N-CSRS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

FORM N-CSRS

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: (855) 857-2638

Date of fiscal year end: March 31, 2021

Date of reporting period: September 30, 2020

Item 1. Reports to Stockholders.

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

 

Semi-Annual Report

KraneShares CICC China Leaders 100 Index ETF

KraneShares CSI China Internet ETF

KraneShares Bosera MSCI China A Share ETF

KraneShares E Fund China Commercial Paper 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 Environment Index ETF

KraneShares Electric Vehicles and Future Mobility Index ETF

KraneShares MSCI All China Health Care Index ETF

KraneShares CCBS China Corporate High Yield Bond USD Index ETF

KraneShares Emerging Markets Healthcare Index ETF

KraneShares MSCI Emerging Markets ex China Index ETF

KraneShares MSCI China ESG Leaders Index ETF

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the Fund (if you hold your Fund shares directly with the Fund) or from your financial intermediary, such as a broker-dealer or bank (if you hold your Fund shares through a financial intermediary). Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. If you hold your Fund shares directly with the Fund, you may elect to receive shareholder reports and other communications electronically from the Fund by contacting the Fund at 855-857-2638 or, if you hold your Fund shares through a financial intermediary, contacting your financial intermediary.

You may elect to receive all future reports in paper free of charge. If you hold your Fund shares directly with the Fund, you can inform the Fund that you wish to continue receiving paper copies of your shareholder reports at 855-857-2638 or, if you hold your Fund shares through a financial intermediary, contacting your financial intermediary. Your election to receive reports in paper will apply to all of the KraneShares Funds you hold directly with series of the Trust or through your financial intermediary, as applicable.

September 30, 2020

Table of Contents

Schedules of Investments
KraneShares CICC China Leaders 100 Index ETF	1
KraneShares CSI China Internet ETF	5
KraneShares Bosera MSCI China A Share ETF	7
KraneShares E Fund China Commercial Paper ETF	19
KraneShares MSCI All China Index ETF	22
KraneShares MSCI One Belt One Road Index ETF	31
KraneShares Emerging Markets Consumer Technology Index ETF	37
KraneShares MSCI China Environment Index ETF	42
KraneShares Electric Vehicles and Future Mobility Index ETF	45
KraneShares MSCI All China Health Care Index ETF	49
KraneShares CCBS China Corporate High Yield Bond USD Index ETF	52
KraneShares Emerging Markets Healthcare Index ETF	55
KraneShares MSCI Emerging Markets ex China Index ETF	59
KraneShares MSCI China ESG Leaders Index ETF	74
Statements of Assets and Liabilities	79
Statements of Operations	84
Statements of Changes in Net Assets	89
Financial Highlights	104
Notes to Financial Statements	110
Approval of the Existing and New Investment Advisory Agreements	134
Additional Approval of Advisory Agreements	139
Disclosure of Fund Expenses	142
Supplemental Information	144

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 its reports on Form N-PORT within sixty days after the end of the period. The Funds’ Form N-PORT reports are available on the Commission’s website at http://www.sec.gov, and may be reviewed and copied at the Commission’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

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 large 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.

Schedule of Investments (Unaudited) September 30, 2020

KraneShares CICC China Leaders 100 Index ETF

 

	Shares		Value
COMMON STOCK — 99.9%‡
CHINA — 99.9%
Communication Services — 1.1%
China South Publishing & Media Group, Cl A		15,900	$	25,444
G-bits Network Technology Xiamen, Cl A		1,000		91,788
				117,232
Consumer Discretionary — 5.5%
Chongqing Zongshen Power Machinery, Cl A		15,200		17,963
Fuyao Glass Industry Group, Cl A		31,100		148,436
Guangdong Xinbao Electrical Appliances Holdings, Cl A		7,100		43,314
Hang Zhou Great Star Industrial, Cl A *		11,900		34,685
Jason Furniture Hangzhou, Cl A		4,200		37,319
Joyoung, Cl A *		6,800		40,612
KingClean Electric, Cl A *		1,800		9,286
Lao Feng Xiang, Cl A		2,800		19,429
Shandong Linglong Tyre, Cl A		11,600		49,913
Shenzhen Overseas Chinese Town, Cl A		90,900		90,816
Weifu High-Technology Group, Cl A		12,900		47,712
Xiamen Intretech, Cl A		3,100		26,627
				566,112
Consumer Staples — 16.5%
Beijing Dabeinong Technology Group, Cl A		65,200		85,988
By-health, Cl A		17,500		54,179
Chacha Food, Cl A		6,800		58,117
Heilongjiang Agriculture, Cl A		15,700		42,799
Henan Shuanghui Investment & Development, Cl A		22,000		171,590

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

1

Schedule of Investments (Unaudited) September 30, 2020

KraneShares CICC China Leaders 100 Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Consumer Staples — (continued)
Jiangsu Yanghe Brewery Joint-Stock, Cl A		13,300	$	244,959
Liaoning Wellhope Agri-Tech JSC, Cl A		6,100		12,054
Luzhou Laojiao, Cl A		16,200		342,677
New Hope Liuhe, Cl A		46,700		190,618
Shanghai Flyco Electrical Appliance, Cl A		1,100		7,827
Tecon Biology		16,700		35,461
Toly Bread, Cl A		4,400		38,636
Wens Foodstuffs Group		98,940		284,881
Yixintang Pharmaceutical Group, Cl A		6,300		36,354
Yonghui Superstores, Cl A		84,900		97,957
				1,704,097
Energy — 1.9%
China Shenhua Energy, Cl A		73,101		177,412
Huolinhe Opencut Coal Industry of Inner Mongolia, Cl A		12,800		18,296
				195,708
Financials — 31.2%
Agricultural Bank of China, Cl A		637,200		297,648
Avic Capital, Cl A		119,400		77,239
Bank of China, Cl A		467,400		220,397
Bank of Communications, Cl A		609,300		407,618
China Merchants Bank, Cl A		93,700		497,060
Huatai Securities, Cl A		130,598		395,087
Industrial & Commercial Bank of China, Cl A		777,500		563,680
Industrial Bank, Cl A		171,200		406,916
Shanghai Pudong Development Bank, Cl A		260,400		360,308
				3,225,953
Health Care — 5.1%
China Animal Healthcare *(A)(B)(C)		4,000		—
Guangxi Liuzhou Pharmaceutical, Cl A		5,540		19,013
Haisco Pharmaceutical Group, Cl A		3,600		11,464
Huadong Medicine, Cl A		19,400		70,610
Hubei Jumpcan Pharmaceutical, Cl A		7,200		23,500
Shandong Buchang Pharmaceuticals, Cl A		12,610		46,268
Yifan Pharmaceutical, Cl A		16,400		60,416
Yunnan Baiyao Group, Cl A		11,300		169,776
Zhejiang NHU, Cl A		28,600		125,546
				526,593
Industrials — 9.5%
China Railway Tielong Container Logistics, Cl A		20,300		15,435
China State Construction Engineering, Cl A		465,300		348,308
Fujian Longma Environmental Sanitation Equipment, Cl A		9,300		30,629
Hangxiao Steel Structure, Cl A		28,500		16,883
Metallurgical Corp of China, Cl A		158,400		61,854
Ningbo Sanxing Medical Electric, Cl A		15,300		14,857
Shanghai International Port Group, Cl A		77,084		47,479

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

2

Schedule of Investments (Unaudited) September 30, 2020

KraneShares CICC China Leaders 100 Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Industrials — (continued)
Shanghai Pudong Road & Bridge Construction, Cl A		17,200	$	15,689
Shanghai Tongji Science & Technology Industrial, Cl A		11,000		15,074
Shenzhen Tagen Group, Cl A		29,000		29,699
TangShan Port Group, Cl A		65,600		24,070
TBEA, Cl A		82,300		106,478
Titan Wind Energy Suzhou, Cl A		19,700		21,569
Tongling Jingda Special Magnet Wire, Cl A		29,800		14,403
Xiamen C & D, Cl A		37,800		47,680
Xinjiang Goldwind Science & Technology, Cl A		61,200		92,256
Zhejiang Weixing New Building Materials, Cl A		13,900		32,752
Zhuzhou Kibing Group, Cl A		35,700		44,715
				979,830
Information Technology — 0.1%
Guangdong Ellington Electronics Technology, Cl A		8,800		11,359
Hanergy Thin Film Power Group *(A)(B)(C)		65,064		—
				11,359
Materials — 6.2%
China Lumena New Materials *(A)(B)(C)		718		—
CSG Holding		30,947		25,629
Guangdong Tapai Group, Cl A		15,800		32,292
Hongda Xingye, Cl A		34,300		19,206
Jiangxi Wannianqing Cement, Cl A		10,600		23,773
Lomon Billions Group, Cl A		22,500		77,218
Shandong Chenming Paper Holdings, Cl A		29,500		22,561
Shandong Sun Paper Industry JSC, Cl A		34,400		71,473
Tianhe Chemicals Group *(A)(B)(C)		40,000		—
Tibet Summit Resources, Cl A		8,200		10,512
Yintai Gold, Cl A		37,100		57,293
Zhejiang Runtu, Cl A		15,200		20,405
Zijin Mining Group, Cl A		304,900		276,312
				636,674
Real Estate — 16.2%
Beijing Capital Development, Cl A		28,600		28,194
China Fortune Land Development, Cl A		34,740		77,657
China Vanke, Cl A		145,100		599,105
Gemdale, Cl A		50,000		107,201
Greenland Holdings, Cl A		80,900		75,937
Huafa Industrial Zhuhai, Cl A		37,500		36,415
Jinke Properties Group, Cl A		47,300		63,078
Poly Developments and Holdings Group, Cl A		158,700		371,593
RiseSun Real Estate Development, Cl A		38,547		43,340
Seazen Holdings, Cl A		20,000		103,031
Shanghai Lujiazui Finance & Trade Zone Development, Cl A		19,500		32,930
Shanghai Shimao, Cl A		24,900		22,602
Shanghai Zhangjiang High-Tech Park Development, Cl A		17,100		47,800
Youngor Group, Cl A		61,600		61,906
				1,670,789

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

3

Schedule of Investments (Unaudited) September 30, 2020

KraneShares CICC China Leaders 100 Index ETF (concluded)

	Shares		Value
COMMON STOCK — (continued)
Utilities — 6.6%
China Yangtze Power, Cl A		189,535	$	534,283
Hubei Energy Group, Cl A		43,300		23,672
SDIC Power Holdings, Cl A		60,177		79,984
Shenergy, Cl A		54,400		44,089
				682,028
TOTAL COMMON STOCK
(Cost $9,366,138)				10,316,375
TOTAL INVESTMENTS — 99.9%
(Cost $9,366,138)				10,316,375
OTHER ASSETS LESS LIABILITIES — 0.1%				14,218
NET ASSETS — 100%				10,330,593

‡ Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.

* Non-income producing security.

(A) Security is fair valued using methods determined in good faith by the Fair Value Committee of the Board of Trustees. The total value of such securities as of September 30, 2020 was $0 and represents 0.0% of Net Assets.

(B) Level 3 security in accordance with fair value hierarchy.

(C) Security considered illiquid. The total value of such securities as of September 30, 2020 was $0 and represents 0.0% of Net Assets.

Cl — Class

JSC — Joint-Stock Company

The following summarizes the market value of the Fund’s investments used as of September 30, 2020, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3^		Total
Common Stock
China
Communication Services	$	117,232	$	—	$	—	$	117,232
Consumer Discretionary		566,112		—		—		566,112
Consumer Staples		1,704,097		—		—		1,704,097
Energy		195,708		—		—		195,708
Financials		3,225,953		—		—		3,225,953
Health Care		526,593		—		—		526,593
Industrials		979,830		—		—		979,830
Information Technology		11,359		—		—		11,359
Materials		636,674		—		—		636,674
Real Estate		1,670,789		—		—		1,670,789
Utilities		682,028		—		—		682,028
Total Common Stock		10,316,375		—		—		10,316,375
Total Investments in Securities	$	10,316,375	$	—	$	—	$	10,316,375

^ 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 beginning and/or end of the period in relation to net assets.

For the period ended September 30, 2020, there have been no transfers in or out of Level 3.

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

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

4

Schedule of Investments (Unaudited) September 30, 2020

KraneShares CSI China Internet ETF

 

	Shares		Value
COMMON STOCK — 100.0%‡
CHINA — 97.6%
Communication Services — 37.1%
Autohome ADR		686,536	$	65,907,456
Baidu ADR *		932,696		118,069,987
Bilibili ADR *		2,585,229		107,545,526
China Literature * (A)		6,009,200		44,933,308
DouYu International Holdings ADR *		1,881,779		24,858,301
HUYA ADR * (A)		775,013		18,561,561
iQIYI ADR *		3,479,088		78,557,807
JOYY ADR		653,162		52,690,579
Momo ADR *		1,979,562		27,238,773
NetEase ADR		244,140		111,003,134
SINA *		774,630		33,006,984
Tencent Holdings		3,731,975		246,310,350
Tencent Music Entertainment Group ADR *		5,975,745		88,261,754
Weibo ADR * (A)		805,579		29,347,243
				1,046,292,763
Consumer Discretionary — 46.6%
Alibaba Group Holding ADR *		1,025,944		301,607,017
Alibaba Group Holding *		800		28,449
Baozun ADR * (A)		522,426		16,973,621
GSX Techedu ADR * (A)		1,110,538		100,070,579
JD.com ADR *		2,569,643		199,429,993
Meituan Dianping, Cl B *		7,179,700		224,006,640
Pinduoduo ADR *		1,999,104		148,233,562
TAL Education Group ADR *		1,511,302		114,919,404
Trip.com Group ADR *		3,865,326		120,366,252
Vipshop Holdings ADR *		5,533,608		86,545,629
				1,312,181,146
Financials — 0.1%
Fanhua ADR		111,278		1,863,906

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

5

Schedule of Investments (Unaudited) September 30, 2020

KraneShares CSI China Internet ETF (concluded)

	Shares		Value
COMMON STOCK — (continued)
Health Care — 6.2%
Alibaba Health Information Technology *		45,932,000	$	111,896,279
Ping An Healthcare and Technology * (A)		5,015,400		64,229,477
				176,125,756
Industrials — 1.1%
51job ADR *		396,574		30,928,806
Information Technology — 1.9%
Kingsoft		10,543,000		52,578,961
Real Estate — 4.6%
KE Holdings ADR *		2,138,625		131,097,713
TOTAL CHINA				2,751,069,051
HONG KONG — 2.4%
Communication Services — 0.9%
Alibaba Pictures Group *		163,514,000		24,263,368
Consumer Discretionary — 1.5%
Koolearn Technology Holding * (A)		4,393,000		18,762,361
Tongcheng-Elong Holdings *		12,327,600		22,428,279
				41,190,640
TOTAL HONG KONG				65,454,008
TOTAL COMMON STOCK
(Cost $2,373,030,413)				2,816,523,059
SHORT-TERM INVESTMENT(B)(C) — 6.8%
Invesco Government & Agency Portfolio, Cl Institutional, 0.010%		190,396,739		190,396,739
TOTAL SHORT-TERM INVESTMENT
(Cost $190,396,739)				190,396,739
TOTAL INVESTMENTS — 106.8%
(Cost $2,563,427,152)				3,006,919,798
OTHER ASSETS LESS LIABILITIES – (6.8)%				(190,959,246	)
NET ASSETS - 100%				2,815,960,552

‡ 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 September 30, 2020. The total market value of securities on loan at September 30, 2020 was $184,151,234.

(B) The rate shown is the 7-day effective yield as of September 30, 2020.

(C) This security was purchased with cash collateral held from securities on loan. The total value of such security as of September 30, 2020 was $190,396,739.

ADR — American Depositary Receipt

Cl — Class

As of September 30, 2020, 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.

For the period ended September 30, 2020, there have been no transfers in or out of Level 3.

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

6

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Bosera MSCI China A Share ETF

	Shares		Value
COMMON STOCK — 100.0%‡
CHINA — 100.0%
Communication Services — 2.7%
Beijing Enlight Media, Cl A		357,260	$	877,054
Beijing Kunlun Tech, Cl A		139,814		536,692
China Film, Cl A		189,421		393,284
China South Publishing & Media Group, Cl A		218,711		349,999
China United Network Communications, Cl A		3,148,220		2,249,955
Chinese Universe Publishing and Media Group, Cl A		165,036		283,803
Focus Media Information Technology, Cl A		1,787,329		2,125,421
G-bits Network Technology Xiamen, Cl A		8,708		799,289
Giant Network Group, Cl A		205,332		582,747
Leo Group, Cl A		822,500		350,268
Mango Excellent Media, Cl A		216,834		2,153,546
NanJi E-Commerce, Cl A		298,920		760,261
Oriental Pearl Group, Cl A		415,806		593,720
Perfect World, Cl A		236,201		1,159,025
Wanda Film Holding, Cl A*		253,050		663,733
Wuhu Sanqi Interactive Entertainment Network Technology Group, Cl A		257,204		1,504,270
Youzu Interactive, Cl A		108,227		278,769
Zhejiang Century Huatong Group, Cl A*		909,804		1,276,297
				16,938,133
Consumer Discretionary — 6.1%
BAIC BluePark New Energy Technology, Cl A*		354,500		308,202
BTG Hotels Group, Cl A		120,275		314,587
BYD, Cl A		220,804		3,782,069
Changzhou Xingyu Automotive Lighting Systems, Cl A		33,601		741,358
China Tourism Group Duty Free, Cl A		237,707		7,809,027
Chongqing Changan Automobile, Cl A*		474,959		939,938
Fuyao Glass Industry Group, Cl A		243,889		1,164,046

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

7

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Bosera MSCI China A Share ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Consumer Discretionary — (continued)
Gree Electric Appliances of Zhuhai, Cl A		366,233	$	2,876,416
Haier Smart Home, Cl A		768,168		2,469,892
Hangzhou Robam Appliances, Cl A		115,526		556,495
Huayu Automotive Systems, Cl A		383,879		1,408,512
Joyoung, Cl A*		93,435		558,024
Liaoning Cheng Da, Cl A		186,309		639,122
NavInfo, Cl A		238,879		517,443
Ningbo Joyson Electronic, Cl A		150,675		491,792
Ningbo Tuopu Group, Cl A		128,420		756,937
Offcn Education Technology, Cl A		200,301		963,091
Oppein Home Group, Cl A		47,787		758,883
SAIC Motor, Cl A		948,367		2,673,366
Shandong Linglong Tyre, Cl A		146,095		628,616
Shanghai Jinjiang International Hotels, Cl A		97,700		586,952
Shanghai Yuyuan Tourist Mart Group, Cl A		394,069		512,743
Shenzhen Overseas Chinese Town, Cl A		998,765		997,838
Songcheng Performance Development, Cl A		318,424		855,850
Suning.com, Cl A		1,133,633		1,520,130
Suofeiya Home Collection, Cl A		55,584		215,905
TCL Technology Group, Cl A		1,647,300		1,492,845
Weifu High-Technology Group, Cl A		101,874		376,794
Wuchan Zhongda Group, Cl A		616,430		419,655
Xiamen Intretech, Cl A		55,752		478,874
Zhejiang Semir Garment, Cl A		273,791		323,968
Zhejiang Supor, Cl A*		66,694		776,392
Zhejiang Wanfeng Auto Wheel, Cl A		266,266		266,019
				39,181,781
Consumer Staples — 17.3%
Angel Yeast, Cl A		100,310		901,508
Anhui Gujing Distillery, Cl A		46,750		1,493,371
Anhui Kouzi Distillery, Cl A		73,100		546,341
Beijing Dabeinong Technology Group, Cl A		510,900		673,792
Beijing Shunxin Agriculture, Cl A		90,290		800,414
Beijing Yanjing Brewery, Cl A		343,224		426,356
By-health, Cl A		192,719		596,647
C&S Paper, Cl A		159,358		503,461
Chacha Food, Cl A		61,696		527,293
Chongqing Brewery, Cl A		58,981		896,844
Chongqing Fuling Zhacai Group, Cl A		96,100		666,411
Foshan Haitian Flavouring & Food, Cl A		328,791		7,853,620
Fujian Sunner Development, Cl A*		151,489		488,422
Guangdong Haid Group, Cl A		192,492		1,739,613
Heilongjiang Agriculture, Cl A		216,500		590,196
Henan Shuanghui Investment & Development, Cl A		336,809		2,626,954
Inner Mongolia Yili Industrial Group, Cl A		738,615		4,190,307
Jiangsu King’s Luck Brewery JSC, Cl A		152,807		1,000,204
Jiangsu Yanghe Brewery Joint-Stock, Cl A		183,509		3,379,867
Jiangxi Zhengbang Technology, Cl A		304,861		816,700
Jonjee Hi-Tech Industrial And Commercial Holding, Cl A		97,014		936,360
Juewei Food, Cl A		74,100		895,581

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

8

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Bosera MSCI China A Share ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Consumer Staples — (continued)
Kweichow Moutai, Cl A		152,988	$	37,614,087
Laobaixing Pharmacy Chain JSC, Cl A		49,760		608,444
Luzhou Laojiao, Cl A		178,375		3,773,150
Muyuan Foods, Cl A		456,383		4,976,547
New Hope Liuhe, Cl A		513,392		2,095,539
Proya Cosmetics, Cl A		24,486		519,718
Shanghai Jahwa United, Cl A		81,700		453,869
Shanxi Xinghuacun Fen Wine Factory, Cl A		106,126		3,099,349
Sichuan Swellfun, Cl A		59,463		565,163
Toly Bread, Cl A		66,840		586,917
Tongwei, Cl A		522,080		2,044,838
Tsingtao Brewery, Cl A		84,724		937,716
Wens Foodstuffs Group		776,134		2,234,746
Wuliangye Yibin, Cl A		472,622		15,391,224
Yifeng Pharmacy Chain, Cl A		64,620		945,547
Yonghui Superstores, Cl A		1,165,351		1,344,576
Yuan Longping High-tech Agriculture, Cl A*		160,388		432,740
				110,174,432
Energy — 1.6%
China Merchants Energy Shipping, Cl A		820,759		696,635
China Petroleum & Chemical, Cl A*		3,102,884		1,787,760
China Shenhua Energy, Cl A		669,378		1,624,546
COSCO SHIPPING Energy Transportation, Cl A		422,104		439,750
Guanghui Energy, Cl A*		827,205		346,177
Offshore Oil Engineering, Cl A		538,340		357,767
PetroChina, Cl A		2,628,895		1,592,143
Shaanxi Coal Industry, Cl A		1,014,769		1,254,573
Shanxi Lu’an Environmental Energy Development, Cl A		364,262		327,424
Shanxi Meijin Energy, Cl A*		499,120		444,231
Shanxi Xishan Coal & Electricity Power, Cl A		498,781		319,717
Yantai Jereh Oilfield Services Group, Cl A		116,606		511,697
Yanzhou Coal Mining, Cl A		300,400		409,900
				10,112,320
Financials — 21.9%
Agricultural Bank of China, Cl A		9,070,507		4,236,993
Avic Capital, Cl A		1,093,052		707,086
Bank of Beijing, Cl A		2,574,552		1,775,475
Bank of Chengdu, Cl A		439,900		640,439
Bank of China, Cl A		4,277,400		2,016,958
Bank of Communications, Cl A		4,779,499		3,197,460
Bank of Hangzhou, Cl A		722,147		1,253,539
Bank of Jiangsu, Cl A		1,405,764		1,259,456
Bank of Nanjing, Cl A		1,218,417		1,416,576
Bank of Ningbo, Cl A		731,557		3,393,516
Bank of Shanghai, Cl A		1,729,904		2,074,977
Caitong Securities, Cl A		437,009		920,859
Changjiang Securities, Cl A		673,371		795,785
China CITIC Bank, Cl A		691,106		514,284
China Construction Bank, Cl A		1,168,226		1,058,690

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

9

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Bosera MSCI China A Share ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Financials — (continued)
China Everbright Bank, Cl A		4,847,684	$	2,607,319
China Galaxy Securities, Cl A		523,249		978,446
China Great Wall Securities, Cl A		251,919		484,438
China Life Insurance, Cl A		338,039		2,213,146
China Merchants Bank, Cl A		2,511,927		13,325,284
China Merchants Securities, Cl A		905,317		2,882,852
China Minsheng Banking, Cl A		4,318,140		3,372,404
China Pacific Insurance Group, Cl A		765,440		3,520,237
CITIC Securities, Cl A		1,296,643		5,737,764
CSC Financial, Cl A		336,900		2,473,271
Dongxing Securities, Cl A		335,880		635,006
East Money Information, Cl A		981,297		3,468,947
Everbright Securities, Cl A		475,733		1,538,738
First Capital Securities, Cl A		511,708		837,728
Founder Securities, Cl A*		1,002,361		1,240,710
GF Securities, Cl A		720,779		1,676,008
Guosen Securities, Cl A		507,216		1,005,269
Guotai Junan Securities, Cl A		915,181		2,459,794
Guoyuan Securities, Cl A		409,823		724,073
Haitong Securities, Cl A		1,175,587		2,451,197
Hithink RoyalFlush Information Network, Cl A		65,500		1,543,033
Huaan Securities, Cl A		440,954		569,849
Huatai Securities, Cl A		895,895		2,710,273
Huaxi Securities, Cl A		319,631		564,251
Huaxia Bank, Cl A		1,561,387		1,410,386
Hubei Biocause Pharmaceutical, Cl A		601,641		468,100
Industrial & Commercial Bank of China, Cl A		6,566,026		4,760,304
Industrial Bank, Cl A		2,529,591		6,012,452
Industrial Securities, Cl A		815,453		994,938
Jiangsu Changshu Rural Commercial Bank, Cl A		333,749		384,094
Nanjing Securities, Cl A		401,740		835,885
New China Life Insurance, Cl A		253,966		2,323,241
Northeast Securities, Cl A		285,000		414,924
Oceanwide Holdings, Cl A		527,263		327,874
Orient Securities, Cl A		726,535		1,180,862
Pacific Securities, Cl A*		830,000		497,782
People’s Insurance Group of China, Cl A		720,394		718,664
Ping An Bank, Cl A		2,363,015		5,282,251
Ping An Insurance Group of China, Cl A		1,319,030		14,822,396
Postal Savings Bank of China, Cl A		1,362,200		905,283
Qingdao Rural Commercial Bank, Cl A		676,526		501,441
SDIC Capital, Cl A		428,952		967,090
Sealand Securities, Cl A		662,947		520,682
Shanghai Pudong Development Bank, Cl A		3,574,097		4,945,371
Shanxi Securities, Cl A		447,745		524,523

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

10

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Bosera MSCI China A Share ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Financials — (continued)
Shenwan Hongyuan Group, Cl A		2,744,181	$	2,147,209
Sinolink Securities, Cl A(A)(B)(C)		365,200		792,685
SooChow Securities, Cl A		472,493		742,894
Southwest Securities, Cl A		809,200		627,204
Tianfeng Securities, Cl A		811,700		773,868
Western Securities, Cl A		426,425		596,943
Zheshang Securities, Cl A		413,282		1,078,529
				139,840,005
Health Care — 11.3%
Aier Eye Hospital Group, Cl A		501,867		3,802,661
Apeloa Pharmaceutical, Cl A		143,497		504,099
Asymchem Laboratories Tianjin, Cl A		28,200		1,094,914
Autobio Diagnostics, Cl A		34,933		830,407
Beijing Tiantan Biological Products, Cl A		152,733		894,617
Beijing Tongrentang, Cl A		166,981		663,859
Betta Pharmaceuticals, Cl A		48,800		818,043
BGI Genomics, Cl A*		48,720		1,033,441
Changchun High & New Technology Industry Group, Cl A		49,262		2,683,230
Chengdu Kanghong Pharmaceutical Group, Cl A		88,839		596,685
China National Accord Medicines, Cl A		45,430		309,280
China National Medicines, Cl A		91,900		590,160
China Resources Sanjiu Medical & Pharmaceutical, Cl A		119,247		449,485
Chongqing Zhifei Biological Products, Cl A		194,872		4,000,356
Da An Gene of Sun Yat-Sen University, Cl A		106,854		551,252
Dong-E-E-Jiao, Cl E		79,688		466,294
Guangzhou Baiyunshan Pharmaceutical Holdings, Cl A		171,239		761,786
Guangzhou Kingmed Diagnostics Group, Cl A		55,737		840,042
Guangzhou Wondfo Biotech, Cl A		41,740		510,810
Hangzhou Tigermed Consulting, Cl A		45,650		692,523
Huadong Medicine, Cl A		213,042		775,406
Hualan Biological Engineering, Cl A		222,157		1,865,630
Hubei Jumpcan Pharmaceutical, Cl A		99,280		324,043
Jafron Biomedical, Cl A		96,908		1,014,590
Jiangsu Hengrui Medicine, Cl A		646,161		8,552,257
Jiangsu Yuyue Medical Equipment & Supply, Cl A		122,036		589,833
Jilin Aodong Pharmaceutical Group, Cl A		141,655		349,217
Jinyu Bio-Technology, Cl A		137,155		545,685
Joincare Pharmaceutical Group Industry, Cl A		237,034		594,829
Jointown Pharmaceutical Group, Cl A*		228,677		569,477
Lepu Medical Technology Beijing, Cl A		216,911		1,077,475
Livzon Pharmaceutical Group, Cl A		75,311		546,108
Meinian Onehealth Healthcare Holdings, Cl A*		477,308		997,337
Nanjing King-Friend Biochemical Pharmaceutical, Cl A		94,820		626,097
Ovctek China, Cl A		73,900		677,550
Shandong Buchang Pharmaceuticals, Cl A		138,960		509,866
Shanghai Fosun Pharmaceutical Group, Cl A		244,824		1,771,703
Shanghai Pharmaceuticals Holding, Cl A		234,159		700,790
Shanghai RAAS Blood Products, Cl A		684,045		828,559
Shenzhen Hepalink Pharmaceutical Group, Cl A		126,600		423,474
Shenzhen Kangtai Biological Products, Cl A		81,908		2,196,790

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

11

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Bosera MSCI China A Share ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Health Care — (continued)
Shenzhen Mindray Bio-Medical Electronics, Cl A		123,389	$	6,327,361
Shenzhen Salubris Pharmaceuticals, Cl A		127,365		647,119
Shijiazhuang Yiling Pharmaceutical, Cl A		146,569		582,492
Sichuan Kelun Pharmaceutical, Cl A		175,369		574,201
Tianjin Chase Sun Pharmaceutical, Cl A		366,000		292,852
Tonghua Dongbao Pharmaceutical, Cl A		247,671		496,707
Topchoice Medical, Cl A*		39,006		1,228,296
Walvax Biotechnology, Cl A		187,253		1,403,922
Winning Health Technology Group, Cl A		259,860		744,394
WuXi AppTec, Cl A		252,410		3,775,196
Yifan Pharmaceutical, Cl A		150,621		554,872
Yunnan Baiyao Group, Cl A		155,558		2,337,164
Zhangzhou Pientzehuang Pharmaceutical, Cl A		73,450		2,633,520
Zhejiang Conba Pharmaceutical, Cl A*		324,800		249,357
Zhejiang Huahai Pharmaceutical, Cl A		177,112		836,978
Zhejiang NHU, Cl A		261,622		1,148,449
Zhejiang Wolwo Bio-Pharmaceutical, Cl A		63,726		527,928
				71,991,468
Industrials — 12.4%
AECC Aero-Engine Control, Cl A		139,500		404,750
AECC Aviation Power, Cl A		274,005		1,665,518
Air China, Cl A		808,736		844,928
AVIC Aircraft, Cl A		337,134		1,143,602
AVIC Electromechanical Systems, Cl A		439,390		742,644
AVIC Shenyang Aircraft, Cl A		142,138		1,199,930
AVICOPTER, Cl A		71,800		592,594
Beijing New Building Materials, Cl A		205,681		936,525
Beijing Originwater Technology, Cl A		385,339		494,003
Beijing-Shanghai High Speed Railway, Cl A		1,395,200		1,202,705
Bohai Leasing, Cl A*		753,100		309,616
Centre Testing International Group, Cl A		101,300		364,670
China Aerospace Times Electronics, Cl A		331,102		343,480
China Avionics Systems, Cl A		178,525		448,266
China Communications Construction, Cl A		572,184		626,457
China Eastern Airlines, Cl A		1,136,800		827,519
China Gezhouba Group, Cl A		560,721		490,795
China Meheco, Cl A		130,100		282,388
China National Chemical Engineering, Cl A		600,639		476,171
China Railway Construction, Cl A		1,400,742		1,711,117
China Railway Group, Cl A		2,479,600		1,969,415
China Shipbuilding Industry, Cl A*		2,776,599		1,775,701
China Southern Airlines, Cl A*		1,121,702		958,677
China Spacesat, Cl A		143,972		705,402
China State Construction Engineering, Cl A		5,110,006		3,825,182
Contemporary Amperex Technology, Cl A		283,699		8,745,536
COSCO SHIPPING Development, Cl A		965,878		296,041
COSCO SHIPPING Holdings, Cl A*		1,178,564		995,118
CRRC, Cl A		2,962,328		2,396,472
Daqin Railway, Cl A		1,810,309		1,699,257
Dongfang Electric, Cl A		338,340		506,540

