1%
IHH Healthcare		22,900		29,841

Materials — 0.2%
Petronas Chemicals Group		34,900		55,919

Utilities — 0.4%
Petronas Gas		5,900		22,036
Tenaga Nasional		43,200		90,365
				112,401
TOTAL MALAYSIA				719,762

MEXICO — 5.0%
Communication Services — 1.1%
America Movil		289,000		302,989
Grupo Televisa		22,900		24,186
				327,175
Consumer Staples — 1.5%
Fomento Economico Mexicano		19,400		184,588
Grupo Bimbo, Ser A		12,900		64,786
Wal-Mart de Mexico		50,000		199,463
				448,837
Financials — 0.9%
Grupo Financiero Banorte, Cl O		26,500		222,937
Grupo Financiero Inbursa, Cl O*		17,600		37,771
				260,708
Industrials — 0.5%
Grupo Aeroportuario del Pacifico, Cl B		4,800		93,206
Grupo Aeroportuario del Sureste, Cl B		1,675		51,135
				144,341
Materials — 0.9%
Cemex*		145,500		79,696
Grupo Mexico		26,500		125,235
Southern Copper		829		63,212
				268,143
Real Estate — 0.1%
Fibra Uno Administracion^†		32,600		45,444
TOTAL MEXICO				1,494,648

The accompanying notes are an integral part of the financial statements.

127

Schedule of Investments March 31, 2023

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
PERU — 0.4%
Financials — 0.2%
Credicorp		609	$	80,625

Materials — 0.2%
Cia de Minas Buenaventura SAA ADR		6,611		54,078
TOTAL PERU				134,703

PHILIPPINES — 1.2%
Financials — 0.2%
BDO Unibank		29,304		69,265

Industrials — 0.5%
Ayala		3,490		41,727
JG Summit		43,435		38,270
SM Investments		3,490		57,070
				137,067
Real Estate — 0.5%
Ayala Land		119,400		58,201
SM Prime		162,900		98,282
				156,483
Utilities — 0.0%
ACEN		9,960		1,121
TOTAL PHILIPPINES				363,936

POLAND — 1.2%
Communication Services — 0.1%
CD Projekt		706		18,227

Consumer Discretionary — 0.2%
LPP		33		73,384

Energy — 0.2%
Polski Koncern Naftowy Orlen		3,261		44,085

Financials — 0.6%
Bank Polska Kasa Opieki		1,927		38,226
Powszechna Kasa Oszczednosci Bank Polski		9,612		63,633
Powszechny Zaklad Ubezpieczen		6,982		56,854
Santander Bank Polska		376		25,468
				184,181
Materials — 0.1%
KGHM Polska Miedz		1,343		38,110
TOTAL POLAND				357,987

The accompanying notes are an integral part of the financial statements.

128

Schedule of Investments March 31, 2023

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
QATAR — 1.3%
Financials — 1.0%
Masraf Al Rayan		45,520	$	36,954
Qatar Islamic Bank		13,350		65,209
Qatar National Bank		47,322		208,919
				311,082
Industrials — 0.3%
Industries Qatar		21,227		75,811
TOTAL QATAR				386,893

ROMANIA — 0.1%
Real Estate — 0.1%
NEPI Rockcastle		5,510		32,083
TOTAL ROMANIA				32,083

RUSSIA — 0.0%
Communication Services — 0.0%
Mobile TeleSystems PJSC ADR*^(A),(B)		3,839		—

Consumer Discretionary — 0.0%
X5 Retail Group GDR*^(A),(B)		915		—

Consumer Staples — 0.0%
Magnit PJSC GDR*^(A),(B)		2,616		—

Energy — 0.0%
Gazprom PJSC^(A),(B)		89,700		—
LUKOIL PJSC^(A),(B)		3,729		—
Novatek PJSC GDR*^(A),(B)		756		—
Rosneft Oil PJSC^(A),(B)		10,270		—
Tatneft PJSC^(A),(B)		16,537		—
				—
Financials — 0.0%
Sberbank of Russia PJSC^(A),(B)		99,330		—

Materials — 0.0%
Alrosa PJSC*^(A),(B)		18,910		—
MMC Norilsk Nickel PJSC^(A),(B)		670		—
Novolipetsk Steel PJSC*^(A),(B)		8,860		—
Severstal PAO*^(A),(B)		1,512		—
				—
TOTAL RUSSIA				—

The accompanying notes are an integral part of the financial statements.

129

Schedule of Investments March 31, 2023

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
SOUTH AFRICA — 5.9%
Communication Services — 0.6%
MTN Group		16,311	$	117,185
MultiChoice Group		3,306		22,986
Vodacom Group		4,946		34,021
				174,192
Consumer Discretionary — 1.7%
Absa Group		6,988		71,596
Mr Price Group		1,885		15,320
Naspers, Cl N		2,232		414,253
Woolworths Holdings		7,651		27,568
				528,737
Consumer Staples — 0.6%
Bid		3,261		73,243
Clicks Group		1,957		28,362
Shoprite Holdings		6,225		77,980
				179,585
Energy — 0.1%
Exxaro Resources		2,017		21,207

Financials — 1.9%
Capitec Bank		1,012		96,263
Discovery*		6,946		54,593
FirstRand		43,525		148,121
Nedbank Group		4,404		53,831
Old Mutual		38,413		25,547
Remgro		4,123		31,239
Sanlam		14,156		44,975
Standard Bank Group		12,815		124,817
				579,386
Industrials — 0.4%
Bidvest Group		2,612		37,308
Sasol		5,412		73,207
				110,515
Materials — 0.5%
Anglo American Platinum		686		36,886
Gold Fields		7,791		104,070
				140,956
Real Estate — 0.1%
Growthpoint Properties^†		43,841		32,271
TOTAL SOUTH AFRICA				1,766,849

The accompanying notes are an integral part of the financial statements.

130

Schedule of Investments March 31, 2023

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
SOUTH KOREA — 18.4%
Communication Services — 1.2%
Kakao		2,493	$	117,004
NAVER*		1,224		189,921
NCSoft		181		51,651
				358,576
Consumer Discretionary — 2.1%
Coway		423		17,058
Hyundai Mobis		671		111,331
Hyundai Motor		1,461		207,055
Kangwon Land		947		14,476
Kia		2,911		181,120
LG Electronics		1,112		98,486
				629,526
Consumer Staples — 0.8%
Amorepacific		412		43,294
E-MART		436		35,366
KT&G		1,639		105,628
LG H&H		99		45,627
				229,915
Energy — 0.4%
HD Hyundai		352		15,710
SK Innovation*		622		85,700
S-Oil		364		22,396
				123,806
Financials — 1.9%
DB Insurance		399		22,956
Hana Financial Group		3,494		109,234
Industrial Bank of Korea		2,033		15,772
KB Financial Group		4,172		152,703
Samsung Fire & Marine Insurance		532		84,182
Samsung Life Insurance		552		26,628
Shinhan Financial Group		4,460		121,105
Woori Financial Group		3,806		33,357
				565,937
Health Care — 0.9%
Celltrion		923		106,190
Celltrion Healthcare		1,639		75,802
Samsung Biologics*		173		104,716
				286,708
Industrials — 1.0%
Hyundai Engineering & Construction		634		17,751

The accompanying notes are an integral part of the financial statements.

131

Schedule of Investments March 31, 2023

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Industrials (continued)
Korea Shipbuilding & Offshore Engineering*		305	$	18,157
LG		1,270		80,774
Samsung C&T		1,136		94,416
Samsung Heavy Industries*		10,958		43,517
SK Holdings		458		60,687
				315,302
Information Technology — 8.1%
LG Display		1,725		21,770
Samsung Electro-Mechanics		781		91,607
Samsung Electronics		33,990		1,670,976
Samsung SDI		528		298,099
Samsung SDS		275		24,504
SK Hynix		4,304		292,917
SK Square*		841		25,684
				2,425,557
Materials — 1.8%
Hyundai Steel		634		16,899
Korea Zinc		63		26,761
LG Chemical		470		257,050
Lotte Chemical		145		21,251
POSCO Holdings		795		224,726
				546,687
Utilities — 0.2%
Korea Electric Power*		4,943		68,382
TOTAL SOUTH KOREA				5,550,396

TAIWAN — 27.0%
Communication Services — 1.3%
Chunghwa Telecom		47,000		184,465
Far EasTone Telecommunications		34,000		83,974
Taiwan Mobile		34,000		112,785
				381,224
Consumer Staples — 0.7%
President Chain Store		12,000		106,215
Uni-President Enterprises		47,000		110,988
				217,203
Energy — 0.1%
Formosa Petrochemical		12,000		33,500

Financials — 5.9%
Cathay Financial Holding		70,000		96,100
Chailease Holding		23,152		169,947

The accompanying notes are an integral part of the financial statements.

132

Schedule of Investments March 31, 2023

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Financials (continued)
Chang Hwa Commercial Bank		179,660	$	102,376
China Development Financial Holding		216,000		89,032
CTBC Financial Holding		141,000		101,186
E.Sun Financial Holding		144,910		120,411
First Financial Holding		146,220		127,022
Fubon Financial Holding		81,740		151,681
Hua Nan Financial Holdings		122,567		89,970
Mega Financial Holding		98,625		106,893
Shanghai Commercial & Savings Bank		75,000		115,650
Shin Kong Financial Holding		356,000		98,449
SinoPac Financial Holdings		82,560		45,012
Taishin Financial Holding		253,648		138,289
Taiwan Cooperative Financial Holding		129,634		111,124
Yuanta Financial Holding		143,138		105,071
				1,768,213
Industrials — 0.3%
Far Eastern New Century		105,000		107,940

Information Technology — 16.4%
ASE Technology Holding		38,000		140,406
Asustek Computer		12,000		107,398
AUO		95,600		57,773
Catcher Technology		12,000		74,883
Delta Electronics		24,000		237,261
Hon Hai Precision Industry		105,000		358,650
Innolux		60,580		28,850
Lite-On Technology		47,000		113,149
MediaTek		12,000		310,173
Novatek Microelectronics		12,000		170,063
Pegatron		37,000		84,700
Quanta Computer		36,000		105,348
Taiwan Semiconductor Manufacturing		171,000		2,993,448
United Microelectronics		94,000		163,317
				4,945,419
Materials — 2.3%
Asia Cement		47,000		66,840
China Steel		157,000		159,333
Formosa Chemicals & Fibre		36,000		81,701
Formosa Plastics		47,000		141,706
Nan Ya Plastics		59,000		150,177
Taiwan Cement		69,404		82,973
				682,730
TOTAL TAIWAN				8,136,229

The accompanying notes are an integral part of the financial statements.

133

Schedule of Investments March 31, 2023

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
THAILAND — 2.3%
Communication Services — 0.3%
Advanced Info Service		11,800	$	73,157
				73,157
Consumer Staples — 0.3%
CP ALL		55,900		101,354
				101,354
Energy — 0.6%
PTT		121,200		111,648
PTT Exploration & Production		17,000		74,821
				186,469
Health Care — 0.2%
Bangkok Dusit Medical Services, Cl F		65,600		56,593
				56,593
Industrials — 0.4%
Airports of Thailand*		50,200		104,231
				104,231
Materials — 0.4%
Indorama Ventures		36,300		36,624
PTT Global Chemical		26,600		35,588
Siam Cement		6,100		56,193
				128,405
Real Estate — 0.1%
Central Pattana		16,300		32,772
				32,772
TOTAL THAILAND				682,981

TURKEY — 0.6%
Consumer Staples — 0.2%
BIM Birlesik Magazalar		8,142		63,075

Energy — 0.2%
Turkiye Petrol Rafinerileri		2,328		64,291

Financials — 0.2%
Akbank		58,231		51,390
TOTAL TURKEY				178,756

UNITED ARAB EMIRATES — 1.3%
Communication Services — 0.5%
Emirates Telecommunications Group PJSC		25,472		153,005

The accompanying notes are an integral part of the financial statements.

134

Schedule of Investments March 31, 2023

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Financials — 0.6%
Abu Dhabi Commercial Bank PJSC		25,850	$	58,423
First Abu Dhabi Bank PJSC		38,100		133,621
				192,044
Real Estate — 0.2%
Emaar Properties PJSC		28,538		43,516
TOTAL UNITED ARAB EMIRATES				388,565

UNITED STATES — 0.1%
Consumer Staples — 0.1%
JBS		7,000		24,644
TOTAL UNITED STATES				24,644

TOTAL COMMON STOCK (Cost $32,166,056)				28,852,298

PREFERRED STOCK — 3.5%
BRAZIL — 2.1%
Energy — 0.6%
Petroleo Brasileiro^(C)		39,600		183,151

Financials — 1.3%
Banco Bradesco^(C)		52,871		137,333
Itau Unibanco Holding^(C)		38,000		185,419
Itausa^(C)		47,882		77,627
				400,379
Materials — 0.1%
Gerdau^(C)		8,575		42,771

Utilities — 0.1%
Cia Energetica de Minas Gerais^(C)		9,923		22,389
TOTAL BRAZIL				648,690

CHILE — 0.4%
Materials — 0.4%
Sociedad Quimica y Minera de Chile^(C)		1,475		119,028

COLOMBIA — 0.1%
Financials — 0.1%
Bancolombia^(C)		3,583		22,440

RUSSIA — 0.0%
Energy — –%
Surgutneftegas PJSC^(A),(B)(C)		50,900		—

SOUTH KOREA — 0.9%
Information Technology — 0.9%
Samsung Electronics^(C)		6,396		264,811

TOTAL PREFERRED STOCK (Cost $1,169,619)				1,054,969

TOTAL INVESTMENTS — 99.3% (Cost $33,335,675)				29,907,267
OTHER ASSETS LESS LIABILITIES – 0.7%				204,368
NET ASSETS - 100%			$	30,111,635

The accompanying notes are an integral part of the financial statements.

135

Schedule of Investments March 31, 2023

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	‡	Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.
	*	Non-income producing security.
	†	Real Estate Investment Trust
	(A)	Level 3 security in accordance with fair value hierarchy.
	(B)	Due to the financial uncertainty surrounding Russia and its markets, and the inability to liquidate the positions due to market closures and restrictions, the Russian securities have been determined to be worthless.
	(C)	Currently, no stated interest rate.

The accompanying notes are an integral part of the financial statements.

136

Schedule of Investments March 31, 2023

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

The following summarizes the market value of the Fund’s investments used as of March 31, 2023, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3^			Total
Common Stock
Australia	$	93,441	$	—	$	—		$	93,441
Brazil		1,629,125		—		—			1,629,125
Chile		185,037		—		—			185,037
Colombia		13,420		—		—			13,420
Czech Republic		79,504		—		—			79,504
Egypt		35,043		—		—			35,043
Greece		27,231		—		—			27,231
Hungary		101,626		—		—			101,626
India		5,457,162		—		—			5,457,162
Indonesia		1,012,277		—		—			1,012,277
Malaysia		719,762		—		—			719,762
Mexico		1,494,648		—		—			1,494,648
Peru		134,703		—		—			134,703
Philippines		363,936		—		—			363,936
Poland		357,987		—		—			357,987
Qatar		386,893		—		—			386,893
Romania		32,083		—		—			32,083
Russia
Communication Services		—		—		—	^‡‡		—
Consumer Discretionary		—		—		—	^‡‡		—
Consumer Staples		—		—		—	^‡‡		—
Energy		—		—		—	^‡‡		—
Financials		—		—		—	^‡‡		—
Materials		—		—		—	^‡‡		—
South Africa		1,766,849		—		—			1,766,849
South Korea		5,550,396		—		—			5,550,396
Taiwan		8,136,229		—		—			8,136,229
Thailand		682,981		—		—			682,981
Turkey		178,756		—		—			178,756
United Arab Emirates		388,565		—		—			388,565
United States		24,644		—		—			24,644
Total Common Stock		28,852,298		—		—			28,852,298
Preferred Stock
Brazil		648,690		—		—			648,690
Chile		119,028		—		—			119,028
Colombia		22,440		—		—			22,440
Russia
Energy		—		—		—	^‡‡		—
South Korea		264,811		—		—			264,811
Total Preferred Stock		1,054,969		—		—			1,054,969
Total Investments in Securities	$	29,907,267	$	—	$	—		$	29,907,267

A reconciliation of Level 3 investments, including certain disclosures related to significant inputs used in valuing Level 3 investments is only presented when the Fund has over 1% of Level 3 investments at the end of the period in relation to net assets.

The accompanying notes are an integral part of the financial statements.

137

Schedule of Investments March 31, 2023

KraneShares MSCI Emerging Markets ex China Index ETF (concluded)

‡‡

Security or securities with a market value of $0.

Amounts designated as “—” are $0 or have been rounded to $0.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

138

Schedule of Investments March 31, 2023

KraneShares MSCI China ESG Leaders Index ETF

	Shares		Value
COMMON STOCK — 99.9%^‡
CHINA — 99.0%
Communication Services — 18.4%
37 Interactive Entertainment Network Technology Group, Cl A		900	$	3,728
Baidu, Cl A*		12,000		227,314
China Ruyi Holdings*		40,000		10,446
NetEase		13,000		228,536
Tencent Holdings		9,100		447,236
				917,260
Consumer Discretionary — 30.5%
Alibaba Group Holding*		34,936		446,828
BYD, Cl A		801		29,862
BYD, Cl H		6,000		175,644
Li Auto, Cl A*		7,600		94,880
Meituan, Cl B*		25,070		458,289
Pop Mart International Group		3,800		10,359
Tongcheng Travel Holdings*		8,400		18,277
Vipshop Holdings ADR*		2,734		41,502
XPeng, Cl A*		5,900		32,882
Yadea Group Holdings		10,000		25,796
Yum China Holdings		2,896		183,578
				1,517,897
Consumer Staples — 4.0%
Alibaba Health Information Technology*		12,000		8,683
Angel Yeast, Cl A		300		1,824
Anjoy Foods Group, Cl A		200		4,765
By-health, Cl A		700		2,176
China Feihe		25,000		18,758
China Mengniu Dairy		22,000		90,243
Dali Foods Group		14,000		5,850
Henan Shuanghui Investment & Development, Cl A		1,400		5,288

The accompanying notes are an integral part of the financial statements.

139

Schedule of Investments March 31, 2023

KraneShares MSCI China ESG Leaders Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Consumer Staples (continued)
Inner Mongolia Yili Industrial Group, Cl A		2,600	$	11,025
Jonjee Hi-Tech Industrial And Commercial Holding, Cl A		300		1,621
Ping An Healthcare and Technology*		3,500		8,855
Uni-President China Holdings		9,000		9,080
Want Want China Holdings		33,000		21,229
Yihai International Holding		3,000		8,809
				198,206
Financials — 14.0%
China Construction Bank, Cl H		676,000		438,326
China Merchants Bank, Cl A		8,600		42,917
China Merchants Bank, Cl H		27,500		140,479
Far East Horizon		11,000		9,893
Huatai Securities, Cl A		3,000		5,579
Huatai Securities, Cl H		11,000		12,569
Orient Securities, Cl A		3,100		4,419
Postal Savings Bank of China, Cl A		11,100		7,516
Postal Savings Bank of China, Cl H		56,000		33,244
				694,942
Health Care — 9.4%
3SBio		10,500		10,460
China Medical System Holdings		9,000		14,216
China Resources Sanjiu Medical & Pharmaceutical, Cl A		400		3,346
CSPC Pharmaceutical Group		63,800		62,744
Genscript Biotech*		8,000		17,121
Guangzhou Baiyunshan Pharmaceutical Holdings, Cl A		600		2,890
Guangzhou Kingmed Diagnostics Group, Cl A		200		2,566
Hansoh Pharmaceutical Group		8,000		13,901
Huadong Medicine, Cl A		700		4,724
Jafron Biomedical, Cl A		300		1,326
Joincare Pharmaceutical Group Industry, Cl A		800		1,534
Livzon Pharmaceutical Group, Cl A		200		1,089
Microport Scientific*		4,500		10,582
Ovctek China, Cl A		380		1,833
Pharmaron Beijing, Cl A		350		2,496
Pharmaron Beijing, Cl H		1,350		5,667
Shandong Weigao Group Medical Polymer, Cl H		18,000		28,754
Shanghai Fosun Pharmaceutical Group, Cl A		900		4,245
Shanghai Fosun Pharmaceutical Group, Cl H		3,500		9,943
Shanghai Pharmaceuticals Holding, Cl A		1,200		3,559
Shanghai Pharmaceuticals Holding, Cl H		5,500		10,257
Shenzhen Mindray Bio-Medical Electronics, Cl A		500		22,695
Sinopharm Group, Cl H		9,600		29,045
Topchoice Medical, Cl A*		200		3,765
WuXi AppTec, Cl A		1,120		12,966

The accompanying notes are an integral part of the financial statements.

140

Schedule of Investments March 31, 2023

KraneShares MSCI China ESG Leaders Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Health Care (continued)
WuXi AppTec, Cl H		2,500	$	26,178
Wuxi Biologics Cayman*		25,000		154,778
Yunnan Baiyao Group, Cl A		720		5,735
Zhejiang Jiuzhou Pharmaceutical, Cl A		300		1,454
				469,869
Industrials — 9.3%
Air China, Cl A*		3,100		4,830
Air China, Cl H*		14,000		12,520
Beijing Capital International Airport, Cl H*		14,000		10,308
Beijing Easpring Material Technology, Cl A		300		2,513
BOC Aviation		1,500		11,589
China Baoan Group, Cl A		1,100		1,821
China Communications Services, Cl H		16,000		7,868
China Conch Venture Holdings		11,500		20,070
China Eastern Airlines, Cl A*		4,700		3,525
China Everbright Environment Group		26,000		11,162
China Lesso Group Holdings		8,000		7,154
China Southern Airlines, Cl A*		4,600		5,272
China Southern Airlines, Cl H*		14,000		9,987
CITIC		41,000		47,947
Contemporary Amperex Technology, Cl A		1,000		59,128
COSCO SHIPPING Holdings, Cl A		5,300		8,513
COSCO SHIPPING Holdings, Cl H		22,000		24,747
Fosun International		17,000		12,474
Jiangsu Expressway, Cl H		8,000		7,460
Jiangsu Zhongtian Technology, Cl A		1,400		3,484
Keda Industrial Group, Cl A		800		1,681
Ming Yang Smart Energy Group, Cl A		900		2,950
SF Holding, Cl A		2,000		16,129
Shanghai Electric Group, Cl A*		5,300		3,411
Shanghai M&G Stationery, Cl A		400		2,860
Shenzhen Inovance Technology, Cl A		1,150		11,772
Shenzhen International Holdings		9,913		8,764
Sungrow Power Supply, Cl A		600		9,162
Titan Wind Energy Suzhou, Cl A		800		1,719
Weichai Power, Cl A		2,800		5,141
Weichai Power, Cl H		14,000		22,472
Xinjiang Goldwind Science & Technology, Cl A		1,400		2,251
Zhejiang Chint Electrics, Cl A		900		3,666
Zhejiang Expressway, Cl H		10,000		7,949
Zhejiang Weixing New Building Materials, Cl A		700		2,478
Zoomlion Heavy Industry Science and Technology, Cl A		2,900		2,622
ZTO Express Cayman ADR		2,987		85,607
				463,006

The accompanying notes are an integral part of the financial statements.

141

Schedule of Investments March 31, 2023

KraneShares MSCI China ESG Leaders Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Information Technology — 2.9%
AAC Technologies Holdings*		5,000	$	12,331
Kingdee International Software Group*		19,000		30,787
Lenovo Group		50,000		54,141
Unisplendour, Cl A		1,151		4,909
Xinyi Solar Holdings		34,000		40,757
				142,925
Materials — 1.8%
BBMG, Cl A		3,500		1,249
Chengtun Mining Group, Cl A		1,300		1,083
Chengxin Lithium Group, Cl A		300		1,508
China Jushi, Cl A		1,686		3,587
China Resources Cement Holdings		16,000		7,847
CMOC Group, Cl A		7,500		6,542
CMOC Group, Cl H		24,000		14,522
Ganfeng Lithium Group, Cl A		640		6,195
Ganfeng Lithium Group, Cl H		2,480		15,417
GEM, Cl A		2,100		2,284
Huaxin Cement, Cl A		600		1,359
Jiangsu Eastern Shenghong, Cl A		1,700		3,372
Shandong Nanshan Aluminum, Cl A		4,900		2,419
Shanghai Putailai New Energy Technology, Cl A		600		4,361
Sichuan Yahua Industrial Group, Cl A		400		1,233
Sinopec Shanghai Petrochemical, Cl A		3,000		1,472
Skshu Paint, Cl A*		240		4,068
Yunnan Energy New Material, Cl A		400		6,630
Zhejiang Huayou Cobalt, Cl A		680		5,446
Zhejiang Yongtai Technology, Cl A		300		914
				91,508
Real Estate — 5.8%
China Overseas Land & Investment		26,500		64,006
China Resources Land		22,000		100,332
China Resources Mixc Lifestyle Services		4,600		24,172
China Vanke, Cl A		4,000		8,877
China Vanke, Cl H		11,900		18,767
Country Garden Services Holdings		15,000		25,949
Greentown Service Group		10,000		6,319
Longfor Group Holdings		13,000		36,682
Shimao Group Holdings*^(A)		12,500		1,601
				286,705
Utilities — 2.9%
Beijing Enterprises Water Group		28,000		6,991
CECEP Solar Energy, Cl A		1,600		1,596
CECEP Wind-Power, Cl A		2,700		1,521

The accompanying notes are an integral part of the financial statements.

142

Schedule of Investments March 31, 2023

KraneShares MSCI China ESG Leaders Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Utilities (continued)
China Resources Gas Group		6,500	$	23,972
China Three Gorges Renewables Group, Cl A		11,900		9,496
ENN Energy Holdings		5,600		76,760
ENN Natural Gas, Cl A		1,100		3,340
Kunlun Energy		26,000		20,336
				144,012
TOTAL CHINA				4,926,330

HONG KONG — 0.9%
Consumer Staples — 0.1%
Vinda International Holdings		3,000		7,254

Health Care — 0.8%
Sino Biopharmaceutical		73,000		40,917
TOTAL HONG KONG				48,171

TOTAL COMMON STOCK (Cost $5,874,589)				4,974,501

TOTAL INVESTMENTS — 99.9% (Cost $5,874,589)				4,974,501
OTHER ASSETS LESS LIABILITIES – 0.1%				2,970
NET ASSETS - 100%			$	4,977,471

	‡	Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.
	*	Non-income producing security.
	(A)	Level 3 security in accordance with fair value hierarchy.

The accompanying notes are an integral part of the financial statements.

143

Schedule of Investments March 31, 2023

KraneShares MSCI China ESG Leaders Index ETF (concluded)

The following summarizes the market value of the Fund’s investments used as of March 31, 2023, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3^		Total
Common Stock
China
Communication Services	$	917,260	$	—	$	—	$	917,260
Consumer Discretionary		1,517,897		—		—		1,517,897
Consumer Staples		198,206		—		—		198,206
Financials		694,942		—		—		694,942
Health Care		469,869		—		—		469,869
Industrials		463,006		—		—		463,006
Information Technology		142,925		—		—		142,925
Materials		91,508		—		—		91,508
Real Estate		285,104		—		1,601		286,705
Utilities		144,012		—		—		144,012
Hong Kong		48,171		—		—		48,171
Total Common Stock		4,972,900		—		1,601		4,974,501
Total Investments in Securities	$	4,972,900	$	—	$	1,601	$	4,974,501

Amounts designated as “ —” are $0 or have been rounded to $0.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

144

Schedule of Investments March 31, 2023

KraneShares CICC China 5G & Semiconductor Index ETF

	Shares		Value
COMMON STOCK — 100.0%^‡
CHINA — 100.0%
Industrials — 3.5%
Ginlong Technologies, Cl A*		13,700	$	266,487
Suzhou Maxwell Technologies, Cl A		6,000		266,480
				532,967
Information Technology — 96.5%
Advanced Micro-Fabrication Equipment China, Cl A*		19,332		415,253
Avary Holding Shenzhen, Cl A		84,585		382,076
BOE Technology Group, Cl A		1,299,230		840,007
Chaozhou Three-Circle Group, Cl A		64,664		283,428
China Resources Microelectronics, Cl A		45,269		398,550
China Zhenhua Group Science & Technology, Cl A		18,000		236,058
Foxconn Industrial Internet, Cl A		632,174		1,585,199
GigaDevice Semiconductor, Cl A		23,000		408,603
GoerTek, Cl A		121,722		379,312
Hangzhou Silan Microelectronics, Cl A		48,700		262,459
Hua Hong Semiconductor*		45,000		199,205
Luxshare Precision Industry, Cl A		250,005		1,103,440
Maxscend Microelectronics, Cl A		18,269		330,936
Montage Technology, Cl A		39,568		400,560
NAURA Technology Group, Cl A		17,118		662,680
Sanan Optoelectronics, Cl A		167,200		514,214
SG Micro, Cl A		12,400		280,238
Shenzhen Transsion Holdings, Cl A		29,332		432,251
StarPower Semiconductor, Cl A		5,929		237,037
Sunny Optical Technology Group		37,900		458,424
TCL Zhonghuan Renewable Energy Technology, Cl A		104,400		736,712
Unigroup Guoxin Microelectronics, Cl A		30,900		500,038
Will Semiconductor Shanghai, Cl A		41,906		555,913
Wingtech Technology, Cl A		43,055		346,394
Xiaomi, Cl B*		714,400		1,101,184
Yealink Network Technology, Cl A		32,380		358,395
Zhejiang Jingsheng Mechanical & Electrical, Cl A		43,220		410,909
ZTE, Cl H		254,200		744,795
				14,564,270
TOTAL CHINA				15,097,237

The accompanying notes are an integral part of the financial statements.

