Strategy. Under normal circumstances, the Fund will invest at least 80% of its net assets (plus borrowings for investment purposes) in instruments in its Underlying Index or in instruments that have economic characteristics similar to those in the Underlying Index. The S&P Pan Asia Dividend Aristocrats Index (Underlying Index) is designed to measure the performance of constituents in the S&P Pan Asia BMI Index (Index Universe) that have followed a policy of consistently increasing dividends every year for the last seven years. The Index Universe is a comprehensive benchmark index that includes securities of companies from the Asia-Pacific region, including developed and emerging market countries. The Index Universe includes the following countries: Japan, China, Australia, India, Taiwan, South Korea, Hong Kong, … Show more… Under normal circumstances, the Fund will invest at least 80% of its net assets (plus borrowings for investment purposes) in instruments in its Underlying Index or in instruments that have economic characteristics similar to those in the Underlying Index. The S&P Pan Asia Dividend Aristocrats Index (Underlying Index) is designed to measure the performance of constituents in the S&P Pan Asia BMI Index (Index Universe) that have followed a policy of consistently increasing dividends every year for the last seven years. The Index Universe is a comprehensive benchmark index that includes securities of companies from the Asia-Pacific region, including developed and emerging market countries. The Index Universe includes the following countries: Japan, China, Australia, India, Taiwan, South Korea, Hong Kong, Singapore, Thailand, Indonesia, Malaysia, New Zealand, Philippines and Pakistan. To be eligible for inclusion in the Underlying Index, a company in the Index Universe must have increased dividends every year for at least seven years and must meet certain market capitalization and liquidity requirements. If a company is a current constituent in the Underlying Index and has maintained a constant dividend over the last two years only, it remains eligible for inclusion in the Underlying Index provided they meet the other eligibility criteria. Underlying Index constituents are weighted by annualized dividend yield, subject to a 5% cap on a single security, a 30% cap on any single country and a 30% cap on any single sector. The Underlying Index is designed to include a minimum of 40 constituents and maximum of 100 constituents. If there are fewer than 40 constituents that meet the criteria, companies with lower market capitalizations or shorter dividend growth histories will be included in the Underlying Index until there are 40 constituents in the Underlying Index. The Fund may invest up to 20% of its assets in instruments that are not included in the Underlying Index, but that the Funds investment adviser, Krane Funds Advisors, LLC (Krane or Adviser) believes will help the Fund track the Underlying Index. These investments may include equity securities and depositary receipts of issuers whose securities are not constituents of the Underlying Index, derivative instruments (including swaps, futures, forwards, structured notes and options), other investment companies (including exchange traded funds or ETFs) and cash or cash equivalents (including money market funds). Certain other investment companies in which the Fund may invest may be advised, sponsored or otherwise serviced by Krane and/or their affiliates. Although the Fund expects to replicate (or hold all constituents of) the Underlying Index, the Fund reserves the right to use representative sampling to track the Underlying Index. Representative sampling is a strategy that involves investing in a representative sample of securities that collectively have an investment profile similar to the Underlying Index. As of May 31, 2024, the Underlying Index included 96 securities of companies with a market capitalization range of approximately $1.08 billion to $88.9 billion and an average market capitalization of approximately $13.5 billion. The Underlying Index is provided by S&P Dow Jones Indices LLC (Index Provider). The Fund is non-diversified. To the extent the Underlying Index is concentrated in a particular industry, the Fund is expected to be concentrated in that industry. As of May 31, 2024, issuers in the Financials sector (24.6%), Utilities sector (13.5%), and Real Estate sector (13.5%) represented significant portions of the Underlying Index. The Underlying Index is reconstituted annually and rebalanced on a semi-annual basis to ensure constituent weighting criteria are being met. The Fund may engage in securities lending. Show less