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

12

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Bosera MSCI China A Share ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Industrials — (continued)
Eve Energy, Cl A		224,339	$	1,636,353
Fangda Carbon New Material, Cl A*		463,485		416,613
Gotion High-tech, Cl A*		137,490		482,186
Guangzhou Baiyun International Airport, Cl A		252,009		505,407
Hainan Airlines Holding, Cl A*		2,001,451		516,119
Hefei Meiya Optoelectronic Technology, Cl A		82,300		581,508
Hongfa Technology, Cl A		90,700		610,654
Inner Mongolia First Machinery Group, Cl A		205,772		338,087
Jiangsu Hengli Hydraulic, Cl A		158,910		1,671,923
Jiangsu Zhongtian Technology, Cl A		373,377		576,602
Juneyao Airlines, Cl A		199,520		317,230
Metallurgical Corp of China, Cl A		2,173,921		848,900
Nanyang Topsec Technologies Group, Cl A*		141,070		477,696
NARI Technology, Cl A		562,833		1,635,511
Power Construction Corp of China, Cl A		1,862,946		1,034,924
Sany Heavy Industry, Cl A		1,027,129		3,767,184
SF Holding, Cl A		358,397		4,288,322
Shanghai Construction Group, Cl A		1,084,311		493,718
Shanghai Electric Group, Cl A*		988,760		731,411
Shanghai International Airport, Cl A		117,289		1,188,739
Shanghai International Port Group, Cl A		1,128,708		695,224
Shanghai M&G Stationery, Cl A		112,006		1,120,836
Shanghai Tunnel Engineering, Cl A		382,853		317,056
Shenzhen Airport, Cl A		249,726		314,260
Shenzhen Inovance Technology, Cl A		210,815		1,798,651
Siasun Robot & Automation, Cl A*		189,983		405,089
Sinotrans, Cl A		533,322		288,418
Spring Airlines, Cl A		111,661		740,425
STO Express, Cl A		186,373		413,869
Sunwoda Electronic, Cl A		191,100		762,846
Suzhou Gold Mantis Construction Decoration, Cl A		326,841		465,725
TBEA, Cl A		452,299		585,177
Weichai Power, Cl A		729,469		1,623,120
XCMG Construction Machinery, Cl A		953,887		780,112
Xiamen C & D, Cl A		345,218		435,446
Xinjiang Goldwind Science & Technology, Cl A		420,300		633,581
Yunda Holding, Cl A		294,216		812,028
Zhejiang Chint Electrics, Cl A*		261,758		1,167,560
Zhejiang Dingli Machinery, Cl A		59,140		864,054
Zhejiang Sanhua Intelligent Controls, Cl A		437,380		1,430,800
Zhejiang Weixing New Building Materials, Cl A		191,513		451,246
Zhengzhou Yutong Bus, Cl A		269,636		624,593
Zoomlion Heavy Industry Science and Technology, Cl A		789,641		943,664
				78,773,886
Information Technology — 14.0%
360 Security Technology, Cl A		549,053		1,338,996
Accelink Technologies, Cl A		82,400		424,610
Addsino, Cl A		195,471		612,368
Aisino, Cl A		226,788		527,010

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

13

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Bosera MSCI China A Share ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Information Technology — (continued)
AVIC Jonhon Optronic Technology, Cl A		134,100	$	914,906
Beijing E-Hualu Information Technology, Cl A		79,144		406,432
Beijing Shiji Information Technology, Cl A		108,385		611,695
Beijing Sinnet Technology, Cl A		187,900		619,107
Beijing Thunisoft, Cl A		98,513		346,798
BOE Technology Group, Cl A		4,123,380		2,983,333
Chaozhou Three-Circle Group, Cl A		211,603		900,193
China Greatwall Technology Group, Cl A		356,537		842,706
China National Software & Service, Cl A		60,242		737,057
China TransInfo Technology, Cl A		192,600		623,524
Dawning Information Industry, Cl A		158,511		881,045
DHC Software, Cl A		379,330		569,585
Fiberhome Telecommunication Technologies, Cl A		142,579		499,194
Foxconn Industrial Internet, Cl A		725,261		1,452,382
Fujian Star-net Communication, Cl A		70,982		265,883
GCL System Integration Technology, Cl A*		618,800		344,674
Gigadevice Semiconductor Beijing, Cl A		54,773		1,397,191
Glodon, Cl A		68,789		739,454
GoerTek, Cl A		395,114		2,353,928
GRG Banking Equipment, Cl A		293,354		525,213
Guangzhou Haige Communications Group, Cl A		280,665		483,884
Guangzhou Shiyuan Electronic Technology, Cl A		79,813		1,145,629
Hangzhou Hikvision Digital Technology, Cl A		1,137,911		6,390,196
Hangzhou Silan Microelectronics, Cl A		159,800		379,349
Hengtong Optic-electric, Cl A		237,815		505,326
Holitech Technology, Cl A*		379,510		280,733
Huagong Tech, Cl A		122,403		411,599
Hubei Kaile Science & Technology, Cl A*		121,860		211,531
Hundsun Technologies, Cl A		127,169		1,847,486
Iflytek, Cl A		267,670		1,351,701
Inspur Electronic Information Industry, Cl A		175,436		785,627
Lens Technology, Cl A		345,118		1,633,466
Leyard Optoelectronic, Cl A		309,664		350,901
Lingyi iTech Guangdong, Cl A		724,800		1,195,130
LONGi Green Energy Technology, Cl A		459,357		5,077,342
Luxshare Precision Industry, Cl A		850,397		7,159,009
Maxscend Microelectronics, Cl A		18,269		1,017,053
NAURA Technology Group, Cl A		60,317		1,413,734
Newland Digital Technology, Cl A		128,037		298,098
Ninestar, Cl A		129,500		543,853
OFILM Group, Cl A		328,105		696,697
Sanan Optoelectronics, Cl A		545,431		1,963,497
Sangfor Technologies, Cl A		33,210		1,036,286
SG Micro, Cl A		18,895		833,476
Shanghai 2345 Network Holding Group, Cl A		702,684		294,066
Shanghai Baosight Software, Cl A		104,518		1,114,132
Shengyi Technology, Cl A		277,216		952,607
Shennan Circuits, Cl A		57,843		992,987
Shenzhen Goodix Technology, Cl A		55,529		1,287,028

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

14

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Bosera MSCI China A Share ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Information Technology — (continued)
Shenzhen Kaifa Technology, Cl A		179,133	$	544,819
Shenzhen Kingdom Sci-Tech, Cl A		104,800		278,744
Shenzhen Sunway Communication, Cl A		117,945		947,377
Suzhou Dongshan Precision Manufacturing, Cl A		208,192		809,907
Thunder Software Technology, Cl A		51,547		654,449
Tianjin 712 Communication & Broadcasting, Cl A		94,040		621,501
Tianjin Zhonghuan Semiconductor, Cl A		369,314		1,205,415
Tianma Microelectronics, Cl A		299,278		651,362
Tianshui Huatian Technology, Cl A		333,600		673,463
TongFu Microelectronics, Cl A*		140,485		473,852
Tunghsu Optoelectronic Technology, Cl A*		667,345		297,961
Unigroup Guoxin Microelectronics, Cl A		73,859		1,292,747
Unisplendour, Cl A		348,250		1,304,982
Universal Scientific Industrial Shanghai, Cl A		177,100		665,988
Venustech Group, Cl A		56,808		289,050
Visionox Technology, Cl A*		166,560		386,316
Wangsu Science & Technology, Cl A		296,399		351,156
Westone Information Industry, Cl A		102,100		278,182
Will Semiconductor, Cl A		70,116		1,832,585
Wingtech Technology, Cl A		114,100		1,964,801
Wonders Information, Cl A*		142,852		502,675
Wuhan Guide Infrared, Cl A		193,807		987,270
Wuhu Token Science, Cl A		297,100		438,669
WUS Printed Circuit Kunshan, Cl A		210,050		581,589
Wuxi Lead Intelligent Equipment, Cl A		107,305		765,143
Wuxi Taiji Industry, Cl A		256,485		387,394
Yealink Network Technology, Cl A		91,601		814,060
Yonyou Network Technology, Cl A		396,370		2,231,746
Zhejiang Dahua Technology, Cl A		365,663		1,104,592
Zhejiang Jingsheng Mechanical & Electrical, Cl A		156,391		706,332
Zhongji Innolight, Cl A		86,800		643,361
ZTE, Cl A		469,657		2,290,740
				89,547,935
Materials — 7.1%
Aluminum Corp of China, Cl A*		1,592,600		682,915
Angang Steel, Cl A		648,911		247,658
Anhui Conch Cement, Cl A		487,073		3,966,175
Baoshan Iron & Steel, Cl A		2,259,980		1,661,774
BBMG, Cl A		1,015,412		459,354
Beijing Oriental Yuhong Waterproof Technology, Cl A		190,491		1,512,969
China Jushi, Cl A		426,496		907,505
China Molybdenum, Cl A		2,151,077		1,179,141
China Northern Rare Earth Group High-Tech, Cl A*		442,421		700,176
Ganfeng Lithium, Cl A		133,065		1,062,551
GEM, Cl A		582,600		404,351
Guangdong HEC Technology Holding, Cl A*		367,000		334,752
Guangdong Hongda Blasting, Cl A		86,098		637,904
Guocheng Mining, Cl A*		138,437		342,099
Hengli Petrochemical, Cl A		714,302		1,953,560
Hengyi Petrochemical, Cl A		449,790		687,977

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

15

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Bosera MSCI China A Share ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Materials — (continued)
Hesteel, Cl A*		1,292,959	$	403,913
Huaxin Cement, Cl A		165,860		614,188
Hunan Valin Steel, Cl A		746,282		554,243
Inner Mongolia BaoTou Steel Union, Cl A*		5,550,800		940,633
Inner Mongolia Junzheng Energy & Chemical Industry Group, Cl A		1,027,445		1,093,107
Jiangsu Shagang, Cl A		268,700		479,489
Jiangsu Yangnong Chemical, Cl A		37,700		487,201
Jiangxi Copper, Cl A		252,671		527,585
Jinduicheng Molybdenum, Cl A		327,379		286,070
Lomon Billions Group, Cl A		206,182		707,599
Maanshan Iron & Steel, Cl A*		726,700		285,913
Pangang Group Vanadium Titanium & Resources, Cl A*		1,045,931		317,495
Rongsheng Petro Chemical, Cl A		638,342		1,764,628
Sansteel Minguang Fujian, Cl A		298,495		288,101
Shandong Gold Mining, Cl A(A)(B)(C)		443,203		1,665,366
Shandong Hualu Hengsheng Chemical, Cl A		198,057		715,028
Shandong Nanshan Aluminum, Cl A		1,455,156		488,890
Shandong Sinocera Functional Material, Cl A		117,300		642,131
Shandong Sun Paper Industry JSC, Cl A		315,538		655,598
Shanghai Putailai New Energy Technology, Cl A		53,009		848,216
Shanxi Taigang Stainless Steel, Cl A		693,600		375,096
Sinopec Shanghai Petrochemical, Cl A		743,640		364,900
Tangshan Jidong Cement, Cl A		164,119		375,092
Tianqi Lithium, Cl A*		179,909		527,031
Tongkun Group, Cl A		225,019		458,573
Tongling Nonferrous Metals Group, Cl A		1,281,804		421,205
Transfar Zhilian, Cl A		396,679		329,090
Wanhua Chemical Group, Cl A		382,308		3,904,034
Weihai Guangwei Composites, Cl A		63,100		663,237
Xiamen Tungsten, Cl A		171,180		337,754
Yintai Gold, Cl A		338,150		522,201
Yunnan Energy New Material, Cl A		106,537		1,435,972
Zhejiang Huayou Cobalt, Cl A*		138,959		710,326
Zhejiang Juhua, Cl A(A)(B)(C)		326,000		304,080
Zhejiang Longsheng Group, Cl A		396,171		793,358
Zhongjin Gold, Cl A		590,279		874,159
Zijin Mining Group, Cl A		2,391,558		2,167,320
				45,069,683
Real Estate — 3.3%
Beijing Capital Development, Cl A		314,126		309,668
China Enterprise		494,878		284,400
China Fortune Land Development, Cl A		476,630		1,065,452
China Merchants Property Operation & Service, Cl A		129,075		501,175
China Merchants Shekou Industrial Zone Holdings, Cl A		803,098		1,792,867
China Vanke, Cl A		1,184,072		4,888,923
Financial Street Holdings, Cl A		363,981		349,698
Gemdale, Cl A		549,707		1,178,586
Grandjoy Holdings Group, Cl A		347,983		237,927
Greenland Holdings, Cl A		987,808		927,212
Jiangsu Zhongnan Construction Group, Cl A		457,500		618,198

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

16

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Bosera MSCI China A Share ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Real Estate — (continued)
Jinke Properties Group, Cl A		650,220	$	867,113
Poly Developments and Holdings Group, Cl A		1,453,014		3,402,206
RiseSun Real Estate Development, Cl A		529,478		595,305
Seazen Holdings, Cl A		274,760		1,415,441
Shanghai Zhangjiang High-Tech Park Development, Cl A		188,616		527,245
Sichuan Languang Development, Cl A		367,288		272,234
Xinhu Zhongbao, Cl A		1,047,168		520,012
Yango Group, Cl A		497,054		535,412
Youngor Group, Cl A		563,675		566,474
Zhongtian Financial Group, Cl A*		853,000		421,076
				21,276,624
Utilities — 2.3%
Chengdu Xingrong Environment, Cl A		363,633		273,275
China National Nuclear Power, Cl A		1,579,430		1,021,720
China Yangtze Power, Cl A		2,678,867		7,551,497
GD Power Development, Cl A		2,392,800		712,237
Huadian Power International, Cl A		826,585		433,615
Huaneng Power International, Cl A		892,810		711,743
Hubei Energy Group, Cl A		528,228		288,777
Inner Mongolia MengDian HuaNeng Thermal Power, Cl A		707,300		266,815
Luenmei Quantum, Cl A		185,753		353,369
SDIC Power Holdings, Cl A		826,269		1,098,234
Shanghai Electric Power, Cl A		318,692		352,678
Shenergy, Cl A		598,132		484,760
Shenzhen Energy Group, Cl A		482,796		381,325
Sichuan Chuantou Energy, Cl A		536,036		774,872
				14,704,917
TOTAL COMMON STOCK
(Cost $513,753,723)				637,611,184
TOTAL INVESTMENTS — 100.0%
(Cost $513,753,723)				637,611,184
OTHER ASSETS LESS LIABILITIES – 0.0%				144,804
NET ASSETS - 100%			$	637,755,988

‡ Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.

* Non-income producing security.

(A) Security is fair valued using methods determined in good faith by the Fair Value Committee of the Board of Trustees. The total value of such securities as of September 30, 2020 was $2,762,131 and represents 0.4% of Net Assets.

(B) Level 3 security in accordance with fair value hierarchy.

(C) Security considered illiquid. The total value of such securities as of September 30, 2020 was $2,762,131 and represents 0.4% of Net Assets.

Cl — Class

JSC — Joint-Stock Company

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

17

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Bosera MSCI China A Share ETF (concluded)

The following summarizes the market value of the Fund’s investments used as of September 30, 2020, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3^		Total
Common Stock
China
Communication Services	$	16,938,133	$	—	$	—	$	16,938,133
Consumer Discretionary		39,181,781		—		—		39,181,781
Consumer Staples		110,174,432		—		—		110,174,432
Energy		10,112,320		—		—		10,112,320
Financials		139,047,320		—		792,685		139,840,005
Health Care		71,991,468		—		—		71,991,468
Industrials		78,773,886		—		—		78,773,886
Information Technology		89,547,935		—		—		89,547,935
Materials		43,100,237		—		1,969,446		45,069,683
Real Estate		21,276,624		—		—		21,276,624
Utilities		14,704,917		—		—		14,704,917
Total Common Stock	$	634,849,053	$	—	$	2,762,131	$	637,611,184
Total Investments in Securities	$	634,849,053	$	—	$	2,762,131	$	637,611,184

^ 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 beginning and/or end of the period in relation to net assets.

For the period ended September 30, 2020, the transfers in and out of Level 3 occurred due to a halt in trading of these securities.

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

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

18

Schedule of Investments (Unaudited) September 30, 2020

KraneShares E Fund China Commercial Paper ETF

	Face Amount(A)		Value
COMMERCIAL PAPER — 75.5%‡
CHINA— 75.5%
Basic Materials — 4.4%
China National Chemical 2.300%, 12/22/2020		4,000,000	$	588,541
Consumer Discretionary — 11.0%
China Southern Airlines 1.290%, 10/23/2020		4,000,000		588,681
Wuchan Zhongda Group  1.600%, 11/04/2020		3,000,000		441,429
Wuxi Industry Development  3.230%, 10/28/2020		3,000,000		442,127
				1,472,237
Energy — 4.4%
Luan Mining Group  2.900%, 11/16/2020		4,000,000		589,163
Financials — 21.9%
Beijing Infrastructure  2.200%, 12/15/2020		4,000,000		588,700
Nanjing Hexi New Town Assets Management  2.600%, 03/18/2021		4,000,000		587,825
Ningbo Zhoushan Port  1.900%, 01/17/2021		3,000,000		440,508
Shanghai Intl Port Group  1.700%, 02/24/2021		5,000,000		732,680
Suzhou Cons Invest Development  2.050%, 02/09/2021		4,000,000		586,897
				2,936,610

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

19

Schedule of Investments (Unaudited) September 30, 2020

KraneShares E Fund China Commercial Paper ETF (continued)

	Face Amount(A)		Value
COMMERCIAL PAPER — (continued)
Industrials — 26.2%
Beijing Enterprises Group  1.650%, 01/19/2021		4,000,000	$	587,332
Nanjing Metro  1.840%, 01/17/2021		4,000,000		586,836
Sichuan Expressway Construction & Development Group  1.600%, 01/25/2021		3,000,000		439,882
Xiamen C & D Inc.  1.490%, 11/20/2020		5,000,000		735,491
Xiamen C&D Corp  1.590%, 12/30/2020		4,000,000		587,558
Zhejiang Airport Group  1.600%, 02/22/2021		4,000,000		585,257
				3,522,356
Utilities — 7.6%
Jiangsu Guoxin Investment  1.700%, 01/22/2021		3,000,000		440,324
Shanghai Electric Power  2.500%, 03/05/2021		4,000,000		587,848
				1,028,172
TOTAL COMMERCIAL PAPER
(Cost $9,945,984)				10,137,079
CORPORATE OBLIGATIONS — 23.0%
CHINA — 23.0%
Consumer Discretionary — 3.3%
China Eastern Airlines  1.600%, 01/29/2021		3,000,000		440,058
Financials — 9.8%
China Everbright Group  1.800%, 01/22/2021		5,000,000		734,207
Henan Investment Group  1.980%, 12/05/2020		4,000,000		588,079
				1,322,286
Industrials — 4.4%
China Communications Construction  1.670%, 10/13/2020		4,000,000		589,073
Utilities — 5.5%
Beijing Capital  1.680%, 11/03/2020		5,000,000		735,917
TOTAL CORPORATE OBLIGATIONS
(Cost $3,024,752)				3,087,334

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

20

Schedule of Investments (Unaudited) September 30, 2020

KraneShares E Fund China Commercial Paper ETF (concluded)

	Shares		Value
SHORT-TERM INVESTMENTS(B) — 0.3%
China Universal Express Income Money Market Fund, 1.823%		393	$	58
E Fund Money Market Fund, 1.804%**		125,011		18,431
Fortune SGAM Xianjin Tianyi Money Market Fund, 1.941%		165,335		24,374
Xianjinbao Real-Time Redemption Money Market Fund, 1.485%		3,571		526
TOTAL SHORT-TERM INVESTMENTS
(Cost $27,283)				43,389
TOTAL INVESTMENTS — 98.8%
(Cost $12,998,019)				13,267,802
OTHER ASSETS LESS LIABILITIES – 1.2%				161,327
NET ASSETS - 100%			$	13,429,129

** Affiliated investment is a Chinese investment company which is managed by E Fund Management (Hong Kong) Co., Limited (the “Sub-Adviser”) or an affiliate of the Sub- Adviser or which is distributed by an affiliate of the Fund’s distributor. Transactions with affiliated companies during the period ended September 30, 2020 are as follows:

Value of Shares Held as of 3/31/2020	Purchases at Cost	Proceeds from Sales	Change in Unrealized Appreciation (Depreciation)	Realized Gain (Loss)	Value of Shares Held as of 9/30/2020	Number of Shares Held as of 9/30/2020	Dividend Income	Capital Gains Distributions
E Fund Money Market Fund
$   17,639	$   -	$   -	$   792	$   -	$   18,431	125,011	$   -	$   -

‡ Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.

(A) In CNY unless otherwise indicated.

(B) The rate shown is the 7-day effective yield as of September 30, 2020. 

CNY — Chinese Yuan

As of September 30, 2020, 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.

For the period ended September 30, 2020, there have been no transfers in or out of Level 3.

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

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

21

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI All China Index ETF

	Shares		Value
COMMON STOCK — 99.5%‡
CHINA — 89.7%
Communication Services — 15.6%
Autohome ADR		120	$	11,520
Baidu ADR*		482		61,016
China Mobile		10,972		70,008
China Telecom, Cl H		24,000		7,185
China Unicom Hong Kong		10,000		6,516
Focus Media Information Technology, Cl A		7,700		9,157
iQIYI ADR*		668		15,084
JOYY ADR		115		9,277
Momo ADR*		254		3,495
NetEase ADR		173		78,658
Oriental Pearl Group, Cl A		4,540		6,483
SINA*		162		6,903
Tencent Holdings		9,858		650,628
Tencent Music Entertainment Group ADR*		668		9,866
Weibo ADR*		118		4,299
				950,095
Consumer Discretionary — 26.0%
Alibaba Group Holding ADR*		2,570		755,529
ANTA Sports Products		3,000		31,007
BAIC Motor, Cl H		6,500		2,642
BYD, Cl A		1,300		22,267
BYD, Cl H		2,000		31,329
China Grand Automotive Services Group, Cl A*		6,800		3,237

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

22

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI All China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Consumer Discretionary — (continued)
China Tourism Group Duty Free, Cl A		1,200	$	39,422
Chongqing Changan Automobile, Cl A*		8,500		16,821
Dongfeng Motor Group, Cl H		8,000		4,965
Fuyao Glass Industry Group, Cl A		4,400		21,000
Geely Automobile Holdings		9,000		17,884
Great Wall Motor, Cl H		12,500		15,855
Gree Electric Appliances of Zhuhai, Cl A		2,000		15,708
Guangzhou Automobile Group, Cl H		10,000		8,323
Haier Smart Home, Cl A		4,500		14,469
Huayu Automotive Systems, Cl A		2,500		9,173
Huazhu Group ADR		275		11,891
JD.com ADR*		2,095		162,593
NavInfo, Cl A		3,600		7,798
New Oriental Education & Technology Group ADR*		359		53,671
NIO ADR*		5,468		116,031
Pinduoduo ADR*		334		24,766
SAIC Motor, Cl A		3,757		10,591
Shenzhen Overseas Chinese Town, Cl A		9,600		9,591
Shenzhou International Group Holdings		2,000		33,677
Suning.com, Cl A		6,900		9,252
Suofeiya Home Collection, Cl A		1,700		6,603
TAL Education Group ADR*		702		53,380
Trip.com Group ADR*		1,045		32,541
Vipshop Holdings ADR*		1,029		16,094
Yum China Holdings*		593		31,399
				1,589,509
Consumer Staples — 7.6%
Anhui Gujing Distillery, Cl A		500		15,972
China Mengniu Dairy		5,000		23,419
China Resources Beer Holdings		4,000		24,465
Foshan Haitian Flavouring & Food, Cl A		1,560		37,263
Guangdong Haid Group, Cl A		2,500		22,593
Henan Shuanghui Investment & Development, Cl A		2,500		19,499
Inner Mongolia Yili Industrial Group, Cl A		4,000		22,693
Jiangsu Yanghe Brewery Joint-Stock, Cl A		800		14,734
Kweichow Moutai, Cl A		600		147,518
Luzhou Laojiao, Cl A		1,200		25,383
Muyuan Foods, Cl A		3,230		35,221
New Hope Liuhe, Cl A		7,200		29,389
Shanxi Xinghuacun Fen Wine Factory, Cl A		500		14,602
Tingyi Cayman Islands Holding		6,000		10,575
Want Want China Holdings		12,000		8,330
Yonghui Superstores, Cl A		8,400		9,692
				461,348

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

23

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI All China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Energy — 1.7%
China Oilfield Services, Cl H		8,000	$	5,554
China Petroleum & Chemical, Cl A*		14,800		8,527
China Petroleum & Chemical, Cl H		50,500		20,265
China Shenhua Energy, Cl H		6,000		10,761
CNOOC		25,826		24,826
Offshore Oil Engineering, Cl A		10,100		6,712
PetroChina, Cl A		7,700		4,663
PetroChina, Cl H		35,984		10,540
Shaanxi Coal Industry, Cl A		6,400		7,913
Shanxi Lu’an Environmental Energy Development, Cl A		4,000		3,596
				103,357
Financials — 14.6%
Agricultural Bank of China, Cl A		14,000		6,540
Agricultural Bank of China, Cl H		56,397		17,610
Avic Capital, Cl A		12,100		7,827
Bank of Beijing, Cl A		15,600		10,758
Bank of China, Cl A		16,500		7,780
Bank of China, Cl H		117,396		36,355
Bank of Communications, Cl A		24,000		16,056
Bank of Communications, Cl H		3,000		1,440
Bank of Hangzhou, Cl A		7,700		13,366
Bank of Jiangsu, Cl A		12,500		11,199
Bank of Nanjing, Cl A		8,100		9,417
Bank of Ningbo, Cl A		3,700		17,163
Bank of Shanghai, Cl A		10,504		12,599
Changjiang Securities, Cl A		11,700		13,827
China CITIC Bank, Cl H		17,000		6,559
China Construction Bank, Cl A		6,900		6,253
China Construction Bank, Cl H		171,000		110,764
China Everbright Bank, Cl A		30,000		16,135
China Life Insurance, Cl H		12,483		27,930
China Merchants Bank, Cl A		8,000		42,438
China Merchants Securities, Cl A		5,200		16,559
China Minsheng Banking, Cl A		15,200		11,871
China Pacific Insurance Group, Cl A		2,900		13,337
CITIC Securities, Cl A		6,000		26,551
Everbright Securities, Cl A		5,600		18,113
Founder Securities, Cl A*		9,600		11,883
GF Securities, Cl A		2,900		6,743
Guosen Securities, Cl A		6,400		12,684
Guotai Junan Securities, Cl A		4,400		11,826
Haitong Securities, Cl A		6,800		14,179
Huatai Securities, Cl A		3,300		9,983
Huaxia Bank, Cl A		10,500		9,485
Hubei Biocause Pharmaceutical, Cl A		6,900		5,369
Industrial & Commercial Bank of China, Cl A		28,000		20,300
Industrial Bank, Cl A		10,900		25,908
Industrial Securities, Cl A		14,769		18,020

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

24

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI All China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Financials — (continued)
New China Life Insurance, Cl A		1,200	$	10,977
New China Life Insurance, Cl H		2,500		9,306
Noah Holdings ADR*		249		6,491
Orient Securities, Cl A		7,600		12,353
PICC Property & Casualty, Cl H		11,510		8,005
Ping An Bank, Cl A		11,291		25,240
Ping An Insurance Group of China, Cl A		4,800		53,939
Ping An Insurance Group of China, Cl H		10,000		102,581
Shanghai Pudong Development Bank, Cl A		16,000		22,139
Shenwan Hongyuan Group, Cl A		18,100		14,162
				890,020
Health Care — 6.1%
3SBio*		4,000		4,501
Alibaba Health Information Technology*		10,000		24,361
Beijing Tongrentang, Cl A		2,044		8,126
Changchun High & New Technology Industry Group, Cl A		600		32,681
China Medical System Holdings		5,000		5,503
China Traditional Chinese Medicine Holdings		10,000		4,181
CSPC Pharmaceutical Group		9,600		18,581
Dong-E-E-Jiao, Cl E		1,600		9,362
Genscript Biotech*		6,000		9,817
Guangzhou Baiyunshan Pharmaceutical Holdings, Cl A		1,300		5,783
Huadong Medicine, Cl A		1,480		5,387
Hualan Biological Engineering, Cl A		3,280		27,545
Hutchison China MediTech ADR*		549		17,733
Jiangsu Hengrui Medicine, Cl A		2,880		38,118
Meinian Onehealth Healthcare Holdings, Cl A*		3,760		7,856
Shanghai Fosun Pharmaceutical Group, Cl A		2,100		15,197
Shanghai Fosun Pharmaceutical Group, Cl H		1,500		6,223
Shanghai Pharmaceuticals Holding, Cl A		4,000		11,971
Sichuan Kelun Pharmaceutical, Cl A		1,300		4,257
Sino Biopharmaceutical		18,000		19,603
Sinopharm Group, Cl H		3,200		6,714
Tasly Pharmaceutical Group, Cl A		2,000		4,975
Tonghua Dongbao Pharmaceutical, Cl A		2,800		5,615
Wuxi Biologics Cayman*		1,500		36,503
Yunnan Baiyao Group, Cl A		800		12,019
Zai Lab ADR*		91		7,568
Zhangzhou Pientzehuang Pharmaceutical, Cl A		400		14,342
Zhejiang NHU, Cl A		2,400		10,535
				375,057
Industrials — 6.2%
51job ADR*		77		6,005
AECC Aviation Power, Cl A		2,100		12,765
AVIC Aircraft, Cl A		2,900		9,837
AVIC Electromechanical Systems, Cl A		4,000		6,761

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

25

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI All China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Industrials — (continued)
AVIC Shenyang Aircraft, Cl A		1,300	$	10,974
Beijing Capital International Airport, Cl H		6,000		3,600
China Communications Construction, Cl H		16,000		8,361
China Conch Venture Holdings		4,000		18,529
China Eastern Airlines, Cl A		13,700		9,973
China Gezhouba Group, Cl A		5,700		4,989
China Merchants Port Holdings		6,741		6,854
China Railway Construction, Cl A		5,700		6,963
China Railway Construction, Cl H		6,500		4,471
China Railway Group, Cl H		12,000		5,636
China Southern Airlines, Cl A*		5,300		4,529
China State Construction Engineering, Cl A		22,000		16,469
China State Construction International Holdings		8,000		5,213
CITIC		8,780		6,446
COSCO SHIPPING Development, Cl A		32,800		10,053
COSCO SHIPPING Holdings, Cl A*		15,200		12,834
CRRC, Cl A		11,200		9,061
CRRC, Cl H		9,000		3,577
Daqin Railway, Cl A		9,300		8,730
Fosun International		6,000		6,968
Guangzhou Baiyun International Airport, Cl A		4,000		8,022
Jiangsu Expressway, Cl H		8,000		8,052
Metallurgical Corp of China, Cl A		22,800		8,903
Power Construction Corp of China, Cl A		10,500		5,833
Sany Heavy Industry, Cl A		7,200		26,407
Shanghai Electric Group, Cl H*		26,000		7,012
Shanghai International Airport, Cl A		800		8,108
Shanghai International Port Group, Cl A		7,200		4,435
Suzhou Gold Mantis Construction Decoration, Cl A		4,500		6,412
Weichai Power, Cl A		9,088		20,222
Xinjiang Goldwind Science & Technology, Cl A		5,649		8,515
Zhejiang Chint Electrics, Cl A*		2,000		8,921
Zhejiang Sanhua Intelligent Controls, Cl A		5,512		18,031
Zhengzhou Yutong Bus, Cl A		3,644		8,441
Zhuzhou CRRC Times Electric, Cl H		1,600		5,347
Zoomlion Heavy Industry Science and Technology, Cl A		9,100		10,875
ZTO Express Cayman ADR*		522		15,618
				378,752
Information Technology — 5.6%
AAC Technologies Holdings		2,000		10,774
Aisino, Cl A		2,100		4,880
BOE Technology Group, Cl A		26,100		18,884
DHC Software, Cl A		5,300		7,958
GDS Holdings ADR*		157		12,847
Hanergy Thin Film Power Group*(A)(B)(C)		4,364		—
Hangzhou Hikvision Digital Technology, Cl A		5,509		30,937
Hengtong Optic-electric, Cl A		2,100		4,462