145

Schedule of Investments March 31, 2023

KraneShares CICC China 5G & Semiconductor Index ETF (concluded)

	Shares	Value
COMMON STOCK (continued)
Information Technology (continued)

TOTAL COMMON STOCK (Cost $17,470,076)		$	15,097,237

TOTAL INVESTMENTS — 100.0% (Cost $17,470,076)			15,097,237
OTHER ASSETS LESS LIABILITIES – 0.0%			(825	)
NET ASSETS - 100%		$	15,096,412

‡	Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.
*	Non-income producing security.

As of March 31, 2023, all of the Fund’s investments were considered Level 1 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

146

Schedule of Investments March 31, 2023

KraneShares CICC China Consumer Leaders Index ETF

	Shares		Value
COMMON STOCK — 99.9%^‡
CHINA — 99.9%
Consumer Discretionary — 38.4%
ANTA Sports Products		21,400	$	310,779
Bosideng International Holdings		84,000		46,869
DR, Cl A		9,300		72,005
Ecovacs Robotics, Cl A		4,000		48,112
Gree Electric Appliances of Zhuhai, Cl A		59,400		317,876
Haidilao International Holding*		37,000		100,160
Haier Smart Home, Cl A		91,300		301,528
Li Ning		40,000		315,416
Midea Group, Cl A		71,365		559,194
Oppein Home Group, Cl A		3,400		59,798
Shenzhen Overseas Chinese Town, Cl A		85,400		60,065
Yum China Holdings		7,750		487,315
				2,679,117
Consumer Staples — 60.7%
China Mengniu Dairy		72,000		295,339
China Resources Beer Holdings		36,000		288,919
Chongqing Brewery, Cl A		4,136		75,284
Eastroc Beverage Group, Cl A		1,800		50,433
Foshan Haitian Flavouring & Food, Cl A		25,856		288,180
Henan Shuanghui Investment & Development, Cl A		22,935		86,633
Hengan International Group		14,500		67,051
Inner Mongolia Yili Industrial Group, Cl A		74,700		316,757
Jiangsu Yanghe Brewery JSC, Cl A		11,417		275,080
Kweichow Moutai, Cl A		2,700		715,565
Luzhou Laojiao, Cl A		11,300		419,252
Proya Cosmetics, Cl A		2,800		74,145
Shanghai Flyco Electrical Appliance, Cl A		9,717		116,989
Shanxi Xinghuacun Fen Wine Factory, Cl A		7,800		309,397
Tsingtao Brewery, Cl H		14,000		152,842
Want Want China Holdings		106,000		68,192
Wuliangye Yibin, Cl A		22,000		631,107
				4,231,165

The accompanying notes are an integral part of the financial statements.

147

Schedule of Investments March 31, 2023

KraneShares CICC China Consumer Leaders Index ETF (concluded)

	Shares		Value
COMMON STOCK (continued)
Real Estate — 0.8%
Youngor Group, Cl A		57,600	$	54,687
TOTAL CHINA				6,964,969

TOTAL COMMON STOCK (Cost $6,867,158)				6,964,969

TOTAL INVESTMENTS — 99.9% (Cost $6,867,158)				6,964,969
OTHER ASSETS LESS LIABILITIES – 0.1%				4,865
NET ASSETS - 100%			$	6,969,834

	‡	Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.
	*	Non-income producing security.

As of March 31, 2023, all of the Fund’s investments were considered Level 1 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

148

Schedule of Investments March 31, 2023

KraneShares SSE STAR Market 50 Index ETF

	Shares		Value
COMMON STOCK — 99.7%^‡
CHINA — 99.7%
Consumer Discretionary — 4.5%
Beijing Roborock Technology, Cl A		20,369	$	1,082,610
Ninebot GDR*		155,726		853,542
Tianneng Battery Group, Cl A		49,318		247,477
				2,183,629
Health Care — 5.7%
Bloomage Biotechnology, Cl A		35,069		579,096
iRay Technology, Cl A		13,171		693,964
Nanjing Vazyme Biotech, Cl A		13,047		77,135
Shanghai Junshi Biosciences, Cl A*		138,980		972,231
Shanghai United Imaging Healthcare, Cl A*		17,919		402,462
				2,724,888
Industrials — 10.1%
GoodWe Technologies, Cl A		26,988		1,137,535
Hoymiles Power Electronics, Cl A		6,168		597,947
Ningbo Ronbay New Energy Technology, Cl A		98,480		980,885
Pylon Technologies, Cl A		31,835		1,138,073
Sany Heavy Energy, Cl A*		51,960		237,279
Zhuhai CosMX Battery, Cl A		40,654		111,532
Zhuzhou CRRC Times Electric, Cl A		94,891		659,662
				4,862,913
Information Technology — 71.4%
3peak, Cl A		21,676		768,559
ACM Research Shanghai, Cl A*		14,124		197,217
Advanced Micro-Fabrication Equipment China, Cl A*		157,030		3,373,014
Amlogic Shanghai, Cl A*		105,367		1,290,678
ASR Microelectronics, Cl A*		13,642		151,591
Beijing Kingsoft Office Software, Cl A		67,158		4,625,651
Cambricon Technologies, Cl A*		72,953		1,975,392
China Railway Signal & Communication, Cl A		941,480		743,061
China Resources Microelectronics, Cl A		192,219		1,692,304
Everdisplay Optronics Shanghai, Cl A*		1,510,023		565,107
GalaxyCore, Cl A*		108,666		278,022
Guobo Electronics, Cl A		11,649		148,596
Hygon Information Technology, Cl A*		75,808		851,878

The accompanying notes are an integral part of the financial statements.

149

Schedule of Investments March 31, 2023

KraneShares SSE STAR Market 50 Index ETF (concluded)

	Shares		Value
COMMON STOCK (continued)
Information Technology (continued)
Jinko Solar, Cl A		546,038	$	1,107,613
Loongson Technology, Cl A*		11,678		249,314
Montage Technology, Cl A		288,876		2,924,389
National Silicon Industry Group, Cl A*		397,757		1,354,759
Qi An Xin Technology Group, Cl A*		99,319		1,009,489
Shanghai Friendess Electronic Technology, Cl A		15,864		423,448
Shanghai Fudan Microelectronics Group, Cl A		96,498		919,832
Shenzhen Transsion Holdings, Cl A		117,063		1,725,099
SICC, Cl A*		14,015		149,246
Suzhou Novosense Microelectronics, Cl A		11,009		466,135
Trina Solar, Cl A		394,844		2,994,980
Verisilicon Microelectronics Shanghai, Cl A*		90,597		1,278,355
Xinjiang Daqo New Energy, Cl A		108,929		771,368
Yuneng Technology*		8,737		422,480
Zhejiang Supcon Technology, Cl A		126,599		1,914,480
				34,372,057
Materials — 8.0%
Cathay Biotech, Cl A		63,410		569,803
Hunan Changyuan Lico, Cl A		279,647		611,637
Jiangsu Cnano Technology, Cl A		67,630		666,915
Suzhou Nanomicro Technology, Cl A		58,441		425,247
Western Superconducting Technologies, Cl A		118,247		1,403,853
Zhongfu Shenying Carbon Fiber, Cl A*		26,093		146,892
				3,824,347
TOTAL CHINA				47,967,834

TOTAL COMMON STOCK (Cost $52,333,165)				47,967,834

TOTAL INVESTMENTS — 99.7% (Cost $52,333,165)				47,967,834
OTHER ASSETS LESS LIABILITIES – 0.3%				161,676
NET ASSETS - 100%			$	48,129,510

	‡	Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.
	*	Non-income producing security.

As of March 31, 2023, all of the Fund’s investments were considered Level 1 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

150

Schedule of Investments March 31, 2023

KraneShares Hang Seng TECH Index ETF

	Shares		Value
COMMON STOCK — 94.9%^‡
CHINA — 94.9%
Communication Services — 31.3%
Baidu, Cl A*		17,150	$	324,869
Bilibili, Cl Z*		7,860		189,843
China Literature*		14,000		72,230
Kingsoft		29,000		142,784
Kuaishou Technology, Cl B*		78,100		601,424
NetEase		18,505		325,313
Tencent Holdings		12,900		633,994
Weibo, Cl A*		140		3,085
				2,293,542
Consumer Discretionary — 34.7%
Alibaba Group Holding*		51,600		659,958
Haier Smart Home, Cl H		74,026		232,924
JD.com, Cl A		16,110		352,975
Li Auto, Cl A*		26,200		327,085
Meituan, Cl B*		34,580		632,135
NIO, Cl A*		1,530		15,505
Trip.com Group*		3,100		116,024
XPeng, Cl A*		36,500		203,425
				2,540,031
Consumer Staples — 5.6%
Alibaba Health Information Technology*		164,000		118,666
JD Health International*		33,700		250,712
Ping An Healthcare and Technology*		15,300		38,708
				408,086
Financials — 1.1%
ZhongAn Online P&C Insurance, Cl H*		25,800		81,344

Information Technology — 22.2%
AAC Technologies Holdings*		22,000		54,258
BYD Electronic International		24,000		74,599
GDS Holdings, Cl A*		11,600		28,077
Hua Hong Semiconductor*		20,000		88,535

The accompanying notes are an integral part of the financial statements.

151

Schedule of Investments March 31, 2023

KraneShares Hang Seng TECH Index ETF (concluded)

	Shares		Value
COMMON STOCK (continued)
Information Technology (continued)
Kingdee International Software Group*		85,000	$	137,733
Lenovo Group		222,000		240,384
SenseTime Group, Cl B*		508,000		172,139
Sunny Optical Technology Group		21,640		261,749
Xiaomi, Cl B*		365,600		563,540
				1,621,014
TOTAL CHINA				6,944,017

TOTAL COMMON STOCK (Cost $6,130,779)				6,944,017

TOTAL INVESTMENTS — 94.9% (Cost $6,130,779)				6,944,017
OTHER ASSETS LESS LIABILITIES – 5.1%				370,788
NET ASSETS - 100%			$	7,314,805

	‡	Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.
	*	Non-income producing security.

As of March 31, 2023, all of the Fund’s investments were considered Level 1 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

152

Schedule of Investments March 31, 2023

KraneShares China Innovation ETF

	Shares		Value
EXCHANGE - TRADED FUNDS — 100.0%
KraneShares CICC China 5G and Semiconductor Index ETF^‡		14,816	$	262,320
KraneShares CSI China Internet ETF*^‡		15,155		472,684
KraneShares MSCI All China Health Care Index ETF^‡		17,947		368,272
KraneShares MSCI China Clean Technology Index ETF^‡		11,210		320,491
KraneShares SSE STAR Market 50 Index ETF*^‡		10,161		172,534
TOTAL EXCHANGE - TRADED FUNDS (Cost $2,325,788)				1,596,301

TOTAL INVESTMENTS — 100.0% (Cost $2,325,788)				1,596,301
OTHER ASSETS LESS LIABILITIES – 0.0%				758
NET ASSETS - 100%			$	1,597,059

	*	Non-income producing security.
	‡	Affiliated Investment.

As of March 31, 2023, all of the Fund’s investments were considered Level 1 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.

Transactions with affiliated companies during the period ended March 31, 2023 are as follows:

Value as of 3/31/2022		Purchases at Cost		Proceeds from Sale			Change in Unrealized Appreciation (Depreciation)			Realized Gain/(Loss)			Value as of 3/31/2023		Dividend Income		Capital Gain Distributions
KraneShares CICC China 5G and Semiconductor Index ETF
$	433,558	$	16,145	$	(155,765	)	$	(22,438	)	$	(9,180	)	$	262,320	$	816	$	—
KraneShares CSI China Internet ETF
	759,535		9,011		(383,427	)		126,216			(38,651	)		472,684		—		—
KraneShares MSCI All China Health Care Index ETF
	696,488		9,033		(280,489	)		3,581			(60,341	)		368,272		217		—
KraneShares MSCI China Clean Technology Index ETF
	603,644		40,705		(282,187	)		(70,724	)		29,053			320,491		1,029		4,378
KraneShares SSE STAR Market 50 Index ETF
	296,468		9,020		(111,235	)		(13,550	)		(8,169	)		172,534		—		—
$	2,789,693	$	83,914	$	(1,213,103	)	$	23,085		$	(87,288	)	$	1,596,301	$	2,062	$	4,378

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

153

Schedule of Investments March 31, 2023

KraneShares S&P Pan Asia Dividend Aristocrats Index ETF

	Shares		Value
COMMON STOCK — 99.2%^‡
AUSTRALIA — 15.4%
Communication Services — 1.1%
carsales.com		1,983	$	29,391

Consumer Discretionary — 3.1%
JB Hi-Fi		2,910		82,773

Financials — 1.2%
Steadfast Group		8,108		31,768

Health Care — 2.9%
EBOS Group		1,024		29,791
Sonic Healthcare		1,972		46,015
				75,806
Information Technology — 1.2%
Altium		664		16,935
Technology One		1,480		14,412
				31,347
Materials — 2.2%
Brickworks		2,187		33,177
Northern Star Resources		2,920		24,074
				57,251
Real Estate — 1.4%
Charter Hall Group^†		4,871		35,886

Utilities — 2.3%
APA Group		8,861		60,059
TOTAL AUSTRALIA				404,281

The accompanying notes are an integral part of the financial statements.

154

Schedule of Investments March 31, 2023

KraneShares S&P Pan Asia Dividend Aristocrats Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
CHINA — 26.6%
Consumer Discretionary — 2.3%
Bosideng International Holdings		110,000	$	61,376

Financials — 5.9%
New China Life Insurance, Cl H		40,300		95,797
Ping An Insurance Group of China, Cl H		9,000		58,586
				154,383
Health Care — 5.9%
China Medical System Holdings		37,000		58,446
CSPC Pharmaceutical Group		26,000		25,570
Sinopharm Group, Cl H		23,200		70,191
				154,207
Real Estate — 5.2%
China Resources Land		12,000		54,726
Longfor Group Holdings		29,000		81,829
				136,555
Utilities — 7.3%
China Gas Holdings		40,400		56,921
China Resources Gas Group		13,000		47,943
Guangdong Investment		86,000		87,972
				192,836
TOTAL CHINA				699,357

HONG KONG — 10.8%
Financials — 0.8%
AIA Group		2,000		21,058

Industrials — 0.8%
Techtronic Industries		2,000		21,618

Real Estate — 4.2%
Link REIT^†		8,300		53,395
Swire Properties		22,000		56,612
				110,007
Utilities — 5.0%
CK Infrastructure Holdings		14,000		76,153
Hong Kong & China Gas		61,000		53,696
				129,849
TOTAL HONG KONG				282,532

The accompanying notes are an integral part of the financial statements.

155

Schedule of Investments March 31, 2023

KraneShares S&P Pan Asia Dividend Aristocrats Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
INDIA — 1.0%
Information Technology — 1.0%
Infosys ADR		1,454	$	25,358
TOTAL INDIA				25,358

INDONESIA — 0.9%
Financials — 0.9%
Bank Central Asia		42,600		24,859
TOTAL INDONESIA				24,859

JAPAN — 31.0%
Communication Services — 1.9%
Hakuhodo DY Holdings		1,100		12,356
KDDI		600		18,452
Nippon Telegraph & Telephone		600		17,862
				48,670
Consumer Discretionary — 4.2%
Fujitsu General		100		2,806
Hikari Tsushin		100		13,953
Open House Group		400		14,877
Rinnai		300		7,292
Sekisui Chemical		1,100		15,505
Sekisui House		1,200		24,327
Seria		500		9,851
TS Tech		1,800		22,708
				111,319
Consumer Staples — 3.8%
Asahi Group Holdings		400		14,799
Kao		300		11,647
Lion		700		7,526
Morinaga		400		11,286
Seven & i Holdings		300		13,468
Sundrug		500		13,656
Takara Holdings		2,000		15,358
Welcia Holdings		200		4,259
Yakult Honsha		100		7,236
				99,235
Financials — 3.2%
Chiba Bank		1,900		12,206
SBI Holdings		1,400		27,602
Tokio Marine Holdings		900		17,224
Tokyo Century		400		13,239

The accompanying notes are an integral part of the financial statements.

156

Schedule of Investments March 31, 2023

KraneShares S&P Pan Asia Dividend Aristocrats Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Financials (continued)
Zenkoku Hosho		400	$	15,013
				85,284
Health Care — 2.8%
Alfresa Holdings		1,400		17,841
Astellas Pharma		1,100		15,563
Mani		600		8,142
Medipal Holdings		1,000		13,555
Shionogi		200		8,982
Ship Healthcare Holdings		400		7,324
Terumo		100		2,685
				74,092
Industrials — 3.7%
Benefit One		600		8,457
COMSYS Holdings		1,200		22,027
EXEO Group		1,300		23,413
Kurita Water Industries		200		9,077
Sanwa Holdings		2,100		22,343
SHO-BOND Holdings		300		12,353
				97,670
Information Technology — 3.7%
Azbil		300		8,137
Itochu Techno-Solutions		500		12,228
Murata Manufacturing		200		12,082
NEC Networks & System Integration		1,000		12,135
Nomura Research Institute		200		4,606
NTT Data		300		3,904
Oracle Japan NIP		200		14,321
Otsuka		400		14,081
SCSK		800		11,631
TIS		200		5,245
				98,370
Materials — 2.0%
Nippon Sanso Holdings		600		10,739
Nissan Chemical		300		13,502
Nitto Denko		200		12,848
Shin-Etsu Chemical		500		16,061
				53,150
Real Estate — 5.1%
Aeon Mall		1,000		13,051
Hulic		2,400		19,602
Japan Metropolitan Fund Invest^†		29		21,071
Japan Real Estate Investment^†		5		19,836

The accompanying notes are an integral part of the financial statements.

157

Schedule of Investments March 31, 2023

KraneShares S&P Pan Asia Dividend Aristocrats Index ETF (continued)

	Shares		Value
COMMON STOCK (continued)
Real Estate (continued)
Mori Hills REIT Investment^†		18	$	19,962
Nomura Real Estate Holdings		900		19,814
Tokyo Tatemono		1,600		19,415
				132,751
Utilities — 0.6%
Nippon Gas		1,000		14,456
TOTAL JAPAN				814,997

NEW ZEALAND — 1.1%
Health Care — 1.1%
Fisher & Paykel Healthcare		1,729		28,829
TOTAL NEW ZEALAND				28,829

PHILIPPINES — 1.6%
Industrials — 1.6%
International Container Terminal Services		10,690		41,962
TOTAL PHILIPPINES				41,962

TAIWAN — 9.2%
Financials — 1.1%
Chailease Holding		4,000		29,362

Information Technology — 8.1%
Advantech		3,000		36,555
Sinbon Electronics		4,000		44,930
Wistron		96,000		131,951
				213,436
TOTAL TAIWAN				242,798

THAILAND — 0.7%
Financials — 0.7%
Krungthai Card		12,300		19,514
TOTAL THAILAND				19,514

UNITED STATES — 0.9%
Information Technology — 0.9%
Computershare		1,602		23,165
TOTAL UNITED STATES				23,165

TOTAL COMMON STOCK (Cost $2,497,865)				2,607,652

TOTAL INVESTMENTS — 99.2% (Cost $2,497,865)				2,607,652
OTHER ASSETS LESS LIABILITIES – 0.8%				21,278
NET ASSETS - 100%			$	2,628,930

The accompanying notes are an integral part of the financial statements.

158

Schedule of Investments March 31, 2023

KraneShares S&P Pan Asia Dividend Aristocrats Index ETF (concluded)

	‡	Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.
	†	Real Estate Investment Trust

As of March 31, 2023, all of the Fund’s investments were considered Level 1 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

159

Schedule of Investments March 31, 2023

KraneShares China Internet and Covered Call Strategy ETF

	Shares		Value
EXCHANGE - TRADED FUND — 106.2%
KraneShares CSI China Internet ETF*^‡		180,912	$	5,642,645
TOTAL EXCHANGE - TRADED FUND (Cost $5,970,676)				5,642,645

TOTAL INVESTMENTS — 106.2% (Cost $5,970,676)				5,642,645
OTHER ASSETS LESS LIABILITIES – (6.2)%				(328,661	)
NET ASSETS - 100%			$	5,313,984
WRITTEN OPTIONS — (10.3)% (Premiums Received $(347,588))			$	(547,635	)

	*	Non-income producing security.
	‡	Affiliated Investment.

Description	Number of Contracts			Notional Amount			Exercise Price		Expiration Date	Market Value
WRITTEN OPTIONS — (10.3)%
Call Options
KWEB US		(1,452	)		(4,528,788	)	$	28.50	04/22/23	$	(454,955	)
KWEB US		(186	)		(580,134	)	$	28.67	04/22/23		(55,744	)
KWEB US		(171	)		(533,349	)	$	31.19	05/20/23		(36,936	)
Total Written Options (Premiums Received $347,588)											(547,635	)

As of March 31, 2023, all of the Fund’s investments were considered Level 1 of the fair value hierarchy, in accordance with the authoritative guidance under U.S. GAAP.

Transactions with affiliated companies during the period ended March 31, 2023 are as follows:

Value as of 1/12/2023		Purchases at Cost		Proceeds from Sale			Change in Unrealized Appreciation/ (Depreciation)			Realized Gain/(Loss)		Value as of 3/31/2023		Dividend Income		Capital Gain Distributions
KraneShares CSI China Internet ETF
$	—	$	5,994,799	$	(24,299	)	$	(328,031	)	$	176	$	5,642,645	$	—	$	—

See “Glossary” for abbreviations.

The accompanying notes are an integral part of the financial statements.

160

Schedule of Investments March 31, 2023

Glossary (abbreviations which may be used in preceding Schedule of Investments):

Fund Abbreviations

ADR — American Depositary Receipt

Cl — Class

ETF — Exchange-Traded Fund

GDR — Global Depositary Receipt

JSC — Joint-Stock Company

MTN — Medium Term Note

PJSC — Public Joint-Stock Company

161

Statements of Assets and Liabilities

March 31, 2023

		KraneShares CICC China Leaders 100 Index ETF			KraneShares CSI China Internet ETF			KraneShares Bosera MSCI China A 50 Connect Index ETF
Assets:
Investments at Value		$	5,964,900		$	6,141,887,821	*	$	470,173,092
Cash and Cash Equivalents			3,143			3,202,209			231,436
Foreign Currency at Value			5			—			7,199,092
Receivable for Capital Shares Sold			—			—			11,178
Receivable for Investment Securities Sold			—			—			4,989
Dividend and Interest Receivable			—			1,455,205			—
Total Assets			5,968,048			6,146,545,235			477,619,787

Liabilities:
Payable for Management Fees			3,430			3,428,609			220,664
Payable for Trustees’ Fee			43			45,427			3,434
Payable for Investment Securities Purchased			—			—			780
Obligation to Return Securities Lending Collateral			—			31,393,462			—
Payable for Capital Shares Redeemed			—			—			6,521,842
Payable for Securities Lending Fees			—			8,349			—
Total Liabilities			3,473			34,875,847			6,746,720
Net Assets		$	5,964,575		$	6,111,669,388		$	470,873,067

Net Assets Consist of:
Paid-in Capital		$	7,229,529		$	11,449,252,623		$	638,410,630
Total Distributable Loss			(1,264,954	)		(5,337,583,235	)		(167,537,563	)
Net Assets		$	5,964,575		$	6,111,669,388		$	470,873,067
Outstanding Shares of Beneficial Interest (unlimited authorization - no par value)			250,000			195,600,000			18,050,000
Net Asset Value, Offering and Redemption Price Per Share		$	23.86		$	31.25		$	26.09
Cost of Investments		$	5,950,237		$	7,161,788,151		$	530,344,133
Cost of Foreign Currency			5			—			7,186,781
	*Includes Market Value of Securities on Loan		—			29,815,441			—

Includes Market Value of Securities on Loan.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

162

Statements of Assets and Liabilities (continued)

March 31, 2023

	KraneShares Bloomberg China Bond Inclusion Index ETF			KraneShares MSCI All China Index ETF			KraneShares MSCI One Belt One Road Index ETF
Assets:
Investments at Value	$	7,491,137		$	8,779,154		$	4,449,669
Cash and Cash Equivalents		630,583			10,124			32,647
Foreign Currency at Value		12,110			39			1,337
Receivable for Investment Securities Sold		2,913,221			—			—
Dividend and Interest Receivable		109,431			302			6,834
Reclaim Receivable		—			79			92
Receivable from Adviser		—			7,295			—
Other Receivable		—			1,083			—
Total Assets		11,156,482			8,798,076			4,490,579

Liabilities:
Unrealized Depreciation on Spot Contracts		6,731			—			1
Payable for Management Fees		4,524			3,492			2,989
Payable for Trustees’ Fee		79			63			33
Payable for Foreign Capital Gains Tax		—			—			2,323
Total Liabilities		11,334			3,555			5,346
Net Assets	$	11,145,148		$	8,794,521		$	4,485,233

Net Assets Consist of:
Paid-in Capital	$	11,465,755		$	15,893,905		$	8,878,840
Total Distributable Loss		(320,607	)		(7,099,384	)		(4,393,607	)
Net Assets	$	11,145,148		$	8,794,521		$	4,485,233
Outstanding Shares of Beneficial Interest (unlimited authorization - no par value)		350,000			400,000			200,002
Net Asset Value, Offering and Redemption Price Per Share	$	31.84		$	21.99		$	22.43
Cost of Investments	$	7,781,818		$	10,372,666		$	5,509,961
Cost of Foreign Currency		12,091			39			1,332

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

163

Statements of Assets and Liabilities (continued)

March 31, 2023

		KraneShares Emerging Markets Consumer Technology Index ETF			KraneShares MSCI China Clean Technology Index ETF			KraneShares Electric Vehicles and Future Mobility Index ETF
Assets:
Investments at Value		$	31,212,210	*	$	95,644,284		$	192,562,013	*
Cash and Cash Equivalents			33,114			27,874			498,971
Foreign Currency at Value			56			59			73,766
Dividend and Interest Receivable			20,780			—			189,351
Reclaim Receivable			5,968			—			323,433
Unrealized Appreciation on Spot Contracts			—			—			45
Total Assets			31,272,128			95,672,217			193,647,579

Liabilities:
Obligation to Return Securities Lending Collateral			696,591			—			8,431,059
Payable for Management Fees			13,436			60,982			105,027
Payable for Securities Lending Fees			309			—			4,364
Payable for Trustees’ Fee			219			694			1,389
Total Liabilities			710,555			61,676			8,541,839
Net Assets		$	30,561,573		$	95,610,541		$	185,105,740

Net Assets Consist of:
Paid-in Capital		$	85,729,026		$	168,044,502		$	282,812,711
Total Distributable Loss			(55,167,453	)		(72,433,961	)		(97,706,971	)
Net Assets		$	30,561,573		$	95,610,541		$	185,105,740
Outstanding Shares of Beneficial Interest (unlimited authorization - no par value)			2,000,002			3,350,002			6,050,002
Net Asset Value, Offering and Redemption Price Per Share		$	15.28		$	28.54		$	30.60
Cost of Investments		$	46,013,651		$	125,747,403		$	233,360,715
Cost of Foreign Currency			55			57			60,217
	*Includes Market Value of Securities on Loan		632,846			—			8,113,787