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

26

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI All China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Information Technology — (continued)
Iflytek, Cl A		1,700	$	8,585
Kingdee International Software Group		8,000		20,645
Kingsoft		4,000		19,948
Lenovo Group		10,000		6,594
LONGi Green Energy Technology, Cl A		3,080		34,044
Luxshare Precision Industry, Cl A		6,174		51,975
OFILM Group, Cl A		3,582		7,606
Sanan Optoelectronics, Cl A		4,400		15,839
Sunny Optical Technology Group		1,300		19,844
Tianma Microelectronics, Cl A		4,000		8,706
TravelSky Technology, Cl H		3,000		6,403
Unigroup Guoxin Microelectronics, Cl A		900		15,753
Yonyou Network Technology, Cl A		2,925		16,469
Zhejiang Dahua Technology, Cl A		2,800		8,458
ZTE, Cl H		4,000		9,518
				341,129
Materials — 2.6%
Angang Steel, Cl A		13,070		4,988
Anhui Conch Cement, Cl A		2,000		16,286
Anhui Conch Cement, Cl H		2,000		13,755
Baoshan Iron & Steel, Cl A		10,100		7,427
BBMG, Cl A		15,600		7,057
China Molybdenum, Cl H		27,000		9,546
China National Building Material, Cl H		10,000		12,619
China Northern Rare Earth Group High-Tech, Cl A*		5,700		9,021
Ganfeng Lithium, Cl A		1,200		9,582
Hesteel, Cl A*		17,600		5,498
Inner Mongolia BaoTou Steel Union, Cl A*		35,300		5,982
Rongsheng Petro Chemical, Cl A		4,100		11,334
Shandong Hualu Hengsheng Chemical, Cl A		2,400		8,665
Sinopec Shanghai Petrochemical, Cl A		18,100		8,882
Tianqi Lithium, Cl A*		1,540		4,511
Zhejiang Huayou Cobalt, Cl A*		580		2,965
Zhejiang Longsheng Group, Cl A		6,000		12,015
Zijin Mining Group, Cl A		10,100		9,153
				159,286
Real Estate — 2.4%
China Fortune Land Development, Cl A		3,120		6,974
China Merchants Shekou Industrial Zone Holdings, Cl A		4,800		10,716
China Overseas Land & Investment		8,839		22,126
China Resources Land		6,214		27,983
China Vanke, Cl A		4,743		19,583
China Vanke, Cl H		2,500		7,629
Gemdale, Cl A		5,600		12,007
Greenland Holdings, Cl A		9,600		9,011
Poly Developments and Holdings Group, Cl A		6,900		16,156

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

27

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI All China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Real Estate — (continued)
Seazen Holdings, Cl A		1,600	$	8,243
Xinhu Zhongbao, Cl A		16,900		8,392
				148,820
Utilities — 1.3%
China National Nuclear Power, Cl A		12,900		8,345
China Yangtze Power, Cl A		6,400		18,041
ENN Energy Holdings		282		3,071
Guangdong Investment		8,000		12,655
Huadian Power International, Cl A		13,600		7,134
Huaneng Power International, Cl H		9,077		3,502
Hubei Energy Group, Cl A		14,100		7,708
SDIC Power Holdings, Cl A		7,200		9,570
Sichuan Chuantou Energy, Cl A		7,300		10,553
				80,579
TOTAL CHINA				5,477,952
HONG KONG — 9.8%
Communication Services — 0.2%
Alibaba Pictures Group*		80,000		11,871
Consumer Discretionary — 2.6%
Brilliance China Automotive Holdings		10,000		9,381
Haier Electronics Group		4,000		14,452
Meituan Dianping, Cl B*		4,300		134,160
				157,993
Consumer Staples — 0.1%
Sun Art Retail Group		6,000		6,619
Energy — 0.1%
Yanzhou Coal Mining, Cl H		8,000		5,946
Financials — 2.8%
China Cinda Asset Management, Cl H		2,504		468
China Galaxy Securities, Cl H		20,500		11,506
China Huarong Asset Management, Cl H		33,000		3,492
China Merchants Bank, Cl H		6,500		30,655
China Minsheng Banking, Cl H		18,500		9,691
China Pacific Insurance Group, Cl H		5,800		16,389
China Taiping Insurance Holdings		3,400		5,168
CITIC Securities, Cl H		4,000		8,888
Far East Horizon		5,000		4,052
GF Securities, Cl H		8,000		10,085
Huatai Securities, Cl H		5,000		8,168
Industrial & Commercial Bank of China, Cl H		113,441		58,843
People’s Insurance Group of China, Cl H		13,452		3,975
				171,380

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

28

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI All China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Industrials — 0.2%
China Everbright Environment Group		8,323	$	4,725
Shenzhen International Holdings		5,475		8,675
				13,400
Information Technology — 1.0%
Kingboard Holdings		2,500		8,226
Semiconductor Manufacturing International*		10,000		23,381
Xiaomi, Cl B*		12,000		31,664
				63,271
Materials — 0.3%
China Resources Cement Holdings		8,000		10,921
Nine Dragons Paper Holdings		8,000		10,034
				20,955
Real Estate — 1.9%
China Evergrande Group		4,000		10,168
China Jinmao Holdings Group		16,000		8,815
CIFI Holdings Group		17,195		12,647
Country Garden Holdings		17,612		21,543
Guangzhou R&F Properties		3,600		4,627
KWG Group Holdings		4,773		8,142
Longfor Group Holdings		4,000		22,452
Shimao Group Holdings		2,500		10,322
Sunac China Holdings		4,000		15,587
				114,303
Utilities — 0.6%
Beijing Enterprises Water Group		16,000		6,194
China Gas Holdings		3,400		9,652
China Longyuan Power Group, Cl H		8,000		4,996
China Resources Gas Group		2,000		8,929
China Resources Power Holdings		6,000		6,619
				36,390
TOTAL HONG KONG				602,128
TOTAL COMMON STOCK
(Cost $4,529,520)				6,080,080
TOTAL INVESTMENTS — 99.5%
(Cost $4,529,520)				6,080,080
OTHER ASSETS LESS LIABILITIES – 0.5%				30,480
NET ASSETS - 100%			$	6,110,560

‡ Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.

* Non-income producing security.

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

29

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI All China Index ETF (concluded)

(A) Security is fair valued using methods determined in good faith by the Fair Value Committee of the Board of Trustees. The total value of such securities as of September 30, 2020 was $0 and represents 0.0% of Net Assets.

(B) Level 3 security in accordance with fair value hierarchy.

(C) Security considered illiquid.  The total value of such securities as of September 30, 2020 was $0 and represents 0.0% of Net Assets. 

ADR — American Depositary Receipt

Cl — Class

The following summarizes the market value of the Fund’s investments used as of September 30, 2020, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3^		Total
Common Stock
China
Communication Services	$	950,095	$	—	$	—	$	950,095
Consumer Discretionary		1,586,272		3,237		—		1,589,509
Consumer Staples		461,348		—		—		461,348
Energy		103,357		—		—		103,357
Financials		890,020		—		—		890,020
Health Care		370,082		4,975		—		375,057
Industrials		378,752		—		—		378,752
Information Technology		341,129		—		—		341,129
Materials		159,286		—		—		159,286
Real Estate		148,820		—		—		148,820
Utilities		80,579		—		—		80,579
Hong Kong		602,128		—		—		602,128
Total Common Stock		6,071,868		8,212		—		6,080,080
Total Investments in Securities	$	6,071,868	$	8,212	$	—	$	6,080,080

^ 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 beginning and/or end of the period in relation to net assets.

For the period ended September 30, 2020, there have been no transfers in or out of Level 3.

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

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

30

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI One Belt One Road Index ETF

 

	Shares		Value
COMMON STOCK — 98.7%‡
CHINA — 44.7%
Financials — 4.6%
Bank of Chengdu, Cl A		18,800	$	27,370
Bank of Guiyang, Cl A		16,927		19,231
Bank of Hangzhou, Cl A		29,300		50,860
Bank of Jiangsu, Cl A		61,155		54,790
Bank of Nanjing, Cl A		52,191		60,680
Bank of Ningbo, Cl A		31,046		144,015
Chongqing Rural Commercial Bank, Cl H		43,425		15,969
Qingdao Rural Commercial Bank, Cl A		29,700		22,014
				394,929
Industrials — 21.6%
Beijing New Building Materials, Cl A		9,208		41,927
China Communications Construction, Cl H		80,000		41,806
China Communications Services, Cl H		44,000		25,775
China Conch Venture Holdings		29,500		136,652
China Gezhouba Group, Cl A		24,650		21,576
China Lesso Group Holdings		20,000		35,923
China Railway Construction, Cl H		36,000		24,759
China Railway Group, Cl H		68,500		32,173
China Railway Hi-tech Industry, Cl A		11,876		15,855
China State Construction Engineering, Cl A		223,379		167,214
Contemporary Amperex Technology, Cl A		12,400		382,252
CRRC, Cl H		78,850		31,337
Daqin Railway, Cl A		80,332		75,404
Dongfang Electric, Cl A		14,700		22,008
Jiangsu Expressway, Cl H		22,000		22,142
Metallurgical Corp of China, Cl A		95,800		37,409
Nanyang Topsec Technologies Group, Cl A*		6,200		20,995
NARI Technology, Cl A		24,400		70,903
Sany Heavy Industry, Cl A		46,400		170,181
Shanghai Construction Group, Cl A		50,500		22,994
Shanghai Electric Group, Cl A*		43,600		32,252
Shanghai International Port Group, Cl A		49,910		30,742

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

31

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI One Belt One Road Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Industrials — (continued)
Shenzhen Inovance Technology, Cl A		9,500	$	81,053
Siasun Robot & Automation, Cl A*		8,500		18,124
Sinotruk Hong Kong		12,500		32,032
Suzhou Gold Mantis Construction Decoration, Cl A		14,300		20,377
TBEA, Cl A		19,975		25,843
XCMG Construction Machinery, Cl A		42,148		34,470
Xinjiang Goldwind Science & Technology, Cl A		18,044		27,200
Yangzijiang Shipbuilding Holdings		58,000		42,063
Zhejiang Expressway, Cl H		26,000		18,754
Zhejiang Weixing New Building Materials, Cl A		8,500		20,028
Zhengzhou Yutong Bus, Cl A		11,997		27,790
Zhuzhou CRRC Times Electric, Cl H		10,000		33,419
Zoomlion Heavy Industry Science and Technology		24,000		23,040
				1,866,472
Materials — 5.7%
Anhui Conch Cement, Cl H		22,000		151,303
Beijing Oriental Yuhong Waterproof Technology, Cl A		8,124		64,525
China National Building Material, Cl H		71,000		89,597
China Northern Rare Earth Group High-Tech, Cl A*		19,424		30,740
China Resources Cement Holdings		44,000		60,067
Guangdong Hongda Blasting, Cl A		3,700		27,413
Huaxin Cement, Cl A		7,400		27,403
Tangshan Jidong Cement, Cl A		7,300		16,684
Yintai Gold, Cl A		14,700		22,701
				490,433
Utilities — 12.8%
Beijing Enterprises Holdings		9,500		28,500
CGN Power, Cl H		171,875		35,262
China Gas Holdings		47,800		135,690
China Longyuan Power Group, Cl H		57,000		35,597
China National Nuclear Power, Cl A		70,142		45,374
China Resources Gas Group		17,500		78,129
China Resources Power Holdings		36,635		40,417
China Yangtze Power, Cl A		117,343		330,780
ENN Energy Holdings		14,100		153,554
GD Power Development, Cl A		105,500		31,403
Huadian Power International, Cl A		36,542		19,169
Huaneng Power International, Cl H		65,000		25,077
Kunlun Energy		70,000		45,884
SDIC Power Holdings, Cl A		37,306		49,585
Shenergy, Cl A		26,319		21,331
Sichuan Chuantou Energy, Cl A		23,884		34,526
				1,110,278
TOTAL CHINA				3,862,112

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

32

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI One Belt One Road Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
HONG KONG — 0.6%
Industrials — 0.4%
Shenzhen International Holdings		20,125	$	31,889
Utilities — 0.2%
China Power International Development		80,000		14,761
TOTAL HONG KONG				46,650
INDIA — 2.6%
Industrials — 0.7%
AIA Engineering		2,545		63,765
Materials — 1.9%
Hindalco Industries		69,931		166,107
TOTAL INDIA				229,872
INDONESIA — 2.8%
Energy — 0.7%
Adaro Energy		841,800		64,210
Materials — 2.1%
Barito Pacific*		1,598,500		84,867
Indah Kiat Pulp & Paper		160,700		96,927
				181,794
TOTAL INDONESIA				246,004
ISRAEL — 3.9%
Industrials — 2.2%
Elbit Systems		1,585		193,195
Materials — 1.7%
ICL Group		42,097		149,173
TOTAL ISRAEL				342,368
JORDAN — 0.3%
Financials — 0.3%
Arab Bank*		3,744		22,020
TOTAL JORDAN				22,020
KUWAIT — 1.7%
Industrials — 1.7%
Agility Public Warehousing KSC		66,902		143,408
TOTAL KUWAIT				143,408

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

33

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI One Belt One Road Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
MALAYSIA — 4.7%
Industrials — 1.1%
Sime Darby		163,100	$	97,730
Materials — 3.6%
Petronas Chemicals Group		153,100		206,688
Press Metal Aluminium Holdings		84,700		104,767
				311,455
TOTAL MALAYSIA				409,185
PHILIPPINES — 4.0%
Industrials — 4.0%
International Container Terminal Services		59,810		135,338
JG Summit Holdings		169,280		210,203
TOTAL PHILIPPINES				345,541
POLAND — 2.9%
Materials — 2.9%
KGHM Polska Miedz*		8,229		251,147
TOTAL POLAND				251,147
RUSSIA — 9.1%
Energy — 4.1%
Rosneft		58,610		289,571
Surgutneftegas*		155,100		69,214
				358,785
Materials — 5.0%
MMC Norilsk Nickel PJSC		1,368		331,559
Polymetal International		4,805		105,250
				436,809
TOTAL RUSSIA				795,594
SINGAPORE — 8.0%
Financials — 5.2%
Oversea-Chinese Banking		73,012		450,341
Industrials — 2.8%
Keppel		32,200		104,967
Singapore Airlines		19,000		48,296
Singapore Technologies Engineering		34,600		87,698
				240,961
TOTAL SINGAPORE				691,302

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

34

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI One Belt One Road Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
SOUTH AFRICA — 8.5%
Materials — 8.5%
Anglo American Platinum		3,132	$	218,386
Impala Platinum Holdings		46,963		409,575
Kumba Iron Ore		3,706		110,122
TOTAL SOUTH AFRICA				738,083
THAILAND — 3.2%
Energy — 0.5%
IRPC		685,800		41,554
Materials — 2.7%
Indorama Ventures		101,600		67,653
PTT Global Chemical		136,800		169,449
				237,102
TOTAL THAILAND				278,656
TURKEY — 0.5%
Industrials — 0.5%
Turk Hava Yollari AO*		33,371		45,481
TOTAL TURKEY				45,481
UNITED ARAB EMIRATES — 0.5%
Industrials — 0.5%
Air Arabia PJSC		137,364		41,884
TOTAL UNITED ARAB EMIRATES				41,884
UNITED KINGDOM — 0.7%
Energy — 0.7%
NAC Kazatomprom JSC GDR		3,920		57,232
TOTAL UNITED KINGDOM				57,232
TOTAL COMMON STOCK
(Cost $9,190,608)				8,546,539
PREFERRED STOCK — 0.9%
RUSSIA — 0.9%
Energy — 0.9%
Surgutneftegas PJSC (A)		150,600		76,250
TOTAL PREFERRED STOCK
(Cost $85,774)				76,250
TOTAL INVESTMENTS — 99.6%
(Cost $9,276,382)				8,622,789
OTHER ASSETS LESS LIABILITIES – 0.4%				38,973
NET ASSETS - 100%			$	8,661,762

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

35

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI One Belt One Road Index ETF (concluded)

‡ Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.

* Non-income producing security.

† Real Estate Investment Trust

(A) Currently, no stated interest rate.

CL – Class

GDR – Global Depositary Receipt

JSC – Joint-Stock Company

PJSC – Public Joint-Stock Company

The following summarizes the market value of the Fund’s investments used as of September 30, 2020, based on the inputs used to value them:

Investments in      Securities	Level 1		Level 2		Level 3		Total
Common Stock
China
Financials	$	377,265	$	17,664	$	—	$	394,929
Industrials		1,850,617		15,855		—		1,866,472
Materials		490,433		—		—		490,433
Utilities		1,110,278		—		—		1,110,278
Hong Kong		46,650		—		—		46,650
India		229,872		—		—		229,872
Indonesia		246,004		—		—		246,004
Israel		342,368		—		—		342,368
Jordan		22,020		—		—		22,020
Kuwait		143,408		—		—		143,408
Malaysia		409,185		—		—		409,185
Philippines		345,541		—		—		345,541
Poland		251,147		—		—		251,147
Russia		795,594		—		—		795,594
Singapore		691,302		—		—		691,302
South Africa		738,083		—		—		738,083
Thailand		278,656		—		—		278,656
Turkey		45,481		—		—		45,481
United Arab Emirates		41,884		—		—		41,884
United Kingdom		57,232		—		—		57,232
Total Common Stock		8,513,020		33,519		—		8,546,539
Preferred Stock
Russia		76,250		—		—		76,250
Total Preferred Stock		76,250		—		—		76,250
Total Investments in Securities	$	8,589,270	$	33,519	$	—	$	8,622,789

For the period ended September 30, 2020, there have been no transfers in or out of Level 3.

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

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

36

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Emerging Markets Consumer Technology Index ETF

 

	Shares		Value
COMMON STOCK — 99.8%‡
ARGENTINA — 3.7%
Consumer Discretionary — 3.7%
MercadoLibre*		4,822	$	5,219,719
TOTAL ARGENTINA				5,219,719
BRAZIL — 5.3%
Consumer Discretionary — 2.2%
B2W Cia Digital*		189,970		3,047,838
Information Technology — 3.1%
Cielo*		1,204,780		844,305
Pagseguro Digital, Cl A*		94,288		3,555,600
				4,399,905
TOTAL BRAZIL				7,447,743
CHINA — 39.6%
Communication Services — 16.0%
Autohome ADR		41,630		3,996,480
Baidu ADR*		41,312		5,229,686
Bilibili ADR*		79,313		3,299,421
NetEase ADR		10,768		4,895,886
Tencent Holdings		75,675		4,994,550
				22,416,023
Consumer Discretionary — 18.5%
Alibaba Group Holding*		145,500		5,174,168
JD.com ADR*		64,675		5,019,427
New Oriental Education & Technology Group ADR*		23,838		3,563,781
TAL Education Group ADR*		67,848		5,159,162
Trip.com Group ADR*		116,620		3,631,547
Vipshop Holdings ADR*		208,329		3,258,265
				25,806,350

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

37

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Emerging Markets Consumer Technology Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Health Care — 2.3%
Ping An Healthcare and Technology*(A)		252,300	$	3,231,068
Information Technology — 2.8%
GDS Holdings ADR*		48,563		3,973,910
TOTAL CHINA				55,427,351
GREECE — 4.9%
Communication Services — 2.4%
Hellenic Telecommunications Organization		229,514		3,313,106
Consumer Discretionary — 2.5%
OPAP		372,888		3,541,861
TOTAL GREECE				6,854,967
INDIA — 0.7%
Consumer Discretionary — 0.7%
MakeMyTrip*		62,240		956,006
TOTAL INDIA				956,006
MALAYSIA — 3.2%
Communication Services — 2.5%
Telekom Malaysia		3,566,100		3,544,217
Information Technology — 0.7%
My EG Services		3,170,700		999,547
TOTAL MALAYSIA				4,543,764
MEXICO — 2.4%
Communication Services — 2.4%
Grupo Televisa*		2,725,800		3,374,568
TOTAL MEXICO				3,374,568
POLAND — 3.3%
Communication Services — 3.3%
Cyfrowy Polsat		512,530		3,581,818
Orange Polska*		564,255		998,229
TOTAL POLAND				4,580,047
PUERTO RICO — 0.8%
Information Technology — 0.8%
EVERTEC		30,255		1,050,151
TOTAL PUERTO RICO				1,050,151

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

38

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Emerging Markets Consumer Technology Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
RUSSIA — 3.3%
Communication Services — 2.5%
Mail.Ru Group GDR*		127,563	$	3,495,226
Information Technology — 0.8%
QIWI ADR		67,231		1,166,458
TOTAL RUSSIA				4,661,684
SOUTH AFRICA — 3.7%
Consumer Discretionary — 3.7%
Naspers, Cl N		29,314		5,202,005
TOTAL SOUTH AFRICA				5,202,005
SOUTH KOREA — 21.0%
Communication Services — 17.2%
Com2uSCorp		9,882		968,343
Kakao		15,235		4,748,318
KT ADR		359,997		3,459,571
NAVER		19,228		4,874,820
NCSoft		5,256		3,622,348
Netmarble*(A)		22,048		3,129,515
NHN*		16,088		1,023,469
Pearl Abyss*		6,341		1,096,323
Studio Dragon*		15,534		1,118,395
				24,041,102
Consumer Discretionary — 2.4%
DoubleUGames		16,596		1,057,206
GS Home Shopping		10,582		1,165,423
Lotte Tour Development*		80,792		1,063,871
				3,286,500
Financials — 0.7%
NICE Holdings		64,614		1,005,536
Information Technology — 0.7%
Douzone Bizon		10,830		967,708
TOTAL SOUTH KOREA				29,300,846
TAIWAN — 5.5%
Communication Services — 2.5%
Chunghwa Telecom		956,000		3,531,938
Information Technology — 3.0%
Holy Stone Enterprise		300,000		1,046,199
Wistron NeWeb		393,000		1,036,710

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

39

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Emerging Markets Consumer Technology Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Information Technology — (continued)
WPG Holdings		777,880	$	1,044,801
WT Microelectronics		820,000		1,065,983
				4,193,693
TOTAL TAIWAN				7,725,631
THAILAND — 2.4%
Communication Services — 2.4%
Intouch Holdings, Cl F		2,036,837		3,294,293
TOTAL THAILAND				3,294,293
TOTAL COMMON STOCK
(Cost $131,437,657)				139,638,775
SHORT-TERM INVESTMENT(B)(C) — 4.1%
Invesco Government & Agency Portfolio, Cl Institutional, 0.010%		5,698,169		5,698,169
TOTAL SHORT-TERM INVESTMENT
(Cost $5,698,169)				5,698,169
TOTAL INVESTMENTS — 103.9%
(Cost $137,135,826)				145,336,944
OTHER ASSETS LESS LIABILITIES – (3.9)%				(5,507,353	)
NET ASSETS - 100%			$	139,829,591

‡ 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 September 30, 2020.  The total market value of securities on loan at September 30, 2020 was $5,426,721.

(B) The rate shown is the 7-day effective yield as of September 30, 2020.

(C) This security was purchased with cash collateral held from securities on loan. The total value of such security as of September 30, 2020 was $5,698,169.

ADR — American Depositary Receipt

Cl — Class

GDR — Global Depositary Receipt

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

40

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Emerging Markets Consumer Technology Index ETF (concluded)

The following summarizes the market value of the Fund’s investments used as of September 30, 2020, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stock
Argentina	$	5,219,719	$	—	$	—	$	5,219,719
Brazil		7,447,743		—		—		7,447,743
China		55,427,351		—		—		55,427,351
Greece		6,854,967		—		—		6,854,967
India		956,006		—		—		956,006
Malaysia		4,543,764		—		—		4,543,764
Mexico		3,374,568		—		—		3,374,568
Poland		4,580,047		—		—		4,580,047
Puerto Rico		1,050,151		—		—		1,050,151
Russia		4,661,684		—		—		4,661,684
South Africa		5,202,005		—		—		5,202,005
South Korea
Communication Services		19,815,264		4,225,838		—		24,041,102
Consumer Discretionary		3,286,500		—		—		3,286,500
Financials		1,005,536		—		—		1,005,536
Information Technology		967,708		—		—		967,708
Taiwan		7,725,631		—		—		7,725,631
Thailand		3,294,293		—		—		3,294,293
Total Common Stock		135,412,937		4,225,838		—		139,638,775
Short-Term Investment		5,698,169		—		—		5,698,169
Total Investments in Securities	$	141,111,106	$	4,225,838	$	—	$	145,336,944

For the period ended September 30, 2020, there have been no transfers in or out of Level 3.

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

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

41

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI China Environment Index ETF

 

	Shares		Value
COMMON STOCK — 99.7%‡
CHINA — 93.9%
Consumer Discretionary — 27.6%
BAIC BluePark New Energy Technology, Cl A*		44,800	$	38,949
BYD, Cl A		8,500		145,593
BYD, Cl H		48,500		759,729
NIO ADR*		41,369		877,850
Tianneng Power International		177,885		318,586
Yadea Group Holdings*		284,694		418,041
				2,558,748
Industrials — 20.3%
China Conch Venture Holdings		167,000		773,587
China Everbright Environment Group		556,216		315,787
Contemporary Amperex Technology, Cl A		13,500		416,162
CT Environmental Group*(A)(B)(C)		329,000		1,061
Dongjiang Environmental, Cl H		46,600		31,147
Dynagreen Environmental Protection Group, Cl H		90,000		46,220
Gotion High-tech, Cl A*		17,200		60,322
Xinjiang Goldwind Science & Technology, Cl A		52,435		79,043
Xinjiang Goldwind Science & Technology, Cl H		183,804		160,325
				1,883,654
Information Technology — 20.7%
China Railway Signal & Communication, Cl H		399,000		130,769
GCL System Integration Technology, Cl A*		78,700		43,836
GCL-Poly Energy Holdings*		3,528,000		147,949
JinkoSolar Holding ADR*		9,029		358,993
LONGi Green Energy Technology, Cl A		36,260		400,787
Sanan Optoelectronics, Cl A		69,800		251,273
Wuxi Lead Intelligent Equipment, Cl A		13,300		94,836
Xinyi Solar Holdings		311,588		493,716
				1,922,159
Real Estate — 14.6%
China Evergrande Group		172,000		437,213
China Merchants Land		306,000		43,432

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

42

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI China Environment Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Real Estate — (continued)
Shimao Group Holdings		176,500	$	728,774
SOHO China*		530,500		143,064
				1,352,483
Utilities — 10.7%
Beijing Enterprises Water Group		958,500		371,032
Beijing Jingneng Clean Energy, Cl H		322,000		81,850
Chengdu Xingrong Environment, Cl A		45,400		34,119
China Datang Renewable Power, Cl H		539,000		73,721
China Everbright Greentech		95,000		37,878
China Everbright Water		133,057		21,931
China Longyuan Power Group, Cl H		590,800		368,964
				989,495
TOTAL CHINA				8,706,539
HONG KONG — 5.8%
Industrials — 1.5%
China High Speed Transmission Equipment Group		101,000		79,627
Fullshare Holdings*		2,482,500		56,056
				135,683
Information Technology — 0.4%
Wasion Holdings		123,000		34,440
Real Estate — 2.1%
Yuexiu Real Estate Investment Trust†		410,000		190,452
Utilities — 1.8%
Beijing Energy International Holding*		1,128,000		34,932
Canvest Environmental Protection Group		155,000		66,600
Concord New Energy Group		1,390,000		62,774
				164,306
TOTAL HONG KONG				524,881
TOTAL COMMON STOCK
(Cost $8,030,261)				9,231,420
TOTAL INVESTMENTS — 99.7%
(Cost $8,030,261)				9,231,420
OTHER ASSETS LESS LIABILITIES – 0.3%				29,939
NET ASSETS - 100%			$	9,261,359

‡ Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.

† Real Estate Investment Trust

* Non-income producing security.

(A) Security is fair valued using methods determined in good faith by the Fair Value Committee of the Board of Trustees. The total value of such securities as of September 30, 2020 was $1,061 and represents 0.0% of Net Assets.

(B) Level 3 security in accordance with fair value hierarchy.

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

43

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI China Environment Index ETF (concluded)

(C) Security considered illiquid.  The total value of such securities as of September 30, 2020 was $1,061 and represents 0.0% of Net Assets.

ADR — American Depositary Receipt

Cl — Class

The following summarizes the market value of the Fund’s investments used as of September 30, 2020, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3^		Total
Common Stock
China
Consumer Discretionary	$	2,558,748	$	—	$	—	$	2,558,748
Industrials		1,882,593		—		1,061		1,883,654
Information Technology		1,922,159		—		—		1,922,159
Real Estate		1,352,483		—		—		1,352,483
Utilities		989,495		—		—		989,495
Hong Kong		524,881		—		—		524,881
Total Common Stock		9,230,359		—		1,061		9,231,420
Total Investments in Securities	$	9,230,359	$	—	$	1,061	$	9,231,420

^ 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 beginning and/or end of the period in relation to net assets.

For the period ended September 30, 2020, the transfer in and out of level 3 occurred due to a halt in trading of these securities. Transfers between levels are recognized at period end.

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

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

44

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Electric Vehicles and Future Mobility Index ETF

 

	Shares		Value
COMMON STOCK — 94.8%‡
AUSTRIA — 1.3%
Information Technology — 1.3%
ams*		17,080	$	389,099
TOTAL AUSTRIA				389,099
CANADA — 0.9%
Industrials — 0.9%
Ballard Power Systems*		17,923		269,969
TOTAL CANADA				269,969
CHILE — 2.4%
Materials — 2.4%
Antofagasta		32,476		429,719
Sociedad Quimica y Minera de Chile ADR		9,449		306,336
TOTAL CHILE				736,055
CHINA — 20.2%
Communication Services — 2.1%
Baidu ADR*		5,006		633,709
Consumer Discretionary — 12.1%
Great Wall Motor, Cl H		256,500		325,341
Guangdong Dongfang Precision Science & Technology, Cl A*		461,100		323,422
Huizhou Desay Sv Automotive, Cl A		32,800		343,404
Keboda Technology, Cl A		31,800		328,623
Kuang-Chi Technologies, Cl A*		166,800		535,821
Li Auto ADR*		24,385		424,055
NIO ADR*		32,563		690,987
Tianneng Power International		174,000		311,629
XPeng ADR*		20,902		419,503
				3,702,785
Industrials — 4.0%
Camel Group, Cl A		273,817		308,666
Gotion High-tech, Cl A*		94,989		333,133
Shenzhen Center Power Tech, Cl A*		106,100		290,644
Zhejiang Narada Power Source, Cl A*		146,100		306,568
				1,239,011

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

45

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Electric Vehicles and Future Mobility Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Information Technology — 2.0%
Jiangsu Etern, Cl A		349,200	$	302,050
Shanghai Belling, Cl A		127,200		296,524
				598,574
TOTAL CHINA				6,174,079
FRANCE — 0.6%
Information Technology — 0.6%
STMicroelectronics		6,168		189,936
TOTAL FRANCE				189,936
GERMANY — 11.6%
Consumer Discretionary — 8.2%
Bayerische Motoren Werke		14,037		1,020,385
Daimler		19,490		1,052,127
Hella GmbH & KGaA*		8,661		436,924
				2,509,436
Information Technology — 3.4%
Infineon Technologies		36,481		1,031,626
TOTAL GERMANY				3,541,062
HONG KONG — 1.1%
Consumer Discretionary — 1.1%
Brilliance China Automotive Holdings		360,000		337,703
TOTAL HONG KONG				337,703
JAPAN — 2.3%
Consumer Discretionary — 2.3%
Mitsubishi Motors*		124,900		273,400
Nissan Motor*		119,100		419,609
TOTAL JAPAN				693,009
NETHERLANDS — 2.0%
Information Technology — 2.0%
NXP Semiconductors		4,854		605,828
TOTAL NETHERLANDS				605,828
PERU — 1.9%
Materials — 1.9%
Southern Copper		12,887		583,394
TOTAL PERU				583,394
SOUTH KOREA — 2.9%
Information Technology — 2.9%
Samsung SDI		1,655		613,461
Sang-A Frontec, Cl A		7,387		265,919
TOTAL SOUTH KOREA				879,380
SWEDEN — 1.0%
Industrials — 1.0%
PowerCell Sweden*(A)		12,035		314,658
TOTAL SWEDEN				314,658

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

46

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Electric Vehicles and Future Mobility Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
SWITZERLAND — 1.3%
Information Technology — 1.3%
STMicroelectronics		13,346	$	410,817
TOTAL SWITZERLAND				410,817
TAIWAN — 1.9%
Consumer Discretionary — 1.0%
Cub Elecparts		55,884		307,766
Information Technology — 0.9%
Parade Technologies		8,000		290,035
TOTAL TAIWAN				597,801
UNITED KINGDOM — 1.1%
Industrials — 1.1%
ITM Power*(A)		100,647		338,955
TOTAL UNITED KINGDOM				338,955
UNITED STATES — 42.3%
Communication Services — 3.4%
Alphabet, Cl A*		708		1,037,645
Consumer Discretionary — 8.6%
Aptiv*		7,101		651,020
Gentex		16,923		435,767
Gentherm*		7,144		292,189
Tesla*		2,273		975,140
Visteon*		4,113		284,702
				2,638,818
Industrials — 3.6%
Ballard Power Systems*		3,984		60,158
Bloom Energy, Cl A*(A)		21,563		387,487
FuelCell Energy*(A)		139,590		298,723
Plug Power*		25,774		345,629
				1,091,997
Information Technology — 22.0%
Advanced Micro Devices*		13,702		1,123,427
Ambarella*		6,047		315,533
Analog Devices		9,312		1,087,083
Cirrus Logic*		5,254		354,382
Maxim Integrated Products*		9,192		621,471
NVIDIA		2,074		1,122,490
SiTime*		4,527		380,404
Skyworks Solutions		4,426		643,983
Texas Instruments		7,704		1,100,054
				6,748,827
Materials — 4.7%
Albemarle		4,660		416,045
FMC		4,141		438,573
Freeport-McMoRan*		37,085		580,010
				1,434,628
TOTAL UNITED STATES				12,951,915
TOTAL COMMON STOCK
(Cost $25,751,132)				29,013,660

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

47

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Electric Vehicles and Future Mobility Index ETF (concluded)

	Shares		Value
PREFERRED STOCK — 4.6%
GERMANY— 4.6%
Consumer Discretionary — 4.6%
Porsche Automobil Holding(B)		7,155	$	427,067
Volkswagen(B)		6,118		985,744
TOTAL PREFERRED STOCK
(Cost $1,528,134)				1,412,811
SHORT-TERM INVESTMENT(C)(D) — 3.0%
Invesco Government & Agency Portfolio, Cl Institutional, 0.010%		917,949		917,949
TOTAL SHORT-TERM INVESTMENT
(Cost $917,949)				917,949
TOTAL INVESTMENTS — 102.4%
(Cost $28,197,215)				31,344,420
OTHER ASSETS LESS LIABILITIES — (2.6)%				(738,673	)
NET ASSETS - 100%			$	30,605,747

‡ 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 September 30, 2020. The total market value of securities on loan at September 30, 2020 was $701,718.

(B) Currently, no stated interest rate.

(C) The rate shown is the 7-day effective yield as of September 30, 2020.

(D) This security was purchased with cash collateral held from securities on loan. The total value of such security as of September 30, 2020 was $917,949.

ADR — American Depositary Receipt

Cl — Class

As of September 30, 2020, 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.

For the period ended September 30, 2020, there have been no transfers in or out of Level 3.

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

48

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI All China Health Care Index ETF

 

	Shares		Value
COMMON STOCK — 99.8%‡
CHINA — 93.8%
Health Care — 93.8%
3SBio*		543,500	$	611,525
Aier Eye Hospital Group, Cl A		539,324		4,086,475
AK Medical Holdings		166,000		423,675
Alibaba Health Information Technology*		1,394,000		3,395,963
Apeloa Pharmaceutical, Cl A		153,300		538,537
Asymchem Laboratories Tianjin, Cl A		29,600		1,149,272
Autobio Diagnostics, Cl A		37,036		880,398
Beijing Tiantan Biological Products, Cl A		165,818		971,261
Beijing Tongrentang, Cl A		171,868		683,288
Betta Pharmaceuticals, Cl A		51,963		871,065
BGI Genomics, Cl A*		51,600		1,094,532
CanSino Biologics, Cl H*(A)		27,800		589,719
Changchun High & New Technology Industry Group, Cl A		52,466		2,857,748
Chengdu Kanghong Pharmaceutical Group, Cl A		91,300		613,214
China Medical System Holdings		615,000		676,897
China National Accord Medicines, Cl A		48,253		328,498
China National Medicines, Cl A		97,055		623,264
China Resources Pharmaceutical Group		700,500		359,741
China Resources Sanjiu Medical & Pharmaceutical, Cl A		126,990		478,671
China Traditional Chinese Medicine Holdings		1,224,000		511,711
Chongqing Zhifei Biological Products, Cl A		202,972		4,166,633
CSPC Pharmaceutical Group		2,441,056		4,724,625
Da An Gene of Sun Yat-Sen University, Cl A		111,462		575,024
Dong-E-E-Jiao, Cl A		3,600		21,065
Dong-E-E-Jiao, Cl E		82,140		480,642
Genscript Biotech*		472,000		772,253
Guangzhou Baiyunshan Pharmaceutical Holdings, Cl A		183,874		817,994
Guangzhou Kingmed Diagnostics Group, Cl A		59,799		901,263
Guangzhou Wondfo Biotech, Cl A		43,152		528,089
Hangzhou Tigermed Consulting, Cl A		46,550		706,176
Huadong Medicine, Cl A		213,901		778,532
Hualan Biological Engineering, Cl A		235,747		1,979,757
Hubei Jumpcan Pharmaceutical, Cl A		104,560		341,276
Humanwell Healthcare Group, Cl A		169,600		805,227
Hutchison China MediTech ADR*		30,488		984,762
Intco Medical Technology, Cl A		31,000		688,858
Jafron Biomedical, Cl A		99,190		1,038,482
Jiangsu Hengrui Medicine, Cl A		694,965		9,198,205
Jiangsu Yuyue Medical Equipment & Supply, Cl A		129,010		623,540

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

49

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI All China Health Care Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Health Care — (continued)
Jilin Aodong Pharmaceutical Group, Cl A		152,181	$	375,166
Jinyu Bio-Technology, Cl A		145,368		578,362
Joincare Pharmaceutical Group Industry, Cl A		244,845		614,431
Jointown Pharmaceutical Group, Cl A*		244,806		609,643
Lepu Medical Technology Beijing, Cl A		224,800		1,116,663
Livzon Pharmaceutical Group, Cl A		78,259		567,485
Luye Pharma Group(A)		873,500		507,194
Meinian Onehealth Healthcare Holdings, Cl A*		511,931		1,069,682
Nanjing King-Friend Biochemical Pharmaceutical, Cl A		103,317		682,203
Ovctek China, Cl A		78,800		722,476
Shandong Buchang Pharmaceuticals, Cl A		145,369		533,381
Shandong Weigao Group Medical Polymer, Cl H		1,120,000		2,231,329
Shanghai Fosun Pharmaceutical Group, Cl A		250,229		1,810,817
Shanghai Fosun Pharmaceutical Group, Cl H		232,000		962,426
Shanghai Pharmaceuticals Holding, Cl A		249,094		745,487
Shanghai Pharmaceuticals Holding, Cl H		342,500		572,748
Shanghai RAAS Blood Products, Cl A		747,000		904,814
Shenzhen Hepalink Pharmaceutical Group, Cl A		134,828		450,996
Shenzhen Kangtai Biological Products, Cl A		86,098		2,309,166
Shenzhen Mindray Bio-Medical Electronics, Cl A		130,174		6,675,295
Shenzhen Salubris Pharmaceuticals, Cl A		134,265		682,176
Shijiazhuang Yiling Pharmaceutical, Cl A		155,172		616,682
Sichuan Kelun Pharmaceutical, Cl A		190,515		623,793
Sino Biopharmaceutical		4,529,750		4,933,044
Sinopharm Group, Cl H		590,000		1,237,858
SSY Group		642,000		364,490
Tasly Pharmaceutical Group, Cl A		125,892		313,139
Tianjin Chase Sun Pharmaceutical, Cl A		397,217		317,830
Tonghua Dongbao Pharmaceutical, Cl A		266,091		533,648
Topchoice Medical, Cl A*		42,641		1,342,762
Walvax Biotechnology, Cl A		192,500		1,443,261
Winning Health Technology Group, Cl A		275,000		787,764
WuXi AppTec, Cl A		268,124		4,010,224
WuXi AppTec, Cl H		119,620		1,717,898
Wuxi Biologics Cayman*		433,045		10,538,360
Xiamen Kingdomway Group, Cl A		80,376		416,430
Yifan Pharmaceutical, Cl A		156,888		577,959
Yunnan Baiyao Group, Cl A		157,750		2,370,097
Zai Lab ADR*		22,887		1,903,512
Zhangzhou Pientzehuang Pharmaceutical, Cl A		74,324		2,664,857
Zhejiang Conba Pharmaceutical, Cl A*		349,913		268,636
Zhejiang Huahai Pharmaceutical, Cl A		175,772		830,645
Zhejiang NHU, Cl A		283,800		1,245,804
Zhejiang Wolwo Bio-Pharmaceutical, Cl A		68,474		567,262
TOTAL CHINA				116,225,752

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

50

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI All China Health Care Index ETF (concluded)

	Shares		Value
COMMON STOCK — (continued)
HONG KONG — 6.0%
Health Care — 6.0%
Hansoh Pharmaceutical Group*		500,000	$	2,429,032
Innovent Biologics*		400,000		2,962,580
Ping An Healthcare and Technology*(A)		163,100		2,088,732
TOTAL HONG KONG				7,480,344
TOTAL COMMON STOCK
(Cost $104,802,624)				123,706,096
SHORT-TERM INVESTMENT(B)(C) — 2.7%
Invesco Government & Agency Portfolio, Cl Institutional, 0.010%		3,272,752		3,272,752
TOTAL SHORT-TERM INVESTMENT
(Cost $3,272,752)				3,272,752
TOTAL INVESTMENTS — 102.5%
(Cost $108,075,376)				126,978,848
OTHER ASSETS LESS LIABILITIES – (2.5)%				(3,074,368	)
NET ASSETS - 100%			$	123,904,480

‡ 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 September 30, 2020. The total market value of securities on loan at September 30, 2020 was $2,984,097.

(B) The rate shown is the 7-day effective yield as of September 30, 2020.

(C) This security was purchased with cash collateral held from securities on loan. The total value of such security as of September 30, 2020 was $3,272,752.

ADR — American Depositary Receipt

Cl — Class

The following summarizes the market value of the Fund’s investments used as of September 30, 2020, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stock
China
Health Care	$	115,934,502	$	291,250	$	—	$	116,225,752
Hong Kong		7,480,344		—		—		7,480,344
Total Common Stock		123,414,846		291,250		—		123,706,096
Short-Term Investment		3,272,752		—		—		3,272,752
Total Investments in Securities	$	126,687,598	$	291,250	$	—	$	126,978,848

For the period ended September 30, 2020, there have been no transfers in or out of Level 3.

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

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

51

Schedule of Investments (Unaudited) September 30, 2020

KraneShares CCBS China Corporate High Yield Bond USD Index ETF

 

	Face Amount		Value
CORPORATE OBLIGATIONS — 98.4%
CHINA — 64.0%
Basic Materials — 2.0%
Shandong Iron And Steel Xinheng International  6.850%, 09/25/2022	$	200,000	$	201,986
Communications — 2.1%
Proven Honour Capital  4.125%, 05/19/2025		200,000		208,432
Consumer Discretionary — 4.0%
Geely Automobile Holdings  4.000%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+5.449%‡		200,000		200,600
Golden Eagle Retail Group  4.625%, 05/21/2023		200,000		197,000
				397,600
Financials — 46.9%
Agile Group Holdings  8.375%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+11.254%‡		200,000		206,250
Central Plaza Development  5.750%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+8.066%‡		200,000		195,994
CFLD Cayman Investment  8.600%, 04/08/2024		200,000		186,100
China Evergrande Group  9.500%, 03/29/2024		200,000		161,998
China Mengniu Dairy  3.000%, 07/18/2024		200,000		208,962
Chouzhou International Investment  4.500%, 05/30/2022		200,000		204,258
CIFI Holdings Group  6.450%, 11/07/2024		200,000		205,600
Country Garden Holdings  8.000%, 01/27/2024		200,000		217,100
Easy Tactic  8.625%, 02/27/2024		200,000		171,761

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

52

Schedule of Investments (Unaudited) September 30, 2020

KraneShares CCBS China Corporate High Yield Bond USD Index ETF (continued)

	Face Amount		Value
CORPORATE OBLIGATIONS — (continued)
Financials — (continued)
Fortune Star BVI  5.950%, 01/29/2023	$	200,000	$	202,998
Franshion Brilliant  5.750%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+3.859%‡		200,000		189,099
GLP China Holdings  4.974%, 02/26/2024		200,000		210,376
Kaisa Group Holdings  9.375%, 06/30/2024		600,000		564,000
KWG Group Holdings  5.875%, 11/10/2024		200,000		195,100
Mianyang Investment Holding Group  5.950%, 10/30/2022		200,000		198,994
New Metro Global  6.800%, 08/05/2023		200,000		203,997
Poly Real Estate Finance  4.750%, 09/17/2023		200,000		215,343
Ronshine China Holdings  8.750%, 10/25/2022		200,000		204,094
Shimao Group Holdings  6.125%, 02/21/2024		300,000		318,760
Sunac China Holdings  8.350%, 04/19/2023		200,000		203,742
Westwood Group Holdings  5.375%, 10/19/2023		200,000		216,632
				4,681,158
Industrial — 2.9%
Suzhou City Construction Investment Group Holding  4.600%, 09/05/2022		200,000		200,947
Tsinghua Unic  5.375%, 01/31/2023		200,000		94,999
				295,946
Real Estate — 2.0%
Well Hope Development  3.875%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+6.927%‡		200,000		201,600
Technology — 4.1%
Lenovo Group  4.750%, 03/29/2023		200,000		205,272
Nuoxi Capital  5.350%, 01/24/2023(A)		200,000		6,000
Semiconductor Manufacturing International  2.693%, 02/27/2025		200,000		196,634
				407,906
TOTAL CHINA				6,394,628
HONG KONG — 34.4%
Consumer Discretionary — 4.5%
Li & Fung  5.250%‡		200,000		147,100

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

53

Schedule of Investments (Unaudited) September 30, 2020

KraneShares CCBS China Corporate High Yield Bond USD Index ETF (concluded)

	Face Amount		Value
CORPORATE OBLIGATIONS — (continued)
Consumer Discretionary — (continued)
Melco Resorts Finance
4.875%, 06/06/2025	$	300,000	$	306,423
				453,523
Financials — 22.7%
AIA Group  3.125%, 03/13/2023		200,000		209,362
Bank of East Asia  5.875%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+4.257%‡		250,000		250,618
China CITIC Bank International  7.100%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+4.151%‡		200,000		217,016
CMB Wing Lung Bank  6.500%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+3.948%‡		250,000		264,060
FWD Group  0.000%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+4.865%‡		300,000		224,993
Industrial & Commercial Bank of China Asia  4.250%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+3.135%‡		300,000		301,500
Nanyang Commercial Bank  5.000%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+3.205%‡		550,000		543,801
NWD Finance BVI  5.750%‡		250,000		250,125
				2,261,475
Industrial — 2.1%
Celestial Miles  5.750%, VAR US Treas Yield Curve Rate T Note Const Mat 5 Yr+8.205%‡		200,000		206,518
Utilities — 5.1%
OVPH  5.875%‡		500,000		506,150
TOTAL HONG KONG				3,427,666
TOTAL CORPORATE OBLIGATIONS
(Cost $10,045,339)				9,822,294
TOTAL INVESTMENTS — 98.4%
(Cost $10,045,339)				9,822,294
OTHER ASSETS LESS LIABILITIES — 1.6%				154,985
NET ASSETS — 100%			$	9,977,279

‡ Perpetual security with no stated maturity date.

(A) Security in default on interest payments.

VAR — Variable Rate

As of September 30, 2020, 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.

For the period ended September 30, 2020, there have been no transfers in or out of Level 3.

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

54

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Emerging Markets Healthcare Index ETF

 

	Shares		Value
COMMON STOCK — 98.9%‡
BRAZIL — 4.5%
Health Care — 4.5%
Fleury		2,500	$	11,830
Hapvida Participacoes e Investimentos		5,600		62,046
Notre Dame Intermedica Participacoes		4,500		52,030
Odontoprev		4,400		9,422
TOTAL BRAZIL				135,328
CHINA — 40.1%
Consumer Staples — 0.5%
DaShenLin Pharmaceutical Group, Cl A		1,300		15,796
Health Care — 39.6%
3SBio*		5,500		6,188
Aier Eye Hospital Group, Cl A		9,070		68,724
AK Medical Holdings		4,000		10,209
Alphamab Oncology*		2,000		3,912
Autobio Diagnostics, Cl A		1,000		23,771
BeiGene*		2,200		48,059
Beijing Tiantan Biological Products, Cl A		2,620		15,346
Betta Pharmaceuticals, Cl A		800		13,411
BGI Genomics, Cl A*		800		16,970
CanSino Biologics, Cl H*		400		8,485
Changchun High & New Technology Industry Group, Cl A		800		43,575
China Biologic Products Holdings*		86		9,558
China Medical System Holdings		6,000		6,604
Chongqing Zhifei Biological Products, Cl A		3,613		74,168
Double Medical Technology, Cl A		900		12,114
Genscript Biotech*		4,000		6,545
Hangzhou Tigermed Consulting, Cl A		1,800		27,307
Huadong Medicine, Cl A		4,040		14,704
Hualan Biological Engineering, Cl A		3,990		33,507
Jiangsu Hengrui Medicine, Cl A		9,266		122,640
Jiangsu Yuyue Medical Equipment & Supply, Cl A		2,400		11,600
Jinxin Fertility Group		4,000		5,037
Lepu Medical Technology Beijing, Cl A		4,222		20,973
Lifetech Scientific*		8,000		2,013
Livzon Pharmaceutical Group, Cl H		700		3,197
Luye Pharma Group		7,500		4,355
Microport Scientific		4,000		15,871
Nanjing King-Friend Biochemical Pharmaceutical, Cl A		2,040		13,470
Ping An Healthcare and Technology*		2,800		35,858
Shandong Weigao Group Medical Polymer, Cl H		8,000		15,938
Shanghai Fosun Pharmaceutical Group, Cl H		1,000		4,148

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

55

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Emerging Markets Healthcare Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Health Care — (continued)
Shanghai Pharmaceuticals Holding, Cl H		2,100	$	3,512
Shanghai RAAS Blood Products, Cl A		15,500		18,775
Shenzhen Kangtai Biological Products, Cl A		1,400		37,548
Shenzhen Mindray Bio-Medical Electronics, Cl A		2,800		143,583
Shijiazhuang Yiling Pharmaceutical, Cl A		3,000		11,923
Sinopharm Group, Cl H		2,800		5,875
Topchoice Medical, Cl A*		800		25,192
Venus MedTech Hangzhou, Cl H*		500		5,310
Viva Biotech Holdings		3,000		3,430
Walvax Biotechnology, Cl A		3,400		25,491
WuXi AppTec, Cl H		532		7,640
Wuxi Biologics Cayman*		3,000		73,006
Yunnan Baiyao Group, Cl A		3,000		45,073
Zai Lab ADR*		158		13,141
Zhangzhou Pientzehuang Pharmaceutical, Cl A		1,400		50,196
Zhejiang Huahai Pharmaceutical, Cl A		3,350		15,831
Zhejiang NHU, Cl A		4,900		21,510
				1,205,293
TOTAL CHINA				1,221,089
HONG KONG — 2.7%
Health Care — 2.7%
Hansoh Pharmaceutical Group*		12,000		58,297
Innovent Biologics*		3,000		22,219
TOTAL HONG KONG				80,516
HUNGARY — 1.0%
Health Care — 1.0%
Richter Gedeon Nyrt		1,464		30,962
TOTAL HUNGARY				30,962
INDIA — 12.5%
Health Care — 12.5%
Aurobindo Pharma		4,468		48,235
Biocon*		9,681		58,745
Cipla		5,934		62,308
Dr Reddy’s Laboratories		1,289		90,635
Sun Pharmaceutical Industries		17,866		121,185
TOTAL INDIA				381,108
INDONESIA — 1.3%
Health Care — 1.3%
Kalbe Farma		375,900		39,156
TOTAL INDONESIA				39,156
MALAYSIA — 10.6%
Health Care — 10.6%
Hartalega Holdings		25,400		99,021
IHH Healthcare		66,800		83,591
Supermax*		17,400		35,256
Top Glove		52,500		104,861
TOTAL MALAYSIA				322,729

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

56

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Emerging Markets Healthcare Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
SOUTH AFRICA — 1.5%
Health Care — 1.5%
Aspen Pharmacare Holdings*		3,389	$	24,235
Life Healthcare Group Holdings		11,177		11,432
Netcare		11,316		8,765
TOTAL SOUTH AFRICA				44,432
SOUTH KOREA — 21.3%
Health Care — 21.3%
Alteogen*		204		31,450
Bukwang Pharmaceutical		506		12,309
Celltrion*		588		129,466
Celltrion Healthcare*		1,173		87,962
Celltrion Pharm*		292		28,314
Genexine*		204		24,909
Green Cross		92		17,425
Hanall Biopharma*		428		12,443
Hanmi Pharm		108		25,257
Hanmi Science Ltd.		576		28,960
Helixmith*		226		6,850
Hugel*		93		14,528
Komipharm International*		546		6,770
Mezzion Pharma*		71		10,242
Pharmicell*		488		7,532
Samsung Biologics*		220		129,799
Seegene		194		43,196
SillaJen*(A)(B)(C)		261		2,700
Yuhan		525		28,820
TOTAL SOUTH KOREA				648,932
THAILAND — 3.4%
Health Care — 3.4%
Bangkok Chain Hospital		19,500		8,554
Bangkok Dusit Medical Services, Cl F		122,000		74,692
Bumrungrad Hospital		6,500		19,538
TOTAL THAILAND				102,784
TOTAL COMMON STOCK
(Cost $2,647,215)				3,007,036
TOTAL INVESTMENTS — 98.9%
(Cost $2,647,215)				3,007,036
OTHER ASSETS LESS LIABILITIES — 1.1%				33,284
NET ASSETS — 100%			$	3,040,320

‡ Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.

* Non-income producing security.

(A) Security is fair valued using methods determined in good faith by the Fair Value Committee of the Board of Trustees. The total value of such securities as of September 30, 2020 was $2,700 and represents 0.1% of Net Assets.

(B) Level 3 security in accordance with fair value hierarchy.

(C) Security considered illiquid. The total value of such securities as of September 30, 2020 was $2,700 and represents 0.1% of Net Assets.

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

57

Schedule of Investments (Unaudited) September 30, 2020

KraneShares Emerging Markets Healthcare Index ETF (concluded)

ADR — American Depositary Receipt

Cl — Class

Ltd. — Limited

The following summarizes the market value of the Fund’s investments used as of September 30, 2020, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3^		Total
Common Stock
Brazil	$	135,328	$	—	$	—	$	135,328
China
Consumer Staples		15,796		—		—		15,796
Health Care		1,199,983		5,310		—		1,205,293
Hong Kong		80,516		—		—		80,516
Hungary		30,962		—		—		30,962
India		381,108		—		—		381,108
Indonesia		39,156		—		—		39,156
Malaysia		322,729		—		—		322,729
South Africa		44,432		—		—		44,432
South Korea
Health Care		509,915		136,317		2,700		648,932
Thailand		102,784		—		—		102,784
Total Common Stock		2,862,709		141,627		2,700		3,007,036
Total Investments in Securities	$	2,862,709	$	141,627	$	2,700	$	3,007,036

^ 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 beginning and/or end of the period in relation to net assets.

For the period ended September 30, 2020, the transfers in and out of Level 3 occurred due to a halt in trading of these securities. Transfers between levels are recognized at period end.

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

58

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI Emerging Markets ex China Index ETF

 

	Shares		Value
COMMON STOCK — 94.0%‡
BRAZIL — 5.0%
Consumer Discretionary — 0.7%
Cogna Educacao		1,000	$	926
Lojas Renner		550		3,877
Magazine Luiza		800		12,709
				17,512
Consumer Staples — 0.7%
Ambev*		3,800		8,481
BRF*		300		978
Cia Brasileira de Distribuicao		100		1,238
JBS		600		2,202
Raia Drogasil		1,000		4,180
				17,079
Energy — 0.5%
Petroleo Brasileiro		3,100		10,923
Ultrapar Participacoes*		600		2,062
				12,985
Financials — 1.0%
B3 - Brasil Bolsa Balcao		1,400		13,691
Banco Bradesco*		880		2,823
Banco do Brasil*		700		3,688
Banco Santander Brasil		300		1,485
BB Seguridade Participacoes		500		2,161
IRB Brasil Resseguros S		300		399
				24,247

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

59

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Industrials — 0.7%
CCR		800	$	1,808
Localiza Rent a Car*		420		4,233
Rumo*		800		2,708
WEG		600		6,961
				15,710
Information Technology — 0.0%
Cielo*		800		561
Materials — 1.3%
Klabin		500		2,111
Suzano*		400		3,220
Vale		2,400		25,198
				30,529
Utilities — 0.1%
Cia de Saneamento Basico do Estado de Sao Paulo*		200		1,660
Equatorial Energia		500		1,876
				3,536
TOTAL BRAZIL				122,159
CHILE — 0.7%
Consumer Discretionary — 0.1%
Falabella		514		1,501
Energy — 0.1%
Empresas COPEC		268		2,003
Financials — 0.2%
Banco de Chile		17,262		1,314
Banco de Credito e Inversiones		35		1,102
Banco Santander Chile		45,657		1,582
				3,998
Materials — 0.1%
Empresas CMPC		867		1,816
Utilities — 0.2%
Enel Americas		19,579		2,535
Enel Chile		19,330		1,352
				3,887
TOTAL CHILE				13,205
COLOMBIA — 0.1%
Energy — 0.1%
Ecopetrol		3,338		1,641
Financials — 0.0%
Bancolombia		154		970
TOTAL COLOMBIA				2,611

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

60

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
CZECH REPUBLIC — 0.1%
Financials — 0.0%
Komercni banka as*		51	$	1,073
Utilities — 0.1%
CEZ		109		2,062
TOTAL CZECH REPUBLIC				3,135
EGYPT — 0.2%
Financials — 0.2%
Commercial International Bank Egypt SAE		906		3,826
TOTAL EGYPT				3,826
GREECE — 0.1%
Communication Services — 0.1%
Hellenic Telecommunications Organization		166		2,396
TOTAL GREECE				2,396
HUNGARY — 0.3%
Energy — 0.1%
MOL Hungarian Oil & Gas*		248		1,354
Financials — 0.2%
OTP Bank Nyrt*		152		4,584
TOTAL HUNGARY				5,938
INDIA — 14.5%
Communication Services — 0.4%
Bharti Airtel		1,540		8,787
Consumer Discretionary — 1.0%
Bajaj Auto		56		2,187
Eicher Motors		90		2,687
Mahindra & Mahindra		503		4,144
Maruti Suzuki India		85		7,769
Tata Motors*		1,250		2,258
Titan		214		3,485
				22,530
Consumer Staples — 1.4%
Dabur India		361		2,498
Godrej Consumer Products		248		2,437
Hindustan Unilever		625		17,521
ITC		3,000		6,982
Nestle India		16		3,452
				32,890

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

61

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Energy — 3.2%
Bharat Petroleum		522	$	2,498
Indian Oil		1,500		1,502
Oil & Natural Gas		961		902
Reliance Industries		2,308		69,896
				74,798
Financials — 2.8%
Axis Bank*		1,900		10,936
Bajaj Finance		160		7,110
Bajaj Finserv		26		2,062
Housing Development Finance		1,369		32,287
ICICI Bank*		2,000		9,616
State Bank of India*		1,500		3,769
				65,780
Health Care — 0.6%
Aurobindo Pharma		180		1,943
Dr Reddy’s Laboratories		78		5,485
Piramal Enterprises		55		934
Sun Pharmaceutical Industries		750		5,087
				13,449
Industrials — 0.2%
Larsen & Toubro		400		4,888
Information Technology — 3.7%
HCL Technologies		900		9,900
Infosys ADR		3,160		43,640
Tata Consultancy Services		750		25,335
Tech Mahindra		318		3,413
Wipro		1,250		5,312
				87,600
Materials — 0.9%
Asian Paints		212		5,708
Grasim Industries		226		2,280
Hindalco Industries		816		1,938
JSW Steel		592		2,229
UltraTech Cement		80		4,391
UPL		373		2,542
Vedanta		909		1,687
				20,775
Utilities — 0.3%
GAIL India		1,400		1,647
NTPC		1,800		2,076
Power Grid Corp of India		1,600		3,523
				7,246
TOTAL INDIA				338,743

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

62

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
INDONESIA — 2.3%
Communication Services — 0.3%
Telekomunikasi Indonesia Persero		46,000	$	7,914
Consumer Discretionary — 0.3%
Astra International		20,000		5,995
Consumer Staples — 0.2%
Charoen Pokphand Indonesia		6,300		2,403
Unilever Indonesia		6,500		3,538
				5,941
Energy — 0.1%
United Tractors		1,500		2,298
Financials — 1.4%
Bank Central Asia		8,700		15,845
Bank Mandiri Persero		18,000		6,000
Bank Negara Indonesia Persero		6,700		1,999
Bank Rakyat Indonesia Persero		50,000		10,215
				34,059
TOTAL INDONESIA				56,207
MALAYSIA — 2.5%
Communication Services — 0.3%
DiGi.Com		3,000		2,909
Maxis		3,000		3,667
				6,576
Consumer Discretionary — 0.1%
Genting		2,000		1,531
Consumer Staples — 0.1%
Sime Darby Plantation		2,300		2,795
Financials — 1.2%
CIMB Group Holdings		8,000		5,929
Hong Leong Bank		500		1,810
Malayan Banking		5,616		9,758
Public Bank		2,600		9,823
				27,320
Health Care — 0.1%
IHH Healthcare		2,000		2,503
Materials — 0.2%
Petronas Chemicals Group		3,000		4,050
Utilities — 0.5%
Petronas Gas		500		1,976
Tenaga Nasional		3,700		9,349
				11,325
TOTAL MALAYSIA				56,100

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

63

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
MEXICO — 2.9%
Communication Services — 0.8%
America Movil		28,000	$	17,517
Grupo Televisa*		2,000		2,476
				19,993
Consumer Staples — 0.9%
Fomento Economico Mexicano		1,700		9,565
Grupo Bimbo, Ser A		1,100		2,050
Wal-Mart de Mexico		4,300		10,305
				21,920
Financials — 0.4%
Grupo Financiero Banorte, Cl O*		2,200		7,613
Grupo Financiero Inbursa, Cl O*		1,500		1,161
				8,774
Industrials — 0.2%
Alfa, Cl A		2,200		1,365
Grupo Aeroportuario del Pacifico, Cl B*		200		1,607
Grupo Aeroportuario del Sureste, Cl B		145		1,685
				4,657
Materials — 0.5%
Cemex*		12,500		4,751
Grupo Mexico		2,900		7,393
				12,144
Real Estate — 0.1%
Fibra Uno Administracion†		2,800		2,215
TOTAL MEXICO				69,703
PERU — 1.0%
Financials — 0.4%
Credicorp		72		8,927
Materials — 0.6%
Cia de Minas Buenaventura SAA ADR		571		6,978
Southern Copper		169		7,651
				14,629
TOTAL PERU				23,556
PHILIPPINES — 1.4%
Financials — 0.2%
BDO Unibank		2,100		3,736
Industrials — 0.6%
Ayala		300		4,264
JG Summit Holdings		3,500		4,346
SM Investments		300		5,445
				14,055
Real Estate — 0.6%
Ayala Land		10,500		6,432
SM Prime Holdings		14,000		8,489
				14,921
TOTAL PHILIPPINES				32,712

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

64

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
POLAND — 1.1%
Communication Services — 0.3%
CD Projekt*		60	$	6,493
Consumer Discretionary — 0.1%
LPP*		1		1,699
Energy — 0.1%
Polski Koncern Naftowy ORLEN		280		3,320
Financials — 0.5%
Bank Polska Kasa Opieki*		165		2,147
Powszechna Kasa Oszczednosci Bank Polski*		825		4,526
Powszechny Zaklad Ubezpieczen*		600		3,847
Santander Bank Polska*		32		1,180
				11,700
Materials — 0.1%
KGHM Polska Miedz*		115		3,510
TOTAL POLAND				26,722
QATAR — 1.4%
Financials — 1.2%
Masraf Al Rayan QSC		3,750		4,285
Qatar Islamic Bank SAQ		1,100		4,985
Qatar National Bank QPSC		3,900		19,495
				28,765
Industrials — 0.2%
Industries Qatar QSC		1,750		4,734
TOTAL QATAR				33,499
RUSSIA — 4.8%
Communication Services — 0.1%
Mobile TeleSystems PJSC ADR		348		3,038
Consumer Discretionary — 0.1%
X5 Retail Group GDR		83		3,088
Energy — 2.6%
Gazprom PJSC		8,300		18,284
LUKOIL PJSC		345		19,926
Novatek PJSC GDR		70		9,555
Rosneft		950		4,694
Tatneft PJSC		1,530		9,109
				61,568
Financials — 1.1%
Sberbank of Russia PJSC		9,190		27,000