Includes Market Value of Securities on Loan.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

164

Statements of Assets and Liabilities (continued)

March 31, 2023

	KraneShares MSCI All China Health Care Index ETF			KraneShares Asia Pacific High Income Bond ETF			KraneShares Emerging Markets Healthcare Index ETF
Assets:
Investments at Value	$	94,526,282		$	18,863,415		$	2,095,244
Cash and Cash Equivalents		17,842			1,427,814			4,417
Foreign Currency at Value		73			383			—
Dividend and Interest Receivable		348			281,261			2,582
Total Assets		94,544,545			20,572,873			2,102,243

Liabilities:
Payable for Management Fees		51,760			11,704			1,380
Payable for Trustees’ Fee		710			146			15
Payable for Securities Lending Fees		35			—			1
Payable for Investment Securities Purchased		—			515,750			—
Foreign Currency Payable at Value		—			—			361
Payable for Foreign Capital Gains Tax		—			—			5,416
Total Liabilities		52,505			527,600			7,173
Net Assets	$	94,492,040		$	20,045,273		$	2,095,070

Net Assets Consist of:
Paid-in Capital	$	171,477,863		$	28,615,457		$	3,759,926
Total Distributable Loss		(76,985,823	)		(8,570,184	)		(1,664,856	)
Net Assets	$	94,492,040		$	20,045,273		$	2,095,070
Outstanding Shares of Beneficial Interest (unlimited authorization - no par value)		4,550,002			750,001			100,002
Net Asset Value, Offering and Redemption Price Per Share	$	20.77		$	26.73		$	20.95
Cost of Investments	$	112,170,471		$	19,252,157		$	2,894,498
Cost of Foreign Currency		73			371			(362	)

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

165

Statements of Assets and Liabilities (continued)

March 31, 2023

	KraneShares MSCI Emerging Markets ex China Index ETF			KraneShares MSCI China ESG Leaders Index ETF			KraneShares CICC China 5G & Semiconductor Index ETF
Assets:
Investments at Value	$	29,907,267		$	4,974,501		$	15,097,237
Cash and Cash Equivalents		101,420			5,376			—
Foreign Currency at Value		15,074			—			—
Dividend and Interest Receivable		117,113			—			—
Reclaim Receivable		462			—			—
Receivable for Investment Securities Sold		—			—			230,395
Total Assets		30,141,336			4,979,877			15,327,632

Liabilities:
Payable for Foreign Capital Gains Tax		24,440			—			—
Payable for Management Fees		5,080			2,370			7,738
Payable for Trustees’ Fee		179			36			101
Unrealized Depreciation on Spot Contracts		2			—			16
Payable for Investment Securities Purchased		—			—			140,703
Payable to Custodian		—			—			82,662
Total Liabilities		29,701			2,406			231,220
Net Assets	$	30,111,635		$	4,977,471		$	15,096,412

Net Assets Consist of:
Paid-in Capital	$	35,254,875		$	8,616,093		$	29,808,217
Total Distributable Loss		(5,143,240	)		(3,638,622	)		(14,711,805	)
Net Assets	$	30,111,635		$	4,977,471		$	15,096,412
Outstanding Shares of Beneficial Interest (unlimited authorization - no par value)		1,200,002			250,000			850,002
Net Asset Value, Offering and Redemption Price Per Share	$	25.09		$	19.91		$	17.76
Cost of Investments	$	33,335,675		$	5,874,589		$	17,470,076
Cost of Foreign Currency		14,734			—			—

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

166

Statements of Assets and Liabilities (continued)

March 31, 2023

	KraneShares CICC China Consumer Leaders Index ETF			KraneShares SSE STAR Market 50 Index ETF			KraneShares Hang Seng TECH Index ETF
Assets:
Investments at Value	$	6,964,969		$	47,967,834		$	6,944,017
Cash and Cash Equivalents		57,584			37,623			17,397
Foreign Currency at Value		1			158,131			—
Receivable for Investment Securities Sold		45,515			—			357,457
Unrealized Appreciation on Spot Contracts		8			—			—
Receivable for Capital Shares Sold		—			—			25
Total Assets		7,068,077			48,163,588			7,318,896

Liabilities:
Payable for Investment Securities Purchased		94,210			—			—
Payable for Management Fees		3,982			33,746			3,978
Payable for Trustees’ Fee		51			320			51
Unrealized Depreciation on Spot Contracts		—			12			62
Total Liabilities		98,243			34,078			4,091
Net Assets	$	6,969,834		$	48,129,510		$	7,314,805

Net Assets Consist of:
Paid-in Capital	$	27,891,815		$	73,645,379		$	11,206,977
Total Distributable Loss		(20,921,981	)		(25,515,869	)		(3,892,172	)
Net Assets	$	6,969,834		$	48,129,510		$	7,314,805
Outstanding Shares of Beneficial Interest (unlimited authorization - no par value)		350,002			2,850,000			550,002
Net Asset Value, Offering and Redemption Price Per Share	$	19.91		$	16.89		$	13.30
Cost of Investments	$	6,867,158		$	52,333,165		$	6,130,779
Cost of Foreign Currency		1			158,352			—

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

167

Statements of Assets and Liabilities (concluded)

March 31, 2023

	KraneShares China Innovation ETF			KraneShares S&P Pan Asia Dividend Aristocrats Index ETF		KraneShares China Internet and Covered Call Strategy ETF
Assets:
Investments at Value	$	1,596,301		$	2,607,652	$	5,642,645
Cash and Cash Equivalents		926			11,017		185,004
Foreign Currency at Value		—			620		—
Receivable for Capital Shares Sold		—			—		531,924
Receivable for Investment Securities Sold		—			—		36,418
Dividend and Interest Receivable		—			11,157		—
Unrealized Appreciation on Spot Contracts		—			1		—
Total Assets		1,597,227			2,630,447		6,395,991

Liabilities:
Written Options at Value		—			—		547,635
Payable for Management Fees		157			1,498		990
Payable for Trustees’ Fee		11			19		33
Payable for Investment Securities Purchased		—			—		533,349
Total Liabilities		168			1,517		1,082,007
Net Assets	$	1,597,059		$	2,628,930	$	5,313,984

Net Assets Consist of:
Paid-in Capital	$	2,448,505		$	2,500,050	$	5,842,063
Total Distributable Earnings/(Loss)		(851,446	)		128,880		(528,079	)
Net Assets	$	1,597,059		$	2,628,930	$	5,313,984
Outstanding Shares of Beneficial Interest (unlimited authorization - no par value)		100,002			100,002		250,002
Net Asset Value, Offering and Redemption Price Per Share	$	15.97		$	26.29	$	21.26
Cost of Investments	$	2,325,788		$	2,497,865	$	5,970,676
Cost of Foreign Currency		—			616		—
Written Options, Premiums Received		—			—		347,588

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

168

Statements of Operations

For the Year Ended March 31, 2023

	KraneShares CICC China Leaders 100 Index ETF			KraneShares CSI China Internet ETF			KraneShares Bosera MSCI China A 50 Connect Index ETF
Investment Income:
Dividend Income	$	305,975		$	78,933,611		$	14,609,313
Interest Income		406			270,697			7,467
Security Lending Income		—			3,155,440			—
Less: Foreign Taxes Withheld		(30,637	)		—			(1,461,599	)
Total Investment Income		275,744			82,359,748			13,155,181

Expenses:
Management Fees^†		44,615			43,182,019			4,319,739
Trustees’ Fees		294			288,541			25,424
Security Lending Fees^†		—			301,354			—
Insurance Expense		117			81,751			7,584
Total Expenses		45,026			43,853,665			4,352,747
Management Fee Waiver^†		—			—			(1,320,906	)
Net Expenses		45,026			43,853,665			3,031,841
Net Investment Income		230,718			38,506,083			10,123,340

Net Realized Gain (Loss) on:
Investments		(1,259,104	)		(2,232,239,153	)		(100,887,697	)
Foreign Currency Translations		340			(142,082	)		(722,531	)
Net Realized Loss		(1,258,764	)		(2,232,381,235	)		(101,610,228	)

Net Change in Unrealized Appreciation (Depreciation) on:
Investments		(273,162	)		2,302,137,112			(2,753,333	)
Foreign Currency Translations		—			1,108			(36,079	)
Net Change in Unrealized Appreciation (Depreciation)		(273,162	)		2,302,138,220			(2,789,412	)
Net Realized and Unrealized Gain (Loss)		(1,531,926	)		69,756,985			(104,399,640	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(1,301,208	)	$	108,263,068		$	(94,276,300	)

†

See Note 3 in Notes to Financial Statements.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

169

Statements of Operations (continued)

For the Year Ended March 31, 2023

	KraneShares Bloomberg China Bond Inclusion Index ETF			KraneShares MSCI All China Index ETF			KraneShares MSCI One Belt One Road Index ETF
Investment Income:
Dividend Income	$	—		$	225,567		$	239,797
Interest Income		359,992			682			687
Less: Foreign Taxes Withheld		—			(16,504	)		(26,875	)
Total Investment Income		359,992			209,745			213,609

Expenses:
Management Fees^†		92,989			53,233			44,408
Trustees’ Fees		629			329			254
Insurance Expense		153			203			103
Total Expenses		93,771			53,765			44,765
Management Fee Waiver^†		(27,350	)		(15,657	)		—
Net Expenses		66,421			38,108			44,765
Net Investment Income		293,571			171,637			168,844

Net Realized Gain (Loss) on:
Investments		(17,798	)		(6,453,755	)		50,123
Foreign Currency Translations		(454,914	)		2,550			(3,167	)
Net Realized Gain (Loss)		(472,712	)		(6,451,205	)		46,956

Net Change in Unrealized Appreciation (Depreciation) on:
Investments		(434,722	)		4,729,576			(1,350,068	)
Accrued Foreign Capital Gains Tax on Appreciated Securities		—			—			1,054
Foreign Currency Translations		(1,656	)		(28	)		213
Net Change in Unrealized Appreciation (Depreciation)		(436,378	)		4,729,548			(1,348,801	)
Net Realized and Unrealized Loss		(909,090	)		(1,721,657	)		(1,301,845	)
Net Decrease in Net Assets Resulting from Operations	$	(615,519	)	$	(1,550,020	)	$	(1,133,001	)

†

See Note 3 in Notes to Financial Statements.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

170

Statements of Operations (continued)

For the Year Ended March 31, 2023

	KraneShares Emerging Markets Consumer Technology Index ETF			KraneShares MSCI China Clean Technology Index ETF			KraneShares Electric Vehicles and Future Mobility Index ETF
Investment Income:
Dividend Income	$	415,141		$	1,427,531		$	3,672,913
Interest Income		1,560			7,420			7,080
Security Lending Income		61,311			—			676,692
Less: Foreign Taxes Withheld		—			(37,819	)		(474,377	)
Total Investment Income		478,012			1,397,132			3,882,308

Expenses:
Management Fees^†		296,203			931,302			1,545,275
Trustees’ Fees		1,649			5,400			10,180
Security Lending Fees^†		6,087			—			67,245
Insurance Expense		805			1,856			3,530
Total Expenses		304,744			938,558			1,626,230
Management Fee Waiver^†		(75,950	)		—			—
Net Expenses		228,794			938,558			1,626,230
Net Investment Income		249,218			458,574			2,256,078

Net Realized Gain (Loss) on:
Investments		(21,039,753	)		(32,326,631	)		(41,582,319	)
Foreign Currency Translations		(36,077	)		(738	)		(49,822	)
Net Realized Loss		(21,075,830	)		(32,327,369	)		(41,632,141	)

Net Change in Unrealized Appreciation (Depreciation) on:
Investments		12,502,057			533,750			(23,328,171	)
Foreign Currency Translations		(240	)		2			4,849
Net Change in Unrealized Appreciation (Depreciation)		12,501,817			533,752			(23,323,322	)
Net Realized and Unrealized Loss		(8,574,013	)		(31,793,617	)		(64,955,463	)
Net Decrease in Net Assets Resulting from Operations	$	(8,324,795	)	$	(31,335,043	)	$	(62,699,385	)

†

See Note 3 in Notes to Financial Statements.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

171

Statements of Operations (continued)

For the Year Ended March 31, 2023

	KraneShares MSCI All China Health Care Index ETF			KraneShares Asia Pacific High Income Bond ETF			KraneShares Emerging Markets Healthcare Index ETF
Investment Income:
Dividend Income	$	1,126,320		$	—		$	18,224
Interest Income		9,540			1,966,337			37
Security Lending Income		19,536			—			122
Less: Foreign Taxes Withheld		(88,165	)		(650	)		(2,869	)
Total Investment Income		1,067,231			1,965,687			15,514

Expenses:
Management Fees^†		831,225			150,544			16,978
Trustees’ Fees		4,939			985			100
Security Lending Fees^†		1,908			—			—
Insurance Expense		1,441			386			140
Total Expenses		839,513			151,915			17,218
Management Fee Waiver^†		(149,193	)		—			—
Net Expenses		690,320			151,915			17,218
Net Investment Income (Loss)		376,911			1,813,772			(1,704	)

Net Realized Gain (Loss) on:
Investments		(41,109,231	)		(3,640,259	)		(360,559	)
Foreign Currency Translations		(31,628	)		—			(254	)
Net Realized Loss		(41,140,859	)		(3,640,259	)		(360,813	)

Net Change in Unrealized Appreciation (Depreciation) on:
Investments		23,296,248			924,572			(12,631	)
Accrued Foreign Capital Gains Tax on Appreciated Securities		—			—			6,195
Foreign Currency Translations		—			12			(252	)
Net Change in Unrealized Appreciation (Depreciation)		23,296,248			924,584			(6,688	)
Net Realized and Unrealized Loss		(17,844,611	)		(2,715,675	)		(367,501	)
Net Decrease in Net Assets Resulting from Operations	$	(17,467,700	)	$	(901,903	)	$	(369,205	)

†

See Note 3 in Notes to Financial Statements.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

172

Statements of Operations (continued)

For the Year Ended March 31, 2023

	KraneShares MSCI Emerging Markets ex China Index ETF			KraneShares MSCI China ESG Leaders Index ETF			KraneShares CICC China 5G & Semiconductor Index ETF
Investment Income:
Dividend Income	$	951,054		$	147,892		$	195,421
Interest Income		2,191			11			909
Less: Foreign Taxes Withheld		(158,460	)		(7,336	)		(18,680	)
Total Investment Income		794,785			140,567			177,650

Expenses:
Management Fees^†		121,761			31,861			124,591
Trustees’ Fees		933			182			704
Insurance Expense		377			101			288
Total Expenses		123,071			32,144			125,583
Management Fee Waiver^†		(73,476	)		—			(22,362	)
Net Expenses		49,595			32,144			103,221
Net Investment Income		745,190			108,423			74,429

Net Realized Gain (Loss) on:
Investments		(1,515,588	)		(2,244,873	)		(2,834,021	)
Foreign Currency Translations		(63,432	)		(989	)		(8,140	)
Net Realized Loss		(1,579,020	)		(2,245,862	)		(2,842,161	)

Net Change in Unrealized Appreciation (Depreciation) on:
Investments		(2,900,389	)		1,510,945			268,404
Accrued Foreign Capital Gains Tax on Appreciated Securities		38,160			—			—
Foreign Currency Translations		1,019			—			(39	)
Net Change in Unrealized Appreciation (Depreciation)		(2,861,210	)		1,510,945			268,365
Net Realized and Unrealized Loss		(4,440,230	)		(734,917	)		(2,573,796	)
Net Decrease in Net Assets Resulting from Operations	$	(3,695,040	)	$	(626,494	)	$	(2,499,367	)

†

See Note 3 in Notes to Financial Statements.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

173

Statements of Operations (continued)

For the Year or Period Ended March 31, 2023

	KraneShares CICC China Consumer Leaders Index ETF			KraneShares SSE STAR Market 50 Index ETF			KraneShares Hang Seng TECH Index ETF
Investment Income:
Dividend Income	$	224,091		$	239,472		$	84,189
Interest Income		2,013			5,175			(22	)
Less: Foreign Taxes Withheld		(20,827	)		(24,033	)		(546	)
Total Investment Income		205,277			220,614			83,621

Expenses:
Management Fees^†		69,342			439,952			51,290
Trustees’ Fees		436			2,242			334
Insurance Expense		604			877			65
Total Expenses		70,382			443,071			51,689
Net Investment Income (Loss)		134,895			(222,457	)		31,932

Net Realized Gain (Loss) on:
Investments		(11,379,761	)		(14,304,417	)		(4,107,247	)
Foreign Currency Translations		16,309			(9,946	)		(981	)
Net Realized Loss		(11,363,452	)		(14,314,363	)		(4,108,228	)

Net Change in Unrealized Appreciation (Depreciation) on:
Investments		10,213,831			7,893,383			2,353,980
Foreign Currency Translations		175			(7,863	)		(34	)
Net Change in Unrealized Appreciation (Depreciation)		10,214,006			7,885,520			2,353,946
Net Realized and Unrealized Loss		(1,149,446	)		(6,428,843	)		(1,754,282	)
Net Decrease in Net Assets Resulting from Operations	$	(1,014,551	)	$	(6,651,300	)	$	(1,722,350	)

†

See Note 3 in Notes to Financial Statements.

The accompanying notes are an integral part of the financial statements.

174

Statements of Operations (concluded)

For the Year or Period Ended March 31, 2023

	KraneShares China Innovation ETF			KraneShares S&P Pan Asia Dividend Aristocrats Index ETF⁽¹⁾			KraneShares China Internet and Covered Call Strategy ETF⁽²⁾
Investment Income:
Dividend Income	$	—		$	50,181		$	—
Dividend from Affiliated Investment		2,062			—			—
Interest Income		4			42			920
Less: Foreign Taxes Withheld		—			(4,620	)		—
Total Investment Income		2,066			45,603			920

Expenses:
Management Fees^†		4,781			9,216			1,983
Trustees’ Fees		88			69			50
Insurance Expense		24			—			—
Total Expenses		4,893			9,285			2,033
Management Fee Waiver^†		(2,193	)		—			—
Net Expenses		2,700			9,285			2,033
Net Investment Income (Loss)		(634	)		36,318			(1,113	)

Net Realized Gain (Loss) on:
Investments		—			1,826			—
Affiliated Investments		(91,666	)		—			176
Capital Gain Distributions Received From Affiliated Fund		4,378			—			—
Foreign Currency Translations		—			3,289			—
Written Options		—			—			395,776
Net Realized Gain (Loss)		(87,288	)		5,115			395,952

Net Change in Unrealized Appreciation (Depreciation) on:
Investments		—			109,787			—
Affiliated Investments		23,085			—			(328,031	)
Foreign Currency Translations		—			(11	)		—
Written Options		—			—			(200,047	)
Net Change in Unrealized Appreciation (Depreciation)		23,085			109,776			(528,078	)
Net Realized and Unrealized Gain (Loss)		(64,203	)		114,891			(132,126	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(64,837	)	$	151,209		$	(133,239	)

†

See Note 3 in Notes to Financial Statements.

(1)

Commenced operations on September 15, 2022.

(2)

Commenced operations on January 12, 2023.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

175

Statements of Changes in Net Assets

	KraneShares CICC China Leaders 100 Index ETF
	Year Ended March 31, 2023			Year Ended March 31, 2022
Operations:
Net Investment Income	$	230,718		$	250,564
Net Realized Gain (Loss)		(1,258,764	)		548,689
Net Change in Unrealized Appreciation (Depreciation)		(273,162	)		(442,945	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,301,208	)		356,308
Distributions		(267,141	)		(1,242,906	)

Capital Share Transactions:⁽¹⁾
Issued		29,678			3,147,630
Redeemed		(2,571,456	)		(4,749,351	)
Decrease in Net Assets from Capital Share Transactions		(2,541,778	)		(1,601,721	)
Total Decrease in Net Assets		(4,110,127	)		(2,488,319	)

Net Assets:
Beginning of Year		10,074,702			12,563,021
End of Year	$	5,964,575		$	10,074,702

Share Transactions:
Issued		—			100,000
Redeemed		(100,000	)		(150,000	)
Net Decrease in Shares Outstanding from Share Transactions		(100,000	)		(50,000	)

(1)

Includes transaction costs related to creations and redemptions.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

176

Statements of Changes in Net Assets (continued)

	KraneShares CSI China Internet ETF
	Year Ended March 31, 2023			Year Ended March 31, 2022
Operations:
Net Investment Income (Loss)	$	38,506,083		$	(7,133,279	)
Net Realized Loss		(2,232,381,235	)		(1,972,722,327	)
Net Change in Unrealized Appreciation (Depreciation)		2,302,138,220			(3,543,610,616	)
Net Increase (Decrease) in Net Assets Resulting from Operations		108,263,068			(5,523,466,222	)
Distributions		—			(455,309,639	)

Capital Share Transactions:⁽¹⁾
Issued		3,037,376,264			10,834,164,254
Redeemed		(3,273,504,223	)		(2,278,114,147	)
Increase (Decrease) in Net Assets from Capital Share Transactions		(236,127,959	)		8,556,050,107
Total Increase (Decrease) in Net Assets		(127,864,891	)		2,577,274,246

Net Assets:
Beginning of Year		6,239,534,279			3,662,260,033
End of Year	$	6,111,669,388		$	6,239,534,279

Share Transactions:
Issued		100,950,000			224,400,000
Redeemed		(116,750,000	)		(61,450,000	)
Net Increase (Decrease) in Shares Outstanding from Share Transactions		(15,800,000	)		162,950,000

(1)

Includes transaction costs related to creations and redemptions.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

177

Statements of Changes in Net Assets (continued)

		KraneShares Bosera MSCI China A 50 Connect Index ETF
		Year Ended March 31, 2023			Year Ended March 31, 2022
Operations:
Net Investment Income		$	10,123,340		$	7,399,447
Net Realized Gain (Loss)			(101,610,228	)		178,885,405
Net Change in Unrealized Appreciation (Depreciation)			(2,789,412	)		(237,940,238	)
Net Decrease in Net Assets Resulting from Operations			(94,276,300	)		(51,655,386	)
Distributions			(111,275,241	)		(64,359,649	)

Capital Share Transactions:⁽¹⁾
Issued			254,963,186			91,859,183
Redeemed			(137,931,980	)		(218,814,477	)
Increase (Decrease) in Net Assets from Capital Share Transactions			117,031,206			(126,955,294	)
Total Decrease in Net Assets			(88,520,335	)		(242,970,329	)

Net Assets:	��
Beginning of Year			559,393,402			802,363,731
End of Year		$	470,873,067		$	559,393,402

Share Transactions:
Issued			7,300,000			2,050,000
Redeemed			(4,350,000	)		(5,200,000	)
Net Increase (Decrease) in Shares Outstanding from Share Transactions			2,950,000			(3,150,000	)

(1)

Includes transaction costs related to creations and redemptions.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

178

Statements of Changes in Net Assets (continued)

	KraneShares Bloomberg China Bond
	Inclusion Index ETF
	Year Ended March 31, 2023			Year Ended March 31, 2022
Operations:
Net Investment Income	$	293,571		$	212,675
Net Realized Gain (Loss)		(472,712	)		180,221
Net Change in Unrealized Appreciation (Depreciation)		(436,378	)		242,411
Net Increase (Decrease) in Net Assets Resulting from Operations		(615,519	)		635,307
Distributions		(93,427	)		(936,375	)
Return of Capital		(233,872	)		—

Capital Share Transactions:⁽¹⁾
Issued		1,710,911			1,752,884
Redeemed		(3,208,976	)		—
Increase (Decrease) in Net Assets from Capital Share Transactions		(1,498,065	)		1,752,884
Total Increase (Decrease) in Net Assets		(2,440,883	)		1,451,816

Net Assets:
Beginning of Year		13,586,031			12,134,215
End of Year	$	11,145,148		$	13,586,031

Share Transactions:
Issued		50,000			50,000
Redeemed		(100,000	)		—
Net Increase (Decrease) in Shares Outstanding from Share Transactions		(50,000	)		50,000

(1)

Includes transaction costs related to creations and redemptions.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

179

Statements of Changes in Net Assets (continued)

	KraneShares MSCI All China Index ETF
	Year Ended March 31, 2023			Year Ended March 31, 2022
Operations:
Net Investment Income	$	171,637		$	320,231
Net Realized Gain (Loss)		(6,451,205	)		651,122
Net Change in Unrealized Appreciation (Depreciation)		4,729,548			(6,493,293	)
Net Decrease in Net Assets Resulting from Operations		(1,550,020	)		(5,521,940	)
Distributions		(311,974	)		(928,865	)

Capital Share Transactions:⁽¹⁾
Issued		3,417,132			3,218,338
Redeemed		(8,941,286	)		(2,988,805	)
Increase (Decrease) in Net Assets from Capital Share Transactions		(5,524,154	)		229,533
Total Decrease in Net Assets		(7,386,148	)		(6,221,272	)

Net Assets:
Beginning of Year		16,180,669			22,401,941
End of Year	$	8,794,521		$	16,180,669

Share Transactions:
Issued		150,000			100,000
Redeemed		(400,000	)		(100,000	)
Net Decrease in Shares Outstanding from Share Transactions		(250,000	)		—

(1)

Includes transaction costs related to creations and redemptions.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

180

Statements of Changes in Net Assets (continued)

	KraneShares MSCI One Belt One Road
	Index ETF
	Year Ended March 31, 2023			Year Ended March 31, 2022
Operations:
Net Investment Income	$	168,844		$	315,016
Net Realized Gain		46,956			1,131,670
Net Change in Unrealized Appreciation (Depreciation)		(1,348,801	)		(1,396,666	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(1,133,001	)		50,020
Distributions		(215,731	)		(297,852	)

Capital Share Transactions:⁽¹⁾
Issued		12,878			2,198
Redeemed		(2,468,601	)		(1,563,737	)
Decrease in Net Assets from Capital Share Transactions		(2,455,723	)		(1,561,539	)
Total Decrease in Net Assets		(3,804,455	)		(1,809,371	)

Net Assets:
Beginning of Year		8,289,688			10,099,059
End of Year	$	4,485,233		$	8,289,688

Share Transactions:
Redeemed		(100,000	)		(50,000	)
Net Decrease in Shares Outstanding from Share Transactions		(100,000	)		(50,000	)

(1)

Includes transaction costs related to creations and redemptions.

The accompanying notes are an integral part of the financial statements.

181

Statements of Changes in Net Assets (continued)

	KraneShares Emerging Markets Consumer Technology Index ETF
	Year Ended March 31, 2023			Year Ended March 31, 2022
Operations:
Net Investment Income (Loss)	$	249,218		$	(165,301	)
Net Realized Loss		(21,075,830	)		(19,277,596	)
Net Change in Unrealized Appreciation (Depreciation)		12,501,817			(31,537,956	)
Net Decrease in Net Assets Resulting from Operations		(8,324,795	)		(50,980,853	)
Distributions		—			(250,511	)

Capital Share Transactions:⁽¹⁾
Issued		2,557,125			37,293,138
Redeemed		(19,605,280	)		(40,731,527	)
Decrease in Net Assets from Capital Share Transactions		(17,048,155	)		(3,438,389	)
Total Decrease in Net Assets		(25,372,950	)		(54,669,753	)

Net Assets:
Beginning of Year		55,934,523			110,604,276
End of Year	$	30,561,573		$	55,934,523

Share Transactions:
Issued		150,000			1,350,000
Redeemed		(1,250,000	)		(1,700,000	)
Net Decrease in Shares Outstanding from Share Transactions		(1,100,000	)		(350,000	)

(1)

Includes transaction costs related to creations and redemptions.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

182

Statements of Changes in Net Assets (continued)

	KraneShares MSCI China Clean Technology Index ETF
	Year Ended March 31, 2023			Year Ended March 31, 2022
Operations:
Net Investment Income	$	458,574		$	831,350
Net Realized Gain (Loss)		(32,327,369	)		4,228,847
Net Change in Unrealized Appreciation (Depreciation)		533,752			(23,098,574	)
Net Decrease in Net Assets Resulting from Operations		(31,335,043	)		(18,038,377	)
Distributions		(1,776,032	)		(757,516	)

Capital Share Transactions:⁽¹⁾
Issued		5,598,103			56,347,141
Redeemed		(23,735,159	)		(31,865,907	)
Increase (Decrease) in Net Assets from Capital Share Transactions		(18,137,056	)		24,481,234
Total Increase (Decrease) in Net Assets		(51,248,131	)		5,685,341

Net Assets:
Beginning of Year		146,858,672			141,173,331
End of Year	$	95,610,541		$	146,858,672

Share Transactions:
Issued		150,000			1,250,000
Redeemed		(800,000	)		(750,000	)
Net Increase (Decrease) in Shares Outstanding from Share Transactions		(650,000	)		500,000

(1)

Includes transaction costs related to creations and redemptions.