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

65

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Materials — 0.9%
Alrosa PJSC		1,750	$	1,664
MMC Norilsk Nickel PJSC		62		15,026
Novolipetsk Steel PJSC		820		1,814
Severstal PAO		140		1,788
				20,292
TOTAL RUSSIA				114,986
SOUTH AFRICA — 6.0%
Communication Services — 0.4%
Group		1,400		4,712
MultiChoice Group		284		1,649
Vodacom Group		425		3,141
				9,502
Consumer Discretionary — 2.8%
Absa Group		600		3,213
Mr Price Group		162		1,282
Naspers, Cl N		345		61,222
Woolworths Holdings		658		1,391
				67,108
Consumer Staples — 0.4%
Bid		280		4,335
Clicks Group		168		2,239
Shoprite Holdings		281		2,302
Tiger Brands		109		1,247
				10,123
Energy — 0.1%
Exxaro Resources		174		1,299
Financials — 1.3%
Capitec Bank Holdings*		26		1,617
Discovery		244		1,871
FirstRand		3,738		9,240
Nedbank Group		335		2,024
Old Mutual		3,300		2,050
Remgro		355		2,001
Sanlam		1,216		3,790
Standard Bank Group		1,100		7,125
				29,718
Industrials — 0.2%
Bidvest Group		224		1,855
Sasol*		465		3,612
				5,467
Materials — 0.7%
Anglo American Platinum		35		2,440
AngloGold Ashanti		330		8,569
Gold Fields		541		6,593
				17,602

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

66

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Real Estate — 0.1%
Growthpoint Properties†		1,998	$	1,467
NEPI Rockcastle		281		1,161
				2,628
TOTAL SOUTH AFRICA				143,447
SOUTH KOREA — 21.6%
Communication Services — 2.3%
Kakao		34		10,597
NAVER		125		31,691
NCSoft		15		10,338
SK Telecom		13		2,646
				55,272
Consumer Discretionary — 2.2%
Coway		36		2,441
Fila Holdings		32		1,003
Hyundai Mobis		57		11,210
Hyundai Motor		125		19,079
Kangwon Land		81		1,489
Kia Motors		250		10,026
LG Electronics		95		7,449
				52,697
Consumer Staples — 0.9%
Amorepacific		21		2,945
E-MART		13		1,573
KT&G		95		6,693
LG Household & Health Care		8		9,905
				21,116
Energy — 0.3%
SK Innovation		53		6,299
S-Oil		31		1,368
				7,667
Financials — 1.7%
DB Insurance		34		1,314
Hana Financial Group		300		7,208
Industrial Bank of Korea		174		1,192
KB Financial Group		358		11,495
Samsung Fire & Marine Insurance		26		4,046
Samsung Life Insurance		47		2,451
Shinhan Financial Group		383		9,039
Woori Financial Group		327		2,399
				39,144
Health Care — 1.0%
Celltrion*		73		16,074
Celltrion Healthcare*		34		2,549
Samsung Biologics*		10		5,900
				24,523

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

67

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Industrials — 0.9%
Hyundai Engineering & Construction		54	$	1,406
Hyundai Heavy Industries Holdings		6		1,118
Korea Shipbuilding & Offshore Engineering*		26		1,839
LG		85		5,386
Samsung C&T		70		6,284
Samsung Heavy Industries*		299		1,363
SK Holdings		26		4,413
				21,809
Information Technology — 10.5%
LG Display*		148		1,943
Samsung Electro-Mechanics		50		5,943
Samsung Electronics		3,732		185,721
Samsung SDI		45		16,680
Samsung SDS		23		3,333
SK Hynix		469		33,686
				247,306
Materials — 1.6%
Hyundai Steel		54		1,136
Korea Zinc		5		1,610
LG Chemical		40		22,369
Lotte Chemical		12		2,016
POSCO		68		11,396
				38,527
Utilities — 0.2%
Korea Electric Power*		275		4,797
TOTAL SOUTH KOREA				512,858
TAIWAN — 24.2%
Communication Services — 0.9%
Chunghwa Telecom		4,000		14,778
Far EasTone Telecommunications		1,000		2,106
Taiwan Mobile		1,000		3,335
				20,219
Consumer Staples — 0.7%
President Chain Store		1,000		9,081
Uni-President Enterprises		4,000		8,632
				17,713
Energy — 0.1%
Formosa Petrochemical		1,000		2,762
Financials — 3.3%
Cathay Financial Holding		6,000		7,997
Chailease Holding		1,071		4,844
Chang Hwa Commercial Bank		4,243		2,542
China Development Financial Holding		9,000		2,645
CTBC Financial Holding		12,000		7,624
E.Sun Financial Holding		8,094		7,154
First Financial Holding		7,282		5,167

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

68

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Financials — (continued)
Fubon Financial Holding		6,000	$	8,681
Hua Nan Financial Holdings		5,567		3,393
Mega Financial Holding		8,000		7,679
Shanghai Commercial & Savings Bank		2,000		2,683
Shin Kong Financial Holding		7,000		1,943
SinoPac Financial Holdings		7,000		2,622
Taishin Financial Holding		7,310		3,231
Taiwan Cooperative Financial Holding		6,365		4,286
Yuanta Financial Holding		7,280		4,474
				76,965
Industrials — 0.1%
Far Eastern New Century		2,000		1,747
Information Technology — 17.4%
ASE Technology Holding		2,000		4,088
Asustek Computer		1,000		8,753
AU Optronics*		6,000		2,320
Catcher Technology		1,000		6,267
Delta Electronics		2,000		13,052
Hon Hai Precision Industry		11,000		29,397
Innolux		6,000		1,941
Lite-On Technology		1,000		1,592
MediaTek		1,000		20,959
Novatek Microelectronics		1,000		9,167
Pegatron		1,000		2,203
Quanta Computer		2,000		5,221
Taiwan Semiconductor Manufacturing		20,000		299,014
United Microelectronics		8,000		7,886
				411,860
Materials — 1.7%
Asia Cement		2,000		2,866
China Steel		9,000		6,355
Formosa Chemicals & Fibre		2,000		4,675
Formosa Plastics		4,000		10,856
Nan Ya Plastics		5,000		10,272
Taiwan Cement		3,370		4,816
				39,840
TOTAL TAIWAN				571,106
THAILAND — 2.1%
Communication Services — 0.2%
Advanced Info Service		1,000		5,396
Consumer Staples — 0.4%
CP ALL*		5,000		9,507
Energy — 0.6%
PTT		10,500		10,604
PTT Exploration & Production		1,400		3,490
				14,094

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

69

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Financials — 0.3%
Kasikornbank		1,800	$	4,374
Siam Commercial Bank		1,800		3,692
				8,066
Health Care — 0.1%
Bangkok Dusit Medical Services, Cl F		3,500		2,143
Industrials — 0.3%
Airports of Thailand		4,300		7,668
Materials — 0.3%
PTT Global Chemical		2,300		2,849
Siam Cement		400		4,065
				6,914
Real Estate — 0.1%
Central Pattana		1,300		1,744
TOTAL THAILAND				55,532
TURKEY — 0.7%
Consumer Staples — 0.3%
BIM Birlesik Magazalar*		700		6,324
Energy — 0.1%
Tupras Turkiye Petrol Rafinerileri*		200		2,066
Financials — 0.3%
Akbank T.A.S.*		5,000		3,342
Turkiye Garanti Bankasi*		4,000		3,686
				7,028
TOTAL TURKEY				15,418
UNITED ARAB EMIRATES — 0.6%
Communication Services — 0.2%
Emirates Telecommunications Group PJSC		1,165		5,284
Financials — 0.3%
Abu Dhabi Commercial Bank PJSC		1,392		2,141
First Abu Dhabi Bank PJSC		1,901		5,817
				7,958
Real Estate — 0.1%
Emaar Properties PJSC*		2,352		1,787
TOTAL UNITED ARAB EMIRATES				15,029
UNITED KINGDOM — 0.2%
Consumer Staples — 0.2%
Magnit PJSC GDR		242		3,611
TOTAL UNITED KINGDOM				3,611
TOTAL COMMON STOCK
(Cost $2,331,757)				2,222,499

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

70

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI Emerging Markets ex China Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
PREFERRED STOCK(A) — 3.9%
BRAZIL — 2.3%
Communication Services — 0.1%
Telefonica Brasil		400	$	3,090
Consumer Discretionary — 0.1%
Lojas Americanas*		500		2,506
Energy — 0.5%
Petroleo Brasileiro*		3,400		11,883
Financials — 1.5%
Banco Bradesco*		3,740		12,932
Itau Unibanco Holding		3,900		15,652
Itausa		3,600		5,646
				34,230
Materials — 0.1%
Gerdau		700		2,594
Utilities — 0.0%
Cia Energetica de Minas Gerais		625		1,118
TOTAL BRAZIL				55,421
CHILE— 0.1%
Materials — 0.1%
Sociedad Quimica y Minera de Chile		83		2,687
COLOMBIA— 0.1%
Financials — 0.1%
Bancolombia		307		1,967
RUSSIA— 0.1%
Energy — 0.1%
Surgutneftegas PJSC		4,700		2,380
SOUTH KOREA— 1.3%
Information Technology — 1.3%
Samsung Electronics		700		30,227
TOTAL PREFERRED STOCK
(Cost $142,826)				92,682
TOTAL INVESTMENTS — 97.9%
(Cost $2,474,583)				2,315,181
OTHER ASSETS LESS LIABILITIES – 2.1%				49,511
NET ASSETS - 100%			$	2,364,692

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

71

Schedule of Investments (Unaudited) September 30, 2020

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) Currently, no stated interest rate.

ADR — American Depositary Receipt

Cl — Class

GDR — Global Depositary Receipt

PJSC — Public Joint-Stock Company

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

72

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI Emerging Markets ex China Index ETF (concluded)

The following summarizes the market value of the Fund’s investments used as of September 30, 2020, based on the inputs used to value them:

Investments in Securities	Level 1		Level 2		Level 3		Total
Common Stock
Brazil	$	122,159	$	—	$	—	$	122,159
Chile		13,205		—		—		13,205
Colombia		2,611		—		—		2,611
Czech Republic		3,135		—		—		3,135
Egypt		3,826		—		—		3,826
Greece		2,396		—		—		2,396
Hungary		5,938		—		—		5,938
India		338,743		—		—		338,743
Indonesia		56,207		—		—		56,207
Malaysia		56,100		—		—		56,100
Mexico		69,703		—		—		69,703
Peru		23,556		—		—		23,556
Philippines		32,712		—		—		32,712
Poland		26,722		—		—		26,722
Qatar		33,499		—		—		33,499
Russia		114,986		—		—		114,986
South Africa		143,447		—		—		143,447
South Korea
Communication Services		55,272		—		—		55,272
Consumer Discretionary		51,694		1,003		—		52,697
Consumer Staples		21,116		—		—		21,116
Energy		7,667		—		—		7,667
Financials		39,144		—		—		39,144
Health Care		8,449		16,074		—		24,523
Industrials		21,809		—		—		21,809
Information Technology		247,306		—		—		247,306
Materials		38,527		—		—		38,527
Utilities		4,797		—		—		4,797
Taiwan		571,106		—		—		571,106
Thailand		55,532		—		—		55,532
Turkey		15,418		—		—		15,418
United Arab Emirates		15,029		—		—		15,029
United Kingdom		3,611		—		—		3,611
Total Common Stock		2,205,422		17,077		—		2,222,499
Preferred Stock
Brazil		55,421		—		—		55,421
Chile		2,687		—		—		2,687
Colombia		1,967		—		—		1,967
Russia		2,380		—		—		2,380
South Korea		30,227		—		—		30,227
Total Preferred Stock		92,682		—		—		92,682
Total Investments in Securities	$	2,298,104	$	17,077	$	—	$	2,315,181

For the period ended September 30, 2020, there have been no transfers in or out of Level 3.

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

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

73

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI China ESG Leaders Index ETF

 

	Shares		Value
COMMON STOCK — 99.8%‡
CHINA — 97.2%
Communication Services — 9.0%
China Literature*		200	$	1,495
Tencent Holdings		3,400		224,400
Wanda Film Holding, Cl A*		600		1,568
Wuhu Sanqi Interactive Entertainment Network Technology Group, Cl A		600		3,497
				230,960
Consumer Discretionary — 29.1%
Alibaba Group Holding ADR*		856		251,647
BAIC BluePark New Energy Technology, Cl A*		900		780
BAIC Motor, Cl H		8,000		3,252
BYD, Cl A		500		8,534
BYD, Cl H		3,500		54,826
Geely Automobile Holdings		30,000		59,613
Hangzhou Robam Appliances, Cl A		200		960
Meituan Dianping, Cl B*		7,400		230,880
NIO ADR*		4,452		94,471
Suning.com, Cl A		2,800		3,741
TCL Technology Group, Cl A		4,100		3,702
Vipshop Holdings ADR*		2,178		34,064
Weifu High-Technology Group, Cl A		200		737
				747,207
Consumer Staples — 4.0%
Angel Yeast, Cl A		200		1,791
China Mengniu Dairy		14,000		65,574
Dali Foods Group		10,000		6,103

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

74

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI China ESG Leaders Index ETF (continued)

	Shares		Value
COMMON STOCK — (continued)
Consumer Staples — 4.0% (continued)
Inner Mongolia Yili Industrial Group, Cl A		1,800	$	10,175
Sun Art Retail Group		12,000		13,239
Vinda International Holdings		2,000		6,555
				103,437
Energy — 1.2%
China Shenhua Energy, Cl H		17,000		30,490
Offshore Oil Engineering, Cl A		1,400		927
				31,417
Financials — 13.7%
Bank of Shanghai, Cl A		4,300		5,139
China CITIC Bank, Cl H		45,000		17,361
China Construction Bank, Cl A		1,800		1,625
China Construction Bank, Cl H		308,000		199,504
China Everbright Bank, Cl H		16,000		5,037
China Merchants Bank, Cl H		19,000		89,606
China Minsheng Banking, Cl H		29,000		15,192
Huaxia Bank, Cl A		3,800		3,420
Industrial Bank, Cl A		6,200		14,684
Oceanwide Holdings, Cl A		1,300		806
				352,374
Health Care — 12.5%
3SBio*		6,500		7,314
Alibaba Health Information Technology*		2,000		4,872
China Medical System Holdings		7,000		7,705
China National Accord Medicines, Cl A		200		1,357
China National Medicines, Cl A		200		1,280
China Resources Pharmaceutical Group		8,000		4,108
CSPC Pharmaceutical Group		28,000		54,194
Genscript Biotech*		6,000		9,817
Guangzhou Baiyunshan Pharmaceutical Holdings, Cl A		400		1,773
Guangzhou Kingmed Diagnostics Group, Cl A		200		3,004
Huadong Medicine, Cl A		600		2,176
Ovctek China, Cl A		200		1,827
Ping An Healthcare and Technology*		1,900		24,332
Shanghai Pharmaceuticals Holding, Cl A		500		1,491
Shanghai Pharmaceuticals Holding, Cl H		3,900		6,522
Shenzhen Mindray Bio-Medical Electronics, Cl A		300		15,329
Sinopharm Group, Cl H		6,400		13,428
Topchoice Medical, Cl A*		100		3,138
WuXi AppTec, Cl A		600		8,942
WuXi AppTec, Cl H		1,400		20,106
Wuxi Biologics Cayman*		5,000		121,677
Yunnan Baiyao Group, Cl A		400		5,988
				320,380

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

75

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI China ESG Leaders Index ETF (continued)

	Shares		Value
COMMON STOCK — continued
Industrials — 10.8%
51job ADR*		134	$	10,451
Air China, Cl A		2,000		2,082
Air China, Cl H		8,000		5,234
A-Living Services, Cl H		2,000		10,116
Beijing Originwater Technology, Cl A		900		1,150
BEST ADR*		978		2,934
BOC Aviation		1,000		6,800
Bohai Leasing, Cl A*		1,900		778
China Conch Venture Holdings		8,000		37,058
China Eastern Airlines, Cl A		2,800		2,031
China Eastern Airlines, Cl H		8,000		3,417
China Everbright Environment Group		19,000		10,787
China Lesso Group Holdings		6,000		10,777
CITIC		29,000		21,292
Contemporary Amperex Technology, Cl A		700		21,502
Country Garden Services Holdings		7,000		45,026
Eve Energy, Cl A		500		3,634
Fosun International		13,000		15,097
Gotion High-tech, Cl A*		400		1,398
Greentown Service Group		6,000		7,386
Jiangsu Expressway, Cl H		8,000		8,052
NARI Technology, Cl A		1,400		4,054
Shanghai Industrial Holdings		2,000		2,658
Shanghai International Airport, Cl A		300		3,030
Shanghai M&G Stationery, Cl A		200		1,994
Shenzhen Expressway, Cl H		4,000		3,474
Shenzhen Inovance Technology, Cl A		500		4,251
Siasun Robot & Automation, Cl A*		400		850
Sinotrans, Cl A		1,300		701
Sinotruk Hong Kong		3,500		8,969
Xinjiang Goldwind Science & Technology, Cl A		1,000		1,502
Xinjiang Goldwind Science & Technology, Cl H		3,800		3,315
Zhejiang Expressway, Cl H		8,000		5,770
Zhejiang Weixing New Building Materials, Cl A		400		939
Zhengzhou Yutong Bus, Cl A		600		1,385
Zoomlion Heavy Industry Science and Technology		6,600		6,336
Zoomlion Heavy Industry Science and Technology, Cl A		1,900		2,262
				278,492
Information Technology — 5.1%
360 Security Technology, Cl A		1,300		3,159
AAC Technologies Holdings		4,000		21,548
Aisino, Cl A		600		1,389
Beijing Shiji Information Technology, Cl A		200		1,125
BYD Electronic International		3,000		15,077
China National Software & Service, Cl A		200		2,438
China TransInfo Technology, Cl A		400		1,290
Glodon, Cl A		200		2,142

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

76

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI China ESG Leaders Index ETF (continued)

	Shares		Value
COMMON STOCK — continued
Information Technology — continued
GoerTek, Cl A		1,000	$	5,936
Kingdee International Software Group		12,000		30,968
Legend Holdings, Cl H		2,900		3,525
Lenovo Group		36,000		23,737
Sangfor Technologies, Cl A		100		3,109
TravelSky Technology, Cl H		4,000		8,537
Unisplendour, Cl A		840		3,136
Wangsu Science & Technology, Cl A		700		826
Westone Information Industry, Cl A		200		543
Wuxi Lead Intelligent Equipment, Cl A		200		1,421
				129,906
Materials — 1.1%
Baoshan Iron & Steel, Cl A		5,500		4,030
BBMG, Cl A		2,500		1,127
Beijing Oriental Yuhong Waterproof Technology, Cl A		400		3,166
China Jushi, Cl A		1,100		2,332
China Molybdenum, Cl A		5,300		2,895
China Molybdenum, Cl H		18,000		6,364
GEM, Cl A		1,500		1,037
Lee & Man Paper Manufacturing		6,000		4,335
Transfar Zhilian, Cl A		1,000		827
Zhejiang Huayou Cobalt, Cl A*		300		1,528
				27,641
Real Estate — 6.6%
China Merchants Property Operation & Service, Cl A		200		774
China Merchants Shekou Industrial Zone Holdings, Cl A		2,000		4,449
China Overseas Land & Investment		19,000		47,561
China Overseas Property Holdings		10,000		8,155
China Vanke, Cl A		2,800		11,520
China Vanke, Cl H		8,400		25,634
Greenland Holdings, Cl A		2,500		2,338
Guangzhou R&F Properties		5,600		7,197
Jinke Properties Group, Cl A		1,600		2,126
KWG Group Holdings		5,500		9,382
Logan Group		6,000		9,461
Poly Developments and Holdings Group, Cl A		3,600		8,399
Poly Property Services		400		3,102
Shanghai Industrial Urban Development Group		400		38
Shenzhen Investment		14,000		4,083
Sino-Ocean Group Holding		15,500		3,120
SOHO China*		10,500		2,832
Wharf Holdings		8,000		15,917
Yuzhou Group Holdings		10,000		3,948
				170,036

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

77

Schedule of Investments (Unaudited) September 30, 2020

KraneShares MSCI China ESG Leaders Index ETF (concluded)

	Shares		Value
COMMON STOCK — continued
Utilities — 4.1%
China Gas Holdings		13,000	$	36,903
China Longyuan Power Group, Cl H		16,000		9,992
China Resources Gas Group		4,000		17,858
ENN Energy Holdings		3,800		41,383
				106,136
TOTAL CHINA				2,497,986
HONG KONG — 2.6%
Health Care — 2.6%
Hutchison China MediTech ADR*		340		10,982
Sino Biopharmaceutical		52,000		56,629
TOTAL HONG KONG				67,611
TOTAL COMMON STOCK
(Cost $2,514,024)				2,565,597
TOTAL INVESTMENTS — 99.8%
(Cost $2,514,024)				2,565,597
OTHER ASSETS LESS LIABILITIES — 0.2%				5,418
NET ASSETS — 100%			$	2,571,015

‡ Industries are utilized for compliance purposes, whereas sectors are utilized for reporting.

* Non-income producing security.

ADR — American Depositary Receipt

Cl — Class

As of September 30, 2020, 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.

For the period ended September 30, 2020, there have been no transfers in or out of Level 3.

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

78

Statements of Assets and Liabilities (Unaudited)

September 30, 2020

	KraneShares CICC China Leaders 100 Index ETF		KraneShares CSI China  Internet ETF			KraneShares Bosera MSCI China A Share ETF
Assets:
Investments at Value	$	10,316,375	$	3,006,919,798	*	$	637,611,184
Cash and Cash Equivalents		19,838		173,272			188,379
Foreign Currency at Value		5		113			251,816
Receivable for Investment Securities Sold		—		20,885,660			—
Dividend and Interest Receivable		—		191,961			—
Unrealized Appreciation on Spot Contracts		—		181			—
Prepaid Expenses		370		50,854			11,947
Total Assets		10,336,588		3,028,221,839			638,063,326
Liabilities:
Obligation to Return Securities Lending Collateral		—		190,396,739			—
Payable for Capital Shares Redeemed		—		20,261,796			—
Payable for Management Fees		5,922		1,584,966			305,102
Payable for Trustees’ Fee		73		7,680			2,236
Payable for Securities Lending Fees		—		10,106			—
Total Liabilities		5,995		212,261,287			307,338
Net Assets	$	10,330,593	$	2,815,960,552		$	637,755,988
Net Assets Consist of:
Paid-in Capital	$	9,824,238	$	2,431,788,270		$	550,311,886
Total Distributable Earnings		506,355		384,172,282			87,444,102
Net Assets	$	10,330,593	$	2,815,960,552		$	637,755,988
Outstanding Shares of Beneficial Interest (unlimited authorization —  no par value)		350,000		41,600,000			16,250,000
Net Asset Value, Offering and Redemption Price Per Share	$	29.52	$	67.69		$	39.25
Cost of Investments	$	9,366,138	$	2,563,427,152		$	513,753,723
Cost of Foreign Currency		5		113			250,485
*Includes Market Value of Securities  on Loan		—		184,151,234			—

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

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

79

Statements of Assets and Liabilities (Unaudited) (continued)

September 30, 2020

	KraneShares E Fund China Commercial Paper ETF		KraneShares MSCI All China Index ETF		KraneShares MSCI One Belt One Road Index ETF
Assets:
Investments at Value	$	13,249,371	$	6,080,080	$	8,622,789
Affiliated Investments at Value		18,431		—		—
Foreign Currency at Value		56,263		2,177		2,465
Cash and Cash Equivalents		18,833		24,717		27,898
Dividend and Interest Receivable		92,136		5,522		11,524
Reclaim Receivable		—		408		2,636
Prepaid Expenses		312		158		171
Total Assets		13,435,346		6,113,062		8,667,483
Liabilities:
Payable for Management Fees		6,140		2,412		5,664
Payable for Trustees’ Fee		77		90		57
Total Liabilities		6,217		2,502		5,721
Net Assets	$	13,429,129	$	6,110,560	$	8,661,762
Net Assets Consist of:
Paid-in Capital	$	13,375,726	$	4,648,392	$	13,507,600
Total Distributable Earnings/(Loss)		53,403		1,462,168		(4,845,838	)
Net Assets	$	13,429,129	$	6,110,560	$	8,661,762
Outstanding Shares of Beneficial Interest (unlimited authorization —  no par value)		400,000		200,000		400,002
Net Asset Value, Offering and Redemption Price Per Share	$	33.57	$	30.55	$	21.65
Cost of Investments	$	12,980,303	$	4,529,520	$	9,276,382
Cost of Affiliated Investments		17,716		—		—
Cost of Foreign Currency		55,885		2,177		2,464

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

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

80

Statements of Assets and Liabilities (Unaudited) (continued)

September 30, 2020

	KraneShares Emerging Markets Consumer Technology Index ETF			KraneShares MSCI China Environment Index ETF			KraneShares Electric Vehicles and Future Mobility Index ETF
Assets:
Investments at Value	$	145,336,944	*	$	9,231,420		$	31,344,420	*
Cash and Cash Equivalents		190,793			20,323			101,157
Foreign Currency at Value		84			—			75,270
Dividend and Interest Receivable		61,089			17,107			11,411
Reclaim Receivable		4,704			—			49,528
Receivable for Capital Shares Sold		—			1,544,141			—
Unrealized Appreciation on  Spot Contracts		—			691			—
Prepaid Expenses		464			40			388
Total Assets		145,594,078			10,813,722			31,582,174
Liabilities:
Payable for Investment Securities  Purchased		—			1,481,526			41,745
Obligation to Return Securities Lending Collateral		5,698,169			—			917,949
Payable for Management Fees		66,045			3,466			16,125
Payable for Securities Lending Fees		273			—			450
Foreign Currency Payable at Value		—			67,371			—
Unrealized Depreciation on  Spot Contracts		—			—			40
Payable for Trustees’ Fee		—			—			118
Total Liabilities		5,764,487			1,552,363			976,427
Net Assets	$	139,829,591		$	9,261,359		$	30,605,747
Net Assets Consist of:
Paid-in Capital	$	135,069,786		$	9,540,403		$	29,270,414
Total Distributable Earnings/(Loss)		4,759,805			(279,044	)		1,335,333
Net Assets	$	139,829,591		$	9,261,359		$	30,605,747
Outstanding Shares of Beneficial Interest (unlimited authorization —  no par value)		5,000,002			300,002			1,050,002
Net Asset Value, Offering and Redemption Price Per Share	$	27.97		$	30.87		$	29.15
Cost of Investments	$	137,135,826		$	8,030,261		$	28,197,215
Cost of Foreign Currency		82			—			74,216
*Includes Market Value of Securities on Loan		5,426,721			—			701,718

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

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

81

Statements of Assets and Liabilities (Unaudited) (continued)

September 30, 2020

	KraneShares MSCI All China Health Care Index ETF			KraneShares  CCBS China Corporate High Yield Bond USD  Index ETF			KraneShares Emerging  Markets  Healthcare  Index ETF
Assets:
Investments at Value	$	126,978,848	*	$	9,822,294		$	3,007,036
Cash and Cash Equivalents		228,247			20,528			34,703
Foreign Currency at Value		13,772			—			41
Dividend and Interest Receivable		20,566			139,864			391
Unrealized Appreciation on  Spot Contracts		1			—			—
Reclaim Receivable		—			—			97
Prepaid Expenses		682			255			23
Total Assets		127,242,116			9,982,941			3,042,291
Liabilities:
Obligation to Return Securities Lending Collateral		3,272,752			—			—
Payable for Management Fees		64,692			5,618			1,966
Payable for Securities Lending Fees		131			—			—
Payable for Trustees’ Fee		61			44			5
Total Liabilities		3,337,636			5,662			1,971
Net Assets	$	123,904,480		$	9,977,279		$	3,040,320
Net Assets Consist of:
Paid-in Capital	$	112,762,943		$	9,978,884		$	3,219,068
Total Distributable Earnings/(Loss)		11,141,537			(1,605	)		(178,748	)
Net Assets	$	123,904,480		$	9,977,279		$	3,040,320
Outstanding Shares of Beneficial Interest (unlimited authorization —  no par value)		3,700,002			250,001			100,002
Net Asset Value, Offering and Redemption Price Per Share	$	33.49		$	39.91		$	30.40
Cost of Investments	$	108,075,376		$	10,045,339		$	2,647,215
Cost of Foreign Currency		13,767			—			40
*Includes Market Value of Securities  on Loan		2,984,097			—			—

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

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

82

Statements of Assets and Liabilities (Unaudited) (concluded)

September 30, 2020

	KraneShares MSCI Emerging Markets ex China Index ETF			KraneShares MSCI China ESG Leaders Index ETF
Assets:
Investments at Value	$	2,315,181		$	2,565,597
Cash and Cash Equivalents		44,530			1,553
Foreign Currency at Value		884			1,617
Dividend and Interest Receivable		3,984			3,527
Reclaim Receivable		1,021			—
Unrealized Appreciation on Spot Contracts		5			—
Prepaid Expenses		43			—
Total Assets		2,365,648			2,572,294
Liabilities:
Payable for Management Fees		942			1,230
Payable for Trustees’ Fee		14			49
Total Liabilities		956			1,279
Net Assets	$	2,364,692		$	2,571,015
Net Assets Consist of:
Paid-in Capital	$	2,500,050		$	2,500,000
Total Distributable Earnings/(Loss)		(135,358	)		71,015
Net Assets	$	2,364,692		$	2,571,015
Outstanding Shares of Beneficial Interest  (unlimited authorization - no par value)		100,002			100,000
Net Asset Value, Offering and Redemption Price Per Share	$	23.65		$	25.71
Cost of Investments	$	2,474,583		$	2,514,024
Cost of Foreign Currency		884			1,617

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

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

83

Statements of Operations (Unaudited)

For the Period Ended September 30, 2020

	KraneShares  CICC China  Leaders 100  Index ETF			KraneShares CSI China  Internet ETF			KraneShares Bosera MSCI China A Share ETF
Investment Income:
Dividend Income	$	457,619		$	4,742,645		$	9,879,381
Interest Income		211			3,074			4,594
Security Lending Income		—			1,589,852			—
Less: Foreign Taxes Withheld		(45,762	)		—			(988,755	)
Total Investment Income		412,068			6,335,571			8,895,220
Expenses:
Management Fees†		42,710			8,279,246			2,221,640
Trustees’ Fees		715			115,863			26,963
Security Lending Fees†		—			159,210			–
Insurance Expense		256			34,632			8,154
Total Expenses		43,681			8,588,951			2,256,757
Management Fee Waiver†		—			—			(569,653	)
Net Expenses		43,681			8,588,951			1,687,104
Net Investment Income (Loss)		368,387			(2,253,380	)		7,208,116
Net Realized Gain (Loss) on:
Investments		(227,569	)		219,861,593			(1,785,026	)
Foreign Currency Translations		1,539			(19,344	)		51,985
Net Realized Gain (Loss) on Investments and Foreign Currency Translations		(226,030	)		219,842,249			(1,733,041	)
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		2,008,041			615,559,557			148,597,674
Foreign Currency Translations		—			317			(293	)
Net Change in Unrealized Appreciation on Investments and Foreign Currency Translations		2,008,041			615,559,874			148,597,381
Net Realized and Unrealized Gain on Investments and Foreign Currency Translations		1,782,011			835,402,123			146,864,340
Net Increase in Net Assets Resulting from Operations	$	2,150,398		$	833,148,743		$	154,072,456

† 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.

84

Statements of Operations (Unaudited) (continued)

For the Period Ended September 30, 2020

	KraneShares E Fund China Commercial Paper ETF			KraneShares MSCI All China Index ETF			KraneShares  MSCI One Belt  One Road Index ETF
Investment Income:
Dividend Income	$	—		$	105,644		$	202,773
Interest Income		140,630			7			32
Less: Foreign Taxes Withheld		(524	)		(8,514	)		(17,594	)
Total Investment Income		140,106			97,137			185,211
Expenses:
Management Fees†		44,126			20,201			32,709
Trustees’ Fees		664			311			423
Insurance Expense		210			107			121
Total Expenses		45,000			20,619			33,253
Management Fee Waiver†		(7,787	)		(5,942	)		—
Net Expenses		37,213			14,677			33,253
Net Investment Income		102,893			82,460			151,958
Net Realized Gain (Loss) on:
Investments		—			(25,416	)		(219,052	)
Foreign Currency Translations		166,055			768			(1,054	)
Net Realized Gain (Loss) on Investments and Foreign Currency Translations		166,055			(24,648	)		(220,106	)
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		384,685			1,478,946			1,624,247
Affiliated Investments		792			—			—
Foreign Currency Translations		1,494			35			512
Net Change in Unrealized Appreciation on Investments, Affiliated Investments and Foreign Currency Translations		386,971			1,478,981			1,624,759
Net Realized and Unrealized Gain on Investments, Affiliated Investments and Foreign Currency Translations		553,026			1,454,333			1,404,653
Net Increase in Net Assets Resulting from Operations	$	655,919		$	1,536,793		$	1,556,611

† 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.

85

Statements of Operations (Unaudited) (continued)

For the Period Ended September 30, 2020

	KraneShares Emerging Markets Consumer Technology Index ETF			KraneShares MSCI China Environment  Index ETF			KraneShares Electric Vehicles and Future Mobility Index ETF
Investment Income:
Dividend Income	$	994,413		$	60,435		$	155,934
Interest Income		58			15			57
Security Lending Income		6,410			—			22,018
Less: Foreign Taxes Withheld		(78,472	)		(1,031	)		(14,132	)
Total Investment Income		922,409			59,419			163,877
Expenses:
Management Fees†		316,453			11,789			74,794
Trustees’ Fees		2,861			100			983
Security Lending Fees†		641			—			2,258
Insurance Expense		291			26			271
Total Expenses		320,246			11,915			78,306
Management Fee Waiver†		(76,671	)		—			—
Net Expenses		243,575			11,915			78,306
Net Investment Income		678,834			47,504			85,571
Net Realized Gain (Loss) on:
Investments		1,456,153			461,935			1,656,199
Foreign Currency Translations		(40,448	)		(1,152	)		(4,765	)
Net Realized Gain on Investments and Foreign Currency Translations		1,415,705			460,783			1,651,434
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		12,815,270			1,320,252			6,683,860
Foreign Currency Translations		1,657			681			4,044
Net Change in Unrealized Appreciation on Investments and Foreign Currency Translations		12,816,927			1,320,933			6,687,904
Net Realized and Unrealized Gain on Investments and Foreign Currency Translations		14,232,632			1,781,716			8,339,338
Net Increase in Net Assets Resulting from Operations	$	14,911,466		$	1,829,220		$	8,424,909

† 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.

86

Statements of Operations (Unaudited) (continued)

For the Period Ended September 30, 2020

	KraneShares MSCI All China Health Care Index ETF			KraneShares CCBS China Corporate High Yield Bond USD Index ETF			KraneShares Emerging Markets Healthcare Index ETF
Investment Income:
Dividend Income	$	515,695		$	—		$	4,932
Interest Income		50			326,725			—
Security Lending Income		2,451			—			—
Less: Foreign Taxes Withheld		(40,175	)		—			(491	)
Total Investment Income		478,021			326,725			4,441
Expenses:
Management Fees†		322,395			35,843			7,237
Trustees’ Fees		2,952			530			63
Insurance Expense		455			172			15
Security Lending Fees†		245			—			—
Total Expenses		326,047			36,545			7,315
Management Fee Waiver†		(57,865	)		—			—
Net Expenses		268,182			36,545			7,315
Net Investment Income (Loss)		209,839			290,180			(2,874	)
Net Realized Gain (Loss) on:
Investments		2,118,843			(9,562	)		33,888
Foreign Currency Translations		(45,440	)		—			(3,315	)
Net Realized Gain (Loss) on Investments and Foreign Currency Translations		2,073,403			(9,562	)		30,573
Net Change in Unrealized Appreciation (Depreciation) on:
Investments		16,451,344			710,032			362,859
Foreign Currency Translations		6			—			45
Net Change in Unrealized Appreciation on Investments and Foreign Currency Translations		16,451,350			710,032			362,904
Net Realized and Unrealized Gain on Investments and Foreign Currency Translations		18,524,753			700,470			393,477
Net Increase in Net Assets Resulting from Operations	$	18,734,592		$	990,650		$	390,603

† 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.

87

Statements of Operations (Unaudited) (concluded)

For the Period Ended September 30, 2020

	KraneShares MSCI Emerging Markets ex China  Index ETF			KraneShares MSCI China ESG Leaders  Index ETF(1)
Investment Income:
Dividend Income	$	68,317		$	5,824
Interest Income		5			—
Less: Foreign Taxes Withheld		(5,658	)		(116	)
Total Investment Income		62,664			5,708
Expenses:
Management Fees†		6,386			2,583
Trustees’ Fees		108			53
Insurance Expense		30			–
Total Expenses		6,524			2,636
Management Fee Waiver†		(1,101	)		–
Net Expenses		5,423			2,636
Net Investment Income		57,241			3,072
Net Realized Gain (Loss) on:
Investments		3,647			16,542
Foreign Currency Translations		(652	)		(172	)
Net Realized Gain on Investments and Foreign Currency Translations		2,995			16,370
Net Change in Unrealized Appreciation on:
Investments		463,211			51,573
Foreign Currency Translations		544			—
Net Change in Unrealized Appreciation on Investments and Foreign Currency Translations		463,755			51,573
Net Realized and Unrealized Gain on Investments and Foreign Currency Translations		466,750			67,943
Net Increase in Net Assets Resulting from Operations	$	523,991		$	71,015

(1) The Fund commenced operations on July 28, 2020.

† 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.

88

Statements of Changes in Net Assets

	KraneShares CICC China Leaders 100
	Index ETF
	Period Ended
	September 30,			Year Ended
	2020			March 31,
	(unaudited)			2020
Operations:
Net Investment Income	$	368,387		$	25,038
Net Realized Gain (Loss) on Investments and Foreign Currency Translations		(226,030	)		55,274
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations		2,008,041			(1,543,284	)
Net Increase (Decrease) in Net Assets Resulting from Operations		2,150,398			(1,462,972	)
Distributions:		—			(39,838	)
Capital Share Transactions:(1)
Issued		28,238			20,344,770
Redeemed		(8,120,748	)		(5,369,307	)
Increase (Decrease) in Net Assets from Capital Share Transactions		(8,092,510	)		14,975,463
Total Increase (Decrease) in Net Assets		(5,942,112	)		13,472,653
Net Assets:
Beginning of Period		16,272,705			2,800,052
End of Period	$	10,330,593		$	16,272,705
Share Transactions:
Issued		—			750,000
Redeemed		(300,000	)		(200,000	)
Net Increase (Decrease) in Shares Outstanding from Share Transactions		(300,000	)		550,000

(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.

89

Statements of Changes in Net Assets (continued)

	KraneShares CSI China Internet ETF
	Period Ended
	September 30,
	2020			Year Ended
	(unaudited)			March 31, 2020
Operations:
Net Investment Loss	$	(2,253,380	)	$	(865,457	)
Net Realized Gain on Investments and Foreign Currency Translations		219,842,249			35,638,760
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations		615,559,874			(225,886,506	)
Net Increase (Decrease) in Net Assets Resulting from Operations		833,148,743			(191,113,203	)
Distributions:		—			(1,580,181	)
Capital Share Transactions:(1)
Issued		706,295,784			1,377,877,818
Redeemed		(1,037,121,797	)		(946,051,196	)
Increase (Decrease) in Net Assets from Capital Share Transactions		(330,826,013	)		431,826,622
Total Increase in Net Assets		502,322,730			239,133,238
Net Assets:
Beginning of Period		2,313,637,822			2,074,504,584
End of Period	$	2,815,960,552		$	2,313,637,822
Share Transactions:
Issued		10,450,000			28,300,000
Redeemed		(20,050,000	)		(21,200,000	)
Net Increase (Decrease) in Shares Outstanding from Share Transactions		(9,600,000	)		7,100,000

(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.

90

Statements of Changes in Net Assets (continued)

	KraneShares Bosera MSCI China A
	Share ETF
	Period Ended
	September 30,
	2020			Year Ended
	(unaudited)			March 31, 2020
Operations:
Net Investment Income	$	7,208,116		$	9,311,869
Net Realized Loss on Investments and Foreign Currency Translations		(1,733,041	)		(6,057,172	)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations		148,597,381			(39,732,518	)
Net Increase (Decrease) in Net Assets Resulting from Operations		154,072,456			(36,477,821	)
Distributions:		—			(9,500,578	)
Capital Share Transactions:(1)
Issued		35,618,713			237,310,081
Redeemed		(59,442,804	)		(287,859,292	)
Decrease in Net Assets from Capital Share Transactions		(23,824,091	)		(50,549,211	)
Total Increase (Decrease) in Net Assets		130,248,365			(96,527,610	)
Net Assets:
Beginning of Period		507,507,623			604,035,233
End of Period	$	637,755,988		$	507,507,623
Share Transactions:
Issued		900,000			7,550,000
Redeemed		(1,850,000	)		(9,300,000	)
Net Decrease in Shares Outstanding from Share Transactions		(950,000	)		(1,750,000	)

(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.

91

Statements of Changes in Net Assets (continued)

	KraneShares E Fund China
	Commercial Paper ETF
	Period Ended
	September 30,
	2020			Year Ended
	(unaudited)			March 31, 2020
Operations:
Net Investment Income	$	102,893		$	432,951
Net Realized Gain (Loss) on Investments and Foreign Currency Translations		166,055			(701,280	)
Net Change in Unrealized Appreciation (Depreciation) on Investments, Affiliated Investments and Foreign Currency Translations		386,971			(288,779	)
Net Increase (Decrease) in Net Assets Resulting from Operations		655,919			(557,108	)
Distributions:		(156,548	)		—
Return of Capital		—			(521,147	)
Capital Share Transactions:(1)
Issued		1,637,740			1,658,813
Redeemed		(1,631,813	)		(6,478,959	)
Increase (Decrease) in Net Assets from Capital Share Transactions		5,927			(4,820,146	)
Total Increase (Decrease) in Net Assets		505,298			(5,898,401	)
Net Assets:
Beginning of Period		12,923,831			18,822,232
End of Period	$	13,429,129		$	12,923,831
Share Transactions:
Issued		50,000			50,000
Redeemed		(50,000	)		(200,000	)
Net Decrease in Shares Outstanding from Share Transactions		—			(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.

92

Statements of Changes in Net Assets (continued)

	KraneShares MSCI All China
	Index ETF
	Period Ended
	September 30,
	2020			Year Ended
	(unaudited)			March 31, 2020
Operations:
Net Investment Income	$	82,460		$	108,597
Net Realized Gain (Loss) on Investments and Foreign Currency Translations		(24,648	)		577
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations		1,478,981			(621,245	)
Net Increase (Decrease) in Net Assets Resulting from Operations		1,536,793			(512,071	)
Distributions:		—			(115,192	)
Capital Share Transactions:(1)
Issued		10,694			1,316,745
Redeemed		(2,496,050	)		—
Increase (Decrease) in Net Assets from Capital Share Transactions		(2,485,356	)		1,316,745
Total Increase (Decrease) in Net Assets		(948,563	)		689,482
Net Assets:
Beginning of Period		7,059,123			6,369,641
End of Period	$	6,110,560		$	7,059,123
Share Transactions:
Issued		—			50,000
Redeemed		(100,000	)		—
Net Increase (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.

93

Statements of Changes in Net Assets (continued)

	KraneShares MSCI One Belt One
	Road Index ETF
	Period Ended
	September 30,
	2020			Year Ended
	(unaudited)			March 31, 2020
Operations:
Net Investment Income	$	151,958		$	511,254
Net Realized Loss on Investments and Foreign Currency Translations		(220,106	)		(1,409,296	)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations		1,624,759			(1,259,147	)
Net Increase (Decrease) in Net Assets Resulting from Operations		1,556,611			(2,157,189	)
Distributions:		—			(523,629	)
Capital Share Transactions:(1)
Redeemed		—			(11,535,830	)
Decrease in Net Assets from Capital Share Transactions		—			(11,535,830	)
Total Increase (Decrease) in Net Assets		1,556,611			(14,216,648	)
Net Assets:
Beginning of Period		7,105,151			21,321,799
End of Period	$	8,661,762		$	7,105,151
Share Transactions:
Redeemed		—			(500,000	)
Net Decrease in Shares Outstanding from Share Transactions		—			(500,000	)

(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.

94

Statements of Changes in Net Assets (continued)

	KraneShares Emerging Markets
	Consumer Technology Index ETF
	Period Ended
	September 30,
	2020			Year Ended
	(unaudited)			March 31, 2020
Operations:
Net Investment Income	$	678,834		$	107,579
Net Realized Gain (Loss) on Investments and Foreign Currency Translations		1,415,705			(458,535	)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations		12,816,927			(2,902,678	)
Net Increase (Decrease) in Net Assets Resulting from Operations		14,911,466			(3,253,634	)
Distributions:		—			(337,518	)
Capital Share Transactions:(1)
Issued		108,792,941			11,065,406
Redeemed		(6,359,385	)		(13,669,916	)
Increase (Decrease) in Net Assets from Capital Share Transactions		102,433,556			(2,604,510	)
Total Increase (Decrease) in Net Assets		117,345,022			(6,195,662	)
Net Assets:
Beginning of Period		22,484,569			28,680,231
End of Period	$	139,829,591		$	22,484,569
Share Transactions:
Issued		4,150,000			500,000
Redeemed		(300,000	)		(600,000	)
Net Increase (Decrease) in Shares Outstanding from Share Transactions		3,850,000			(100,000	)

(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.

95

Statements of Changes in Net Assets (continued)

	KraneShares MSCI China
	Environment Index ETF
	Period Ended
	September 30, 2020		Year Ended March
	(unaudited)		31, 2020
Operations:
Net Investment Income	$	47,504	$	116,324
Net Realized Gain (Loss) on Investments and Foreign Currency Translations		460,783		(233,523	)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations		1,320,933		(401,841	)
Net Increase (Decrease) in Net Assets Resulting from Operations		1,829,220		(519,040	)
Distributions:		—		(108,818	)
Capital Share Transactions:(1)
Issued		5,771,618		—
Redeemed		—		(1,768,056	)
Increase (Decrease) in Net Assets from Capital Share Transactions		5,771,618		(1,768,056	)
Total Increase (Decrease) in Net Assets		7,600,838		(2,395,914	)
Net Assets:
Beginning of Period		1,660,521		4,056,435
End of Period	$	9,261,359	$	1,660,521
Share Transactions:
Issued		200,000		—
Redeemed		—		(100,000	)
Net Increase (Decrease) in Shares Outstanding from Share Transactions		200,000		(100,000	)

(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.

96

Statements of Changes in Net Assets (continued) 

	KraneShares Electric Vehicles and
	Future Mobility Index ETF
	Period Ended
	September 30,
	2020			Year Ended
	(unaudited)			March 31, 2020
Operations:
Net Investment Income	$	85,571		$	422,584
Net Realized Gain on Investments and Foreign Currency Translations		1,651,434			729,774
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations		6,687,904			(1,325,142	)
Net Increase (Decrease) in Net Assets Resulting from Operations		8,424,909			(172,784	)
Distributions:		—			(391,574	)
Capital Share Transactions:(1)
Issued		7,145,039			1,039,945
Redeemed		(2,079,774	)		(16,385,856	)
Increase (Decrease) in Net Assets from Capital Share Transactions		5,065,265			(15,345,911	)
Total Increase (Decrease) in Net Assets		13,490,174			(15,910,269	)
Net Assets:
Beginning of Period		17,115,573			33,025,842
End of Period	$	30,605,747		$	17,115,573
Share Transactions:
Issued		250,000			50,000
Redeemed		(100,000	)		(750,000	)
Net Increase (Decrease) in Shares Outstanding from Share Transactions		150,000			(700,000	)

(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.

97

Statements of Changes in Net Assets (continued)

	KraneShares MSCI All China Health
	Care Index ETF
	Period Ended
	September 30,
	2020		Year Ended
	(unaudited)		March 31, 2020
Operations:
Net Investment Income	$	209,839	$	78,117
Net Realized Gain (Loss) on Investments and Foreign Currency Translations		2,073,403		(3,814,600	)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations		16,451,350		2,531,292
Net Increase (Decrease) in Net Assets Resulting from Operations		18,734,592		(1,205,191	)
Distributions:		—		(54,459	)
Capital Share Transactions:(1)
Issued		73,060,282		14,879,626
Redeemed		—		(20,514,237	)
Increase (Decrease) in Net Assets from Capital Share Transactions		73,060,282		(5,634,611	)
Total Increase (Decrease) in Net Assets		91,794,874		(6,894,261	)
Net Assets:
Beginning of Period		32,109,606		39,003,867
End of Period	$	123,904,480	$	32,109,606
Share Transactions:
Issued		2,350,000		600,000
Redeemed		—		(1,000,000	)
Net Increase (Decrease) in Shares Outstanding from Share Transactions		2,350,000		(400,000	)

(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.

98

Statements of Changes in Net Assets (continued)

	KraneShares CCBS China Corporate
	High Yield Bond USD Index ETF
	Period Ended
	September 30,
	2020			Year Ended
	(unaudited)			March 31, 2020
Operations:
Net Investment Income	$	290,180		$	623,025
Net Realized Gain (Loss) on Investments and Foreign Currency Translations		(9,562	)		127,239
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations		710,032			(1,171,693	)
Net Increase (Decrease) in Net Assets Resulting from Operations		990,650			(421,429	)
Distributions:		(253,423	)		(601,337	)
Capital Share Transactions:(1)
Redeemed		(1,956,974	)		—
Decrease in Net Assets from Capital Share Transactions		(1,956,974	)		—
Total Decrease in Net Assets		(1,219,747	)		(1,022,766	)
Net Assets:
Beginning of Period		11,197,026			12,219,792
End of Period	$	9,977,279		$	11,197,026
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.

99

Statements of Changes in Net Assets (continued)

	KraneShares Emerging Markets
	Healthcare Index ETF
	Period Ended
	September 30,
	2020			Year Ended
	(unaudited)			March 31, 2020
Operations:
Net Investment Income (Loss)	$	(2,874	)	$	615
Net Realized Gain (Loss) on Investments and Foreign Currency Translations		30,573			(214,719	)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations		362,904			(108,988	)
Net Increase (Decrease) in Net Assets Resulting from Operations		390,603			(323,092	)
Distributions:		—			(18,337	)
Return of Capital:		—			(611	)
Capital Share Transactions:(1)
Issued		1,607,083			—
Redeemed		—			(3,091,737	)
Increase (Decrease) in Net Assets from Capital Share Transactions		1,607,083			(3,091,737	)
Total Increase (Decrease) in Net Assets		1,997,686			(3,433,777	)
Net Assets:
Beginning of Period		1,042,634			4,476,411
End of Period	$	3,040,320		$	1,042,634
Share Transactions:
Issued		50,000			—
Redeemed		—			(150,000	)
Net Increase (Decrease) in Shares Outstanding from Share Transactions		50,000			(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.

100

Statements of Changes in Net Assets (continued)

	KraneShares MSCI Emerging
	Markets ex China Index ETF
	Period Ended
	September 30,		Period Ended
	2020		March 31,
	(unaudited)		2020(1)
Operations:
Net Investment Income	$	57,241	$	60,170
Net Realized Gain (Loss) on Investments and Foreign Currency Translations		2,995		(22,714	)
Net Change in Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations		463,755		(623,173	)
Net Increase (Decrease) in Net Assets Resulting from Operations		523,991		(585,717	)
Distributions:		—		(73,632	)
Capital Share Transactions:(2)
Issued		—		2,500,050
Increase in Net Assets from Capital Share Transactions		—		2,500,050
Total Increase in Net Assets		523,991		1,840,701
Net Assets:
Beginning of Period		1,840,701		—
End of Period	$	2,364,692	$	1,840,701
Share Transactions:
Issued		—		100,002
Net Increase in Shares Outstanding from Share Transactions		—		100,002

(1) Commenced operations on April 12, 2019.

(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.

101

Statements of Changes in Net Assets (concluded)

	KraneShares MSCI
	China ESG Leaders
	Index ETF
	Period Ended
	September 30,
	2020
	(unaudited)(1)
Operations:
Net Investment Income	$	3,072
Net Realized Gain on Investments and Foreign Currency Translations		16,370
Net Unrealized Appreciation (Depreciation) on Investments and Foreign Currency Translations		51,573
Net Increase in Net Assets Resulting from Operations		71,015
Capital Share Transactions:(2)
Issued		2,500,000
Increase in Net Assets from Capital Share Transactions		2,500,000
Total Increase in Net Assets		2,571,015
Net Assets:
Beginning of Period		—
End of Period	$	2,571,015
Share Transactions:
Issued		100,000
Net Increase in Shares Outstanding from Share Transactions		100,000

(1) Commenced operations on July 28, 2020.

(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.

102

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Financial Highlights

Selected Per Share Data & Ratios

For the Periods Ended September 30, 2020 (Unaudited)

For the Years/Periods Ended March 31 (unless otherwise indicated)

For a Share Outstanding Throughout Each Period

	Net Asset		Net		Net Realized				Distribution		Distribution
	Value,		Investment		and Unrealized				from Net		from
	Beginning of		Income		Gain (Loss) on		Total from		Investment		Capital		Return of
	Period		(Loss)		Investments		Operations		Income		Gains		Capital
	($)		($)*		($)		($)		($)		($)		($)
KraneShares CICC China Leaders 100 Index ETF(1)
2020***		25.03		0.80		3.69		4.49		—		—		—
2020		28.00		0.06		(2.98)		(2.92)		(0.05)		—		—
2019		33.88		0.66		(2.09)		(1.43)		(0.68)		(3.77)		—
2018(2)		34.06		0.24		7.22		7.46		(0.30)		(7.34)		—
2017		28.02		0.21		6.54		6.75		(0.33)		—		(0.38)
2016#		34.20		0.18		(3.21)		(3.03)		(0.25)		(2.89)		(0.01)
KraneShares CSI China Internet ETF
2020***		45.19		(0.05)		22.55		22.50		—		—		—
2020		47.04		(0.02)		(1.79)		(1.81)		(0.04)		—		—
2019		61.11		0.10		(12.90)		(12.80)		(0.01)		(1.26)		—
2018(2)		42.21		(0.19)		19.43		19.24		(0.34)		—		—
2017		35.76		(0.27)		7.13		6.86		(0.30)		—		(0.11)
2016		34.18		(0.20)		1.84		1.64		(0.06)		—		—(8)
KraneShares Bosera MSCI China A Share ETF
2020***		29.51		0.45		9.29		9.74		—		—		—
2020		31.88		0.47		(2.34)		(1.87)		(0.50)		—		—
2019		34.47		0.60		(2.27)		(1.67)		(0.52)		(0.40)		—
2018(2)		28.38		0.21		6.22		6.43		(0.18)		(0.16)		—
2017		30.37		(0.01)		(0.67)		(0.68)		—		(0.85)		(0.46)
2016		53.55		0.62		(13.67)		(13.05)		(0.41)		(9.72)		—
KraneShares E Fund China Commercial Paper ETF
2020***		32.31		0.26		1.39		1.65		(0.39)		—		—
2020		34.22		0.81		(1.75)		(0.94)		—		—		(0.97)
2019		37.23		1.31		(2.29)		(0.98)		(1.95)		—		(0.08)
2018(2)		32.82		1.07		3.34		4.41		—		—		—
2017		34.18		0.61		(1.96)		(1.35)		—		—		(0.01)
2016		34.81		1.01		(1.39)		(0.38)		(0.21)		(0.01)		(0.03)

* 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.

*** For the six-month period ended September 30, 2020. All ratios for the period have been annualized, except for the Total Return.

† Annualized.

†† Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers.

^ 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.

# After the close of the markets on September 13, 2016, the Fund effected a 2 for 1 share split. Per share data has been adjusted to reflect the share split.

(1) Effective November 1, 2018, the KraneShares Zacks New China ETF is renamed the KraneShares CICC China Leaders 100 Index ETF.

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

104

												Ratio of Net
								Ratio of		Ratio of Expenses		Investment
		Net Asset				Net Assets		Expenses		to Average Net		Income (Loss)
Total from		Value, End		Total		End of		to Average		Assets (Excluding		to Average Net		Portfolio
Distributions		of Period		Return		Period		Net Assets		Waivers)		Assets		Turnover
($)		($)		(%)**		($)(000)		(%)		(%)		(%)		(%)
	—		29.52		17.94		10,331		0.70†		0.70†		5.87†		50††
	(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
	(7.64)		33.88		22.57		5,082		0.71(3)		0.71(3)		0.64		105
	(0.71)		34.06		24.54		3,406		0.84		0.84		0.55		86
	(3.15)		28.02		(9.71)		2,803		0.73		0.73		0.60		575
	—		67.69		49.79		2,815,961		0.71†		0.71†		(0.19)†		34††
	(0.04)		45.19		(3.85)		2,313,638		0.73(9)		0.73(9)		(0.05)		33
	(1.27)		47.04		(20.44)		2,074,505		0.75(4)		0.76(4)		0.20		70
	(0.34)		61.11		45.62		1,628,622		0.70(3)		0.70(3)		(0.33)		29
	(0.41)		42.21		19.44		291,257		0.81		0.81		(0.72)		35
	(0.06)		35.76		4.77		194,869		0.72		0.72		(0.56)		27
	—		39.25		33.01		637,756		0.59†		0.79†		2.53†		13††
	(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
	(0.34)		34.47		22.68		353,324		0.60		0.80		0.61		52
	(1.31)		28.38		(2.04)		52,494		0.72(5)		0.84(5)		(0.04)		95
	(10.13)		30.37		(27.18)		4,555		0.93(8)		1.18(8)		1.18		116
	(0.39)		33.57		5.16		13,429		0.57^†		0.69^†		1.59^†		—††
	(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^		—
	—		37.23		13.44		13,030		0.77^(3)(6)		0.89^(3)(6)		3.10^		—
	(0.01)		32.82		(3.95)(7)		9,845		0.95^		1.07^		1.84^		—
	(0.25)		34.18		(1.11)		18,799		0.57^		0.69^		2.92^		717

(2) March 29, 2018 represents the last business day of the Fund’s reporting period.

(3) As of July 28, 2017, pursuant to the terms of an Expense Limitation Agreement, the Adviser has contractually agreed to reduce its management fee and/or reimburse the Fund in an amount equal to the fees paid by the Fund to counsel to the Independent Trustees of the Trust until July 31, 2018.

(4) During the year ended March 31, 2019, the Fund participated in securities lending, generating $9,746,130 in security lending income. The expense ratios include $968,632 in security lending fees paid to the Adviser. Had these fees been excluded, the expense ratios would have been 0.69% and 0.70%, respectively.

(5) As of February 17, 2017, pursuant to the terms of an Expense Limitation Agreement, the Adviser had contractually agreed to waive its management fee by 0.20% of the Fund’s average daily net assets.

(6) The expenses during the year include a one-time, non-recurring expense. Had this expense not been included, the net and gross expense ratios for the period would have been 0.59% and 0.71%, respectively.

(7) Fund received reimbursement from third-party for dilution to shareholders for an accounting error. Absent the reimbursement, total return would have been (4.44)%.

(8) Amount was less than $0.005 per share.

(9) During the year ended March 31, 2020, the Fund participated in securities lending, generating $5,794,534 in security lending income. The expense ratios include $579,613 in security lending fees paid to the Adviser. Had these fees been excluded, the expense ratios would have been 0.69% and 0.69%, respectively.

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

105

Financial Highlights (continued)

Selected Per Share Data & Ratios

For the Periods Ended September 30, 2020 (Unaudited)

For the Years/Periods Ended March 31 (unless otherwise indicated)

For a Share Outstanding Throughout Each Period

	Net Asset				Net Realized and				Distribution
	Value,				Unrealized Gain				from Net		Distribution
	Beginning of		Net Investment		(Loss)		Total from		Investment		from Capital		Return of
	Period		Income (Loss)		on Investments		Operations		Income		Gains		Capital
	($)		($)*		($)		($)		($)		($)		($)
KraneShares MSCI All China Index ETF
2020***		23.53		0.38		6.64		7.02		—		—		—
2020		25.48		0.36		(1.93)		(1.57)		(0.38)		—		—
2019		26.96		0.18		(1.23)		(1.05)		(0.43)		—		—
2018(1)		22.56		0.45		4.28		4.73		(0.33)		—		—
2017		21.66		0.37		1.88		2.25		(0.70)		(0.47)		(0.18)
2016		25.63		0.29		(3.86)		(3.57)		(0.35)		(0.05)		—
KraneShares MSCI One Belt One Road Index ETF
2020***		17.76		0.38		3.51		3.89		—		—		—
2020		23.69		0.70		(5.58)		(4.88)		(1.05)		—		—
2019		25.64		0.48		(1.82)		(1.34)		(0.61)		—		—
2018(1)(3)		25.00		0.08		0.59(6)		0.67		(0.03)		—		—
KraneShares Emerging Markets Consumer Technology Index ETF
2020***		19.55		0.23		8.19		8.42		—		—		—
2020		22.94		0.10		(3.07)		(2.97)		(0.42)		—		—
2019		26.48		—		(3.54)		(3.54)		—		—		—
2018(1)(5)		25.00		(0.03)		1.51(6)		1.48		—		—		—
KraneShares MSCI China Environment Index ETF
2020***		16.60		0.37		13.90		14.27		—		—		—
2020		20.28		0.70		(3.29)		(2.59)		(1.09)		—		—
2019		23.86		0.39		(3.61)		(3.22)		(0.36)		—		—
2018(1)(8)		25.00		(0.09)		(1.05)		(1.14)		—		—		—
KraneShares Electric Vehicles and Future Mobility Index ETF
2020***		19.02		0.10		10.03		10.13		—		—		—
2020		20.64		0.33		(1.51)		(1.18)		(0.44)		—		—
2019		23.30		0.21		(2.62)		(2.41)		(0.25)		—		—
2018(1)(10)		25.00		0.02		(1.72)		(1.70)		—		—		—
KraneShares MSCI All China Health Care Index ETF
2020***		23.78		0.08		9.63		9.71		—		—		—
2020		22.29		0.07		1.48		1.55		(0.06)		—		—
2019		26.65		0.02		(4.30)		(4.28)		(0.04)		(0.04)		—
2018(1)(12)		25.00		(0.03)		1.68		1.65		—		—		—

* 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. Total return does not include adjustments made in accordance with U.S. Generally Accepted Accounting Principles required at period end for financial reporting purposes. 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.

*** For the six-month period ended September 30, 2020. All ratios for the period have been annualized, except for the Total Return.

† Annualized.

†† Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers.

^ 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 from investments in other investment companies.

‡ 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 from investments in other investment companies, except for investments in the KraneShares Bosera MSCI China A Share ETF.

(1) March 29, 2018 represents the last business day of the Fund’s reporting period.

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

106

		Net Asset						Ratio of		Ratio of Expenses		Ratio of Net
		Value,				Net Assets		Expenses to		to Average Net		Investment Income
Total from		End of		Total		End of		Average Net		Assets (Excluding		(Loss) to Average		Portfolio
Distributions		Period		Return		Period		Assets		Waivers)		Net Assets		Turnover
($)		($)		(%)**		($)(000)		(%)		(%)		(%)		(%)
	—		30.55		29.83		6,111		0.49†		0.69†		2.78†		1††
	(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
	(0.33)		26.96		20.99		2,696		0.63^(2)		0.72^(2)		1.75^		3
	(1.35)		22.56		11.24		2,256		0.37^		0.73^		1.70^		25
	(0.40)		21.66		(14.00)		2,166		0.91‡		1.12‡		1.27‡		1
	—		21.65		21.90		8,662		0.79†		0.79†		3.62†		12††
	(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
	(0.03)		25.64		2.67		32,048		0.79^†(2)(4)		0.80^†(2)(4)		0.52^†(4)		1††
	—		27.97		43.02		139,830		0.60†		0.79†		1.67†		21††
	(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
	—		26.48		5.92		23,828		0.79†(2)(7)		0.79†(2)(7)		(0.23)†(7)		—††
	—		30.87		86.02		9,261		0.79†		0.79†		3.14†		63††
	(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
	—		23.86		(4.56)		7,158		0.78†(2)(9)		0.79†(2)(9)		(0.78)†(9)		36††
	—		29.15		53.26		30,606		0.71†		0.71†		0.78†		71††
	(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
	—		23.30		(6.80)		26,798		0.70†(11)		0.70†(11)		0.43†(11)		18††
	—		33.49		40.83		123,904		0.65†		0.79†		0.51†		9††
	(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
	—		26.65		6.60		3,998		0.82†(13)		0.82†(13)		(0.82)†(13)		—††

(2) As of July 28, 2017, pursuant to the terms of an Expense Limitation Agreement, the Adviser has contractually agreed to reduce its management fee and/or reimburse the Fund in an amount equal to the fees paid by the Fund to counsel to the Independent Trustees of the Trust until July 31, 2018.

(3) The Fund commenced operations on September 7, 2017.

(4) The expense ratio includes interest expense. Had this expense been excluded, the ratios would have been 0.78%, 0.79% and 0.53%, respectively.

(5) The Fund commenced operations on October 11, 2017.

(6) 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.

(7) The expense ratio includes interest expense. Had this expense been excluded, the ratios would have been 0.78%, 0.78% and (0.22)%, respectively.

(8) The Fund commenced operations on October 12, 2017.

(9) The expense ratio includes interest expense. Had this expense been excluded, the ratios would have been 0.78%, 0.79% and (0.78)%, respectively.

(10) The Fund commenced operations on January 18, 2018.

(11) The expense ratio includes interest expense. Had this expense been excluded, the ratios would have been 0.69%, 0.69% and 0.44%, respectively.

(12) The Fund commenced operations on January 31, 2018.

(13) The expense ratio includes interest expense. Had this expense been excluded, the ratios would have been 0.79%, 0.79% and (0.79)%, respectively.