The accompanying notes are an integral part of the financial statements.

183

Statements of Changes in Net Assets (continued)

	KraneShares Electric Vehicles and Future Mobility Index ETF
	Year Ended March 31, 2023			Year Ended March 31, 2022
Operations:
Net Investment Income	$	2,256,078		$	447,423
Net Realized Gain (Loss)		(41,632,141	)		9,642,454
Net Change in Unrealized Appreciation (Depreciation)		(23,323,322	)		(30,971,355	)
Net Decrease in Net Assets Resulting from Operations		(62,699,385	)		(20,881,478	)
Distributions		(2,090,551	)		(21,884,257	)

Capital Share Transactions:⁽¹⁾
Issued		5,211,336			161,175,495
Redeemed		(52,076,878	)		(20,218,326	)
Increase (Decrease) in Net Assets from Capital Share Transactions		(46,865,542	)		140,957,169
Total Increase (Decrease) in Net Assets		(111,655,478	)		98,191,434

Net Assets:
Beginning of Year		296,761,218			198,569,784
End of Year	$	185,105,740		$	296,761,218

Share Transactions:
Issued		150,000			3,300,000
Redeemed		(1,600,000	)		(500,000	)
Net Increase (Decrease) in Shares Outstanding from Share Transactions		(1,450,000	)		2,800,000

(1)

Includes transaction costs related to creations and redemptions.

The accompanying notes are an integral part of the financial statements.

184

Statements of Changes in Net Assets (continued)

	KraneShares MSCI All China Health Care Index ETF
	Year Ended March 31, 2023			Year Ended March 31, 2022
Operations:
Net Investment Income (Loss)	$	376,911		$	(85,433	)
Net Realized Loss		(41,140,859	)		(1,397,169	)
Net Change in Unrealized Appreciation (Depreciation)		23,296,248			(57,562,032	)
Net Decrease in Net Assets Resulting from Operations		(17,467,700	)		(59,044,634	)
Distributions		(50,955	)		(21,078,396	)

Capital Share Transactions:⁽¹⁾
Issued		11,751,147			44,149,338
Redeemed		(36,551,437	)		(41,679,374	)
Increase (Decrease) in Net Assets from Capital Share Transactions		(24,800,290	)		2,469,964
Total Decrease in Net Assets		(42,318,945	)		(77,653,066	)

Net Assets:
Beginning of Year		136,810,985			214,464,051
End of Year	$	94,492,040		$	136,810,985

Share Transactions:
Issued		550,000			1,300,000
Redeemed		(1,750,000	)		(1,150,000	)
Net Increase (Decrease) in Shares Outstanding from Share Transactions		(1,200,000	)		150,000

(1)

Includes transaction costs related to creations and redemptions.

The accompanying notes are an integral part of the financial statements.

185

Statements of Changes in Net Assets (continued)

	KraneShares Asia Pacific High Income Bond ETF
	Year Ended March 31, 2023			Year Ended March 31, 2022
Operations:
Net Investment Income	$	1,813,772		$	1,006,947
Net Realized Loss		(3,640,259	)		(3,985,978	)
Net Change in Unrealized Appreciation (Depreciation)		924,584			(1,285,892	)
Net Decrease in Net Assets Resulting from Operations		(901,903	)		(4,264,923	)
Distributions		(2,002,618	)		(1,214,239	)
Return of Capital		—			(192,065	)

Capital Share Transactions:⁽¹⁾
Issued		4,213,744			29,733,209
Redeemed		(7,799,091	)		(7,312,822	)
Increase (Decrease) in Net Assets from Capital Share Transactions		(3,585,347	)		22,420,387
Total Increase (Decrease) in Net Assets		(6,489,868	)		16,749,160

Net Assets:
Beginning of Year		26,535,141			9,785,981
End of Year	$	20,045,273		$	26,535,141

Share Transactions:
Issued		150,000			900,000
Redeemed		(300,000	)		(250,000	)
Net Increase (Decrease) in Shares Outstanding from Share Transactions		(150,000	)		650,000

(1)

Includes transaction costs related to creations and redemptions.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

186

Statements of Changes in Net Assets (continued)

	KraneShares Emerging Markets Healthcare Index ETF
	Year Ended March 31, 2023			Year Ended March 31, 2022
Operations:
Net Investment Income (Loss)	$	(1,704	)	$	11,822
Net Realized Loss		(360,813	)		(171,867	)
Net Change in Unrealized Appreciation (Depreciation)		(6,688	)		(878,739	)
Net Decrease in Net Assets Resulting from Operations		(369,205	)		(1,038,784	)
Distributions		(4,560	)		(10,783	)

Capital Share Transactions:⁽¹⁾
Issued		—			2,217
Redeemed		—			(1,492,577	)
Decrease in Net Assets from Capital Share Transactions		—			(1,490,360	)
Total Decrease in Net Assets		(373,765	)		(2,539,927	)

Net Assets:
Beginning of Year		2,468,835			5,008,762
End of Year	$	2,095,070		$	2,468,835

Share Transactions:
Redeemed		—			(50,000	)
Net Decrease in Shares Outstanding from Share Transactions		—			(50,000	)

(1)

Includes transaction costs related to creations and redemptions.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

187

Statements of Changes in Net Assets (continued)

	KraneShares MSCI Emerging Markets ex China Index ETF
	Year Ended March 31, 2023			Year Ended March 31, 2022
Operations:
Net Investment Income	$	745,190		$	720,486
Net Realized Gain (Loss)		(1,579,020	)		335,656
Net Change in Unrealized Appreciation (Depreciation)		(2,861,210	)		(851,279	)
Net Increase (Decrease) in Net Assets Resulting from Operations		(3,695,040	)		204,863
Distributions		(693,378	)		(1,341,512	)

Capital Share Transactions:⁽¹⁾
Issued		14,955,300			9,310,517
Redeemed		(13,153,943	)		(6,466,320	)
Increase in Net Assets from Capital Share Transactions		1,801,357			2,844,197
Total Increase (Decrease) in Net Assets		(2,587,061	)		1,707,548

Net Assets:
Beginning of Year		32,698,696			30,991,148
End of Year	$	30,111,635		$	32,698,696

Share Transactions:
Issued		600,000			300,000
Redeemed		(500,000	)		(200,000	)
Net Increase in Shares Outstanding from Share Transactions		100,000			100,000

(1)

Includes transaction costs related to creations and redemptions.

The accompanying notes are an integral part of the financial statements.

188

Statements of Changes in Net Assets (continued)

	189 KraneShares MSCI China ESG Leaders Index ETF
	Year Ended March 31, 2023			Year Ended March 31, 2022
Operations:
Net Investment Income	$	108,423		$	141,014
Net Realized Loss		(2,245,862	)		(413,967	)
Net Change in Unrealized Appreciation (Depreciation)		1,510,945			(2,750,597	)
Net Decrease in Net Assets Resulting from Operations		(626,494	)		(3,023,550	)
Distributions		(100,843	)		(219,611	)

Capital Share Transactions:⁽¹⁾
Issued		12,606			2,806
Redeemed		(2,245,452	)		(1,660,518	)
Decrease in Net Assets from Capital Share Transactions		(2,232,846	)		(1,657,712	)
Total Decrease in Net Assets		(2,960,183	)		(4,900,873	)

Net Assets:
Beginning of Year		7,937,654			12,838,527
End of Year	$	4,977,471		$	7,937,654

Share Transactions:
Redeemed		(100,000	)		(50,000	)
Net Decrease in Shares Outstanding from Share Transactions		(100,000	)		(50,000	)

(1)

Includes transaction costs related to creations and redemptions.

The accompanying notes are an integral part of the financial statements.

189

Statements of Changes in Net Assets (continued)

	KraneShares CICC China 5G & Semiconductor Index ETF
	Year Ended March 31, 2023			Year Ended March 31, 2022
Operations:
Net Investment Income	$	74,429		$	140,986
Net Realized Loss		(2,842,161	)		(1,232,367	)
Net Change in Unrealized Appreciation (Depreciation)		268,365			2,467,447
Net Increase (Decrease) in Net Assets Resulting from Operations		(2,499,367	)		1,376,066
Distributions		(45,914	)		—

Capital Share Transactions:⁽¹⁾
Issued		3,203			7,848,791
Redeemed		(4,057,370	)		(106,409,148	)
Decrease in Net Assets from Capital Share Transactions		(4,054,167	)		(98,560,357	)
Total Decrease in Net Assets		(6,599,448	)		(97,184,291	)

Net Assets:
Beginning of Year		21,695,860			118,880,151
End of Year	$	15,096,412		$	21,695,860

Share Transactions:
Issued		—			300,000
Redeemed		(250,000	)		(4,350,000	)
Net Decrease in Shares Outstanding from Share Transactions		(250,000	)		(4,050,000	)

(1)

Includes transaction costs related to creations and redemptions.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

190

Statements of Changes in Net Assets (continued)

	KraneShares CICC China Consumer Leaders Index ETF
	Year Ended March 31, 2023			Year Ended March 31, 2022
Operations:
Net Investment Income	$	134,895		$	330,472
Net Realized Loss		(11,363,452	)		(7,146,359	)
Net Change in Unrealized Appreciation (Depreciation)		10,214,006			(6,860,658	)
Net Decrease in Net Assets Resulting from Operations		(1,014,551	)		(13,676,545	)
Distributions		(68,755	)		(267,348	)

Capital Share Transactions:⁽¹⁾
Issued		293,649			19,432,252
Redeemed		(36,769,983	)		(15,178,158	)
Increase (Decrease) in Net Assets from Capital Share Transactions		(36,476,334	)		4,254,094
Total Decrease in Net Assets		(37,559,640	)		(9,689,799	)

Net Assets:
Beginning of Year		44,529,474			54,219,273
End of Year	$	6,969,834		$	44,529,474

Share Transactions:
Issued		—			800,000
Redeemed		(1,900,000	)		(650,000	)
Net Increase (Decrease) in Shares Outstanding from Share Transactions		(1,900,000	)		150,000

(1)

Includes transaction costs related to creations and redemptions.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

191

Statements of Changes in Net Assets (continued)

	KraneShares SSE STAR Market 50 Index ETF
	Year Ended March 31, 2023			Year Ended March 31, 2022
Operations:
Net Investment Loss	$	(222,457	)	$	(597,970	)
Net Realized Loss		(14,314,363	)		(5,609,501	)
Net Change in Unrealized Appreciation (Depreciation)		7,885,520			(2,007,586	)
Net Decrease in Net Assets Resulting from Operations		(6,651,300	)		(8,215,057	)

Capital Share Transactions:⁽¹⁾
Issued		2,467,586			25,541,153
Redeemed		(13,360,925	)		(45,373,706	)
Decrease in Net Assets from Capital Share Transactions		(10,893,339	)		(19,832,553	)
Total Decrease in Net Assets		(17,544,639	)		(28,047,610	)

Net Assets:
Beginning of Year		65,674,149			93,721,759
End of Year	$	48,129,510		$	65,674,149

Share Transactions:
Issued		150,000			1,000,000
Redeemed		(800,000	)		(1,950,000	)
Net Decrease in Shares Outstanding from Share Transactions		(650,000	)		(950,000	)

(1)

Includes transaction costs related to creations and redemptions.

The accompanying notes are an integral part of the financial statements.

192

Statements of Changes in Net Assets (continued)

	KraneShares Hang Seng TECH Index ETF
	Year Ended March 31, 2023			Period Ended March 31, 2022⁽¹⁾
Operations:
Net Investment Income	$	31,932		$	2,441
Net Realized Loss		(4,108,228	)		(620,063	)
Net Change in Unrealized Appreciation (Depreciation)		2,353,946			(1,540,772	)
Net Decrease in Net Assets Resulting from Operations		(1,722,350	)		(2,158,394	)
Distributions		(11,428	)		—

Capital Share Transactions:⁽²⁾
Issued		7,531,750			7,728,841
Redeemed		(4,053,614	)		—
Increase in Net Assets from Capital Share Transactions		3,478,136			7,728,841
Total Increase in Net Assets		1,744,358			5,570,447

Net Assets:
Beginning of Year/Period		5,570,447			—
End of Year/Period	$	7,314,805		$	5,570,447

Share Transactions:
Issued		550,001			400,001
Redeemed		(400,000	)		—
Net Increase in Shares Outstanding from Share Transactions		150,001			400,001

	(1)	Commenced operations on June 8, 2021.
	(2)	Includes transaction costs related to creations and redemptions.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

193

Statements of Changes in Net Assets (continued)

	KraneShares China Innovation ETF
	Year Ended March 31, 2023			Period Ended March 31, 2022⁽¹⁾
Operations:
Net Investment Loss	$	(634	)	$	(688	)
Net Realized Gain (Loss)		(87,288	)		115,589
Net Change in Unrealized Appreciation (Depreciation)		23,085			(752,572	)
Net Decrease in Net Assets Resulting from Operations		(64,837	)		(637,671	)
Distributions		(110,615	)		(4,286	)
Return of Capital		(53,934	)		—

Capital Share Transactions:⁽²⁾
Issued		—			3,479,534
Redeemed		(1,011,132	)		—
Increase (Decrease) in Net Assets from Capital Share Transactions		(1,011,132	)		3,479,534
Total Increase (Decrease) in Net Assets		(1,240,518	)		2,837,577

Net Assets:
Beginning of Year/Period		2,837,577			—
End of Year/Period	$	1,597,059		$	2,837,577

Share Transactions:
Issued		—			150,002
Redeemed		(50,000	)		—
Net Increase (Decrease) in Shares Outstanding from Share Transactions		(50,000	)		150,002

	(1)	Commenced operations on October 5, 2021.
	(2)	Includes transaction costs related to creations and redemptions.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

194

Statements of Changes in Net Assets (concluded)

	‍KraneShares S&P Pan Asia Dividend Aristocrats Index ETF			KraneShares China Internet and Covered Call Strategy ETF
	Period Ended March 31, 2023⁽¹⁾			Period Ended March 31, 2023⁽²⁾
Operations:
Net Investment Income (Loss)	$	36,318		$	(1,113	)
Net Realized Gain		5,115			395,952
Net Change in Unrealized Appreciation (Depreciation)		109,776			(528,078	)
Net Increase (Decrease) in Net Assets Resulting from Operations		151,209			(133,239	)
Distributions		(22,329	)		(395,952	)
Return of Capital		—			(139,051	)

Capital Share Transactions:⁽³⁾
Issued		2,500,050			5,982,226
Increase in Net Assets from Capital Share Transactions		2,500,050			5,982,226
Total Increase in Net Assets		2,628,930			5,313,984

Net Assets:
Beginning of Period		—			—
End of Period	$	2,628,930		$	5,313,984

Share Transactions:
Issued		100,002			250,002
Net Increase in Shares Outstanding from Share Transactions		100,002			250,002

	(1)	Commenced operations on September 15, 2022.
	(2)	Commenced operations on January 12, 2023.
	(3)	Includes transaction costs related to creations and redemptions.

Amounts designated as “—” are $0 or have been rounded to $0.

The accompanying notes are an integral part of the financial statements.

195

Financial Highlights

Selected Per Share Data & Ratios

For the Years Ended March 31

For a Share Outstanding Throughout Each Period

	Net Asset Value, Beginning of Period ($)	Net Investment Income (Loss) ($)*	Net Realized and Unrealized Gain (Loss) on Investments ($)	Total from Operations ($)	Distribution from Net Investment Income ($)	Distribution from Capital Gains ($)	Return of Capital ($)
KraneShares CICC China Leaders 100 Index ETF
2023	28.78	0.87	(4.72)	(3.85)	(0.84)	(0.23)	—
2022	31.41	0.62	0.30	0.92	(0.63)	(2.92)	—
2021	25.03	0.80	6.41	7.21	(0.83)	—	—
2020	28.00	0.06	(2.98)	(2.92)	(0.05)	—	—
2019	33.88	0.66	(2.09)	(1.43)	(0.68)	(3.77)	—
KraneShares CSI China Internet ETF
2023	29.52	0.18	1.55	1.73	—	—	—
2022	75.59	(0.05)	(43.44)	(43.49)	—	(2.58)	—
2021	45.19	(0.28)	30.90	30.62	(0.22)	—	—
2020	47.04	(0.02)	(1.79)	(1.81)	(0.04)	—	—
2019	61.11	0.10	(12.90)	(12.80)	(0.01)	(1.26)	—
KraneShares Bosera MSCI China A 50 Connect Index ETF
2023	37.05	0.57	(5.28)	(4.71)	(0.54)	(5.71)	—
2022	43.97	0.43	(3.41)	(2.98)	(0.49)	(3.45)	—
2021	29.51	0.30	14.46	14.76	(0.30)	—	—
2020	31.88	0.47	(2.34)	(1.87)	(0.50)	—	—
2019	34.47	0.60	(2.27)	(1.67)	(0.52)	(0.40)	—
KraneShares Bloomberg China Bond Inclusion Index ETF
2023	33.97	0.68	(2.05)	(1.37)	(0.22)	—	(0.54)
2022	34.67	0.55	1.12	1.67	(2.37)	—	—
2021	32.31	0.60	2.57	3.17	(0.81)	—	—
2020	34.22	0.81	(1.75)	(0.94)	—	—	(0.97)
2019	37.23	1.31	(2.29)	(0.98)	(1.95)	—	(0.08)

*	Per share data calculated using average shares method.
**	Total return is based on the change in net asset value of a share during the year or period and assumes reinvestment of dividends and distributions at net asset value. Total return is for the period indicated and periods of less than one year have not been annualized. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Excludes effects of standard creation and redemption transaction fees associated with creation units.
^	The ratios of expenses and net investment income/(loss) to Average Net Assets reflect the expenses and net investment income/(loss), respectively, for the year/period as reported in the Statements of Operations and do not reflect the Fund’s proportionate share of the income and expenses of the money market funds.
~	During the periods, certain fees were waived. (See Note 3 in the Notes to Financial Statements).
(1)	During the year ended March 31, 2023, 2022, 2021, 2020, and 2019 the Fund participated in securities lending, generating $3,155,440, $3,419,311, $3,716,046, $5,794,534, and $9,746,130, respectively, in security lending income. The expense ratios include $301,354, $337,352, $376,498, $579,613, and $968,632, respectively, in security lending fees paid to the Adviser. Had these fees been excluded, the expense ratios would have been 0.69%, 0.68%, 0.69%, 0,69%, and 0.69%, respectively.

The accompanying notes are an integral part of the financial statements.

196

Total from Distributions ($)	Net Asset Value, End of Period ($)	Total Return (%)**	Net Assets End of Period ($)(000)	Ratio of Expenses to Average Net Assets (%)^~	Ratio of Expenses to Average Net Assets (Excluding Waivers, as applicable) (%)^~	Ratio of Net Investment Income (Loss) to Average Net Assets (%)	Portfolio Turnover (%)

(1.07)	23.86	(13.15)	5,965	0.69	0.69	3.52	90
(3.55)	28.78	2.77	10,075	0.68	0.68	2.00	167
(0.83)	31.41	28.90	12,563	0.69	0.69	2.68	143
(0.05)	25.03	(10.45)	16,273	0.69	0.69	0.23	126
(4.45)	28.00	(0.62)	2,800	0.70	0.70	2.21	181

—	31.25	5.86	6,111,669	0.69⁽¹⁾	0.69	0.61	60
(2.58)	29.52	(57.99)	6,239,534	0.69⁽¹⁾	0.69	(0.12)	60
(0.22)	75.59	67.77	3,662,260	0.70⁽¹⁾	0.70	(0.39)	89
(0.04)	45.19	(3.85)	2,313,638	0.73⁽¹⁾	0.73	(0.05)	33
(1.27)	47.04	(20.44)	2,074,505	0.75⁽¹⁾	0.76	0.20	70

(6.25)	26.09	(12.63)	470,873	0.55	0.78	1.83	68
(3.94)	37.05	(7.96)	559,393	0.59	0.79	0.97	89
(0.30)	43.97	50.00	802,364	0.59	0.79	0.74	35
(0.50)	29.51	(5.98)	507,508	0.59	0.80	1.52	91
(0.92)	31.88	(4.01)	604,035	0.60	0.80	2.05	106

(0.76)	31.84	(3.98)	11,145	0.49	0.69	2.15	151
(2.37)	33.97	4.89	13,586	0.42	0.68	1.59	159
(0.81)	34.67	9.91	12,134	0.57^	0.69^	1.80^	—
(0.97)	32.31	(2.75)	12,924	0.57^	0.70^	2.46^	—
(2.03)	34.22	(2.52)	18,822	0.58^	0.70^	3.76^	—

The accompanying notes are an integral part of the financial statements.

197

Financial Highlights (continued)

Selected Per Share Data & Ratios

For the Years Ended March 31

For a Share Outstanding Throughout Each Period

	Net Asset Value, Beginning of Period ($)	Net Investment Income (Loss) ($)*	Net Realized and Unrealized Gain (Loss) on Investments ($)	Total from Operations ($)	Distribution from Net Investment Income ($)	Distribution from Capital Gains ($)	Return of Capital ($)
KraneShares MSCI All China Index ETF
2023	24.89	0.50	(2.15)	(1.65)	(0.77)	(0.48)	—
2022	34.46	0.47	(8.71)	(8.24)	(0.40)	(0.93)	—
2021	23.53	0.22	11.06	11.28	(0.35)	—	—
2020	25.48	0.36	(1.93)	(1.57)	(0.38)	—	—
2019	26.96	0.18	(1.23)	(1.05)	(0.43)	—	—
KraneShares MSCI One Belt One Road Index ETF
2023	27.63	0.73	(4.85)	(4.12)	(1.08)	—	—
2022	28.85	0.95	(1.18)	(0.23)	(0.99)	—	—
2021	17.76	0.48	11.16	11.64	(0.55)	—	—
2020	23.69	0.70	(5.58)	(4.88)	(1.05)	—	—
2019	25.64	0.48	(1.82)	(1.34)	(0.61)	—	—
KraneShares Emerging Markets Consumer Technology Index ETF
2023	18.04	0.10	(2.86)	(2.76)	—	—	—
2022	32.06	(0.05)	(13.90)	(13.95)	(0.01)	(0.06)	—
2021	19.55	0.11	13.14	13.25	(0.74)	—	—
2020	22.94	0.10	(3.07)	(2.97)	(0.42)	—	—
2019	26.48	—	(3.54)	(3.54)	—	—	—
KraneShares MSCI China Clean Technology Index ETF
2023	36.71	0.12	(7.75)	(7.63)	(0.10)	(0.44)	—
2022	40.34	0.21	(3.65)	(3.44)	(0.19)	—	—
2021	16.60	(0.28)	24.02	23.74	—^#	—	—
2020	20.28	0.70	(3.29)	(2.59)	(1.09)	—	—
2019	23.86	0.39	(3.61)	(3.22)	(0.36)	—	—
KraneShares Electric Vehicles and Future Mobility Index ETF
2023	39.57	0.33	(8.98)	(8.65)	(0.32)	—	—
2022	42.25	0.08	0.39⁽³⁾	0.47	(0.52)	(2.63)	—
2021	19.02	0.08	23.21	23.29	(0.06)	—	—
2020	20.64	0.33	(1.51)	(1.18)	(0.44)	—	—
2019	23.30	0.21	(2.62)	(2.41)	(0.25)	—	—

*	Per share data calculated using average shares method.
**	Total return is based on the change in net asset value of a share during the year or period and assumes reinvestment of dividends and distributions at net asset value. Total return is for the period indicated and periods of less than one year have not been annualized. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Excludes effects of standard creation and redemption transaction fees associated with creation units.
#	Amount represents less than $0.005 per share.
~	During the periods, certain fees were waived. (See Note 3 in the Notes to Financial Statements).
(1)	The expense ratio includes $6,087 in security lending fees paid to the Adviser. Had these fees been excluded, the expense ratios would have been 0.58%.
(2)	The expense ratio includes $67,245 in security lending fees paid to the Adviser. Had these fees been excluded, the expense ratios would have been 0.69%.
(3)	Realized and unrealized gains and losses per share are balancing amounts necessary to reconcile the change in net asset value per share for the period, and may not reconcile with the aggregate gains and losses in the Statement of Operations due to share transactions for the period.

The accompanying notes are an integral part of the financial statements.

198

Total from Distributions ($)	Net Asset Value, End of Period ($)	Total Return (%)**	Net Assets End of Period ($)(000)	Ratio of Expenses to Average Net Assets (%)^~	Ratio of Expenses to Average Net Assets (Excluding Waivers, as applicable) (%)^~	Ratio of Net Investment Income (Loss) to Average Net Assets (%)	Portfolio Turnover (%)

(1.25)	21.99	(6.44)	8,795	0.49	0.69	2.19	55
(1.33)	24.89	(24.35)	16,181	0.48	0.68	1.49	18
(0.35)	34.46	47.97	22,402	0.49	0.69	0.67	45
(0.38)	23.53	(6.30)	7,059	0.49	0.69	1.47	7
(0.43)	25.48	(3.52)	6,370	0.67	0.69	0.74	62

(1.08)	22.43	(14.98)	4,485	0.79	0.79	2.96	34
(0.99)	27.63	(1.11)	8,290	0.78	0.78	3.12	36
(0.55)	28.85	65.82	10,099	0.79	0.79	2.07	39
(1.05)	17.76	(21.78)	7,105	0.80	0.80	3.03	30
(0.61)	23.69	(4.94)	21,322	0.79	0.79	2.05	72

—	15.28	(15.30)	30,562	0.60⁽¹⁾	0.80	0.66	87
(0.07)	18.04	(43.57)	55,935	0.59	0.79	(0.17)	97
(0.74)	32.06	67.85	110,604	0.59	0.79	0.36	112
(0.42)	19.55	(13.29)	22,485	0.81	0.81	0.46	56
—	22.94	(13.37)	28,680	0.80	0.80	(0.02)	119

(0.54)	28.54	(20.71)	95,611	0.79	0.79	0.38	49
(0.19)	36.71	(8.61)	146,859	0.78	0.78	0.48	62
—	40.34	143.03	141,173	0.78	0.78	(0.65)	164
(1.09)	16.60	(13.17)	1,661	0.79	0.79	3.81	53
(0.36)	20.28	(13.28)	4,056	0.79	0.80	1.92	147

(0.32)	30.60	(21.78)	185,106	0.72⁽²⁾	0.72	0.99	69
(3.15)	39.57	0.04	296,761	0.70	0.70	0.17	114
(0.06)	42.25	122.46	198,570	0.70	0.70	0.21	81
(0.44)	19.02	(6.15)	17,116	0.72	0.72	1.57	53
(0.25)	20.64	(10.19)	33,026	0.70	0.70	0.98	74

The accompanying notes are an integral part of the financial statements.