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

107

Financial Highlights (concluded)

Selected Per Share Data & Ratios

For the Periods Ended September 30, 2020 (Unaudited)

For the Years/Periods Ended March 31 (unless otherwise indicated)

For a Share Outstanding Throughout Each Period

					Net Realized
					and
	Net Asset		Net		Unrealized Gain				Distribution
	Value,		Investment		(Loss)				from		Distribution		Return
	Beginning of		Income		on		Total from		Net Investment		from		of
	Period		(Loss)		Investments		Operations		Income		Capital Gains		Capital
	($)		($)*		($)		($)		($)		($)		($)
KraneShares CCBS China Corporate High Yield Bond USD Index ETF
2020***		37.32		1.08		2.46		3.54		(0.95)		—		—
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)		—(2)		(0.18)
KraneShares Emerging Markets Healthcare Index ETF
2020***		20.85		(0.04)		9.59		9.55		—		—		—
2020		22.38		0.01		(1.16)		(1.15)		(0.37)		(0.01)		—
2019(3)		25.00		(0.04)		(2.58)		(2.62)		—(2)		—		—
KraneShares MSCI Emerging Markets ex China Index ETF
2020***		18.41		0.57		4.67		5.24		—		—		—
2020(4)		25.00		0.60		(6.45)		(5.85)		(0.74)		—		—
KraneShares MSCI China ESG Leaders Index ETF
2020***(5)		25.00		0.03		0.68		0.71		—		—		—

* 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.

*** For the six-month period ended September 30, 2020. All ratios for the period have been annualized, except for the Total Return.

† Annualized.

†† Portfolio turnover rate is for the period indicated and periods of less than one year have not been annualized. Excludes effect of in-kind transfers.

(1) The Fund commenced operations on June 26, 2018.

(2) Amount represents less than $0.01 per share.

(3) The Fund commenced operations on August 29, 2018.

(4) The Fund commenced operations on April 12, 2019.

(5) The Fund commenced operations on July 28, 2020.

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

108

										Ratio of
										Expenses		Ratio of Net
						Net		Ratio of		to Average Net		Investment
		Net Asset				Assets		Expenses to		Assets		Income (Loss)
Total from		Value,		Total		End of		Average Net		(Excluding		to Average Net		Portfolio
Distributions		End of Period		Return		Period		Assets		Waivers)		Assets		Turnover
($)		($)		(%)**		($)(000)		(%)		(%)		(%)		(%)
	(0.95)		39.91		9.55		9,977		0.69†		0.69†		5.51†		28††
	(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††
	—		30.40		45.80		3,040		0.79†		0.79†		(0.31)†		15††
	(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††
	—		23.65		28.46		2,365		0.49†		0.59†		5.20†		—††
	(0.74)		18.41		(24.31)		1,841		0.50†		0.60†		2.54†		5††
	—		25.71		2.84		2,571		0.59†		0.59†		0.69†		7††

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

109

Notes to Financial Statements (Unaudited)

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, as an open-end management investment company. As of September 30, 2020, the Trust had 19 operational series. The financial statements herein and the related notes pertain to the following 14 series: KraneShares CICC China Leaders 100 Index ETF, KraneShares CSI China Internet ETF, KraneShares Bosera MSCI China A Share ETF, KraneShares E Fund China Commercial Paper 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 Environment Index ETF, KraneShares Electric Vehicles and Future Mobility Index ETF, KraneShares MSCI All China Health Care Index ETF, KraneShares CCBS China Corporate High Yield Bond USD Index ETF, KraneShares Emerging Markets Healthcare Index ETF, KraneShares MSCI Emerging Markets ex China Index ETF and KraneShares MSCI China ESG Leaders Index ETF (each, a “Fund” and collectively, the “Funds”). KraneShares Bosera MSCI China A Share ETF, KraneShares MSCI All China Index ETF and KraneShares MSCI Emerging Markets ex China Index ETF are diversified Funds, as defined under Section 5(b)(1) of the Investment Company Act of 1940; while the remaining Funds are non-diversified Funds. 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. Central Huijin Investment Limited, a mainland Chinese-domiciled entity, currently holds approximately 44.3% 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 32nd 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 50,000 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.

110

Notes to Financial Statements (Unaudited) (continued)

The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to 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 Share ETF	MSCI China A Index
KraneShares E Fund China Commercial Paper ETF	CSI Diversified High Grade Commercial Paper 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 Market Consumer  Technology Index
KraneShares MSCI China Environment Index ETF	MSCI China IMI Environment 10/40 Index
KraneShares Electric Vehicles and Future Mobility Index ETF	Solactive Electric Vehicles and Future Mobility Index
KraneShares MSCI All China Health Care Index ETF	MSCI China All Shares Health Care 10/40 Index
KraneShares CCBS China Corporate High Yield Bond USD Index ETF	Solactive USD China Corporate High Yield Bond 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

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, 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 and determined as of the regularly scheduled close of the regular trading session on the NYSE (ordinarily 4:00 p.m., Eastern Time) on each day that the Exchange is open.

In calculating the values of each Fund’s portfolio securities, securities listed on a securities exchange, 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 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).

111

Notes to Financial Statements (Unaudited) (continued)

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 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 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 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. 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. 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. Prices for most securities held by a Fund are provided daily by independent pricing agents. 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. As of and during the period ended September 30, 2020, the Funds did not hold options, swaps and 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 at the last reported sale price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded. If there is no such reported sale, such securities are valued at the most recently reported bid price.

Securities 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 the Trust’s third-party pricing agents pursuant to established methodologies, are fair valued in accordance with the Trust’s valuation policies and procedures approved by the Board of Trustees. 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. A Fund may fair value certain of the foreign securities held by a Fund each day a Fund calculates its NAV.

112

Notes to Financial Statements (Unaudited) (continued)

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 Trust 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 recommends and the Trust’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 by Krane 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.

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 the Underlying Index.

Trading in securities on many foreign exchanges is normally completed before the close of business on each Business Day. 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 you will not be able to purchase or sell your shares. Fund shares are purchased or sold on a national securities exchange at market prices, which may be higher or lower than NAV. No secondary sales will be made to brokers or dealers at a 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. Transactions in Fund shares will be priced at NAV only if you purchase or redeem shares directly from a Fund in Creation Units.

113

Notes to Financial Statements (Unaudited) (continued)

As of September 30, 2020, the total market value of securities valued in accordance with Fair Value Procedures is as follows:

KraneShares Funds	Fair Valued Amount		% of Net Assets
KraneShares CICC China Leaders 100 Index ETF	$	0	0.0%
KraneShares Bosera MSCI China A Share ETF		2,762,131	0.4%
KraneShares MSCI All China Index ETF		0	0.0%
KraneShares MSCI China Environment Index ETF		1,061	0.0%
KraneShares Emerging Markets Healthcare Index ETF		2,700	0.1%

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).

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, 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.

114

Notes to Financial Statements (Unaudited) (continued)

As of September 30, 2020, 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.

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.

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 – 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 LIBOR 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 consisting of cash in the form of U.S. dollars, foreign currency, or securities issued or fully guaranteed

115

Notes to Financial Statements (Unaudited) (continued)

by the U.S. Government which will be maintained at all times in an amount equal to at least 102% on domestic securities and 105% on international securities 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 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 September 30, 2020:

KraneShares Funds	Market Value Securities on Loan		Cash Collateral for Securities on Loan
KraneShares CSI China Internet ETF	$	184,151,234	$	190,396,739
KraneShares Emerging Markets Consumer Technology Index ETF		5,426,721		5,698,169
KraneShares Electric Vehicles and Future Mobility Index ETF		701,718		917,949
KraneShares MSCI All China Health Care Index ETF		2,984,097		3,272,752

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 50,000 Shares, or multiples thereof).

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.

116

Notes to Financial Statements (Unaudited) (continued)

The following table discloses Creation Unit breakdown for the period ended September 30, 2020:

KraneShares Funds	Creation Unit  Shares	Standard Transaction Fee – Subscriptions		Value at September 30, 2020		Standard Transaction Fee – Redemptions		Maximum Variable Transaction Fee*
KraneShares CICC China Leaders 100 Index ETF	50,000	$	800	$	1,476000	$	2,500	2.00%
KraneShares CSI China Internet ETF	50,000		500		3,384,500		500	2.00%
KraneShares Bosera MSCI China A Share ETF	50,000		5,800		1,962,500		5,800	2.00%
KraneShares E Fund China Commercial Paper ETF	50,000		1,000		1,678,500		1,000	2.00%
KraneShares MSCI All China Index ETF	50,000		8,500		1,527500		8,500	2.00%
KraneShares MSCI One Belt One Road Index ETF	50,000		3,900		1,082,500		3,900	2.00%
KraneShares Emerging Markets Consumer Technology Index ETF	50,000		1,500		1,398,500		1,500	2.00%
KraneShares MSCI China Environment Index ETF	50,000		750		1,543,500		750	2.00%
KraneShares Electric Vehicles and Future Mobility Index ETF	50,000		1,100		1,457,500		1,100	2.00%
KraneShares MSCI All China Health Care Index ETF	50,000		1,320		1,674,500		1,320	2.00%
KraneShares CCBS China Corporate High Yield Bond USD Index Fund	50,000		1,000		1,995,500		1,000	2.00%
KraneShares Emerging Markets Healthcare Index ETF	50,000		2,800		1,520,000		2,800	2.00%
KraneShares MSCI Emerging Markets ex China Index ETF	50,000		17,500		1,182,500		17,500	2.00%
KraneShares MSCI China ESG Leaders Index ETF	50,000		2,100		1,285,500		2,100	2.00%

* As a percentage of the Creation Unit(s) purchased.

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.

117

Notes to Financial Statements (Unaudited) (continued)

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) assist the securities lending agent of the Fund (the “Agent”) to determine which securities are available for loan, (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 (this provision became effective with respect to the Funds on the later of October 5, 2017, or the date the Fund commenced operations). The Board of Trustees of the Trust supervises Krane and establishes policies that Krane must follow in its management activities.

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 1940 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 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”.

118

Notes to Financial Statements (Unaudited) (continued)

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 Share ETF	0.78%
KraneShares E Fund China Commercial Paper 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 Environment 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 CCBS China Corporate High Yield Bond USD Index Fund	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%

Pursuant to the terms of a Fee Waiver Agreement, the Adviser has contractually agreed to waive its management fee for the KraneShares Bosera MSCI China A Share ETF by 0.20% of the Fund’s average daily net assets. This contractual fee waiver will continue until August 1, 2021, and may only be terminated prior thereto by the Board. In addition, the Fee Waiver Agreement will terminate if the Investment Advisory Agreement for the Fund is terminated.

Pursuant to the terms of a Fee Waiver Agreement, the Adviser has contractually agreed to reduce its management fee for the KraneShares E Fund China Commercial Paper ETF by 0.12% of the Fund’s average daily net assets until August 1, 2021. The Fee Waiver Agreement may only be terminated prior thereto by the Board. In addition, the Fee Waiver Agreement will terminate if the Investment Advisory Agreement for the Fund is terminated.

Pursuant to the terms of a Fee Waiver Agreement, Krane has contractually agreed to waive its advisory fee for the KraneShares MSCI All China Index ETF by 0.20% of the Fund’s average daily net assets and reduce its management fee in an amount equal to any Acquired Fund Fees and Expenses incurred by the Fund from its investments in the KraneShares Bosera MSCI China A Share ETF. This Fee Waiver Agreement will continue until August 1, 2021. The Fee Waiver Agreement may only be terminated prior thereto by the Board. In addition, the Fee Waiver Agreement will terminate if the Investment Advisory Agreement for the Fund is terminated.

Krane has contractually agreed to waive its management fee for the KraneShares MSCI All China Health Care Index ETF by 0.14% of the Fund’s average daily net assets. Krane has contractually agreed to waive its management fee for the KraneShares MSCI Emerging Markets ex China Index ETF by 0.10% of the Fund’s average daily net assets. The Fee Waiver Agreements will continue until August 1, 2021, and may only be terminated prior thereto by the Board.

Effective March 31, 2020, Krane has contractually agreed to waived its management fee for the KraneShares Emerging Markets Consumer Technology Index ETF by 0.10% of the Fund’s average daily assets. The Fee Waiver Agreement will continue until August 1, 2021, and may only be terminated prior thereto by the Board.

The Adviser and each Sub-Adviser bear all of their own costs associated with providing these advisory services.

119

Notes to Financial Statements (Unaudited) (continued)

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 Share ETF and is responsible for the day-to-day management of the Fund, subject to the supervision by the Adviser and the Board. For the services Bosera provides to KraneShares Bosera MSCI China A Share ETF, the Adviser pays Bosera a fee equal to 50% of the net revenue the Adviser receives from the Fund.

CCB Securities Ltd. (“CCBS”), located at 18/F CCB Centre, 18 Wang Chiu Road, Kowloon Bay, Kowloon, Hong Kong, serves as the sub-adviser of KraneShares CCBS China Corporate High Yield Bond USD Index ETF. CCBS is responsible for the day-to-day investment management of the Fund, subject to the supervision of Krane and the Board. The Adviser has entered into a Sub-Advisory Agreement with CCBS pursuant to which the Adviser has agreed to pay CCBS a fee equal to 50% of net revenue earned by the Adviser from the Fund. For these purposes, net revenue is defined as gross revenue less gross fund-related expenses (including any waiver by the Adviser of its compensation under the investment advisory agreement and any payments or reimbursements by Krane of the Fund’s expenses).

E Fund Management (Hong Kong) Co., Limited (‘‘E Fund”), operating out of Hong Kong, serves as the Sub-Adviser to the KraneShares E Fund China Commercial Paper ETF and is responsible for the day-to-day management of the Fund, subject to the supervision by the Adviser and the Board. For the services E Fund provides to KraneShares E Fund China Commercial Paper ETF, the Adviser pays E Fund a fee equal to 50% of the net revenue the Adviser receives from the Fund.

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 1940 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 period ended September 30, 2020 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.

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Notes to Financial Statements (Unaudited) (continued)

4. INVESTMENT TRANSACTIONS

For the period ended September 30, 2020, 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	$	6,176,500	$	13,894,833
KraneShares CSI China Internet ETF		830,728,163		884,613,606
KraneShares Bosera MSCI China A Share ETF		72,220,452		88,763,981
KraneShares E Fund China Commercial Paper ETF		–		–
KraneShares MSCI All China Index ETF		82,609		1,978,064
KraneShares MSCI One Belt One Road Index ETF		1,109,989		952,622
KraneShares Emerging Markets Consumer Technology Index ETF		60,173,345		16,900,307
KraneShares MSCI China Environment Index ETF		7,137,289		1,268,591
KraneShares Electric Vehicles and Future Mobility Index ETF		15,242,808		13,978,932
KraneShares MSCI All China Health Care Index ETF		80,601,435		7,580,258
KraneShares CCBS China Corporate High Yield Bond USD Index ETF		2,923,794		4,883,065
KraneShares Emerging Markets Healthcare Index ETF		1,711,753		271,839
KraneShares MSCI Emerging Markets ex China Index ETF		2,882		1,818
KraneShares MSCI China ESG Leaders Index ETF		2,321,521		166,966

During the period ended September 30, 2020, there were no purchases or sales of long-term U.S. government securities for the Funds.

For the period ended September 30, 2020, in-kind transactions associated with creations and redemptions were:

KraneShares Funds	Purchases		Sales and Maturities		Realized Gain/ (Loss)
KraneShares CICC China Leaders 100 Index ETF	$	–	$	–	$	–
KraneShares CSI China Internet ETF		487,461,390		753,232,548		129,703,210
KraneShares MSCI All China Index ETF		–		531,022		120,946
KraneShares Emerging Markets Consumer Technology Index ETF		63,435,163		3,928,876		404,363
KraneShares Electric Vehicles and Future Mobility Index ETF		5,478,457		1,653,622		269,006
KraneShares Emerging Markets Healthcare Index ETF		129,306		–		–
KraneShares MSCI China ESG Leaders Index ETF		351,928		–		–

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.

121

Notes to Financial Statements (Unaudited) (continued)

The tax character of dividends and distributions paid during the years or periods ended March 31, 2020 and March 31, 2019 were as follows:

KraneShares Funds	Ordinary  Income		Long-Term Capital Gain		Return of Capital		Totals
KraneShares CICC China Leaders 100 Index ETF
2020	$	39,838	$	–	$	–	$	39,838
2019		244,415		200,757		–		445,172
KraneShares CSI China Internet ETF
2020	$	1,580,181	$	–	$	–	$	1,580,181
2019		620,213		52,155,720		–		52,775,933
KraneShares Bosera MSCI China A Share ETF
2020	$	9,500,578	$	–	$	–	$	9,500,578
2019		10,176,902		712,126		–		10,889,028
KraneShares E Fund China Commercial Paper ETF
2020	$	–	$	–	$	521,147	$	521,147
2019		704,248		–		28,559		732,807
KraneShares MSCI All China Index ETF
2020	$	115,192	$	–	$	–	$	115,192
2019		43,104		–		–		43,104
KraneShares MSCI One Belt One Road Index ETF
2020	$	523,629	$	–	$	–	$	523,629
2019		553,422		–		–		553,422
KraneShares Emerging Markets Consumer Technology Index ETF
2020	$	337,518	$	–	$	–	$	337,518
2019		–		–		–		–
KraneShares MSCI China Environment Index ETF
2020	$	108,818	$	–	$	–	$	108,818
2019		107,314		–		–		107,314
KraneShares Electric Vehicles and Future Mobility Index ETF
2020	$	391,574	$	–	$	–	$	391,574
2019		382,192		–		–		382,192
KraneShares MSCI All China Health Care Index ETF
2020	$	54,459	$	–	$	–	$	54,459
2019		136,712		–		–		136,712
KraneShares CCBS China Corporate High Yield Bond USD Index ETF
2020	$	570,699	$	30,638	$	–	$	601,337
2019		374,120		–		49,368		423,488
KraneShares Emerging Markets Healthcare Index ETF
2020	$	18,337	$	611	$	–	$	18,948
2019		752		–		–		752
KraneShares MSCI Emerging Markets ex China Index ETF
2020	$	73,632	$	–	$	–	$	73,632

122

Notes to Financial Statements (Unaudited) (continued)

As of March 31, 2020, the components of tax basis distributable earnings (accumulated losses) were as follows:

	KraneShares  CICC China Leaders 100 Index ETF			KraneShares CSI China Internet ETF			KraneShares Bosera MSCI China A Share ETF			KraneShares E Fund China Commercial Paper ETF			KraneShares MSCI All China Index ETF
Undistributed Ordinary Income	$	393		$	–		$	–		$	–		$	–
Capital Loss Carryforwards		(486,901	)		(126,978,517	)		(20,470,797	)		(22,499	)		(128,223	)
Qualified Late-Year Loss Deferrals		(44,278	)		(2,468,358	)		(1,106,511	)		–			(4,302	)
Unrealized Appreciation (Depreciation) on Investments and Foreign Currency		(1,113,255	)		(319,529,591	)		(45,051,042	)		(114,949	)		57,898
Other Temporary Differences		(2	)		5			(4	)		(308,520	)		2
Total Distributable Losses	$	(1,644,043	)	$	(448,976,461	)	$	(66,628,354	)	$	(445,968	)	$	(74,625	)

	KraneShares MSCI One Belt One Road Index ETF			KraneShares Emerging Markets Consumer Technology  Index ETF			KraneShares MSCI China Environment Index ETF			KraneShares Electric Vehicles and Future Mobility Index ETF			KraneShares MSCI All China Health Care Index ETF
Undistributed Ordinary Income	$	30,195		$	72,145		$	3,783		$	27,506		$	–
Capital Loss Carryforwards		(3,963,507	)		(3,721,922	)		(1,830,124	)		(3,212,141	)		(7,682,624	)
Qualified Late-Year Loss Deferrals		–			–			–			–			(46,292	)
Unrealized Appreciation (Depreciation) on Investments and Foreign Currency		(2,468,594	)		(6,501,885	)		(281,923	)		(3,904,940	)		135,861
Other Temporary Differences		(1	)		1			–			(1	)		–
Total Distributable Losses	$	(6,401,907	)	$	(10,151,661	)	$	(2,108,264	)	$	(7,089,576	)	$	(7,593,055	)

	KraneShares CCBS China Corporate High Yield Bond USD Index ETF			KraneShares Emerging Markets Healthcare Index ETF			KraneShares MSCI Emerging Markets ex China Index ETF
Undistributed Ordinary Income	$	193,052		$	–		$	14,062
Capital Loss Carryforwards		–			(509,318	)		(5,648	)
Unrealized Depreciation on Investments and Foreign Currency		(983,862	)		(60,034	)		(667,763	)
Other Temporary Differences		51,978			1			–
Total Distributable Losses	$	(738,832	)	$	(569,351	)	$	(659,349	)

The KraneShares MSCI China ESG Leaders Index ETF did not commence operations prior to March 31, 2019.

123

Notes to Financial Statements (Unaudited) (continued)

Qualified late year ordinary and Post-October capital losses (including currency and specified gain/loss items) represent losses realized from January 1, 2020 through March 31, 2020 and November 1, 2019 through March 31, 2020, 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, PFIC mark to market, perpetual bond adjustments, and book adjustments not recognized for tax.

The Funds have capital losses carried forward as follows:

KraneShares Funds	Short-Term Loss		Long-Term Loss		Total
KraneShares CICC China Leaders 100 Index ETF	$	486,901	$	–	$	486,901
KraneShares CSI China Internet ETF		117,447,514		9,531,003		126,978,517
KraneShares Bosera MSCI China A Share ETF		2,191,666		18,279,131		20,470,797
KraneShares E Fund China Commercial Paper ETF		22,287		212		22,499
KraneShares MSCI All China Index ETF		9,169		119,054		128,223
KraneShares MSCI One Belt One Road Index ETF		2,418,188		1,545,319		3,963,507
KraneShares Emerging Markets Consumer Technology Index ETF		2,983,669		738,253		3,721,922
KraneShares MSCI China Environment Index ETF		1,172,876		657,248		1,830,124
KraneShares Electric Vehicles and Future Mobility Index ETF		2,270,727		941,414		3,212,141
KraneShares MSCI All China Health Care Index ETF		4,948,994		2,733,630		7,682,624
KraneShares Emerging Markets Healthcare Index ETF		509,318		–		509,318
KraneShares MSCI Emerging Markets ex China Index ETF		5,648		–		5,648

During the year ended March 31, 2020, KraneShares E Fund China Commercial Paper ETF, KraneShares MSCI All China Index ETF and KraneShares MSCI One Belt One Road Index ETF, utilized $6,840, $5,866 and $93,297 of capital loss carryforwards, respectively, to offset capital gains.

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 passive foreign investment companies. The federal tax cost and aggregate gross unrealized appreciation and depreciation on investments held by the Funds at September 30, 2020 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	$	9,366,138	$	1,383,433	$	(433,196	)	$	950,237
KraneShares CSI China Internet ETF		2,563,427,152		571,892,292		(128,399,646	)		443,492,646
KraneShares Bosera MSCI China A Share ETF		513,753,723		158,033,160		(34,175,699	)		123,857,461
KraneShares E Fund China Commercial Paper ETF		12,998,019		269,783		–			269,783
KraneShares MSCI All China Index ETF		4,529,520		2,003,855		(453,295	)		1,550,560
KraneShares MSCI One Belt One Road Index ETF		9,276,382		1,141,094		(1,794,687	)		(653,593	)

124

Notes to Financial Statements (Unaudited) (continued)

KraneShares Funds	Federal Tax Cost		Aggregated Gross Unrealized  Appreciation		Aggregated Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
KraneShares Emerging Markets Consumer Technology Index ETF	$	137,135,826	$	12,757,294	$	(4,556,176	)	$	8,201,118
KraneShares MSCI China Environment Index ETF		8,030,261		1,412,627		(211,468	)		1,201,159
KraneShares Electric Vehicles and Future Mobility Index ETF		28,197,215		4,239,962		(1,092,757	)		3,147,205
KraneShares MSCI All China Health Care Index ETF		108,075,376		20,742,463		(1,838,991	)		18,903,472
KraneShares CCBS China Corporate High Yield Bond USD Index ETF		10,045,339		188,488		(411,533	)		(223,045	)
KraneShares Emerging Markets Healthcare Index ETF		2,647,215		471,865		(112,044	)		359,821
KraneShares MSCI Emerging Markets ex China Index ETF		2,474,583		359,950		(519,352	)		(159,402	)
KraneShares MSCI China ESG Leaders Index ETF		2,514,027		210,661		(159,091	)		51,570

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 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

125

Notes to Financial Statements (Unaudited) (continued)

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 apply from November 7, 2018 to November 6, 2021.

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”. The following risks pertain to all Funds, unless otherwise noted.

CASH AND CASH EQUIVALENTS RISK – The Fund may hold cash or cash equivalents. Generally, such positions offer less potential for gain than other investments. Holding cash or cash equivalents, even strategically, may lead to missed investment opportunities. This is particularly true when the market for other investments in which the Fund may invest is rapidly rising. If the Fund holds cash uninvested it will be subject to the credit risk of the depositing institution holding the cash.

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. In addition, the Chinese economy is export-driven and highly reliant on trade. 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. Further, the Chinese economy is heavily dependent upon trading with key partners. Recent developments in relations between the United States and China have heightened concerns of increased tariffs and restrictions on trade between the two 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

126

Notes to Financial Statements (Unaudited) (continued)

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.

CHINESE CREDIT RATINGS RISK (KraneShares E Fund China Commercial Paper ETF and KraneShares CCBS China Corporate High Yield Bond USD Index ETF) – The debt securities included in Underlying Index securities, and therefore the securities held by the KraneShares E Fund China Commercial Paper ETF Fund, will generally be rated by Chinese ratings agencies (and not by U.S. nationally recognized statistical ratings organizations (“NRSROs”)). The rating criteria and methodology used by Chinese rating agencies may be different from those adopted by NRSROs and international credit rating agencies. Therefore, such rating systems may not provide an equivalent standard for comparison with securities rated by NRSROs or other international credit rating agencies.

CONCENTRATION RISK – Because the Fund’s assets 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 Fund’s NAV is determined on the basis of the U.S. dollar, therefore, the Fund may lose value if a security denominated in another currency 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 for the purpose of purchasing portfolio investments. This may hinder the Fund’s performance, including because any delay could result in the Fund missing an investment opportunity and purchasing securities at a higher price than originally intended, or incurring cash drag.

DEPOSITARY RECEIPTS RISK (KraneShares CICC China Leaders 100 Index ETF, KraneShares CSI China Internet ETF, KraneShares Bosera MSCI China A Share 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 Environment Index ETF, KraneShares Electric Vehicles and Future Mobility Index ETF, KraneShares MSCI All China Health Care Index ETF, KraneShares Emerging Markets Healthcare Index ETF and KraneShares MSCI Emerging Markets ex China Index ETF) – The Fund may hold the securities of Chinese and other non-U.S. companies in the form of depositary receipts, including American Depositary Receipts and Global Depositary Receipts. Investing in depositary receipts entails the risks associated with foreign investments. The underlying securities of the depositary receipts in the Fund’s portfolio are subject to fluctuations in foreign currency exchange rates that may affect the value of the Fund’s portfolio. In addition, the value of the securities underlying the depositary receipts may change materially when the U.S. markets are not open for trading, which will affect the value of the depositary receipts. Like direct investments

127

Notes to Financial Statements (Unaudited) (continued)

in foreign securities, investments in depositary receipts involve political and economic risks distinct from those associated with investing in the securities of U.S. issuers.

EMERGING MARKETS RISK – The Fund’s 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.

ESG RISK (KraneShares MSCI China ESG Leaders Index ETF) – Issuers with businesses with high ESG ratings may be difficult to identify and investments in them maybe volatile. Even companies with high ESG ratings may not necessarily compare favorably with respect to the ESG practices of other issuers. The ESG investment strategy limits the types and number of investment opportunities available and, as a result, the strategy may underperform other strategies that do not have an ESG focus. The ESG investment strategy may result in the Fund’s investing in securities or industry sectors that underperform the market as a whole or underperform other funds screened for ESG standards. Investing based on ESG criteria is qualitative and subjective by nature and there is no guarantee that the criteria used by the Fund will reflect the beliefs or values of any particular investor.

ETF RISK. As an ETF, the Fund is subject to the following risks:

Authorized Participants Concentration Risk. The Fund has a limited number of financial institutions that may act as Authorized Participants. To the extent they cannot or are otherwise unwilling to engage in creation and redemption transactions with the Fund and no other Authorized Participant steps in, shares of the Fund may trade like closed-end fund shares at a significant discount to net asset value (“NAV”) and may face delisting from the Exchange.

Cash Transactions Risk. Like other ETFs, the Fund sells and redeems its shares only in large blocks called Creation Units and only to “Authorized Participants.” Unlike many other ETFs, however, the Fund expects to effect its creations and redemptions at least partially or fully for cash, rather than in-kind securities. Thus, an investment in the Fund may be less tax-efficient than an investment in other ETFs as the Fund may recognize a capital gain that it could have avoided by making redemptions in-kind. As a result, the Fund may pay out higher capital gains distributions than ETFs that redeem in-kind. Further, paying redemption proceeds in cash rather than through in-kind delivery of portfolio securities may require the Fund to dispose of or sell portfolio investments to obtain the cash needed to distribute redemption proceeds at an inopportune time.

International Closed Market Trading Risk. Because certain of the Fund’s investments trade in markets that are closed when the Fund and Exchange are open, there are likely to be deviations between current pricing of an underlying security and stale pricing, resulting in the Fund trading at a discount or premium to NAV greater than those incurred by other ETFs.

New Fund Risk (KraneShares MSCI Emerging Markets ex China Index ETF and KraneShares MSCI China ESG Leaders Index ETF). The Fund is new. If the Fund does not grow large in size once it commences trading, it will be at greater risk than larger funds of wider bid-ask spreads for its shares, trading at a greater premium or discount to NAV, liquidation and/or a stop to trading.

128

Notes to Financial Statements (Unaudited) (continued)

Premium/Discount Risk. There may be times when the market price of the Fund’s shares is more than the NAV intra-day (at a premium) or less than the NAV intra-day (at a discount). As a result, shareholders of the Fund may pay more than NAV when purchasing shares and receive less than NAV when selling Fund shares. This risk is heightened in times of market volatility or periods of steep market declines. In such market conditions, market or stop loss orders to sell Fund shares may be executed at prices well below NAV.

Secondary Market Trading Risk. Investors buying or selling shares in the secondary market will normally pay brokerage commissions, which are often a fixed amount and may be a significant proportional cost for investors buying or selling relatively small amounts of shares. Secondary market trading is subject to bid-ask spreads and trading in Fund shares may be halted by the Exchange because of market conditions or other reasons. If a trading halt occurs, a shareholder may temporarily be unable to purchase or sell shares of the Fund. In addition, although the Fund’s shares are listed on the Exchange, there can be no assurance that an active trading market for shares will develop or be maintained or that the Fund’s shares will continue to be listed.

EQUITY SECURITIES RISK – The values of equity securities are subject to factors such as market fluctuations, changes in interest rates and perceived trends in stock prices. Equity securities are subject to volatile changes in value and their values may be more volatile than other asset classes. In the event of liquidation, equity securities are generally subordinate in rank to debt and other securities of the same issuer.

FIXED INCOME SECURITIES RISK (KraneShares E Fund China Commercial Paper ETF and KraneShares CCBS China Corporate High Yield Bond USD Index ETF) – Fixed income securities are subject to credit risk and interest rate risk. Credit risk refers to the possibility that the issuer of a security will not make timely interest payments or repay the principal of the debt issued (i.e., it defaults on its obligations). Interest rate risk refers to fluctuations in the value of a debt resulting from changes in the level of interest rates. When interest rates go up, the prices of most debt instruments go down; and when interest rates go down, the prices of most debt instruments go up. Debt instruments with longer durations tend to be more sensitive to interest rate changes, typically making them more volatile. The current low-interest-rate environment heightens the risks associated with rising interest rates.

FOREIGN SECURITIES RISK – Investments in securities of non-U.S. issuers may be less liquid than investments in U.S. issuers as foreign trading markets are not typically as active as U.S. markets and may have less governmental regulation and oversight. For example, non-U.S. issuers may be subject to different accounting, auditing, financial reporting and investor protection standards than U.S. issuers. As a result, there may be less information publicly available about non-U.S. issuers. Investments in non-U.S. securities also involve risk of loss due to foreign currency fluctuations and political or economic instability. Foreign markets also may have clearance and settlement procedures that make it difficult for the Funds to buy and sell securities. These factors could result in a loss to the Funds by causing the Funds to be unable to dispose of an investment or to miss an attractive investment opportunity, or by causing the Funds’ assets to be uninvested for some period of time.

FRONTIER MARKETS RISK – Frontier market countries generally have smaller economies and less developed capital markets or legal, regulatory and political systems than traditional emerging market countries. As a result, the risks of investing in emerging market countries are magnified in frontier market countries.

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Notes to Financial Statements (Unaudited) (continued)

GEOGRAPHIC FOCUS RISK – The Funds’ investments will be focused in a particular country, countries, or region and therefore a Fund may be susceptible to adverse market, political, regulatory, and geographic events affecting that country, countries or region. Such geographic focus also may subject the Fund to a higher degree of volatility than a more geographically diversified fund.

HIGH PORTFOLIO TURNOVER RISK (KraneShares CICC China Leaders 100 Index ETF, KraneShares Bosera MSCI China A Share 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 Environment Index ETF, KraneShares Electric Vehicles and Future Mobility Index ETF and KraneShares MSCI All China Health Care Index ETF) – The Fund may incur high turnover rates, which may increase the Fund’s brokerage commission costs and negatively impact the Fund’s performance. Such portfolio turnover also may generate net short-term capital gains.

HONG KONG RISK – The economy of Hong Kong has few natural resources and any fluctuation or shortage in the commodity markets could have a significant adverse effect on the Hong Kong economy. Hong Kong is also heavily dependent on international trade and finance. Additionally, the continuation and success of the current political, economic, legal and social policies of Hong Kong is dependent on and subject to the control of the Chinese government. China may change its policies regarding Hong Kong at any time. Any such change may adversely affect market conditions and the performance of Chinese and Hong Kong issuers and, thus, the value of securities in the Fund’s portfolio.

INVESTMENT IN INVESTMENT COMPANIES RISK (KraneShares E Fund China Commercial Paper ETF) – The Fund utilizes a cash sweep program (the “Cash Sweep Program”). In the Cash Sweep Program, at least a portion of the Fund’s uninvested cash balance is used to purchase shares of funds that are registered in China, but not in the U.S., and that provide daily liquidity, including the E Fund Money Market Fund. The Fund may also invest in other similar investment companies that are registered in China and provide daily liquidity (collectively, the “PRC Investment Companies”). The Fund’s investments in the PRC Investment Companies are, in conjunction with other investments in investment companies (other than U.S. money market funds), subject to the limitations imposed by Section 12(d)(1) and the rules thereunder. The PRC Investment Companies are intended to provide liquidity, increased diversity of holdings, and a return on investment that is similar to the return on investments in underlying index constituents. Investments in the PRC Investment Companies are subject to the risks faced by them, which include credit risk, interest rate risk, currency risk, foreign investment risk, and custody risk. The PRC Investment Companies are PRC-domiciled funds and the Fund, therefore, will not enjoy the protections of the United States securities laws, including the 1940 Act, with respect to its investments in the PRC Investment Companies. In addition, E Fund is subject to conflicts of interest in allocating Fund assets to PRC Investment Companies that are sponsored by E Fund or its affiliates.

INVESTMENT IN INVESTMENT COMPANIES RISK – The Fund may invest in other investment companies, including those advised, sponsored or otherwise serviced by the Adviser, the Sub-Adviser and/or their affiliates. The Fund will indirectly be exposed to the risks of investments by such funds. Moreover, the Fund will incur its pro rata share of the underlying fund’s expenses. The Adviser and the Sub-Adviser are subject to conflicts of interest in allocating Fund assets to investment companies that are advised, sponsored or otherwise serviced by the Adviser and the Sub-Adviser and/or their affiliates. To the extent that the Fund invests in investment companies or other pooled investment

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Notes to Financial Statements (Unaudited) (continued)

vehicles that are not registered pursuant to the 1940 Act, including foreign investment companies, it will not enjoy the protections of the 1940 Act.

LARGE CAPITALIZATION COMPANY RISK (KraneShares CICC China Leaders 100 Index ETF, KraneShares CSI China Internet ETF, KraneShares Bosera MSCI China A Share 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 Environment Index ETF, KraneShares Electric Vehicles and Future Mobility Index ETF, KraneShares MSCI All China Health Care Index ETF, KraneShares Emerging Markets Healthcare Index ETF and KraneShares MSCI Emerging Markets ex China Index ETF) – Investments in large capitalization companies may go in and out of favor based on market and economic conditions and may underperform other market segments. Some large capitalization companies may be unable to respond quickly to new competitive challenges and attain the high growth rate of successful smaller companies, especially during extended periods of economic expansion. As such, returns on investments in stocks of large capitalization companies could trail the returns on investments in stocks of small and mid-capitalization companies.

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 or 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, which may cause the Funds to suffer significant losses and difficulties in meeting redemptions. If a number of securities held by the Funds halt trading, it may have a cascading effect and cause the Funds to halt trading. Volatility in market prices will increase the risk of the Funds being subject to a trading halt.

MANAGEMENT RISK – Because the Fund may not fully replicate the Underlying Index and may hold less than the total number of securities in the Underlying Index, the Fund is subject to management risk. This is the risk that Krane or its subadviser’s E Fund’s security selection process, which is subject to a number of constraints, may not produce the intended results.

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 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 (KraneShares CICC China Leaders 100 Index ETF, KraneShares CSI China Internet ETF, KraneShares E Fund China Commercial Paper ETF, KraneShares MSCI One Belt One Road Index ETF, KraneShares Emerging Markets Consumer Technology Index ETF, KraneShares MSCI China Environment Index ETF, KraneShares Electric Vehicles and Future Mobility Index ETF, KraneShares MSCI All China Health Care Index ETF, KraneShares CCBS China Corporate High Yield Bond USD Index ETF and KraneShares Emerging Markets Healthcare Index ETF) – Because the Fund is non-diversified and may invest a greater portion of its assets in fewer issuers than a diversified

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Notes to Financial Statements (Unaudited) (continued)

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.

PASSIVE INVESTMENT RISK – The Fund is not actively managed, does not seek to “beat” the Underlying Index and does not take temporary defensive positions when markets decline. Therefore, the Fund may not sell a security due to current or projected underperformance of a security, industry or sector. There is no guarantee that the Underlying Index will create the desired exposure. The Underlying Index may not contain an appropriate mix of securities, but the Fund’s investment objective and principal investment strategies impose limits on the Fund’s ability to invest in securities not included in the Underlying Index.

SECURITIES LENDING RISK – To the extent a Fund lends its securities, it may be subject to the following risks: (1) borrowers of the Funds’ securities typically provide collateral in the form of cash that is reinvested in securities; (2) the securities in which the collateral is invested may not perform sufficiently to cover the return collateral payments owed to borrowers; (3) delays may occur in the recovery of securities from borrowers, which could interfere with the Funds’ ability to vote proxies or to settle transactions; and (4) there is the risk of possible loss of rights in the collateral should the borrower fail financially.

Small and Mid-Capitalization Company Risk (KraneShares CICC China Leaders 100 Index ETF, KraneShares CSI China Internet ETF, KraneShares MSCI One Belt One Road Index ETF, KraneShares Emerging Markets Consumer Technology Index ETF, KraneShares MSCI China Environment Index ETF, KraneShares Electric Vehicles and Future Mobility Index ETF, KraneShares Emerging Markets Healthcare Index ETF and KraneShares MSCI Emerging Markets ex China Index ETF) – Investing in the securities of small and medium capitalization companies involves greater risk and the possibility of greater price volatility than investing in larger capitalization companies and more established companies. Since small and medium-sized companies may have limited operating histories, product lines and financial resources, the securities of these companies may lack sufficient market liquidity and can be sensitive to expected changes in interest rates, borrowing costs and earnings.

TAX RISK – In order to qualify for the favorable tax treatment generally available to regulated investment companies, the Fund must satisfy certain income, asset diversification and distribution requirements each year. If the Fund were to fail to qualify as a regulated investment company, it would be taxed in the same manner as an ordinary corporation, and distributions to its shareholders would not be deductible by the Fund in computing its taxable income, which would adversely affect the Fund’s performance.

TRACKING ERROR RISK – The Fund’s return may not match or achieve a high degree of correlation with the return of the Underlying Index. This may be due to, among other factors, the Fund holding cash under certain circumstances in lieu of Underlying Index securities, such as when the Fund is subject to delays converting U.S. dollars into a foreign currency to purchase foreign securities. The Fund may not be able to invest in certain components of the Underlying Index due to legal restrictions imposed by foreign governments or other regulatory reasons. In addition, securities included in the Underlying Index may be suspended from trading. To the extent that the Fund employs a representative sampling strategy or calculates its NAV based on fair value prices and the value of the Underlying Index is based on securities’ closing prices on local foreign markets, the Fund’s

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Notes to Financial Statements (Unaudited) (concluded)

ability to track the Underlying Index may be adversely affected. Changes in currency exchange rates or delays in converting currencies may also cause tracking error.

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. Fair valuation is subjective and different market participants may assign different prices to the same security. As a result, there is a risk that the Funds may not be able to sell a security at the price assigned to the security 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 September 30, 2020, 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 NYSE Arca 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. Based on this evaluation, other than the above, no additional disclosures or adjustments were required to the financial statements as of the date the financial statements were issued.

133

Approval of Advisory Agreements (Unaudited)

At a meeting held on May 28, 2020, 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 renewal of:

• the existing investment advisory agreement between Krane Funds Advisors, LLC (“Krane”) and the Trust on behalf of each of the following separate series of the Trust (collectively, the “Funds”):

• KraneShares Bosera MSCI China A Shares ETF (“KBA”);

• KraneShares CCBS China Corporate High Yield Bond USD Index ETF (“KCCB”);

• KraneShares CICC China Leaders 100 Index ETF (“KFYP”);

• KraneShares CSI China Internet ETF (“KWEB”);

• KraneShares E Fund China Commercial Paper ETF (“KCNY”);

• KraneShares Electric Vehicles and Future Mobility Index ETF (“KARS”);

• KraneShares Emerging Markets Consumer Technology Index ETF (“KEMQ”);

• KraneShares Emerging Markets Healthcare Index ETF (“KMED”);

• KraneShares MSCI All China Health Care Index ETF (“KURE”);

• KraneShares MSCI All China Index ETF (“KALL”);

• KraneShares MSCI China Environment Index ETF (“KGRN”);

• KraneShares MSCI Emerging Markets ex China Index ETF (“KEMX”);

• KraneShares MSCI One Belt One Road Index ETF (“OBOR”); and

• the existing sub-advisory agreement (the “KBA Sub-Advisory Agreement”) between Krane, on behalf of KBA, and Bosera Asset Management (International) Co., Ltd. (“Bosera”);

• the existing sub-advisory agreement (the “KCNY Sub-Advisory Agreement”) between Krane, on behalf of KCNY, and E Fund Management (Hong Kong) Co., Limited (“E Fund”);

• the existing sub-advisory agreement (the “KCCB Sub-Advisory Agreement”) between Krane, on behalf of KCCB, and CCB Securities Ltd. (“CCBS”); and

Bosera, E Fund, and CCBS are referred to collectively herein as the “Sub-Advisers”). The KBA Sub-Advisory Agreement, the KCNY Sub-Advisory Agreement and the KCCB Sub-Advisory Agreement are collectively referred to collectively herein as the “Sub-Advisory Agreements,” and the Sub-Advisory Agreements and the Advisory Agreement are collectively referred to as the “Agreements.”

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Approval of Advisory Agreements (Unaudited) (continued)

In advance of the meeting, and at a separate meeting of the Independent Trustees in executive session, the Board received and considered information provided by Krane in response to the Independent Trustees’ written requests relating to the Board’s consideration of the Advisory Agreement with respect to the Funds. The Board also considered in response to written requests to each Sub-Adviser: information provided by Bosera with respect to the KBA Sub-Advisory Agreement; information provided by E Fund with respect to the KCNY Sub-Advisory Agreement; and information provided by CCBS with respect to the KCCB Sub-Advisory Agreement. The Board also considered that its evaluation process with respect to Krane and each Sub-Adviser is an ongoing one and, as a result, the Board considers information at each of its regularly scheduled meetings related to, among other matters, the services provided by Krane and, as applicable, one of the Sub-Advisers, to each Fund. The Board also receives additional information from Krane outside of the regularly scheduled Board meetings and at executive sessions held by the Independent Trustees.

In evaluating the Agreements, the Board considered, among other matters: (1) the nature, extent, and quality of the services provided to each Fund by Krane and to each of KBA, KCNY, and KCCB by their respective Sub-Adviser; (2) the compensation paid under each Agreement; (3) the costs of the services provided by Krane and the various Sub-Advisers (as applicable) and the profitability of Krane and the Sub-Advisers with respect to their relationship with the Funds; (4) the extent to which economies of scale could be realized as the Funds grow and whether the unitary fee charged under the Advisory Agreement enables investors in the Funds to share in any such economies of scale; and (5) other benefits Krane and the Sub-Advisers receive from their respective relationship with the Funds.

Nature, Extent and Quality of Services

Based on written and oral reports received by the Board prior to and at the May 26, 2020 executive session of the Independent Trustees and the May 28, 2020 meeting of the Board, the Board considered the nature, quality, and extent of the overall services provided by Krane and the Sub-Advisers under the Agreements. The Board considered the responsibilities of Krane under the Advisory Agreement, including its obligation to oversee the services provided by the various Sub-Advisers. The Board also discussed the nature, quality and extent of services provided by Bosera under the KBA Sub-Advisory Agreement, E Fund under the KCNY Sub-Advisory Agreement and CCBS under the KCCB Sub-Advisory Agreement.

The Board took note of the qualifications, background and responsibilities of Krane’s senior personnel that provide services to the Funds, including the significant experience in the exchange traded fund industry of Krane’s recently appointed Head of Capital Markets. The Board recognized that Krane invested significant time and effort in structuring the Trust and the Funds, assessing the market appeal and the investment strategy of each Fund, and arranging service providers for the Trust. The Board also considered that Krane established a securities lending program for the benefit of the Funds. The Board noted that Krane has identified and retained additional qualified and experienced compliance and operational staff and notes its undertaking to continue to do so as its business continues to grow. The Board also considered the financial condition of Krane and its current ownership structure, noting that Krane is part of a larger family of investment management firms with significant resources.

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Approval of Advisory Agreements (Unaudited) (continued)

The Board considered that Krane is responsible for establishing and monitoring the investment program for each of the Funds, including those Funds whose portfolio is managed, on a day-to-day basis, by one of the Sub-Advisers. The Board noted the time and effort spent by Krane to identify the Sub-Advisers and to continually monitor their performance. The Board considered the access to different components of the China market provided by Bosera, E Fund and CCBS.

Investment Performance

The Board considers the performance of each operational Fund at the regular meetings of the Board. At such meetings, Krane presents information regarding the performance of each operational Fund for various time periods versus an identified Morningstar peer group. At the meeting, the Board considered each Fund’s performance versus its broad Morningstar peer group, as well as a select group of competitors identified by Krane. The Board noted that each Fund’s since inception returns are in line with its direct competitors and exceed peer group median performance except for OBOR and KGRN.

At its regular quarterly meetings, the Board also regularly reviews the tracking error of each operational Fund that seeks to provide investment results correlated to the performance of an underlying index. The Board considered that, based on the information presented at the meeting and regular quarterly meetings, each Fund’s performance is reasonably correlated to that of its identified underlying index. The Board noted its discussions with Krane related to factors, such as the use of fair value pricing by the Funds and the Funds’ asset inflows and outflows, that affect the performance of the Funds but not their underlying indices, and considered that these factors can affect the Funds’ tracking error.

The Board considered that OBOR is included in a peer group that includes global infrastructure funds with wide geographic exposures, including highly-developed markets (such as the United Stated) and emerging markets. The Board considered that OBOR lacks exposure to the U.S. market and has a relatively high level of exposure to China. The Board considered that the on-going trade war between the United States and China and the continued relative strength of the U.S. market have negatively impacted OBOR’s relative portfolio since inception. The Board also noted Krane’s view that OBOR offers investors unique investment exposure.

The Board considered that KGRN is classified in a broad China region peer group, which includes many different types of China-focused funds including broad, smart beta and thematic funds such as internet and healthcare. The Board considered that renewable energy (especially solar) stocks and electric vehicles suppliers, which are held by KGRN, have faced policy headwinds and cutbacks in subsidies in China over the last few years, resulting in their underperformance versus broader thematic stocks. The Board noted that KGRN’s performance exceeded its peer group for the year-to-date period, but underperformed the peer group since inception. The Board also noted Krane’s view that KGRN offers investors unique investment exposure.

Compensation

The Board considered that pursuant to the Advisory Agreement, Krane has entered into a unitary advisory fee arrangement for each of the Funds. Under the unitary fee arrangement, Krane is responsible for paying most of the Funds’ expenses, including those of the Funds’ principal service providers and sub-adviser (if applicable). The Board considered the information provided by Krane

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Approval of Advisory Agreements (Unaudited) (continued)

regarding the amounts it pays to the Funds’ service providers under the unitary fee arrangement. The Board reviewed and considered the fees paid by each Fund in light of the nature, quality and extent of the services provided or obtained by Krane. The Board also considered the net expense ratios of the currently operational Funds compared to those of their peer groups.

The Board noted that: (1) management fees paid by all of the Funds except KEMX were higher than their peer groups, and that management fees paid by KEMX were equal to the peer group median fee; (2) the KWEB, KFYP, KGRN, KEMQ, KMED, KCNY, OBOR, KCCB, KARS, total expense ratios were higher than their respective peer groups; and (3) the KEMX, KALL, KURE, and KBA total expense ratios were the same or lower than their peer groups. The Board noted Krane’s representation that each Fund offers unique investment exposure for shareholders and potential investors in registered funds and that Krane only offers certain of these investment strategies in accounts not generally available to US retail investors. The Board also considered the effect of each Fund’s assets under management on its net expense ratio.

Although the Board received information regarding the fees paid to the Sub-Advisers under the Sub-Advisory Agreements, the Board noted the arm’s-length nature of the relationship between Krane and the Sub-Advisers with respect to the negotiation of subadvisory fee rates. The Board also considered that Krane (and not the Funds) pays the Sub-Adviser’s fees.

Costs and Profitability

The Board noted that Krane continued to waive certain fees . The Board noted that Krane is profitable, although it does not make a profit from its relationships all Funds under the Advisory Agreement. The Board also considered Krane’s commitment to the success of the Funds and the use of a unitary fee structure under which Krane bears the risk if certain of the Funds’ expenses increase or if a Fund’s assets fail to increase to a level sufficient to cover such expenses. The Board considered the effect of each Fund’s assets under management on the potential profitability of such Fund under the unitary fee structure in light of the increasing costs associated with the personnel, systems and equipment necessary to manage the Funds and to meet the regulatory and compliance requirements of the SEC and other regulatory bodies as well as other expenses Krane pays in accordance with the Advisory Agreement.

The Board did not consider information regarding the costs of services provided or profits realized by each Sub-Adviser from its relationship with the Funds, noting the arm’s-length nature of the relationship between Krane and the Sub-Advisers with respect to the negotiation of the subadvisory fee rate on behalf of each Fund. The Board considered that Krane, and not the Fund, was responsible for paying the subadvisory fees under each Sub-Advisory Agreement.

Other Benefits

The Board considered the extent to which Krane would derive ancillary benefits from the Funds’ operations, including benefits to Krane as a result of its ability to use the Funds’ assets to engage in soft dollar transactions.

Economies of Scale

The Board considered that Krane continues to reinvest a significant portion of its profits in its business, including through the addition of compliance and operations personnel, and that any

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Approval of Advisory Agreements (Unaudited) (concluded)

economies of scale are shared with the Funds in this manner. The Board determined to continue monitoring for potential economies of scale, but concluded that, at present, this was not a material factor for the Board to consider in connection with the renewal 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 Agreements. The Board reviewed a memorandum from Independent Trustee counsel discussing the legal standards and judicial precedent applicable to its consideration of the Agreements, and noted that it met in executive session with Krane’s CEO and Independent Trustee counsel to address such standards and recent developments in this area of the law, to consider Krane’s financial stability and strategic initiatives, and to consider how certain strategic initiatives would impact Krane’s business and staffing. The Board noted that, as in the past, it will continue to monitor the Funds 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 Agreements, were reasonable in light of the factors considered by the Board.

138

Additional Approval of Advisory Agreements (Unaudited)

At a meeting on May 28, 2020, the Board of Trustees (“Board”) of KraneShares Trust (“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 (“Advisory Agreement”) between Krane Funds Advisors, LLC (“Krane”) and the Trust with respect to KraneShares MSCI China ESG Leaders Index ETF (the “New Fund”).

In advance of the meeting, and at a separate meeting of the Independent Trustees in executive session, the Board received and considered information provided by Krane in response to the Independent Trustees’ written requests relating to the Board’s consideration of the Advisory Agreement with respect to the New Fund. The Board also considered that its evaluation process with respect to Krane is an ongoing one and, as a result, the Board considers information at each of its regularly scheduled meetings related to, among other matters, the services provided by Krane to each operational series of the Trust. The Board also receives additional information from Krane outside of the regularly scheduled Board meetings and at executive sessions held by the Independent Trustees.

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 by Krane; (2) the proposed compensation to be paid by the New Fund under the Advisory Agreement; (3) the estimated costs of the services to be provided by Krane and Krane’s profitability expectations with respect to its services to the New Fund; (4) the extent to which economies of scale could be realized by Krane as the New Fund grows and whether the Advisory Agreement would enable investors to share in the benefits of economies of scale; and (5) other benefits Krane anticipated it may receive from its relationship with the New Fund.

Nature, Extent, and Quality of Services

Based on the written and oral reports received prior to and at the May 26, 2020 executive session of the Independent Trustees and the May 28, 2020 meeting of the Board, the Board considered the nature, quality, and extent of the overall services to be provided by Krane under the Advisory Agreement. Among other things, the Board considered the personnel, experience and resources of Krane, and Krane’s ability to provide or obtain such services as may be necessary to manage the New Fund. The Board took note of the qualifications, background and responsibilities of Krane’s senior personnel that will provide services to the New Fund, including the significant experience in the exchange traded fund industry of Krane’s recently appointed Head of Capital Markets. The Board recognized that Krane invested significant time and effort in structuring the New Fund, assessing the market appeal of the investment strategy of the New Fund, and arranging service providers for the Trust. The Board also considered the financial condition of Krane and its current ownership structures. In this regard, the Board noted that Krane is part of a larger family of investment management firms with significant resources.

The Board considered that Krane would be responsible for establishing and monitoring the New Fund’s investment programs and for the day-to-day investment activities of the New Fund, subject to the Board’s oversight. The Board also considered the securities lending services that Krane may provide to the New Fund under the Advisory Agreement. The Board considered that Krane’s portfolio managers currently successfully manage a number of other funds. The Board considered that Krane

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Additional Approval of Advisory Agreements (Unaudited) (continued)

recently hired additional compliance personnel and noted its undertaking to continue to evaluate its existing compliance and operational staff and to seek and retain qualified staff in these areas as its business continues to grow.

Investment Performance

The Board noted that, because the New Fund has not yet commenced investment operations, it has no investment performance. The Board considered that, once the New Fund commences operations, it would receive regular reports regarding the performance of the New Fund relative to its peer funds, including tracking error compared to its peer funds. The Board also considered its experience with Krane’s management of existing operational series of the Trust that pursue different investment strategies and Krane’s significant experience in managing portfolios with various investment objectives.

Compensation

The Board reviewed and considered the compensation proposed to be received by Krane under the Advisory Agreement in light of the nature, quality, and extent of the services to be provided to the New Fund. The Board received written presentations from Krane prior to and at its May 28, 2020 meeting and had the opportunity to ask questions of senior representatives of Krane at that meeting and the May 26, 2020 executive session of the Independent Trustees. The Board considered that Krane has entered into a unitary fee arrangement with the New Fund, under which Krane, and not the New Fund, is responsible for paying many of the New Fund’s expenses, including those of the New Fund’s principal service providers. The Board noted information provided by Krane regarding the amounts that would be paid by it to the New Fund’s service providers under the unitary fee arrangement.

The Board noted that the proposed advisory fee rates for the New Fund were in line with its respective peer groups funds identified by Krane. In its evaluation of the proposed fees compared to other market participants, the Board considered Krane’s representations regarding the competitive marketplace for the New Fund.

The Board also considered the compensation paid to Krane by other advisory clients, including existing operational series of the Trust, as compared to the New Fund. The Board recognized that Krane may receive additional compensation resulting from any securities lending-related services it provides to the New Fund under Schedule B to the Advisory Agreement. The Board took note that it was not possible to estimate what such compensation might amount to and that such compensation would be monitored to ensure it is appropriate in light of the services to be provided by Krane.

Costs and Profitability

The Board considered the estimated cost of services and profitability of Krane with respect to the New Fund. The Board noted that, because the New Fund had not yet launched, it was difficult to estimate how profitable services to the New Fund under the Advisory Agreement would be to Krane. The Independent Trustees received information from Krane regarding its financial stability and its profitability and had an opportunity to pose questions to Krane’s chief executive officer (“CEO”) and other senior members of management related to these matters, Krane’s broader business strategy and how launching the New Fund could impact Krane’s profitability. The Board considered

140

Additional Approval of Advisory Agreements (Unaudited) (concluded)

information from Krane regarding the range of assets the New Fund is expected to gather. The Board also considered information previously provided by Krane regarding the cost of its services and profitability with respect to the existing operational series of the Trust and the similarities and differences between those series and the New Fund. The Board noted Krane’s commitment to the New Fund, including the proposed unitary fee structure under which Krane will bear many of the New Fund’s expenses as well as the risk of failing to raise assets adequate to cover such costs.

Other Benefits

The Board considered the extent to which Krane would derive ancillary benefits from the New Fund’s operations, including potential benefits to Krane as a result of its ability to use the assets of the New Fund to engage in soft-dollar transactions and that Krane could potentially benefit from any trades that the New Fund conducts through a broker-dealer affiliated with the majority owner of Krane. The Board did not observe any other potential benefits to be realized by Krane from its relationship with the New Fund.

Economies of Scale

The Board considered whether Krane would realize economies of scale with respect to its services to the New Fund as it grows larger, including the extent to which this would be reflected in the level of fees to be paid by the New Fund to Krane. The Board noted that the proposed advisory fees for the New Fund do not include breakpoints, and that it was difficult – before the commencement of investment operations – to accurately evaluate potential economies of scale. The Board took note, however, that Krane consistently reinvests a portion of its profits in its business, including through the addition of compliance and operations personnel, and that such reinvestment benefits the Trust. Based on these and other considerations, including that the New Fund was 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. The Board reviewed a memorandum from Independent Trustee counsel discussing the legal standards applicable to its consideration of the Advisory Agreement and the Independent Trustees met in executive session with Krane’s CEO and Independent Trustee counsel to address such standards and recent developments in this area of the law, to consider Krane’s financial stability and strategic initiatives, and to consider how the New Fund and other strategic initiatives would impact Krane’s business and staffing. The Board noted that, once the New Fund becomes operational, 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 Agreements, were reasonable.

141

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 (April 1, 2020 to September 30, 2020).

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.

142

Disclosure of Fund Expenses (Unaudited) (concluded)

	Beginning Account Value 4/1/2020		Ending Account Value 9/30/2020		Annualized Expense Ratios			Expenses Paid During Period(1)
KraneShares CICC China Leaders 100 Index ETF
Actual Fund Return	$	1,000.00	$	1,179.40		0.70	%	$	3.81
Hypothetical 5% Return		1,000.00		1,021.50		0.70			3.54
KraneShares CSI China Internet ETF
Actual Fund Return	$	1,000.00	$	1,497.90		0.71	%	$	4.43
Hypothetical 5% Return		1,000.00		1,021.45		0.71			3.59
KraneShares Bosera MSCI China A Share ETF
Actual Fund Return	$	1,000.00	$	1,330.10		0.59	%	$	3.44
Hypothetical 5% Return		1,000.00		1,022.05		0.59			2.98
KraneShares E Fund China Commercial Paper ETF
Actual Fund Return	$	1,000.00	$	1,051.60		0.57	%	$	2.92
Hypothetical 5% Return		1,000.00		1,022.15		0.57			2.88
KraneShares MSCI All China Index ETF
Actual Fund Return	$	1,000.00	$	1,298.30		0.49	%	$	2.82
Hypothetical 5% Return		1,000.00		1,022.55		0.49			2.48
KraneShares MSCI One Belt One Road Index ETF
Actual Fund Return	$	1,000.00	$	1,219.00		0.79	%	$	4.38
Hypothetical 5% Return		1,000.00		1,021.05		0.79			3.99
KraneShares Emerging Markets Consumer Technology Index ETF
Actual Fund Return	$	1,000.00	$	1,430.20		0.60	%	$	3.65
Hypothetical 5% Return		1,000.00		1,022.00		0.60			3.03
KraneShares MSCI China Environment Index ETF
Actual Fund Return	$	1,000.00	$	1,860.20		0.79	%	$	5.65
Hypothetical 5% Return		1,000.00		1,021.05		0.79			3.99
KraneShares Electric Vehicles and Future Mobility Index ETF
Actual Fund Return	$	1,000.00	$	1,532.60		0.71	%	$	4.50
Hypothetical 5% Return		1,000.00		1,021.45		0.71			3.59
KraneShares MSCI All China Health Care Index ETF
Actual Fund Return	$	1,000.00	$	1,408.30		0.65	%	$	3.91
Hypothetical 5% Return		1,000.00		1,021.75		0.65			3.29
KraneShares CCBS China Corporate High Yield Bond USD Index ETF
Actual Fund Return	$	1,000.00	$	1,095.50		0.69	%	$	3.61
Hypothetical 5% Return		1,000.00		1,021.55		0.69			3.49
KraneShares Emerging Markets Healthcare Index ETF
Actual Fund Return	$	1,000.00	$	1,458.00		0.79	%	$	4.85
Hypothetical 5% Return		1,000.00		1,021.05		0.79			3.99
KraneShares MSCI Emerging Markets ex China Index ETF
Actual Fund Return	$	1,000.00	$	1,284.60		0.49	%	$	2.80
Hypothetical 5% Return		1,000.00		1,022.55		0.49			2.48
KraneShares MSCI China ESG Leaders Index ET
Actual Fund Return	$	1,000.00	$	1,034.80		0.59	%(2)	$	1.05
Hypothetical 5% Return		1,000.00		1,023.95		0.59			1.06

(1)	Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period from 04/01/20-09/30/20).
(2)	Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period, multiplied by 171/365 (to reflect the one-half year period from 07/28/20-09/30/20).

143

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 midpoint between the highest bid and the lowest offer on the stock exchange on which the Shares of the Funds are listed for trading, as of the time that the Funds’ NAV is calculated. 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.

144

KraneShares Trust:

280 Park Avenue 32nd Floor

New York, New York 10017

1-855-857-2638

http://kraneshares.com/

Investment Adviser:

Krane Funds Advisors, LLC

280 Park Avenue 32nd Floor

New York, New York 10017

Distributor:

SEI Investments Distribution Co.

One Freedom Valley Drive

Oaks, PA 19456

Administrator:

SEI Investments Global Funds Services

One Freedom Valley Drive

Oaks, PA 19456

This information must be preceded or accompanied by a current prospectus for the Funds described.

KraneShares Trust:

280 Park Avenue, 32nd Floor

New York, New York 10017

KRS-SA-001-0800

Item 2. Code of Ethics.

Not applicable for semi-annual report.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual report.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual report.

Item 5. Audit Committee of Listed Registrants.

Not applicable for semi-annual report.

Item 6. Schedule of Investments.

Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable to open-end management investment companies.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable to open-end management investment companies.

Item 9. Purchases of Equity Securities by Closed-End Management Company and Affiliated Purchasers.

Not applicable to open-end management investment companies.

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 Investment Company 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 Investment Company 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 1940 Act (17 CFR § 270.30a-3(d)) that occurred during the most recent fiscal half-year 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 to open-end management investment companies.

Items 13. Exhibits.

(a)(1) Not applicable for semi-annual report.

(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 1940 Act, as amended (17 CFR 270.30a-2(a)), is filed herewith.

(b) Officer certification as required by Rule 30a-2(b) under the 1940 Act, as amended (17 CFR 270.30a-2(b)) also accompany this filing as an exhibit.

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: December 9, 2020

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: December 9, 2020

By (Signature and Title)	/s/ Jonathan Krane
	Jonathan Krane
	Principal Financial Officer

Date: December 9, 2020

EX-99.CERT

Exhibit 99.CERT 

CERTIFICATION

Pursuant to Rule 30a-2(a) under the Investment Company Act of 1940

and Section 302 of the Sarbanes-Oxley Act of 2002

I, Jonathan Krane, certify that:

1. I have reviewed this report on Form N-CSRS of the KraneShares Trust (the “Registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information, included in this report fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this report;

4. The Registrant’s other certifying officer(s), if any, and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the most recent fiscal half-year period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5. The Registrant’s other certifying officer(s) and I have disclosed to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

Date: December 9, 2020

/s/ Jonathan Krane

Jonathan Krane
Principal Executive Officer and Principal Financial Officer

EX-99.906 CERT

Exhibit 99.906 CERT 

CERTIFICATION

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to Section 906

of the Sarbanes-Oxley Act of 2002

The undersigned, the Principal Executive Officer and Principal Financial Officer of the KraneShares Trust (the “Fund”), with respect to the Fund’s Form N-CSRS for the period ended September 30, 2020, as filed with the Securities and Exchange Commission, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

1. such Form N-CSRS fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. the information contained in such Form N-CSRS fairly presents, in all material respects, the financial condition and results of operations of the Fund.

Dated: December 9, 2020

/s/ Jonathan Krane

Jonathan Krane

Principal Executive Officer and

Principal Financial Officer