199

Financial Highlights (continued)

Selected Per Share Data & Ratios

For the Years/Periods Ended March 31

For a Share Outstanding Throughout Each Period

	Net Asset Value, Beginning of Period ($)	Net Investment Income (Loss) ($)*	Net Realized and Unrealized Gain (Loss) on Investments ($)	Total from Operations ($)	Distribution from Net Investment Income ($)	Distribution from Capital Gains ($)	Return of Capital ($)
KraneShares MSCI All China Health Care Index ETF
2023	23.79	0.07	(3.08)	(3.01)	(0.01)	—	—
2022	38.30	(0.02)	(10.44)	(10.46)	—	(4.05)	—
2021	23.78	(0.09)	14.61	14.52	—^#	—	—
2020	22.29	0.07	1.48	1.55	(0.06)	—	—
2019	26.65	0.02	(4.30)	(4.28)	(0.04)	(0.04)	—
KraneShares Asia Pacific High Income Bond ETF
2023	29.48	2.23	(2.44)	(0.21)	(2.54)	—	—
2022	39.14	1.78	(9.26)	(7.48)	(1.88)	—	(0.30)
2021	37.32	2.10	2.44	4.54	(2.58)	(0.14)	—
2020	40.73	2.08	(3.49)	(1.41)	(1.81)	(0.19)	—
2019⁽¹⁾	40.00	1.55	0.67	2.22	(1.31)	—^#	(0.18)
KraneShares Emerging Markets Healthcare Index ETF
2023	24.69	(0.02)	(3.67)	(3.69)	(0.05)	—	—
2022	33.39	0.09	(8.68)	(8.59)	(0.11)	—	—
2021	20.85	(0.02)	12.57	12.55	(0.01)	—	—
2020	22.38	0.01	(1.16)	(1.15)	(0.37)	—	(0.01)
2019⁽²⁾	25.00	(0.04)	(2.58)	(2.62)	—^#	—	—
KraneShares MSCI Emerging Markets ex China Index ETF
2023	29.73	0.91	(4.56)	(3.65)	(0.99)	—	—
2022	30.99	0.79	(0.56)	0.23	(0.73)	(0.76)	—
2021	18.41	0.55	12.53	13.08	(0.50)	—	—
2020⁽³⁾	25.00	0.60	(6.45)	(5.85)	(0.74)	—	—
KraneShares MSCI China ESG Leaders Index ETF
2023	22.68	0.40	(2.77)	(2.37)	(0.40)	—	—
2022	32.10	0.39	(9.18)	(8.79)	(0.33)	(0.30)	—
2021⁽⁴⁾	25.00	(0.07)	7.32	7.25	—	(0.15)	—
KraneShares CICC China 5G & Semiconductor Index ETF
2023	19.72	0.08	(1.99)	(1.91)	(0.05)	—	—
2022	23.08	0.04	(3.40)	(3.36)	—	—	—
2021⁽⁵⁾	25.00	(0.06)	(1.86)	(1.92)	—	—	—
KraneShares CICC China Consumer Leaders Index ETF
2023	19.79	0.26	0.06	0.32	(0.20)	—	—
2022	25.82	0.15	(6.06)	(5.91)	(0.12)	—	—
2021⁽⁶⁾	25.00	(0.05)	0.87	0.82	—	—	—

*	Per share data calculated using average shares method.
**	Total return is based on the change in net asset value of a share during the year or period and assumes reinvestment of dividends and distributions at net asset value. Total return is for the period indicated and periods of less than one year have not been annualized. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Excludes effects of standard creation and redemption transaction fees associated with creation units.
†	Annualized.
††	Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized.
#	Amount represents less than $0.005 per share.
~	During the periods, certain fees were waived. (See Note 3 in the Notes to Financial Statements).
(1)	The Fund commenced operations on June 26, 2018.
(2)	The Fund commenced operations on August 29, 2018.

The accompanying notes are an integral part of the financial statements.

200

Total from Distributions ($)	Net Asset Value, End of Period ($)	Total Return (%)**	Net Assets End of Period ($)(000)	Ratio of Expenses to Average Net Assets (%)^~	Ratio of Expenses to Average Net Assets (Excluding Waivers, as applicable) (%)^~	Ratio of Net Investment Income (Loss) to Average Net Assets (%)	Portfolio Turnover (%)

(0.01)	20.77	(12.65)	94,492	0.65⁽⁷⁾	0.79	0.35	32
(4.05)	23.79	(28.88)	136,811	0.65	0.79	(0.04)	44
—	38.30	61.06	214,464	0.65	0.79	(0.25)	45
(0.06)	23.78	6.95	32,110	0.69	0.79	0.32	101
(0.08)	22.29	(15.99)	39,004	0.79	0.79	0.08	71

(2.54)	26.73	(0.44)	20,045	0.69	0.69	8.19	119
(2.18)	29.48	(19.73)	26,535	0.68	0.68	5.33	150
(2.72)	39.14	12.32	9,786	0.69	0.69	5.32	53
(2.00)	37.32	(3.72)	11,197	0.70	0.70	5.12	70
(1.49)	40.73	5.72	12,220	0.69^†	0.69^†	5.13^†	38^††

(0.05)	20.95	(14.97)	2,095	0.79	0.79	(0.08)	36
(0.11)	24.69	(25.77)	2,469	0.81	0.81	0.29	28
(0.01)	33.39	60.18	5,009	0.80	0.80	(0.05)	73
(0.38)	20.85	(5.25)	1,043	0.80	0.80	0.04	61
—	22.38	(10.47)	4,476	0.79^†	0.79^†	(0.34)^†	57^††

(0.99)	25.09	(12.12)	30,112	0.24	0.59	3.55	50
(1.49)	29.73	0.57	32,699	0.23	0.58	2.52	23
(0.50)	30.99	71.19	30,991	0.30	0.58	1.90	19
(0.74)	18.41	(24.31)	1,841	0.50^†	0.60^†	2.54^†	5^††

(0.40)	19.91	(10.38)	4,977	0.59	0.59	1.97	42
(0.63)	22.68	(27.63)	7,938	0.59	0.59	1.30	57
(0.15)	32.10	29.05	12,839	0.58^†	0.58^†	(0.35)^†	30^††

(0.05)	17.76	(9.62)	15,096	0.65	0.79	0.47	25
—	19.72	(14.56)	21,696	0.65	0.79	0.17	58
—	23.08	(7.68)	118,880	0.64^†	0.78^†	(0.64)^†	59^††

(0.20)	19.91	1.64	6,970	0.69	0.69	1.32	46
(0.12)	19.79	(22.98)	44,529	0.68	0.68	0.63	62
—	25.82	3.28	54,219	0.68^†	0.68^†	(0.63)^†	50^††

	(3)	The Fund commenced operations on April 12, 2019.
	(4)	The Fund commenced operations on July 28, 2020.
	(5)	The Fund commenced operations on November 23, 2020.
	(6)	The Fund commenced operations on December 8, 2020.
	(7)	The expense ratio includes $1,908 in security lending fees paid to the Adviser. Had these fees been excluded, the expense ratios would have been 0.64%.

The accompanying notes are an integral part of the financial statements.

201

Financial Highlights (concluded)

Selected Per Share Data & Ratios

For the Years/Periods Ended March 31

For a Share Outstanding Throughout Each Period

	Net Asset Value, Beginning of Period ($)	Net Investment Income (Loss) ($)*	Net Realized and Unrealized Gain (Loss) on Investments ($)	Total from Operations ($)	Distribution from Net Investment Income ($)	Distribution from Capital Gains ($)	Return of Capital ($)
KraneShares SSE STAR Market 50 Index ETF
2023	18.76	(0.07)	(1.80)	(1.87)	—	—	—
2022	21.06	(0.14)	(2.16)	(2.30)	—	—	—
2021⁽¹⁾	25.00	(0.03)	(3.91)	(3.94)	—	—	—
KraneShares Hang Seng TECH Index ETF
2023	13.93	0.05	(0.66)	(0.61)	(0.02)	—	—
2022⁽²⁾	25.00	0.01	(11.08)	(11.07)	—	—	—
KraneShares China Innovation ETF
2023	18.92	(0.01)	(1.29)	(1.30)	—	(1.11)	(0.54)
2022⁽³⁾	25.00	(0.01)	(6.03)	(6.04)	(0.04)	—	—
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF
2023⁽⁴⁾	25.00	0.37	1.14	1.51	(0.22)	—	—
KraneShares China Internet and Covered Call Strategy ETF
2023⁽⁵⁾	25.00	(0.01)	(0.91)	(0.92)	(2.09)	—	(0.73)

*	Per share data calculated using average shares method.
**	Total return is based on the change in net asset value of a share during the year or period and assumes reinvestment of dividends and distributions at net asset value. Total return is for the period indicated and periods of less than one year have not been annualized. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Excludes effects of standard creation and redemption transaction fees associated with creation units.
†	Annualized.
††	Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized.
~	During the periods, certain fees were waived. (See Note 3 in the Notes to Financial Statements).
(1)	The Fund commenced operations on January 26, 2021.
(2)	The Fund commenced operations on June 8, 2021.
(3)	The Fund commenced operations on October 5, 2021.
(4)	The Fund commenced operations on September 15, 2022.
(5)	The Fund commenced operations on January 12, 2023.

The accompanying notes are an integral part of the financial statements.

202

Total from Distributions ($)	Net Asset Value, End of Period ($)	Total Return (%)**	Net Assets End of Period ($)(000)	Ratio of Expenses to Average Net Assets (%)^~	Ratio of Expenses to Average Net Assets (Excluding Waivers, as applicable) (%)^~	Ratio of Net Investment Income (Loss) to Average Net Assets (%)	Portfolio Turnover (%)

—	16.89	(9.97)	48,130	0.89	0.89	(0.44)	43
—	18.76	(10.92)	65,674	0.88	0.88	(0.57)	78
—	21.06	(15.76)	93,722	0.88^†	0.88^†	(0.88)^†	12^††

(0.02)	13.30	(4.37)	7,315	0.69	0.69	0.42	126
—	13.93	(44.28)	5,570	0.68^†	0.68^†	0.09^†	60^††

(1.65)	15.97	(6.60)	1,597	0.14	0.26	(0.03)	4
(0.04)	18.92	(24.19)	2,838	0.25^†	0.25^†	(0.06)^†	4^††

(0.22)	26.29	6.08	2,629	0.68^†	0.68^†	2.68^†	35^††

(2.82)	21.26	(3.56)	5,314	0.26^†	0.26^†	(0.14)^†	—^††

The accompanying notes are an integral part of the financial statements.

203

Notes to Financial Statements

1. ORGANIZATION

KraneShares Trust (the “Trust”) is a Delaware Statutory Trust formed on February 3, 2012. The Trust is registered under the Investment Company Act of 1940, as amended (the “Investment Company Act”), as an open-end management investment company. As of March 31, 2023, the Trust had thirty-one operational series. The financial statements herein and the related notes pertain to the following 21 series: KraneShares CICC China Leaders 100 Index ETF, KraneShares CSI China Internet ETF, KraneShares Bosera MSCI China A 50 Connect Index ETF, KraneShares Bloomberg China Bond Inclusion Index ETF, KraneShares MSCI All China Index ETF, KraneShares MSCI One Belt One Road Index ETF, KraneShares Emerging Markets Consumer Technology Index ETF, KraneShares MSCI China Clean Technology Index ETF, KraneShares Electric Vehicles and Future Mobility Index ETF, KraneShares MSCI All China Health Care Index ETF, KraneShares Asia Pacific High Income Bond ETF, KraneShares Emerging Markets Healthcare Index ETF, KraneShares MSCI Emerging Markets ex China Index ETF, KraneShares MSCI China ESG Leaders Index ETF, KraneShares CICC China 5G & Semiconductor Index ETF, KraneShares CICC China Consumer Leaders Index ETF, KraneShares SSE STAR Market 50 Index ETF, KraneShares Hang Seng TECH Index ETF, KraneShares China Innovation ETF, KraneShares S&P Pan Asia Dividend Aristocrats Index ETF and KraneShares China Internet and Covered Call Strategy ETF (each, a “Fund” and collectively, the “Funds”). KraneShares Bosera MSCI China A 50 Connect Index ETF, KraneShares MSCI All China Index ETF, KraneShares MSCI Emerging Markets ex China Index ETF, KraneShares Emerging Markets Consumer Technology Index ETF, KraneShares MSCI One Belt One Road Index ETF and KraneShares Electric Vehicles and Future Mobility Index ETF are diversified Funds. All other Funds are non-diversified Funds, as defined under Section 5(b)(1) of the Investment Company Act. Krane Funds Advisors, LLC (“Krane” or the “Adviser”), a Delaware limited liability company, serves as the investment adviser for the Funds and is subject to the supervision of the Board of Trustees (the “Board”). The Adviser is responsible for managing the investment activities of the Funds, the Funds’ business affairs and other administrative matters. The Adviser may use sub-advisers (each, a “Sub-Adviser” or collectively, the “Sub-Advisers”) to perform the day-to-day management of the Funds.

China International Capital Corporation (USA) Holdings Inc., a wholly-owned, indirect subsidiary of China International Capital Corporation Limited owns a majority stake in Krane. As of March 31, 2023, Central Huijin Investment Limited, a mainland Chinese-domiciled entity, and HKSCC Nominees Limited, held approximately 40.1% and 39.4%, respectively, of the shares of China International Capital Corporation Limited. Central Huijin Investment Limited is a wholly-owned subsidiary of China Investment Corporation, which is a mainland Chinese sovereign wealth fund. KFA One Holdings, LLC, located at 280 Park Avenue 32^nd Floor, New York, New York, 10017, holds the remaining equity interests in Krane and Jonathan Krane, through his equity interests in KFA One Holdings, LLC, beneficially owns more than 10% of the equity interests in Krane.

Shares of the Funds are listed and traded on the NYSE Arca, Inc. (“NYSE Arca”) (the “Exchange”). Market prices for Fund shares (“Shares”) may be different from their net asset value (“NAV”). The Funds issue and redeem Shares on a continuous basis at NAV only in large blocks of Shares, typically 25,000, 50,000 or 100,000 Shares or multiples thereof, called “Creation Units”. This does not mean, however, that individual investors will be able to redeem and purchase Shares directly with the series of the Trust. Only Authorized Participants can redeem and purchase Creation Units of Shares directly. Each Fund will issue and redeem Shares for a basket of securities and/or a balancing cash amount. Individual shares trade in the secondary market at market prices that change throughout the day.

204

Notes to Financial Statements (continued)

The investment objective of each of the following Funds is to seek to provide a total return that (before fees and expenses) tracks the performance of its respective index listed below (each, an “Underlying Index”):

KraneShares Funds		Index
KraneShares CICC China Leaders 100 Index ETF		CSI CICC Select 100 Index
KraneShares CSI China Internet ETF		CSI Overseas China Internet Index
KraneShares Bosera MSCI China A 50 Connect Index ETF		MSCI China A 50 Connect Index
KraneShares Bloomberg China Bond Inclusion Index ETF		Bloomberg China Inclusion Focused Bond Index
KraneShares MSCI All China Index ETF		MSCI China All Shares Index
KraneShares MSCI One Belt One Road Index ETF		MSCI Global China Infrastructure Exposure Index
KraneShares Emerging Markets Consumer Technology Index ETF		Solactive Emerging Markets Consumer Technology Index
KraneShares MSCI China Clean Technology Index ETF		MSCI China IMI Environment 10/40 Index
KraneShares Electric Vehicles and Future Mobility Index ETF		Bloomberg Electric Vehicles Index
KraneShares MSCI All China Health Care Index ETF		MSCI China All Shares Health Care 10/40 Index
KraneShares Emerging Markets Healthcare Index ETF		Solactive Emerging Markets Healthcare Index
KraneShares MSCI Emerging Markets ex China Index ETF		MSCI Emerging Markets ex China Index
KraneShares MSCI China ESG Leaders Index ETF		MSCI China ESG Leaders 10/40 Index
KraneShares CICC China 5G & Semiconductor Index ETF		CICC China 5G and Semiconductor Leaders Index
KraneShares CICC China Consumer Leaders Index ETF		CICC China Consumer Leaders Index
KraneShares SSE STAR Market 50 Index ETF		SSE Science and Technology Innovation Board 50 Index
KraneShares Hang Seng TECH Index ETF		Hang Seng TECH Index
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF		S&P Pan Asia Dividend Aristocrats^® Index

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of the significant accounting policies followed by the Funds. The Funds are investment companies that apply the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board (“FASB”).

USE OF ESTIMATES — The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates, and could have a material impact to the Funds.

SECURITY VALUATION — The NAV per share of each Fund is computed by dividing the value of the net assets of a Fund (i.e., the value of its total assets less total liabilities and withholdings) by the total number of shares of a Fund outstanding, rounded to the nearest cent. Expenses and fees,

205

Notes to Financial Statements (continued)

including without limitation, the management, administration and distribution fees, are accrued daily and taken into account for purposes of determining NAV. The NAV per share for each Fund normally is calculated by the Administrator (as defined below) and determined as of the regularly scheduled close of normal trading on each day that the Exchange is scheduled to be open for business (normally 4:00 p.m., Eastern Time). Any assets or liabilities denominated in currencies other than the U.S. dollar are converted into U.S. dollars at the current market rates on the date of valuation as quoted by one or more sources.

Securities listed on a securities exchange (i.e., exchange-traded equity securities), market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ), including securities traded over the counter, are valued by independent pricing agents at the last reported sale price on the primary exchange or market (foreign or domestic) on which they are traded (or at the time as of which the Fund’s NAV is calculated if a security’s exchange is normally open at that time). If there is no such reported sale, such securities are valued at the most recently reported bid price. For securities traded on NASDAQ, the NASDAQ Official Closing Price will be used.

If a security price cannot be obtained from an independent, third-party pricing agent, the Fund seeks to obtain bid and ask prices from two broker-dealers who make a market in the portfolio instrument and determines the average of the two.

If available, debt securities are priced based upon valuations provided by independent, third-party pricing agents. Such values generally reflect the last reported sales price if the security is actively traded. The third-party pricing agents may also value debt securities at an evaluated bid price by employing methodologies that utilize actual market transactions, broker-supplied valuations, or other methodologies designed to identify the market value for such securities. Debt obligations with remaining maturities of sixty days or less may be valued at their amortized cost, which approximates market value.

The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. The exchange rates used for valuation are captured as of the close of the London Stock Exchange each day normally at 4:00 p.m. Greenwich Mean Time. The value of a swap contract is equal to the obligation (or rights) under the swap contract, which will generally be equal to the net amounts to be paid or received under the contract based upon the relative values of the positions held by each party to the contract as determined by the applicable independent, third party pricing agent. Exchange-traded options, except as discussed below for FLEX options, are valued at the last reported sales price on the exchange on which they are listed. If there is no such reported sale on the valuation date, long positions are valued at the most recent bid price, and short positions are valued at the most recent ask price. Over-the-counter (“OTC”) options are valued based upon prices determined by the applicable independent, third party pricing agent. Futures are valued at the settlement price established by the board of trade on which they are traded. Foreign currency forward contracts are valued at the current day’s interpolated foreign exchange rate, as calculated using the current day’s spot rate and the 30-, 60-, 90- and 180-day forward rates provided by an independent pricing agent. As of and during the year ended March 31, 2023, the Funds did not hold swaps or foreign currency forward contracts.

206

Notes to Financial Statements (continued)

FLEX (short for flexible) options are normally valued using a model-based price provided by a third-party pricing vendor. On days when a trade in a FLEX options occurs, the trade price will be used to value such FLEX options in lieu of the model price.

On certain days, the settlement price for futures may not be available at the time the Fund calculates its NAV. On such days, the best available price (which is typically the last trade price) may be used to value futures.

Investments in open-end investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end investment companies that trade on an exchange are valued in the same manner as other exchange-traded equity securities (described above).

Securities issued by a wholly owned subsidiary of a Fund will be valued at the subsidiary’s net asset value, which will be determined using the same pricing policies and procedures applicable to the Fund.

Investments for which market prices are not “readily available,” or are not deemed to reflect current market values, or are debt securities where no evaluated price is available from third-party pricing agents pursuant to established methodologies, are fair valued in accordance with Krane’s valuation policies and procedures approved by the Board. Some of the more common reasons that may necessitate that a security be valued using “fair value” pricing may include, but are not limited to: the security’s trading has been halted or suspended; the security’s primary trading market is temporarily closed; or the security has not been traded for an extended period of time.

In addition, a Fund may fair value its securities if an event that may materially affect the value of a Fund’s securities that trade outside of the United States (a “Significant Event”) has occurred between the time of the security’s last close and the time that a Fund calculates its NAV. A Significant Event may relate to a single issuer or to an entire market sector, country or region. Events that may be Significant Events may include: government actions, natural disasters, armed conflict, acts of terrorism and significant market fluctuations. If Krane becomes aware of a Significant Event that has occurred with respect to a portfolio instrument or group of portfolio instruments after the closing of the exchange or market on which the portfolio instrument or portfolio instruments principally trade, but before the time at which a Fund calculates its NAV, it will notify the Administrator and may request that an ad hoc meeting of the Fair Valuation Committee be called.

With respect to trade-halted securities, the Adviser typically will fair value a trade-halted security by adjusting the security’s last market close price by the security’s sector performance, as measured by a predetermined index, unless Krane’s Fair Valuation Committee determines to make additional adjustments. Certain foreign securities exchanges have mechanisms in place that confine one day’s price movement in an individual security to a pre-determined price range based on that day’s opening price (“Collared Securities”). Fair value determinations for Collared Securities will generally be capped based on any applicable pre-determined “limit down” or “limit up” prices established by the relevant foreign securities exchange. As an example, China A-Shares can only be plus or minus ten percent in one day of trading in the relevant mainland China equity market. As a result, the fair value price determination on a given day will generally be capped plus or minus ten percent.

207

Notes to Financial Statements (continued)

Fair value pricing involves subjective judgments and it is possible that a fair value determination for a security is materially different than the value that could actually be realized upon the sale of the security or that another fund that uses market quotations or its own fair value procedures to price the same securities. In addition, fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by the Underlying Index. This may adversely affect a Fund’s ability to track its Underlying Index.

Trading in securities on many foreign exchanges is normally completed before the close of business on each Business Day (a “Business Day”, as used herein, is any day on which the Exchange is open for business). In addition, securities trading in a particular country or countries may not take place on each Business Day or may take place on days that are not Business Days. Changes in valuations on certain securities may occur at times or on days on which a Fund’s NAV is not calculated and on which Fund shares do not trade and sales and redemptions of shares do not occur. As a result, the value of a Fund’s portfolio securities and the net asset value of its shares may change on days when share purchases or sales cannot occur.

Fund shares are purchased or sold on a national securities exchange at market prices, which may be higher or lower than NAV. Transactions in Fund shares will be priced at NAV only if shares are purchased or redeemed directly from a Fund in Creation Units. No secondary sales will be made to brokers or dealers at concession by the Distributor or by a Fund. Purchases and sales of shares in the secondary market, which will not involve a Fund, will be subject to customary brokerage commissions and charges.

In accordance with the authoritative guidance on fair value measurements and disclosure under U.S. GAAP, the Funds disclose the fair value of their investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. The objective of a fair value measurement is to determine the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price). Accordingly, the fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

Level 1 — Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that the Funds have the ability to access at the measurement date.

Level 2 — Other significant observable inputs (including quoted prices in non-active markets, quoted prices for similar investments, fair value of investments for which the Funds have the ability to fully redeem tranches at net asset value as of the measurement date or within the near term, and short-term investments valued at amortized cost).

Level 3 — Significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments, broker quotes, fair value of investments for which the Funds do not have the ability to fully redeem tranches at net asset value as of the measurement date or within the near term).

208

Notes to Financial Statements (continued)

Investments are classified within the level of the lowest significant input considered in determining fair value. Investments classified within Level 3 whose fair value measurement considers several inputs may include Level 1 or Level 2 inputs as components of the overall fair value measurement. For details of the investment classification, refer to each Fund’s Schedule of Investments.

FEDERAL INCOME TAXES — It is each Fund’s intention to qualify or continue to qualify as a regulated investment company for federal income tax purposes by complying with the appropriate provisions of Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute annually all or substantially all of its taxable income and gains to shareholders. Accordingly, no provisions for federal income taxes have been made in the financial statements.

The Funds evaluate tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is “more-likely-than-not” (i.e., greater than 50 percent) that each tax position will be sustained upon examination by a taxing authority based on the technical merits of the position. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. The Funds did not record any tax provisions in the current period. However, management’s conclusions regarding tax positions may be subject to review and adjustment at a later date based on factors including, but not limited to, examination by tax authorities (i.e., the last three tax year ends, as applicable), on-going analysis of and changes to tax laws, regulations and interpretations thereof.

As of March 31, 2023, management of the Funds has reviewed all open tax years since inception and concluded that there is no tax liability resulting from unrecognized tax benefits relating to uncertain income tax positions taken or expected to be taken in future tax returns. The Funds are also not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next 12 months.

SECURITY TRANSACTIONS AND INVESTMENT INCOME — Security transactions are accounted for on the trade date for financial reporting purposes. Costs used in determining realized gains and losses on the sale of investment securities are based on specific identification. Dividend income is recorded, net of any applicable withholding tax, on the ex-dividend date, or for certain foreign securities, when the information becomes available to the Funds. Interest income is recognized on the accrual basis from the settlement date and includes the amortization of premiums and the accretion of discount calculated using the effective interest method.

Dividend income received from affiliated funds is recognized on the ex-dividend date and is recorded as income distributions in the Statement of Operations. Capital gain distributions received from affiliated funds are recognized on ex-dividend date and are recorded on the Statement of Operations as such. Costs used in determining realized gains and losses on the sales of affiliated funds are on the basis of specific identification. See details on the Statements of Operations.

OPTIONS — The KraneShares China Internet and Covered Call Strategy ETF writes (sells) at the money Flexible Exchange call options (“FLEX options”) on the KraneShares CSI China Internet ETF (“Underlying Fund”). The KraneShares China Internet and Covered Call Strategy ETF will cover such options by holding the Underlying Fund. FLEX options are exchange-traded options contracts with uniquely customizable terms like exercise price, style, and expiration date. Each FLEX option written will generally (i) have an expiration date greater than 30 days; (ii) have an exercise price generally at the prevailing market price of the Underlying Fund; and (iii) be traded on a national securities exchange. The KraneShares China Internet and Covered Call Strategy ETF will attempt to hold each FLEX option written until expiration. However, if there are redemptions in the

209

Notes to Financial Statements (continued)

KraneShares China Internet and Covered Call Strategy ETF, it may not be able to hold such options until expiration. In addition, each FLEX option written generally will only be subject to exercise on its expiration date.

As of March 31, 2023, the KraneShares China Internet and Covered Call Strategy ETF had open written option positions. Refer to the KraneShares China Internet and Covered Call Strategy ETF’s Schedule of Investments for details regarding open options as of March 31, 2023. All options held during the period were equity options.

For the period ended March 31, 2023, the average monthly cost for written options held during the period by the KraneShares China Internet and Covered Call Strategy ETF was $252,778.

FOREIGN CURRENCY — The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. Purchases and sales of investment securities, income and expenses are translated into U.S. dollars at the relevant rates of exchange prevailing on the respective dates of such transactions. The Funds do not isolate that portion of realized or unrealized gains and losses resulting from changes in the foreign exchange rate from fluctuations arising from changes in the market prices of the securities. The Funds report certain foreign-currency-related transactions as components of realized gains for financial reporting purposes, whereas such components are treated as ordinary income for Federal income tax purposes.

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS — Each Fund, except for the KraneShares Asia Pacific High Income Bond ETF, the KraneShares Bloomberg China Bond Inclusion Index ETF and the KraneShares China Internet and Covered Call Strategy ETF intends to pay out dividends, if any, at least annually; each of the KraneShares Asia Pacific High Income Bond ETF, the KraneShares Bloomberg China Bond Inclusion Index ETF and the KraneShares China Internet and Covered Call Strategy ETF intend to pay out dividends, if any, at least monthly. The Funds distribute their net investment income at least annually. Any net realized capital gains are distributed annually. All distributions are recorded on the ex-dividend date.

CASH OVERDRAFT CHARGES — Per the terms of an agreement with Brown Brothers Harriman & Co. (“BBH”), the Funds’ Custodian, if a Fund has a cash overdraft on a given day, it will be assessed an overdraft charge of the BBH Base Rate plus 2.00%. Cash overdraft charges are included in “Interest Expense” on the Statements of Operations.

SECURITIES LENDING — The Funds may lend securities from their portfolios to brokers, dealers and other financial institutions. In connection with such loans, a Fund remains the beneficial owner of the loaned securities and continues to receive payments in amounts approximately equal to the interest, dividends or other distributions payable on the loaned securities. A Fund also has the right to terminate a loan at any time. A Fund does not have the right to vote on securities while they are on loan. Loans of portfolio securities will not exceed 33 1/3% of the value of a Fund’s total assets (including the value of all assets received as collateral for the loan). A Fund will receive collateral in an amount equal to at least 100% of the current market value of the loaned securities. If the collateral consists of cash, a Fund will reinvest the cash and pay the borrower a pre-negotiated fee or “rebate” from any return earned on the investment. Should the borrower of the securities fail financially, a Fund may experience delays in recovering the loaned securities or exercising its rights in the collateral. In a loan transaction, a Fund will also bear the risk of any decline in value of securities acquired with cash collateral. Krane and a sub-adviser are subject to potential conflicts of interest because the compensation paid to them increases in connection with any net

210

Notes to Financial Statements (continued)

income received by a Fund from a securities lending program. Each Fund pays Krane 10% of any net monthly income received from the investment of cash collateral and loan fees received from borrowers in respect of each securities loan (net of any amounts paid to the custodian and/or securities lending agent or rebated to borrowers) (see Note 3).

The following table discloses the securities on loan as of March 31, 2023:

KraneShares Funds	Market Value Securities on Loan		Cash Collateral for Securities on Loan
KraneShares CSI China Internet ETF	$	29,815,441	$	31,393,462
KraneShares Emerging Markets Consumer Technology Index ETF		632,846		696,591
KraneShares Electric Vehicles and Future Mobility Index ETF		8,113,787		8,431,059

CREATION UNITS — The Funds issue and redeem Shares at NAV and only in large blocks of Shares (each block of Shares for a Fund is a Creation Unit of 25,000 Shares, 50,000 Shares, 100,000 Shares, or multiples thereof). In its discretion, the Trust reserves the right to increase or decrease the number of each Fund’s shares that constitute a Creation Unit.

Except when aggregated in Creation Units, Shares are not redeemable securities of a Fund. Shares of a Fund may only be purchased or redeemed by certain Authorized Participants. An Authorized Participant is either (i) a broker-dealer or other participant in the clearing process through the Continuous Net Settlement System of the National Securities Clearing Corporation or (ii) a Depository Trust Company (“DTC”) participant and, in each case, must have executed a Participant Agreement with the Distributor. Most retail investors will not qualify as Authorized Participants or have the resources to buy and sell whole Creation Units. Therefore, they will be unable to purchase or redeem the Shares directly from a Fund. Rather, most retail investors will purchase Shares in the secondary market with the assistance of a broker and will be subject to customary brokerage commissions or fees when buying or selling Shares. If a Creation Unit is purchased or redeemed for cash, a higher transaction fee may be charged.

The following table discloses Creation Unit breakdown for the year ended March 31, 2023:

KraneShares Funds	Creation Unit Shares		Standard Transaction Fee - Subscriptions		Value at March 31, 2023		Standard Transaction Fee - Redemptions		Maximum Variable Transaction Fee*
KraneShares CICC China Leaders 100 Index ETF		50,000	$	1,700	$	1,193,000	$	1,700		2.00	%
KraneShares CSI China Internet ETF		50,000		500		1,562,500		500		2.00	%
KraneShares Bosera MSCI China A 50 Connect Index ETF		50,000		850		1,304,500		850		2.00	%
KraneShares Bloomberg China Bond Inclusion Index ETF		50,000		500		1,592,000		500		2.00	%
KraneShares MSCI All China Index ETF		50,000		4,250		1,099,500		4,250		2.00	%
KraneShares MSCI One Belt One Road Index ETF		50,000		3,600		1,121,500		3,600		2.00	%
KraneShares Emerging Markets Consumer Technology Index ETF		50,000		1,500		764,000		1,500		2.00	%
KraneShares MSCI China Clean Technology Index ETF		50,000		800		1,427,000		800		2.00	%
KraneShares Electric Vehicles and Future Mobility Index ETF		50,000		800		1,530,000		800		2.00	%

211

Notes to Financial Statements (continued)

KraneShares Funds	Creation Unit Shares		Standard Transaction Fee - Subscriptions		Value at March 31, 2023		Standard Transaction Fee - Redemptions		Maximum Variable Transaction Fee*
KraneShares MSCI All China Health Care Index ETF		50,000	$	1,200	$	1,038,500	$	1,200		2.00	%
KraneShares Asia Pacific High Income Bond ETF		50,000		600		1,336,500		600		2.00	%
KraneShares Emerging Markets Healthcare Index ETF		50,000		2,100		1,047,500		2,100		2.00	%
KraneShares MSCI Emerging Markets ex China Index ETF		100,000		15,000		2,509,000		15,000		2.00	%
KraneShares MSCI China ESG Leaders Index ETF		50,000		2,100		995,500		2,100		2.00	%
KraneShares CICC China 5G & Semiconductor Index ETF		50,000		500		888,000		500		2.00	%
KraneShares CICC China Consumer Leaders Index ETF		50,000		500		995,500		500		2.00	%
KraneShares SSE STAR Market 50 Index ETF		50,000		2,250		844,500		2,250		2.00	%
KraneShares Hang Seng TECH Index ETF		50,000		550		665,000		550		2.00	%
KraneShares China Innovation ETF		50,000		50		798,500		50		2.00	%
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF		50,000		1,800		1,314,500		1,800		2.00	%
KraneShares China Internet and Covered Call Strategy ETF		25,000		10		531,500		10		2.00	%

As a percentage of the Creation Unit(s) purchased/redeemed.

The Adviser may adjust the transaction fees from time to time based on actual experience.

CASH AND CASH EQUIVALENTS — Idle cash and currency balances may be swept into various overnight sweep accounts and are classified as cash equivalents on the Statement of Assets and Liabilities. These amounts, at times, may exceed United States federally insured limits. Amounts swept are available on the next business day.

3. RELATED PARTY TRANSACTIONS

INVESTMENT ADVISORY AGREEMENT — The Adviser serves as investment adviser to each Fund pursuant to an Investment Advisory Agreement between the Trust on behalf of each Fund and the Adviser (the “Agreement”). Under the Agreement, Krane is responsible for reviewing, supervising and administering each Fund’s investment program and the general management and administration of the Trust. In addition to these services, to the extent a Fund engages in securities lending, Krane will: (i) determine which securities are available for loan and notify the securities lending agent for a Fund (the “Agent”), (ii) monitor the Agent’s activities to ensure that securities loans are effected in accordance with Krane’s instructions and in accordance with applicable procedures and guidelines adopted by the Board, (iii) make recommendations to the Board regarding the Fund’s participation in securities lending; (iv) prepare appropriate periodic reports for, and seek appropriate periodic approvals from, the Board with respect to securities lending activities, (v) respond to Agent inquiries concerning the Agent’s activities, and (vi) such other related duties as Krane deems necessary or appropriate. The Board of Trustees of the Trust supervises Krane and establishes policies that Krane must follow in its management activities.

212

Notes to Financial Statements (continued)

The Agreement requires the Adviser to pay all operating expenses of the Funds, except: (a) interest and taxes (including, but not limited to, income, excise, transaction, transfer and withholding taxes); (b) expenses of the Funds incurred with respect to the acquisition and disposition of portfolio securities and the execution of portfolio transactions, including brokerage commissions and short sale dividend or interest expense; (c) expenses incurred in connection with any distribution plan adopted by the Trust in compliance with Rule 12b-1 under the Investment Company Act, including distribution fees; (d) “Acquired Fund Fees and Expenses” (as defined by Form N-1A under the Investment Company Act); (e) litigation expenses; (f) the compensation payable to the Adviser under the Agreement; (g) compensation and expenses of the Independent Trustees (including any fees of independent legal counsel to the Independent Trustees); and (h) any expenses determined to be extraordinary expenses by the Board. In addition, under the Agreement, while the fees and expenses related to the Funds’ securities lending-related activities reduce the gross revenues and income of the Funds from such activities, they are not fees and expenses for which Krane is responsible.

Each Agreement provides that each Fund pays a unitary (or unified) fee to the Adviser for advisory and management services provided to the Fund, subject to the exceptions noted herein. In this context, there exists a risk that a Trust service provider will seek recourse against the Trust if it is not timely paid by Krane for the fees and expenses for which it is responsible, which could materially adversely affect the Funds. Pursuant to the Agreement between the Trust and the Adviser, the Funds below pay the Adviser a fee, which is calculated daily and paid monthly, at the following annual rates, based on a percentage of the average daily net assets of each Fund. In addition, as compensation for the services provided by the Adviser in connection with any securities lending-related activities, each Fund pays the Adviser 10% of the monthly investment income received from the investment of cash collateral and loan fees received from borrowers in respect to securities loans (net of any amounts paid to the custodian and/or securities lending agent or rebated to borrowers), included on the Statements of Operations as “Security Lending Fees”.

KraneShares Funds		Management Fee
KraneShares CICC China Leaders 100 Index ETF		0.68%
KraneShares CSI China Internet ETF		0.68%
KraneShares Bosera MSCI China A 50 Connect Index ETF		0.78%
KraneShares Bloomberg China Bond Inclusion Index ETF		0.68%
KraneShares MSCI All China Index ETF		0.68%
KraneShares MSCI One Belt One Road Index ETF		0.78%
KraneShares Emerging Markets Consumer Technology Index ETF		0.78%
KraneShares MSCI China Clean Technology Index ETF		0.78%
KraneShares Electric Vehicles and Future Mobility Index ETF		0.68%
KraneShares MSCI All China Health Care Index ETF		0.78%
KraneShares Asia Pacific High Income Bond ETF		0.68%
KraneShares Emerging Markets Healthcare Index ETF		0.78%
KraneShares MSCI Emerging Markets ex China Index ETF		0.58%
KraneShares MSCI China ESG Leaders Index ETF		0.58%
KraneShares CICC China 5G & Semiconductor Index		0.78%
KraneShares CICC China Consumer Leaders Index ETF		0.68%
KraneShares SSE STAR Market 50 Index ETF		0.88%
KraneShares Hang Seng TECH Index ETF		0.68%

213

Notes to Financial Statements (continued)

KraneShares Funds		Management Fee
KraneShares China Innovation ETF		0.25%
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF		0.68%
KraneShares China Internet and Covered Call Strategy ETF		0.94%*

The Fund’s management fee of 0.94% of the Fund’s average daily net assets is reduced by the amount of any acquired fund fees and expenses incurred by the Fund that are attributable to the Fund’s investment in affiliated acquired funds such as KraneShares CSI China Internet ETF. This fee reduction is currently expected to be 0.69% of the Fund’s average daily net assets reducing the Fund’s management fee to 0.25% of the Fund’s average daily net assets.

The Adviser bears all of its own costs associated with providing these advisory services.

Pursuant to the terms of Fee Waiver Agreements, Krane has contractually agreed to waive its management fee for the below listed Funds by the following amounts of the Fund’s average daily net assets until August 1, 2023. The Fee Waiver Agreements may only be terminated prior thereto by the Board. In addition, the Fee Waiver Agreements will terminate if the Investment Advisory Agreement for a Fund is terminated.

KraneShares Funds		Fee Waiver Fee
KraneShares Bosera MSCI China A 50 Connect Index ETF		0.23%
KraneShares Bloomberg China Bond Inclusion Index ETF		0.20%
KraneShares MSCI All China Index ETF		0.20%
KraneShares Emerging Markets Consumer Technology Index ETF		0.20%
KraneShares MSCI All China Health Care Index ETF		0.14%
KraneShares MSCI Emerging Markets ex China Index ETF		0.35%
KraneShares CICC China 5G & Semiconductor Index ETF		0.14%

Effective June 1, 2022, Krane has contractually agreed to waive its management fee by 0.15% of the average daily net assets of KraneShares China Innovation ETF. This contractual fee waiver will continue until the date of the Fund’s first investment in an initial public offering (“IPO”) and or a pre-IPO, and may only be terminated prior thereto by the Board. In addition, the fee waiver will terminate if the Investment Advisory Agreement for the Fund is terminated.

SUB-ADVISORY AGREEMENT — Bosera Asset Management (International) Co., Ltd. (“Bosera”), operating out of Hong Kong, serves as the Sub-Adviser to the KraneShares Bosera MSCI China A 50 Connect Index ETF and KraneShares SSE STAR Market 50 Index ETF and is responsible for the day-to-day management of the Funds, subject to the supervision by the Adviser and the Board. For the services Bosera provides to KraneShares Bosera MSCI China A 50 Connect Index ETF, the Adviser pays Bosera a fee equal to 50% of the net revenue the Adviser receives from the Fund. For the services Bosera provides to KraneShares SSE STAR Market 50 Index ETF, the Adviser pays Bosera a twelve basis points (0.12%) sub-advisory fee based upon the monthly average assets under management of KraneShares SSE STAR Market 50 Index ETF.

Nikko Asset Management Americas Inc. (“Nikko”) serves as the investment sub-adviser to KraneShares Asia Pacific High Income Bond ETF. Nikko is responsible for the day-to-day investment management of the Fund, subject to the supervision of Krane and the Board. Nikko delegates to its affiliate Nikko Asset Management Asia, Ltd. (“Nikko Asia”), a registered investment adviser with the SEC, certain of its responsibilities for the management of the Fund. Krane has entered into a Sub-Advisory Agreement with Nikko pursuant to which Krane has agreed to pay Nikko 36.77% of

214

Notes to Financial Statements (continued)

the sum of: (i) the total gross advisory fee due to the Adviser from the Fund under the terms of the Advisory Agreement minus (ii) any applicable fee waivers from time to time entered into between the Fund and the Adviser.

DISTRIBUTION AGREEMENT — SEI Investments Distribution Co. (the “Distributor”), a wholly-owned subsidiary of SEI Investments Company, and an affiliate of the Administrator, serves as the Funds’ distributor of Creation Units pursuant to a Distribution Agreement. The Distributor does not maintain any secondary market in Fund shares.

The Trust has adopted a Distribution and Service Plan (“Plan”) pursuant to Rule 12b-1 under the Investment Company Act. In accordance with its Plan, each Fund is authorized to pay an amount up to 0.25% of its average daily net assets each year for certain distribution-related activities. For the year ended March 31, 2023, no fees were charged under the Plan. Fees would only be charged under the Plan upon approval by the Board.

ADMINISTRATOR, CUSTODIAN AND TRANSFER AGENT — SEI Investments Global Funds Services (the “Administrator”) serves as the Funds’ Administrator pursuant to an Administration Agreement. BBH serves as the Funds’ Custodian and Transfer Agent pursuant to a Custodian and Transfer Agent Agreement.

4. INVESTMENT TRANSACTIONS

For the year ended March 31, 2023, the purchases and sales of investments in securities excluding in-kind transactions, long-term U.S. Government and short-term securities were:

KraneShares Funds	Purchases		Sales and Maturities
KraneShares CICC China Leaders 100 Index ETF	$	6,013,494	$	8,589,803
KraneShares CSI China Internet ETF		3,786,756,821		3,924,487,694
KraneShares Bosera MSCI China A 50 Connect Index ETF		384,329,147		369,305,890
KraneShares Bloomberg China Bond Inclusion Index ETF		16,585,250		16,831,868
KraneShares MSCI All China Index ETF		4,353,928		9,495,910
KraneShares MSCI One Belt One Road Index ETF		1,907,490		3,390,062
KraneShares Emerging Markets Consumer Technology Index ETF		33,466,396		44,286,883
KraneShares MSCI China Clean Technology Index ETF		57,966,830		73,673,849
KraneShares Electric Vehicles and Future Mobility Index ETF		156,090,055		174,283,682
KraneShares MSCI All China Health Care Index ETF		33,766,109		56,881,499
KraneShares Asia Pacific High Income Bond ETF		16,404,357		19,455,516
KraneShares Emerging Markets Healthcare Index ETF		790,813		793,977
KraneShares MSCI Emerging Markets ex China Index ETF		12,043,581		10,928,438
KraneShares MSCI China ESG Leaders Index ETF		2,376,286		4,442,967
KraneShares CICC China 5G & Semiconductor Index ETF		3,986,473		8,038,183
KraneShares CICC China Consumer Leaders Index ETF		4,629,652		41,075,676
KraneShares SSE STAR Market 50 Index ETF		21,859,409		32,975,520
KraneShares Hang Seng TECH Index ETF		12,673,076		9,173,346
KraneShares China Innovation ETF		83,913		1,208,724
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF		2,080,210		866,470
KraneShares China Internet and Covered Call Strategy ETF		—		24,299

For the year ended March 31, 2023, there were no purchases or sales of long-term U.S. government securities for the Funds.

215

Notes to Financial Statements (continued)

For the year ended March 31, 2023, in-kind transactions associated with creations and redemptions were:

KraneShares Funds	Purchases		Sales		Realized Gain/ (Loss)
KraneShares CSI China Internet ETF	$	953,090,271	$	1,032,175,755	$	68,892,595
KraneShares MSCI All China Index ETF		210,510		726,625		(1,002,628	)
KraneShares MSCI One Belt One Road Index ETF		—		995,838		145,257
KraneShares Emerging Markets Consumer Technology Index ETF		969,753		6,936,558		(1,180,826	)
KraneShares MSCI China Clean Technology Index ETF		1,684,354		5,549,896		(1,661,098	)
KraneShares Electric Vehicles and Future Mobility Index ETF		2,903,991		31,945,588		1,038,046
KraneShares MSCI All China Health Care Index ETF		257,293		1,551,179		(266,110	)
KraneShares MSCI Emerging Markets ex China Index ETF		3,388,632		2,720,716		148,083
KraneShares MSCI China ESG Leaders Index ETF		—		156,198		(10,126	)
KraneShares China Innovation ETF		—		961,844		34,251
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF		1,282,299		—		—
KraneShares China Internet and Covered Call Strategy ETF		5,994,799		—		—

5. TAX INFORMATION

The amount and character of income and capital gain distributions to be paid, if any, are determined in accordance with Federal income tax regulations, which may differ from U.S. GAAP. As a result, net investment income (loss) and net realized gain (loss) on investment transactions for a reporting period may differ significantly from distributions during such period. These book/tax differences may be temporary or permanent. To the extent these differences are permanent in nature, they are charged or credited to distributable earnings (loss) or paid-in capital, as appropriate, in the period that the differences arise.

The permanent differences primarily consist of foreign currency translations, investments in passive foreign investment companies (“PFICs”), net operating loss, perpetual bond adjustments and distribution reclassification. The permanent differences that are credited or charged to Paid-in Capital and Distributable Earnings for the fiscal year ended March 31, 2023 are primarily related to redemptions in-kind, net operating loss, distributions in excess and utilization of earnings and profits on shareholder redemptions.

KraneShares Funds	Distributable Earnings/(Loss)			Paid-in Capital
KraneShares CSI China Internet ETF	$	175,506,387		$	(175,506,387	)
KraneShares Bloomberg China Bond Inclusion Index ETF		161,343			(161,343	)
KraneShares MSCI All China Index ETF		1,002,628			(1,002,628	)
KraneShares MSCI One Belt One Road Index ETF		(119,057	)		119,057
KraneShares Emerging Markets Consumer Technology Index ETF		1,334,071			(1,334,071	)
KraneShares MSCI China Clean Technology Index ETF		1,773,873			(1,773,873	)

216

Notes to Financial Statements (continued)

KraneShares Funds	Distributable Earnings/(Loss)			Paid-in Capital
KraneShares Electric Vehicles and Future Mobility Index ETF	$	32,276		$	(32,276	)
KraneShares MSCI All China Health Care Index ETF		280,758			(280,758	)
KraneShares Emerging Markets Healthcare Index ETF		1,219			(1,219	)
KraneShares MSCI Emerging Markets ex China Index ETF		(49,643	)		49,643
KraneShares MSCI China ESG Leaders Index ETF		22,493			(22,493	)
KraneShares SSE STAR Market 50 Index ETF		138,931			(138,931	)
KraneShares China Innovation ETF		(34,037	)		34,037
KraneShares China Internet and Covered Call Strategy ETF		1,112			(1,112	)

The tax character of dividends and distributions paid during the years or periods ended March 31, 2023 and March 31, 2022 were as follows:

KraneShares Funds	Ordinary Income		Long-Term Capital Gain		Return of Capital		Totals
KraneShares CICC China Leaders 100 Index ETF
2023	$	209,433	$	57,708	$	—	$	267,141
2022		576,817		666,089		—		1,242,906
KraneShares CSI China Internet ETF
2023	$	—	$	—	$	—	$	—
2022		—		455,309,639		—		455,309,639
KraneShares Bosera MSCI China A 50 Connect Index ETF
2023	$	9,640,424	$	101,634,817	$	—	$	111,275,241
2022		8,007,641		56,352,008		—		64,359,649
KraneShares Bloomberg China Bond Inclusion Index ETF
2023	$	93,427	$	—	$	233,872	$	327,299
2022		936,375		—		—		936,375
KraneShares MSCI All China Index ETF
2023	$	192,809	$	119,165	$	—	$	311,974
2022		280,169		648,696		—		928,865
KraneShares MSCI One Belt One Road Index ETF
2023	$	215,731	$	—	$	—	$	215,731
2022		297,852		—		—		297,852
KraneShares Emerging Markets Consumer Technology Index ETF
2023	$	—	$	—	$	—	$	—
2022		250,511		—		—		250,511
KraneShares MSCI China Clean Technology Index ETF
2023	$	337,960	$	1,438,072	$	—	$	1,776,032
2022		750,577		6,939		—		757,516
KraneShares Electric Vehicles and Future Mobility Index ETF
2023	$	2,090,551	$	—	$	—	$	2,090,551
2022		16,115,832		5,768,425		—		21,884,257

217

Notes to Financial Statements (continued)

KraneShares Funds	Ordinary Income		Long-Term Capital Gain		Return of Capital		Totals
KraneShares MSCI All China Health Care Index ETF
2023	$	50,955	$	—	$	—	$	50,955
2022		—		21,078,396		—		21,078,396
KraneShares Asia Pacific High Income Bond ETF
2023	$	2,002,618	$	—	$	—	$	2,002,618
2022		1,214,239		—		192,065		1,406,304
KraneShares Emerging Markets Healthcare Index ETF
2023	$	4,560	$	—	$	—	$	4,560
2022		10,783		—		—		10,783
KraneShares MSCI Emerging Markets ex China Index ETF
2023	$	693,378	$	—	$	—	$	693,378
2022		681,402		660,110		—		1,341,512
KraneShares MSCI China ESG Leaders Index ETF
2023	$	100,843	$	—	$	—	$	100,843
2022		219,611		—		—		219,611
KraneShares CICC China 5G & Semiconductor Index ETF
2023	$	45,914	$	—	$	—	$	45,914
2022		—		—		—		—
KraneShares CICC China Consumer Leaders Index ETF
2023	$	68,755	$	—	$	—	$	68,755
2022		267,348		—		—		267,348
KraneShares SSE STAR Market 50 Index ETF
2023	$	—	$	—	$	—	$	—
2022		—		—		—		—
KraneShares Hang Seng TECH Index ETF
2023	$	11,428	$	—	$	—	$	11,428
2022		—		—		—		—
KraneShares China Innovation ETF
2023	$	—	$	110,615	$	53,934	$	164,549
2022		3,228		1,058		—		4,286
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF
2023	$	22,329	$	—	$	—	$	22,329
KraneShares China Internet and Covered Call Strategy ETF
2023	$	395,952	$	—	$	139,051	$	535,003

218

Notes to Financial Statements (continued)

As of March 31, 2023, the components of tax basis distributable earnings (distributable losses) were as follows:

	KraneShares CICC China Leaders 100 Index ETF			KraneShares CSI China Internet ETF			KraneShares Bosera MSCI China A 50 Connect Index ETF			KraneShares Bloomberg China Bond Inclusion Index ETF
Undistributed Ordinary Income	$	32,495		$	42,166,340		$	—		$	—
Capital Loss Carryforwards		(1,226,300	)		(1,191,143,119	)		(71,581,132	)		(28,413	)
Post October Losses		—			(887,681,082	)		—			—
Qualified Late-Year Loss Deferrals		—			—			(602,309	)		—
Unrealized Depreciation on Investments and Foreign Currency		(71,149	)		(3,300,925,375	)		(95,050,139	)		(292,191	)
Other Temporary Differences		—			1			(303,983	)		(3	)
Total Distributable Losses	$	(1,264,954	)	$	(5,337,583,235	)	$	(167,537,563	)	$	(320,607	)

	KraneShares MSCI All China Index ETF			KraneShares MSCI One Belt One Road Index ETF			KraneShares Emerging Markets Consumer Technology Index ETF			KraneShares MSCI China Clean Technology Index ETF
Undistributed Ordinary Income	$	23,929		$	17,410		$	27,451		$	—
Capital Loss Carryforwards		(5,474,769	)		(3,191,194	)		(36,647,128	)		(30,716,725	)
Post October Losses		—			—			—			(191,872	)
Unrealized Depreciation on Investments and Foreign Currency		(1,648,547	)		(1,219,823	)		(18,547,775	)		(41,525,364	)
Other Temporary Differences		3			—			(1	)		—
Total Distributable Losses	$	(7,099,384	)	$	(4,393,607	)	$	(55,167,453	)	$	(72,433,961	)

	KraneShares Electric Vehicles and Future Mobility Index ETF			KraneShares MSCI All China Health Care Index ETF			KraneShares Asia Pacific High Income Bond ETF			KraneShares Emerging Markets Healthcare Index ETF
Undistributed Ordinary Income	$	90,533		$	87,921		$	547,248		$	—
Capital Loss Carryforwards		(47,045,059	)		(40,418,259	)		(8,222,667	)		(841,415	)
Post October Losses		—			—			—			(1,992	)
Unrealized Depreciation on Investments and Foreign Currency		(50,752,445	)		(36,655,486	)		(926,347	)		(821,449	)
Other Temporary Differences		—			1			31,582			—
Total Distributable Losses	$	(97,706,971	)	$	(76,985,823	)	$	(8,570,184	)	$	(1,664,856	)

219

Notes to Financial Statements (continued)

	KraneShares MSCI Emerging Markets ex China Index ETF			KraneShares MSCI China ESG Leaders Index ETF			KraneShares CICC China 5G& Semiconductor Index ETF			KraneShares CICC China Consumer Leaders Index ETF
Undistributed Ordinary Income	$	153,114		$	33,045		$	—		$	—
Capital Loss Carryforwards		(1,531,324	)		(2,261,521	)		(10,998,460	)		(19,363,165	)
Qualified Late-Year Loss Deferrals		—			—			(22,431	)		(1,098	)
Unrealized Depreciation on Investments and Foreign Currency		(3,765,032	)		(1,410,143	)		(3,690,912	)		(1,557,715	)
Other Temporary Differences		2			(3	)		(2	)		(3	)
Total Distributable Losses	$	(5,143,240	)	$	(3,638,622	)	$	(14,711,805	)	$	(20,921,981	)

	KraneShares SSE STAR Market 50 Index ETF			KraneShares Hang Seng TECH Index ETF			KraneShares China Innovation ETF			KraneShares S&P Pan Asia Dividend Aristocrats Index ETF
Undistributed Ordinary Income	$	—		$	21,861		$	—		$	31,646
Capital Loss Carryforwards		(19,056,687	)		(2,908,579	)		(121,539	)		(1,654	)
Qualified Late-Year Loss Deferrals		(94,680	)		—			(422	)		—
Unrealized Appreciation (Depreciation) on Investments and Foreign Currency		(6,364,498	)		(1,005,455	)		(729,487	)		98,888
Other Temporary Differences		(4	)		1			2			—
Total Distributable Earnings/(Loss)	$	(25,515,869	)	$	(3,892,172	)	$	(851,446	)	$	128,880

	KraneShares China Internet and Covered Call Strategy ETF
Unrealized Depreciation on Investments and Foreign Currency		(528,078	)
Other Temporary Differences		(1	)
Total Distributable Losses	$	(528,079	)

Qualified late year ordinary and Post-October capital losses (including currency and specified gain/loss items) represent losses realized from January 1, 2023 through March 31, 2023 and November 1, 2022 through March 31, 2023, respectively, that in accordance with federal income tax regulations, the Funds have elected to defer and treat as having arisen in the following fiscal year.

Other temporary differences primarily consist of late year and specified loss deferrals, PFICs mark to market, perpetual bond adjustments, and book adjustments not recognized for tax.

220

Notes to Financial Statements (continued)

The Funds have capital loss carryforwards as follows:

KraneShares Funds	Short-Term Loss		Long-Term Loss		Total
KraneShares CICC China Leaders 100 Index ETF	$	1,221,254	$	5,046	$	1,226,300
KraneShares CSI China Internet ETF		613,197,112		577,946,007		1,191,143,119
KraneShares Bosera MSCI China A 50 Connect Index ETF		62,330,691		9,250,441		71,581,132
KraneShares Bloomberg China Bond Inclusion Index ETF		22,024		6,389		28,413
KraneShares MSCI All China Index ETF		196,232		5,278,537		5,474,769
KraneShares MSCI One Belt One Road Index ETF		2,378,781		812,413		3,191,194
KraneShares Emerging Markets Consumer Technology Index ETF		21,320,388		15,326,740		36,647,128
KraneShares MSCI China Clean Technology Index ETF		5,134,830		25,581,895		30,716,725
KraneShares Electric Vehicles and Future Mobility Index ETF		29,718,100		17,326,959		47,045,059
KraneShares MSCI All China Health Care Index ETF		3,901,437		36,516,822		40,418,259
KraneShares Asia Pacific High Income Bond ETF		6,743,141		1,479,526		8,222,667
KraneShares Emerging Markets Healthcare Index ETF		533,970		307,445		841,415
KraneShares MSCI Emerging Markets ex China Index ETF		10,980		1,520,344		1,531,324
KraneShares MSCI China ESG Leaders Index ETF		307,053		1,954,468		2,261,521
KraneShares CICC China 5G & Semiconductor Index ETF		8,222,486		2,775,974		10,998,460
KraneShares CICC China Consumer Leaders Index ETF		6,819,078		12,544,087		19,363,165
KraneShares SSE STAR Market 50 Index ETF		7,176,205		11,880,482		19,056,687
KraneShares Hang Seng TECH Index ETF		2,115,907		792,672		2,908,579
KraneShares China Innovation ETF		15,404		106,135		121,539
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF		1,654		—		1,654

During the year ended March 31, 2023, the following Funds utilized capital loss carryforwards, to offset capital gains:

KraneShares Funds		Amount Utilized
KraneShares MSCI One Belt One Road Index ETF		$	60,113

The differences between book and tax-basis unrealized appreciation and depreciation are attributable primarily to the tax deferral of losses on wash sales and investments in PFICs. The federal tax cost and aggregate gross unrealized appreciation and depreciation on investments held by the Funds at March 31, 2023 were as follows:

KraneShares Funds	Federal Tax Cost		Aggregated Gross Unrealized Appreciation		Aggregated Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
KraneShares CICC China Leaders 100 Index ETF	$	6,036,049	$	500,548	$	(571,697	)	$	(71,149	)
KraneShares CSI China Internet ETF		9,442,813,196		224,250,872		(3,525,176,247	)		(3,300,925,375	)
KraneShares Bosera MSCI China A 50 Connect Index ETF		565,235,541		8,213,209		(103,263,348	)		(95,050,139	)
KraneShares Bloomberg China Bond Inclusion Index ETF		7,782,145		64,818		(357,009	)		(292,191	)
KraneShares MSCI All China Index ETF		10,427,690		363,909		(2,012,456	)		(1,648,547	)

221

Notes to Financial Statements (continued)

KraneShares Funds	Federal Tax Cost		Aggregated Gross Unrealized Appreciation		Aggregated Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
KraneShares MSCI One Belt One Road Index ETF	$	5,667,259	$	399,653	$	(1,617,152	)	$	(1,217,499	)
KraneShares Emerging Markets Consumer Technology Index ETF		49,758,857		732,900		(19,280,675	)		(18,547,775	)
KraneShares MSCI China Clean Technology Index ETF		137,169,650		8,410,176		(49,935,542	)		(41,525,366	)
KraneShares Electric Vehicles and Future Mobility Index ETF		243,311,872		12,321,634		(63,074,079	)		(50,752,445	)
KraneShares MSCI All China Health Care Index ETF		131,181,768		3,727,729		(40,383,215	)		(36,655,486	)
KraneShares Asia Pacific High Income Bond ETF		19,789,774		320,337		(1,246,684	)		(926,347	)
KraneShares Emerging Markets Healthcare Index ETF		2,911,288		183,554		(999,587	)		(816,033	)
KraneShares MSCI Emerging Markets ex China Index ETF		33,647,851		730,264		(4,470,856	)		(3,740,592	)
KraneShares MSCI China ESG Leaders Index ETF		6,384,644		247,571		(1,657,714	)		(1,410,143	)
KraneShares CICC China 5G & Semiconductor Index ETF		18,788,134		851,493		(4,542,405	)		(3,690,912	)
KraneShares CICC China Consumer Leaders Index ETF		8,522,693		412,904		(1,970,619	)		(1,557,715	)
KraneShares SSE STAR Market 50 Index ETF		54,327,040		3,766,812		(10,131,312	)		(6,364,500	)
KraneShares Hang Seng TECH Index ETF		7,949,408		969,563		(1,975,018	)		(1,005,455	)
KraneShares China Innovation ETF		2,325,788		—		(729,487	)		(729,487	)
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF		2,508,753		195,613		(96,725	)		98,888
KraneShares China Internet and Covered Call Strategy ETF		5,970,676		—		(528,078	)		(528,078	)

Uncertainties in the Chinese tax rules governing the taxation of income distributions and capital gains from investments in A Shares could result in unexpected tax liabilities for the Funds. China generally imposes withholding tax at a rate of 10% on dividends and interest derived by non-Chinese resident investors (including, for example, Qualified Foreign Institutional Investors (“QFII”)) from Chinese companies and those companies which are not Chinese tax residents, but which are deemed to be Chinese tax residents (e.g., under Notice 7). China also imposes withholding tax at a rate of 10% on capital gains derived by non-residents from investment in actual and constructive Chinese resident companies. The Chinese withholding taxes applied to dividends, interest and capital gains may, in principle, be subject to a reduced rate under an applicable Chinese tax treaty, but the application of such treaties in the case of a non-resident (e.g., in the case of a QFII acting on behalf of non-resident investors, such as the Funds) is also uncertain. The imposition of such taxes could have a material adverse effect on the Funds’ returns. The People’s Republic of China (the “PRC”) rules regarding the taxation of non-resident investors are quickly evolving and certain

222

Notes to Financial Statements (continued)

of the tax regulations to be issued by the PRC State Administration of Taxation and/or the PRC Ministry of Finance to clarify matters may apply retrospectively. Such retroactively applied rules may be adverse to the Funds and their shareholders. It is also unclear how China’s value added tax (“VAT”) may be affected by tax treaty provisions. If such a tax is collected, the expenses will be passed on and borne by the Funds. The imposition of such taxes, as well as future changes in applicable PRC tax law, may adversely affect the Funds. If the Funds expect VAT to be imposed, they reserve the right to establish a reserve for such tax. If the Funds establish such a reserve but are not ultimately subject to the tax, shareholders who redeemed or sold their shares while the reserve was in place will effectively bear the tax and may not benefit from the later release, if any, of the reserve. Conversely, if the Funds do not establish such a reserve but ultimately are subject to the tax, shareholders who redeemed or sold their shares prior to the tax being withheld, reserved or paid will have effectively avoided the tax, even if they benefited from investments in a Fund. Effective November 17, 2014, QFIIs, RQFIIs (i.e., QFIIs investing in Yuan, rather than foreign currency) and non-Chinese resident investors investing through the Hong Kong-Shanghai Stock Connect are exempted temporarily from the 10% capital gains tax that normally applies to sales of A Shares on a public Chinese exchange (such as the Shanghai Stock Exchange). However, such investors are still required to pay capital gains tax for gains realized on trades executed before November 17, 2014.

On November 7, 2018, China’s Ministry of Finance and the State Administration of Taxation jointly issued Circular 108. This circular announced a three year exemption from corporate income tax withholding (“WHT”) and Value Added Tax (“VAT”) for China-sourced bond interest derived by overseas institutional investors. The WHT and VAT exemptions were extended to December 31, 2025.

6. CONCENTRATION OF RISKS

As with all ETFs, shareholders of the Funds are subject to the risk that their investment could lose money. Each Fund is subject to certain of the principal risks noted below, any of which may adversely affect a Fund’s NAV, trading price, yield, total return and ability to meet its investment objective. A more complete description of principal risks is included in each Fund’s prospectus under the heading “Principal Risks”.

CHINA RISK — The Chinese economy is generally considered an emerging market and can be significantly affected by economic and political conditions in China and surrounding Asian countries. China may be subject to considerable degrees of economic, political and social instability. In addition, the Chinese economy is export-driven and highly reliant on trade with key partners. A downturn in the economies of China’s primary trading partners could slow or eliminate the growth of the Chinese economy and adversely impact the Fund’s investments. The Chinese government strictly regulates the payment of foreign currency denominated obligations and sets monetary policy. The Chinese government may introduce new laws and regulations that could have an adverse effect on the Fund. Although China has begun the process of privatizing certain sectors of its economy, privatized entities may lose money and/or be re-nationalized.

In the Chinese securities markets, a small number of issuers may represent a large portion of the entire market. The Chinese securities markets are subject to more frequent trading halts, low trading volume and price volatility. Recent developments in relations between the United States and China have heightened concerns of increased tariffs and restrictions on trade between the two

223

Notes to Financial Statements (continued)

countries. An increase in tariffs or trade restrictions or even the threat of such developments, could lead to significant reduction in international trade, which could have a negative impact on China’s export industry and a commensurately negative impact on the Fund.

The RMB Bond market is volatile with a risk of trading suspensions in particular securities and government interventions. Trading in RMB Bonds may be suspended without warning and for lengthy periods. Information on such trading suspensions, including as to their expected length, may be unavailable. Securities affected by trading suspensions may be or become illiquid. In recent years, Chinese entities have incurred significant levels of debt and Chinese financial institutions currently hold relatively large amounts of non-performing debt. Thus, there exists a possibility that widespread defaults could occur, which could trigger a financial crisis, freeze Chinese debt and finance markets and make certain Chinese securities illiquid.

In addition, trade relations between the U.S. and China have recently been strained. Worsening trade relations between the two countries could adversely impact the Fund, particularly to the extent that the Chinese government restricts foreign investments in on-shore Chinese companies or the U.S. government restricts investments by U.S. investors in China including by limiting the ability of Chinese issuers to list on the U.S. exchanges. Worsening trade relations may also result in market volatility and volatility in the price of Fund shares. In addition, the U.S government has imposed restrictions on the ability of U.S. investors to hold and/or acquire securities of certain Chinese companies, which may adversely impact the Fund, may mean that the Fund’s Underlying Index may need to adjust its methodology or could increase tracking error for the Fund.

CONCENTRATION RISK — Because the assets of certain Funds are expected to be concentrated in an industry or group of industries to the extent that the Underlying Index concentrates in a particular industry or group of industries, the Fund is subject to loss due to adverse occurrences that may affect that industry or group of industries or sector. Market conditions, interest rates, and economic, regulatory, or financial developments could significantly affect a single industry or a group of related industries, and the securities of companies in that industry or group of industries could react similarly to these or other developments. Depending on the composition of each Fund’s Underlying Index, the Fund may be subject to principal risks, as outlined in each Fund’s prospectus. Each Fund may have significant exposure to other industries or sectors over time.

CURRENCY RISK — The Funds’ assets will be invested in instruments denominated in foreign currencies and the income received by the Fund may be in foreign currencies. The Fund will compute and expects to distribute its income in U.S. dollars, and the computation of income will be made on the date that the income is earned by the Fund at the foreign exchange rate in effect on that date. The Fund will conduct its foreign currency exchange transactions either on a spot (i.e., cash) basis at the spot rate prevailing in the foreign currency exchange market at the time the Fund wishes to enter into the transaction, or through forward, futures or options contracts to purchase or sell foreign currencies.

The Fund’s NAV is determined on the basis of the U.S. dollar. The Fund may therefore lose value if the local currency of a foreign investment depreciates against the U.S. dollar, even if the local currency value of the Fund’s holdings goes up. Currency exchange rates can be very volatile and can change quickly and unpredictably, which may adversely affect the Fund. The Fund may also be subject to delays in converting or transferring U.S. dollars to foreign currencies and vice versa. This may adversely affect the Fund’s performance over time.

224

Notes to Financial Statements (continued)

DERIVATIVES RISK — The use of derivatives (including swaps, futures, forwards, structured notes and options) may involve leverage, which includes risks that are different from, and greater than, the risks associated with investing directly in a reference asset, because a small investment in a derivative can result in a large impact on the Fund and may cause the Fund to be more volatile. Derivatives may at times be highly illiquid, and the Fund may not be able to close out or sell a derivative at a particular time or at an anticipated price. Derivatives can be difficult to value and valuation may be more difficult in times of market turmoil. There may be imperfect correlation between the derivative and that of the reference asset, resulting in unexpected returns that could materially adversely affect the Fund. Certain derivatives (such as swaps and options) are bi-lateral agreements that expose the Fund to counterparty risk, which 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 derivative. In that case, the Fund may suffer losses potentially equal to, or greater than, the full value of the derivative if the counterparty fails to perform its obligations. That risk is generally thought to be greater with over-the-counter (OTC) derivatives than with derivatives that are exchange traded or centrally cleared. Counterparty risks are compounded by the fact that there are only a limited number of ways available to invest in certain reference assets and, therefore, there may be few counterparties to swaps or options based on those reference assets. Many derivatives are subject to segregation requirements that require the Fund to segregate the market or notional value of the derivatives, which could impede the portfolio management of the Fund.

EMERGING MARKETS RISK — A Funds’ investments in emerging markets are subject to greater risk of loss than investments in developed markets. This is due to, among other things, greater market volatility, greater risk of asset seizures and capital controls, lower trading volume, political and economic instability, greater risk of market shutdown and more governmental limitations on foreign investments than typically found in developed markets. The economies of emerging markets, and China in particular, may be heavily reliant upon international trade and may suffer disproportionately if international trading declines or is disrupted.

LIQUIDITY RISK — Certain of the Funds’ investments are subject to liquidity risk, which exists when an investment is or becomes difficult to purchase or sell at a reasonable time and price. If a transaction is particularly large or if the relevant market is or becomes illiquid, it may not be possible to initiate a transaction or liquidate a position, which may cause the Funds to suffer significant losses and difficulties in meeting redemptions. Liquidity risk may be the result of, among other things, market turmoil, the reduced number and capacity of traditional market participants, or the lack of an active trading market. Markets for securities or financial instruments could be disrupted by a number of events, including, but not limited to, an economic crisis, natural disasters, new legislation or regulatory changes inside or outside the U.S. Liquid investments may become less liquid after being purchased by the Fund, particularly during periods of market stress. In addition, if a number of securities held by the Fund stop trading, it may have a cascading effect and cause the Fund to halt trading. Volatility in market prices will increase the risk of the Fund being subject to a trading halt. Certain countries in which the Fund may invest may be subject to extended settlement delays and/or foreign holidays, during which the Fund will unlikely be able to convert holdings to cash.

MARKET RISK — The values of the Fund’s holdings could decline generally or could underperform other investments. In addition, there is a risk that policy changes by the U.S. Government, Federal Reserve, and/or other government actors could cause volatility in global financial markets, negative sentiment and higher levels of Fund redemptions, which could have a negative impact on the Fund and could result in losses. Geopolitical and other risks, including environmental and public

225

Notes to Financial Statements (concluded)

health risks may add to instability in world economies and markets generally. Changes in value may be temporary or may last for extended periods. Further, the Fund is susceptible to the risk that certain investments may be difficult or impossible to sell at a favorable time or price. Market developments may also cause the Fund’s investments to become less liquid and subject to erratic price movements. Such market developments may also cause the Fund to encounter difficulties in timely honoring redemptions, especially if market events cause an increased incidence of shareholder redemptions.

NON-DIVERSIFIED FUND RISK — Because a Fund is non-diversified and may invest a greater portion of its assets in fewer issuers than a diversified fund, changes in the market value of a single portfolio holding could cause greater fluctuations in the Fund’s share price than would occur in a diversified fund. This may increase the Fund’s volatility and cause the performance of a single portfolio holding or a relatively small number of portfolio holdings to have a greater impact on the Fund’s performance.

VALUATION RISK — Independent market quotations for the non-U.S. securities held by the Funds may not be readily available and such securities may be fair valued by a pricing service at an evaluated price. These valuations involve subjectivity and different market participants may assign different prices to the same investment. As a result, there is a risk that a Fund may not be able to sell an investment at the price assigned to the investment by the Fund. In addition, the securities in which the Funds invest may trade on days that the Funds do not price their shares; as a result, the value of Fund shares may change on days when investors cannot purchase or sell their holdings.

7. OTHER

At March 31, 2023, all shares issued by the Funds were in Creation Unit aggregations to Authorized Participants through primary market transactions (e.g., transactions directly with the Funds). However, the individual shares that make up those Creation Units are traded on the Exchange (e.g., secondary market transactions). Some of those individual shares have been bought and sold by persons that are not Authorized Participants. Each Authorized Participant has entered into an agreement with the Funds’ Distributor.

8. INDEMNIFICATIONS

In the normal course of business, the Funds enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is dependent on future claims that may be made against the Funds and, therefore, cannot be established; however, based on experience, the risk of loss from such claims is considered remote.

9. SUBSEQUENT EVENTS

The Funds have evaluated the need for additional disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued.

Based on this evaluation, no additional disclosures or adjustments were required to the financial statements as of the date the financial statements were issued.

226

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees

KraneShares Trust:

Opinion on the Financial Statements

We have audited the accompanying statements of assets and liabilities of the funds listed in the Appendix, twenty-one of the funds comprising KraneShares Trust (collectively, the Funds), including the schedules of investments, as of March 31, 2023, the related statements of operations for the year or period listed in the Appendix, the statements of changes in net assets for each of the years or periods in the two-year period listed in the Appendix, and the related notes (collectively, the financial statements) and the financial highlights for each of the years or periods in the five-year period listed in the Appendix. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds as of March 31, 2023, the results of its operations for the year or period listed in the Appendix, the changes in its net assets for each of the years or periods in the two-year period listed in the Appendix, and the financial highlights for each of the years or periods in the five-year period listed in the Appendix, in conformity with U.S. generally accepted accounting principles.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of March 31, 2023, by correspondence with the custodian, transfer agent, and brokers or by other appropriate auditing procedures when replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

We have served as the auditor of one or more KraneShares investment companies since 2017.

Philadelphia, Pennsylvania

May 29, 2023

227

Report of Independent Registered Public Accounting Firm (continued)

Appendix

Funds with commencement of operations prior to March 31, 2019:

KraneShares CICC China Leaders 100 Index ETF

KraneShares CSI China Internet ETF

KraneShares Bosera MSCI China A 50 Connect Index ETF

KraneShares Bloomberg China Bond Inclusion Index ETF

KraneShares MSCI All China Index ETF

KraneShares MSCI One Belt One Road Index ETF

KraneShares Emerging Markets Consumer Technology Index ETF

KraneShares MSCI China Clean Technology Index ETF

KraneShares Electric Vehicles and Future Mobility Index ETF

KraneShares MSCI All China Health Care Index ETF

Statement of operations for the year ended March 31, 2023

Statements of changes in net assets for each of the years in the two-year period ended March 31, 2023

Financial highlights each of the years in the five-year period ended March 31, 2023

Funds with commencement of operations during the year ended March 31, 2019:

KraneShares Asia Pacific High Income Bond ETF

Statement of operations for the year ended March 31, 2023

Statements of changes in net assets for each of the years in the two-year period ended March 31, 2023

Financial highlights for each of the years in the four-year period ended March 31, 2023 and the period from June 26, 2018 (commencement of operations) through March 31, 2019

KraneShares Emerging Markets Healthcare Index ETF

Statement of operations for the year ended March 31, 2023

Statements of changes in net assets for each of the years in the two-year period ended March 31, 2023

Financial highlights for each of the years in the four-year period ended March 31, 2023 and the period from August 29, 2018 (commencement of operations) through March 31, 2019

Funds with commencement of operations during the year ended March 31, 2020:

KraneShares MSCI Emerging Markets ex China Index ETF

Statement of operations for the year ended March 31, 2023

Statements of changes in net assets for each of the years in the two-year period ended March 31, 2023

Financial highlights for each of the years in the three-year period ended March 31, 2023 and the period from April 12, 2019 (commencement of operations) through March 31, 2020

Funds with commencement of operations during the year ended March 31, 2021:

KraneShares MSCI China ESG Leaders Index ETF

Statement of operations for the year ended March 31, 2023

Statements of changes in net assets for each of the years in the two-year period ended March 31, 2023

Financial highlights for each of the years in the two-year period ended March 31, 2023 and the period from July 28, 2020 (commencement of operations) through March 31, 2021

KraneShares CICC China 5G & Semiconductor Index ETF

228

Report of Independent Registered Public Accounting Firm (concluded)

Statement of operations for the year ended March 31, 2023

Statements of changes in net assets for each of the years in the two-year period ended March 31, 2023

Financial highlights for each of the years in the two-year period ended March 31, 2023 and the period from November 23, 2020 (commencement of operations) through March 31, 2021

KraneShares CICC China Consumer Leaders Index ETF

Statement of operations for the year ended March 31, 2023

Statements of changes in net assets for each of the years in the two-year period ended March 31, 2023

Financial highlights for each of the years in the two-year period ended March 31, 2023 and the period from December 8, 2020 (commencement of operations) through March 31, 2021

KraneShares SSE STAR Market 50 Index ETF

Statement of operations for the year ended March 31, 2023

Statements of changes in net assets for each of the years in the two-year period ended March 31, 2023

Financial highlights for each of the years in the two-year period ended March 31, 2023 and the period from January 26, 2021 (commencement of operations) through March 31, 2021

Funds with commencement of operations during the year ended March 31, 2022:

KraneShares Heng Seng TECH Index ETF

Statement of operations for the year ended March 31, 2023

Statements of changes in net assets for the year ended March 31, 2023 and the period from June 8, 2021 (commencement of operations) through March 31, 2022

Financial highlights for the year ended March 31, 2023 and the period from June 8, 2021 (commencement of operations) through March 31, 2022

KraneShares China Innovation ETF

Statement of operations for the year ended March 31, 2023

Statements of changes in net assets for the year ended March 31, 2023 and the period from October 5, 2021 (commencement of operations) through March 31, 2022

Financial highlights for the year ended March 31, 2023 and the period from October 5, 2021 (commencement of operations) through March 31, 2022

Funds with commencement of operations during the year ended March 31, 2023:

KraneShares S&P Pan Asia Dividend Aristocrats Index ETF

Statements of operations and changes in net assets and financial highlights for the period from September 15, 2022 (commencement of operations) through March 31, 2023

KraneShares China Internet & Covered Call Strategy ETF

Statements of operations and changes in net assets and the financial highlights for the period from January 12, 2023 (commencement of operations) through March 31, 2023

229

Trustees and Officers of the Trust (Unaudited)

March 31, 2023

Set forth below are the names, addresses, years of birth, positions with the Trust, terms of office and lengths of time served; the principal occupations for the last five years; number of Funds in fund complex overseen; and other directorships outside the fund complex of each of the persons currently serving as Trustees and Officers of the Trust. The Trust’s Statement of Additional Information (“SAI”) includes additional information about the Trustees and Officers. The SAI may be obtained without charge, upon request, by calling 1-855-857-2638. The following chart lists Trustees and Officers as of March 31, 2023.

			Number of	Other
	Position(s)		Funds in Trust	Directorships
Name, Address	Held	Principal Occupation(s)	Overseen by	Held by
(Year of Birth)	with Trust	During the Past 5 Years	Trustee	Trustees
Interested Trustee¹

Jonathan Krane² (1968) 280 Park Avenue 32nd Floor New York, New York, 10017	Trustee and Chairman of the Board, No set term; served since 2012	Chief Executive Officer of Krane Funds Advisors, LLC from 2011 to present. Chief Executive Officer of Krane Portfolio Advisors, LLC from 2018 to present. Principal of Krane Capital LLC from 2009 to 2011.	38	None

Independent Trustees¹

Patrick P. Campo (1970) 280 Park Avenue 32nd Floor New York, New York, 10017	Trustee, No set term; served since 2017	From 2019 to present, Director of Research and from 2013 to 2019 Director of Long Short Equity, Titan Advisors.	38	None

John Ferguson (1966) 280 Park Avenue 32nd Floor New York, New York, 10017	Trustee, No set term; served since 2012	Chief Operating Officer of Shrewsbury River Capital from 2017 to 2020. Chief Operating Officer of Kang Global Investors LP (hedge fund adviser) from 2014 to 2016. President of Alden Global Capital, LLC (hedge fund adviser) from 2012 to 2014 (formerly, Chief Operating Officer from 2011 to 2012). Senior Managing Director and Chief Operating Officer of K2 Advisors, LLC from 2005 to 2011.	38	None

230

Trustees and Officers of the Trust (Unaudited) (continued)

March 31, 2023

			Number of	Other
	Position(s)		Funds in Trust	Directorships
Name, Address	Held	Principal Occupation(s)	Overseen by	Held by
(Year of Birth)	with Trust	During the Past 5 Years	Trustee	Trustees
Independent Trustees¹

Matthew Stroyman (1968) 280 Park Avenue 32nd Floor New York, New York, 10017	Trustee, No set term; served since 2012	Founder and President of BlackRidge Ventures from 2018 to present (principal investment activities and strategic advisory services in a variety of industries to clients and partners that include institutional investment firms, family offices and high net-worth individuals). Co-Founder, President and Chief Operating Officer of Arcturus (real estate asset and investment management services firm) from 2007 to 2017.	38	None

			Number of	Other
	Position(s)		Funds in Trust	Directorships
Name, Address	Held	Principal Occupation(s)	Overseen by	Held by
(Year of Birth)	with Trust	During the Past 5 Years	Trustee	Trustees
Officers¹

Jonathan Krane (1968) 280 Park Avenue 32nd Floor New York, New York, 10017	Principal Executive Officer and Principal Financial Officer, No set term; served since 2012	Chief Executive Officer of Krane Funds Advisors, LLC from 2011 to present. Chief Executive Officer of Krane Portfolio Advisors, LLC from 2018 to present. Principal of Krane Capital LLC from 2009 to 2011.	38	None

Jennifer Tarleton (formerly Krane) (1966) 280 Park Avenue 32nd Floor New York, New York, 10017	Vice President and Secretary, No set term; served since 2012	Vice President of Krane Funds Advisors, LLC from 2011 to present.	38	None

231

Trustees and Officers of the Trust (Unaudited) (concluded)

March 31, 2023

			Number of	Other
	Position(s)		Funds in Trust	Directorships
Name, Address	Held	Principal Occupation(s)	Overseen by	Held by
(Year of Birth)	with Trust	During the Past 5 Years	Trustee	Trustees
Officers¹

Michael Quain (1957) 280 Park Avenue 32nd Floor New York, New York, 10017	Chief Compliance Officer and AntiMoney Laundering Officer, No Set Term; served since 2015	Principal/President of Quain Compliance Consulting, LLC from 2014 to present. First Vice President of Aberdeen Asset Management Inc. from May 2013 to September 2013.	38	None

Eric Olsen (1970) SEI Investments Company One Freedom Valley Drive Oaks, PA 19456	Assistant Treasurer, No set term; served since 2021	Director of Accounting, SEI Investments Global Fund Services (March 2021 to present); Deputy Head of Fund Operations, Traditional Assets, Aberdeen Standard Investments (August 2013 to February 2021).	38	None

David Adelman (1964) 280 Park Avenue 32nd Floor New York, New York, 10017	Assistant Secretary, No set term; served since 2021	Managing Director and the General Counsel, Krane Fund Advisors, LLC from 2021. Partner, Reed Smith LLP from 2015 to 2021.	38	None

Jonathan Shelon (1974) 280 Park Avenue 32nd Floor New York, New York, 10017	Assistant Secretary, No set term; served since 2019	Chief Operating Officer, Krane Funds Advisors, LLC from 2015 to present. Chief Operating Officer, CICC Wealth Management (USA) LLC from 2018 to present. Chief Investment Officer of Specialized Strategies, J.P. Morgan from 2011 to 2015.	38	None

Each Trustee serves until his or her successor is duly elected or appointed and qualified.

Mr. Krane is an “interested” person of the Trust, as that term is defined in the 1940 Act, by virtue of his ownership and controlling interest in the Adviser.

232

Approval of Advisory Agreement (Unaudited)

Approval of Advisory Agreement for KraneShares China Internet and Covered Call Strategy ETF

At a meeting held on December 1-2, 2022, the Board of Trustees (the “Board”) of KraneShares Trust (the “Trust”), including a majority of the Trustees who are not “interested persons” of the Trust, as that term is defined in the Investment Company Act of 1940, as amended (the “Independent Trustees”), approved the existing investment advisory agreement (the “Advisory Agreement”) between Krane Funds Advisors, LLC (“Krane”) and the Trust, on behalf of a proposed new series of the Trust, KraneShares China Internet and Covered Call Strategy ETF (the “New Fund”).

In advance of the meeting, and at a separate meeting of the Independent Trustees in executive session held on December 1, 2022, the Board received and considered information provided by Krane in response to the Independent Trustees’ written request for information regarding the New Fund and the Advisory Agreement. The Board noted that it considers information at each of its regularly scheduled meetings related to, among other matters, the services provided by Krane to each series of the Trust, and that such information will include information related to the New Fund after it is operational. The Board considered that the Independent Trustees also receive additional information outside of regularly scheduled Board meetings and at executive sessions held by the Independent Trustees. As a result, the Board considered that its evaluation process with respect to Krane and each series of the Trust is an ongoing one.

In evaluating the Advisory Agreement with respect to the New Fund, the Board considered, among other matters: (1) the nature, extent, and quality of the services to be provided to the New Fund by Krane; (2) the proposed compensation to be paid by the New Fund under the Advisory Agreement and related fee waivers; (3) the estimated costs of the services to be provided by Krane and the profitability expectations of Krane with respect to its relationship with the New Fund; (4) the extent to which economies of scale could be realized as the New Fund grows and whether the unitary fee charged under the Advisory Agreement will enable investors in the New Fund to share in any such economies of scale; and (5) other benefits Krane anticipates it may receive from its relationship with the New Fund.

Nature, Extent and Quality of Services

Based on written and oral reports received by the Board prior to and at the December 1, 2022 executive session of the Independent Trustees and December 1-2, 2022 meeting of the Board, the Board considered the nature, quality, and extent of the overall services to be provided by Krane to the New Fund under the Advisory Agreement. The Board took note of the qualifications, background and responsibilities of Krane personnel who will provide services to the New Fund.

The Board considered Krane’s representation that the New Fund represented a unique investment opportunity for retail investors. They noted that the portfolio would consist of investments in component securities of the CSI Overseas China Internet Index (“Index”) and at the money covered call options written by Krane on the Index. The Board noted that the Index is also the underlying index for KraneShares CSI China Internet ETF (“KWEB”) and considered that Krane intends to manage the New Fund’s portfolio by purchasing KWEB and writing covered call options on KWEB. The Board considered the hypothetical results of the proposed portfolio construction and considered the relative volatility of the New Fund compared to historical volatility of KWEB. The Board noted the portfolio management expertise necessary to write covered call options on the New Fund’s portfolio and considered the expertise and experience of Krane’s portfolio staff in this regard.

233

Approval of Advisory Agreement (Unaudited) (continued)

The Board recognized that Krane invests significant time and effort in structuring new series of the Trust, including the New Fund. They considered Krane’s evaluation of the market appeal for the New Fund, and considered that Krane worked with the Trust’s service providers to manage the administrative and other requirements for the New Fund. The Board also noted that Krane continually evaluates its existing compliance and operational staff, as well as its investment professionals, and that Krane has consistently sought to retain qualified and experienced staff in these areas as its business has grown. The Board considered Krane’s current ownership structure, financial strength and long-term strategic plans, and noted that Krane is part of a family of investment management firms with significant resources, including administrative resources utilized by Krane.

Investment Performance

The Board noted that, because the New Fund has not yet commenced investment operations, it has no investment performance. The Board considered, however, Krane’s representations with respect to hypothetical results of a model proposed portfolio and considered the resulting relative volatility of the New Fund compared to historical volatility of KWEB. The Board noted that once the New Fund commences operations, the Board will receive regular reports regarding its performance relative its respective broad Morningstar peer group, as well as a select group of competitors identified by Krane. The Board also considered that at its regular meetings it will receive information regarding the New Fund against the performance of an identified index. The Board considered that there are limited peers available for the New Fund.

Compensation

The Board considered that, pursuant to the Advisory Agreement, Krane will enter into a unitary advisory fee arrangement for the New Funds. The Board considered the proposed fee for the New Fund compared to its Morningstar universe and against a custom peer group. The Board considered that Krane will waive any acquired fund fees and expenses due to the New Fund’s investment in KWEB and considered the results of such waiver on the New Fund’s advisory fee. The Board considered that the proposed fee rate for the New Fund is above the median of its peer group, and took note of the unique nature of the strategy followed by the New Fund. The Board also considered that under the unitary fee arrangement, Krane will be responsible for paying most of the expenses incurred by the New Fund, including those of its principal service providers. The Board noted that, under the unitary fee structure, Krane takes the risk that the New Fund may not be successful in raising sufficient assets to enable Krane to cover the cost of such expenses.

Costs and Profitability

The Board considered the estimated cost of Krane’s services with respect to the New Fund. The Board noted that, because the New Fund has not yet launched, it was difficult to estimate how profitable it will be to Krane, although the Board recognized that the New Fund will leverage procedures and systems put in place in connection with management of other series of the Trust. The Independent Trustees received information from Krane regarding its overall profitability, particularly in light of recent market performance, and discussed with Krane’s management how launching the New Fund could impact such profitability. The Board considered information previously provided by Krane regarding the cost of its services and its profitability with respect to the existing operational series of the Trust. The Board noted Krane’s continuing commitment to operating the Trust and its continued use of a unitary fee structure under which it will bear many of the expenses of the New Funds.

234

Approval of Advisory Agreement (Unaudited) (concluded)

Other Benefits

The Board considered the extent to which Krane could derive ancillary benefits from the operations of the New Fund including, in particular, the effect the New Fund could have on KWEB’s assets and the fees earned by Krane on KWEB. They noted that it was unlikely that the New Fund would participate in the Trust’s securities lending program, and considered whether Krane would benefit as a result of its ability to use the New Fund’s assets to engage in soft dollar transactions.

Economies of Scale

The Board considered whether Krane would realize economies of scale with respect to its services as the New Fund grows, including the extent to which this is reflected in the level of fees to be paid by the New Fund. The Board noted that the proposed advisory fee for the New Fund does not includes breakpoints, and considered that it is not possible—before the commencement of investment operations—to accurately evaluate potential economies of scale. The Board also noted that Krane continues to reinvest a portion of its profits in its business, including through the evolution of its compliance and investment infrastructure, and that any economies of scale could be shared with the New Fund in this manner. Based on these and other considerations, including that the New Fund is newly organized, the Board considered economies of scale not to be a material factor in its consideration of the Advisory Agreement.

Conclusion

The Board did not identify any single factor as being of paramount importance, and different Trustees may have given different weight to different factors in their review of the Advisory Agreement. The Board reviewed a memorandum from Independent Trustee counsel discussing the legal standards and judicial precedent applicable to its consideration of the Advisory Agreement. The Board noted that, consistent with its approach to other series of the Trust, it will continue to monitor the New Fund at its regular meetings, during executive sessions of the Independent Trustees and outside of the Board meetings. Based on its review, including consideration of each of the factors referenced above, the Board determined, in the exercise of its reasonable business judgment, that the advisory arrangements, as outlined in the Advisory Agreement, were reasonable in light of the factors considered by the Board.

235

Disclosure of Fund Expenses (Unaudited)

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including brokerage expenses; and (2) ongoing costs. All Exchange Traded Funds (“ETFs”) have operating expenses. As a shareholder of an ETF, your investment is affected by these ongoing costs, which include (among others) costs for ETF management, administrative services, commissions, and shareholder reports like this one. It is important for you to understand the impact of these costs on your investment returns. In addition, a shareholder is responsible for brokerage fees as a result of their investment in the Fund. Operating expenses such as these are deducted from an ETF’s gross income and directly reduce its final investment return. These expenses are expressed as a percentage of the ETF’s average net assets; this percentage is known as the ETF’s expense ratio.

The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period (October 1, 2022 to March 31, 2023).

The table on the next page illustrates your Fund’s costs in two ways:

Actual Fund Return. This section helps you to estimate the actual expenses that your Fund incurred over the period. The “Expenses Paid During Period” column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the “Ending Account Value” number is derived from deducting that expense cost from the Fund’s gross investment return.

You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under “Expenses Paid During Period.”

Hypothetical 5% Return. This section helps you compare your Fund’s costs with those of other funds. It assumes that the Fund had an annual 5% return before expenses during the year, but that the expense ratio (Column 3) for the period is unchanged. This example is useful in making comparisons because the Securities and Exchange Commission requires all funds to make this 5% calculation. You can assess your Fund’s comparative cost by comparing the hypothetical result for your Fund in the “Expenses Paid During Period” column with those that appear in the same charts in the shareholder reports for other funds.

NOTE: Because the return is set at 5% for comparison purposes — NOT your Fund’s actual return — the account values shown may not apply to your specific investment.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, including brokerage commissions on the purchases and sale of Fund shares. Therefore, the expense examples are useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. If these transactional costs had been included, your costs would have been higher.

236

Disclosure of Fund Expenses (Unaudited) (continued)

	Beginning Account Value 10/1/2022		Ending Account Value 3/31/2023		Annualized Expense Ratios			Expenses Paid During Period⁽¹⁾
KraneShares CICC China Leaders 100 Index ETF
Actual Fund Return	$	1,000.00	$	1,085.80		0.69	%	$	3.59
Hypothetical 5% Return		1,000.00		1,021.49		0.69			3.48

KraneShares CSI China Internet ETF
Actual Fund Return	$	1,000.00	$	1,268.30		0.69	%	$	3.90
Hypothetical 5% Return		1,000.00		1,021.49		0.69			3.48

KraneShares Bosera MSCI China A 50 Connect Index ETF
Actual Fund Return	$	1,000.00	$	1,058.20		0.56	%	$	2.87
Hypothetical 5% Return		1,000.00		1,022.14		0.56			2.82

KraneShares Bloomberg China Bond Inclusion Index ETF
Actual Fund Return	$	1,000.00	$	1,047.00		0.49	%	$	2.50
Hypothetical 5% Return		1,000.00		1,022.49		0.49			2.47

KraneShares MSCI All China Index ETF
Actual Fund Return	$	1,000.00	$	1,147.20		0.49	%	$	2.62
Hypothetical 5% Return		1,000.00		1,022.49		0.49			2.47

KraneShares MSCI One Belt One Road Index ETF
Actual Fund Return	$	1,000.00	$	1,045.40		0.79	%	$	4.03
Hypothetical 5% Return		1,000.00		1,020.99		0.79			3.98

KraneShares Emerging Markets Consumer Technology Index ETF
Actual Fund Return	$	1,000.00	$	1,151.50		0.60	%	$	3.22
Hypothetical 5% Return		1,000.00		1,021.94		0.60			3.02

KraneShares MSCI China Clean Technology Index ETF
Actual Fund Return	$	1,000.00	$	1,027.80		0.79	%	$	3.99
Hypothetical 5% Return		1,000.00		1,020.99		0.79			3.98

KraneShares Electric Vehicles and Future Mobility Index ETF
Actual Fund Return	$	1,000.00	$	1,010.20		0.72	%	$	3.61
Hypothetical 5% Return		1,000.00		1,021.34		0.72			3.63

KraneShares MSCI All China Health Care Index ETF
Actual Fund Return	$	1,000.00	$	1,166.10		0.65	%	$	3.51
Hypothetical 5% Return		1,000.00		1,021.69		0.65			3.28

KraneShares Asia Pacific High Income Bond ETF
Actual Fund Return	$	1,000.00	$	1,101.90		0.69	%	$	3.62
Hypothetical 5% Return		1,000.00		1,021.49		0.69			3.48

KraneShares Emerging Markets Healthcare Index ETF
Actual Fund Return	$	1,000.00	$	1,068.40		0.80	%	$	4.13
Hypothetical 5% Return		1,000.00		1,020.94		0.80			4.03

KraneShares MSCI Emerging Markets ex China Index ETF
Actual Fund Return	$	1,000.00	$	1,148.40		0.24	%	$	1.29
Hypothetical 5% Return		1,000.00		1,023.74		0.24			1.21

237

Disclosure of Fund Expenses (Unaudited) (concluded)

		Beginning Account Value 10/1/2022		Ending Account Value 3/31/2023		Annualized Expense Ratios			Expenses Paid During Period⁽¹⁾
KraneShares MSCI China ESG Leaders Index ETF
Actual Fund Return		$	1,000.00	$	1,164.20		0.59	%	$	3.18
Hypothetical 5% Return			1,000.00		1,021.99		0.59			2.97

KraneShares CICC China 5G & Semiconductor Index ETF
Actual Fund Return		$	1,000.00	$	1,214.00		0.65	%	$	3.59
Hypothetical 5% Return			1,000.00		1,021.69		0.65			3.28

KraneShares CICC China Consumer Leaders Index ETF
Actual Fund Return		$	1,000.00	$	1,095.00		0.68	%	$	3.55
Hypothetical 5% Return			1,000.00		1,021.54		0.68			3.43

KraneShares SSE STAR Market 50 Index ETF
Actual Fund Return		$	1,000.00	$	1,168.90		0.89	%	$	4.81
Hypothetical 5% Return			1,000.00		1,020.49		0.89			4.48

KraneShares Hang Seng TECH Index ETF
Actual Fund Return		$	1,000.00	$	1,267.40		0.69	%	$	3.90
Hypothetical 5% Return			1,000.00		1,021.49		0.69			3.48

KraneShares China Innovation ETF
Actual Fund Return	��	$	1,000.00	$	1,179.60		0.11	%	$	0.60
Hypothetical 5% Return			1,000.00		1,024.38		0.11			0.56

KraneShares S&P Pan Asia Dividend Aristocrats Index ETF
Actual Fund Return		$	1,000.00	$	1,169.80		0.68	%	$	3.68
Hypothetical 5% Return			1,000.00		1,021.54		0.68			3.43

KraneShares China Internet and Covered Call Strategy ETF
Actual Fund Return⁽²⁾		$	1,000.00	$	964.40		0.27	%	$	0.57
Hypothetical 5% Return			1,000.00		1,023.59		0.27			1.36

(1)

Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period) unless otherwise indicated.

(2)

Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 79/365 (to reflect the period from 1/12/23- 3/31/23).

238

Notice To Shareholders (Unaudited)

For shareholders that do not have a March 31, 2023 tax year end, this notice is for informational purposes only. For shareholders with a March 31, 2023 tax year end, please consult your tax advisor as to the pertinence of this notice. For the fiscal year ended March 31, 2023, the Funds are designating the following items with regard to distributions paid during the year.

Return of Capital⁽¹⁾			Long-Term Capital Gain Distributions			Ordinary Income Distributions			Total Distributions			Qualifying for Corporate Dividends Received Deduction⁽²⁾			Qualifying Dividend Income⁽³⁾			U.S. Government Interest⁽⁴⁾			Interest Related Dividends⁽⁵⁾			Short Term Capital Gain Dividends⁽⁶⁾			Foreign Tax Credit
KraneShares CICC China Leaders 100 Index ETF⁽⁷⁾
	0.00	%		19.41	%		80.59	%		100.00	%		0.00	%		100.00	%		0.00	%		0.13	%		0.00	%		10.16	%
KraneShares CSI China Internet ETF
	0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
KraneShares Bosera MSCI China A 50 Connect Index ETF⁽⁷⁾
	0.00	%		90.15	%		9.85	%		100.00	%		0.00	%		100.00	%		0.00	%		0.05	%		0.00	%		1.30	%
KraneShares Bloomberg China Bond Inclusion Index ETF
	71.46	%		0.00	%		28.54	%		100.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
KraneShares MSCI All China Index ETF ⁽⁷⁾
	0.00	%		36.28	%		63.72	%		100.00	%		0.25	%		81.86	%		0.00	%		0.24	%		0.00	%		5.02	%
KraneShares MSCI One Belt One Road Index ETF⁽⁷⁾
	0.00	%		0.00	%		100.00	%		100.00	%		0.00	%		81.15	%		0.00	%		0.21	%		0.00	%		11.07	%
KraneShares Emerging Markets Consumer Technology Index ETF
	0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
KraneShares MSCI China Clean Technology Index ETF⁽⁷⁾
	0.00	%		80.97	%		19.03	%		100.00	%		0.00	%		100.00	%		0.00	%		0.57	%		0.00	%		0.00	%
KraneShares Electric Vehicles and Future Mobility Index ETF⁽⁷⁾
	0.00	%		0.00	%		100.00	%		100.00	%		14.10	%		100.00	%		0.00	%		0.16	%		0.00	%		18.47	%
KraneShares MSCI All China Health Care Index ETF
	0.00	%		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		0.00	%		1.04	%		0.00	%		63.26	%
KraneShares Asia Pacific High Income Bond ETF
	0.00	%		0.00	%		100.00	%		100.00	%		0.00	%		0.00	%		0.00	%		0.07	%		0.00	%		0.00	%
KraneShares Emerging Markets Healthcare Index ETF
	0.00	%		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		0.00	%		0.00	%		0.00	%		0.00	%
KraneShares MSCI Emerging Markets ex China Index ETF⁽⁷⁾
	0.00	%		0.00	%		100.00	%		100.00	%		0.34	%		39.67	%		0.00	%		0.19	%		0.00	%		18.60	%
KraneShares MSCI China ESG Leaders Index ETF⁽⁷⁾
	0.00	%		0.00	%		100.00	%		100.00	%		1.33	%		62.28	%		0.00	%		0.01	%		0.00	%		6.78	%
KraneShares CICC China 5G & Semiconductor Index ETF
	0.00	%		0.00	%		100.00	%		100.00	%		0.00	%		100.00	%		0.00	%		0.54	%		0.00	%		0.00	%
KraneShares CICC China Consumer Leaders Index ETF⁽⁷⁾
	0.00	%		0.00	%		100.00	%		100.00	%		2.01	%		100.00	%		0.00	%		1.26	%		0.00	%		23.25	%
KraneShares SSE Star Market 50 Index ETF
	0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
KraneShares Hang Seng TECH Index ETF
	0.00	%		0.00	%		100.00	%		100.00	%		0.00	%		14.02	%		0.00	%		0.00	%		0.00	%		0.00	%
KraneShares China Innovation ETF
	32.78	%		67.22	%		0.00	%		100.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF
	0.00	%		0.00	%		100.00	%		100.00	%		0.00	%		53.40	%		0.00	%		0.06	%		0.00	%		17.04	%

239

Notice To Shareholders (Unaudited) (concluded)

Return of Capital⁽¹⁾			Long-Term Capital Gain Distributions			Ordinary Income Distributions			Total Distributions			Qualifying for Corporate Dividends Received Deduction⁽²⁾			Qualifying Dividend Income⁽³⁾			U.S. Government Interest⁽⁴⁾			Interest Related Dividends⁽⁵⁾			Short Term Capital Gain Dividends⁽⁶⁾			Foreign Tax Credit
KraneShares China Internet and Covered Call Strategy ETF
	35.12	%		0.00	%		64.88	%		100.00	%		0.00	%		0.00	%		0.00	%		0.23	%		100.00	%		0.00	%

	(1)	Return of capital is a payment received from the fund that is not considered to be taxable income. The return of capital distribution is considered to be a return of the investor’s original investment and reduces the investor’s cost basis in the fund.
	(2)	Qualifying dividends represent dividends which qualify for the corporate dividends received deduction and are reflected as a percentage of ordinary income distributions (the total of short term capital gain and net investment income distributions).
	(3)	The percentage in this column represents the amount of “Qualifying Dividend Income” as created by the Jobs and Growth Relief Reconciliation Act of 2003 and is reflected as a percentage of ordinary income distributions (the total of short term capital gain and net investment income distributions). It is the intention of each of the aforementioned funds to designate the maximum amount permitted by law.
	(4)	“U.S. Government Interest” represents the amount of interest that was derived from U.S. Government obligations and distributed during the fiscal year. Generally, interest from direct U.S. Government obligations is exempt from state income tax. However, for shareholders who are residents of California, Connecticut and New York, the statutory threshold requirements were not satisfied to permit exemption of these amounts from state income.
	(5)	The percentage in this column represents the amount of “Interest Related Dividends” and is reflected as a percentage of ordinary income distributions that is exempt from U.S. withholding tax when paid for foreign investors.
	(6)	The percentage in this column represents the amount of “Short Term Capital Gain Dividends” and is reflected as a percentage of short term capital gain distributions that is exempt from U.S. withholding tax when paid for foreign investors.
	(7)	The following Funds intend to pass through a foreign tax credit to their shareholders. For the fiscal year ended March 31, 2023, the total amount of foreign source income and amount of foreign tax to be paid is as follows:

KraneShares Funds	Foreign Source Income		Foreign Tax Credit Pass Through
KraneShares CICC China Leaders 100 Index ETF	$	262,176	$	30,201
KraneShares Bosera MSCI China A 50 Connect Index ETF		11,475,483		1,461,599
KraneShares MSCI All China Index ETF		189,569		16,504
KraneShares MSCI One Belt One Road Index ETF		196,688		26,857
KraneShares Electric Vehicles and Future Mobility Index ETF		2,277,359		473,744
KraneShares MSCI All China Health Care Index ETF		278,213		87,722
KraneShares MSCI Emerging Markets ex China Index ETF		895,915		158,460
KraneShares MSCI China ESG Leaders Index ETF		115,785		7,333
KraneShares CICC China Consumer Leaders Index ETF		125,495		20,827
KraneShares S&P Pan Asia Dividend Aristocrats Index ETF		43,293		4,587

The allocable share of foreign tax credit will be reported on Form 1099-DIV.

240

Supplemental Information (Unaudited)

Net asset value, or “NAV”, is the price per Share at which the Funds issue and redeem Shares to Authorized Participants. It is calculated in accordance with the policies described in Note 2 in Notes to Financial Statements. The “Market Price” of the Funds generally is determined using the closing price on the stock exchange on which the Shares of the Funds are listed for trading. The Funds’ Market Price may be at, above or below their NAV. The NAV of the Funds will fluctuate with changes in the market value of their holdings. The Market Price of the Funds will fluctuate in accordance with changes in their NAV, as well as market supply and demand of Fund Shares.

Premiums or discounts are the differences (expressed as a percentage) between the NAV and Market Price of the Funds on a given day, generally at the time NAV is calculated. A premium is the amount that the Funds are trading above the reported NAV, expressed as a percentage of the NAV. A discount is the amount that the Funds are trading below the reported NAV, expressed as a percentage of the NAV. Shareholders may pay more than NAV when they buy Fund Shares and receive less than NAV when they sell those Shares, because Shares are bought and sold at Market Price.

Further information regarding premiums and discounts is available on the Funds’ website at http://kraneshares.com. The premium and discount information contained on the website represents past performance and cannot be used to predict future results.

241

KraneShares Trust: 280 Park Avenue 32nd Floor New York, NY 10017 1-855-857-2638 http://kraneshares.com/		Distributor: SEI Investments Distribution Co. One Freedom Valley Drive Oaks, PA 19456

Investment Adviser: Krane Funds Advisors, LLC 280 Park Avenue 32nd Floor New York, NY 10017		Administrator: SEI Investments Global Funds Services One Freedom Valley Drive Oaks, PA 19456

Sub-Adviser: Bosera Asset Management (International) Co., Ltd. Suite 4109 Jardine House One Connaught Place Central, Hong Kong		Independent Registered Public Accounting Firm: KPMG LLP 1601 Market Street Philadelphia, PA 19103

Sub-Adviser: Nikko Asset Management Americas, Inc. 605 Third Avenue 38th Floor New York, NY 10158

This information must be preceded or accompanied by a current prospectus for the Funds described.

KraneShares Trust:

280 Park Avenue, 32nd Floor

New York, NY 10017

KRS-AR-001-1000

Item 2. Code of Ethics.

The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, and any person who performs a similar function. During the period covered by the report, there were no amendments to the code of ethics, and the Registrant did not grant any waivers from a provision of the code of ethics.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant’s Board of Trustees has determined that the Registrant has an audit committee financial expert serving on the audit committee.

(a)(2) The audit committee financial expert, John Ferguson, is an independent trustee as defined in Form N-CSR Item 3 (a)(2).

Item 4. Principal Accountant Fees and Services.

Fees billed by KPMG LLP (“KPMG”) related to the Registrant.

KPMG billed the Registrant aggregate fees for services rendered to the Registrant for the last two fiscal years as follows:

		2023			2022
		All fees and services to the Registrant that were pre-approved	All fees and services to service affiliates that were pre-approved	All other fees and services to service affiliates that did not require pre-approval	All fees and services to the Registrant that were pre-approved	All fees and services to service affiliates that were pre-approved	All other fees and services to service affiliates that did not require pre-approval
(a)	Audit Fees	$751,300	$0	N/A	$623,800	$0	N/A
(b)	Audit-Related Fees	$0	$0	N/A	$0	$0	N/A
(c)	Tax Fees⁽¹⁾	$130,900	$0	N/A	$112,157	$0	N/A
(d)	All Other Fees	$6,531	$0	N/A	$0	$0	N/A

Notes:

(1) These services included tax return preparation and tax compliance for the Funds.

(e)(1) Pursuant to the requirements of the Sarbanes-Oxley Act of 2002, the SEC adopted Rule 2-01 under Regulation S-X, which, among other things, requires a fund’s audit committee to pre-approve certain audit and non-audit services that are provided by its independent auditors in order to ensure the auditors’ independence. The Registrant’s Board of Trustees has established an Audit Committee that has been charged with, among other things, assisting the Board of Trustees in its oversight of: the Registrant’s independent auditors; preapproving all audit and non-audit services provided by the Registrant’s independent auditors; the integrity of the Funds’ financial statements; the independent auditors’ qualifications and independence; and the use of appropriate accounting principles.

(e)(2) Percentage of fees billed applicable to non-audit services approved pursuant to the “de minimis” exception of Rule 2-01(c)(7)(i)(C) were as follows for KPMG:

	2023	2022
Audit-Related Fees	0%	0%
Tax Fees	0%	0%
All Other Fees	0%	0%

(f) Not applicable.

(g) The aggregate non-audit fees and services billed by KPMG for the last two fiscal years were $0 and $0, respectively.

(h) During the past fiscal year, all non-audit services provided by the Registrant’s principal accountant to either the Registrant’s investment adviser or to entities controlling, controlled by, or under common control with the Registrant’s investment adviser that provides ongoing services to the Registrant were pre-approved by the Audit Committee of the Registrant’s Board of Trustees. Included in the audit committee’s pre-approval was the review and consideration as to whether the provision of these non-audit services is compatible with maintaining the principal accountant’s independence.

(i) Not applicable. The Registrant has not retained, for the preparation of the audit report on the financial statements included in the Form N-CSR, a registered public accounting firm that has a branch or office that is located in a foreign jurisdiction and that the Public Company Accounting Oversight Board (the “PCAOB”) has determined that the PCAOB is unable to inspect or investigate completely because of a position taken by an authority in the foreign jurisdiction.

(j) Not applicable. The Registrant is not a “foreign issuer,” as defined in 17 CFR 240.3b-4.

Item 5. Audit Committee of Listed Registrants.

(a) The Registrant has a separately-designated standing Audit Committee, which is composed of the Registrant’s Independent Trustees, Messrs. Patrick Campo, John Ferguson and Matthew Stroyman.

(b) Not applicable.

Item 6. Investments.

(a) The Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.

(b) Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees during the period covered by this report.

Item 11. Controls and Procedures.

(a) The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR § 270.30a-3(c)) as of a date within 90 days of the filing date of the report, are effective based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act (17 CFR § 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR § 240.13a-15(b) or § 240.15d-15(b)).

(b) There has been no change in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR § 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Items 13. Exhibits.

(a)(1) Code of Ethics filed herewith.

(a)(2) A certification for the principal executive officer and the principal financial officer of the Registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), is filed herewith.

(a)(3) Not applicable to the Registrant.

(a)(4) Not applicable to the Registrant.

(b) Officer certification filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)	KraneShares Trust

By (Signature and Title)	/s/ Jonathan Krane
	Jonathan Krane
	Principal Executive Officer

Date: June 9, 2023

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By (Signature and Title)	/s/ Jonathan Krane
	Jonathan Krane
	Principal Executive Officer

Date: June 9, 2023

By (Signature and Title)	/s/ Jonathan Krane
	Jonathan Krane
	Principal Financial Officer

Date: June 9, 2023

Krane Shares Trust N-CSRCertified annual shareholder report (management investment company)