KLXY KraneShares Global Luxury Index ETF

Krane Funds Advisors, LLC ("KraneShares"), an asset management firm known for its global exchange-traded funds (ETFs) and innovative investment strategies, today announced the launch of the KraneShares Global Luxury Index ETF (Ticker: KLXY) on the New York Stock Exchange.

KLXY provides investors with exposure to the world's top luxury companies by market capitalization across an array of luxury-related sectors such as leather goods, jewelry, accessories, skincare, cosmetics, beverages, travel, and supercar businesses.

"We believe the global luxury sector may present a long-term growth opportunity due to companies' resilient pricing power, strong profitability, and high barriers to entry inherent to global luxury companies," said Derek Yan, CFA, Senior Investment Strategist at KraneShares.

Global Luxury Market Highlights:

Growth & Resilience: The global luxury industry has experienced tremendous growth even through economic downturns and inflationary periods. These companies' resilience is strengthened by strong profitability, longstanding brand reputations, and loyal customer bases.

Evolving Customer Base: Global luxury brands have embraced E-Commerce and digital marketing, broadening their customer base from 400 million in 2022 to an expected 500 million by 2030.1

Global Exposure: Diversified exposure to developed countries outside the United States, including France, the United Kingdom, Italy, Switzerland, and Japan.

"We believe the luxury market is one of the most resilient sectors, especially in economic downturns and inflationary periods. Brand value, consumer loyalty, and innovation play pivotal roles in driving demand and commanding premium pricing," says Jonathan Krane, Founder and CEO of KraneShares. "KLXY provides investors a compelling solution to gain direct exposure to the significant growth opportunity offered by the global luxury market."

For more information on the KraneShares Global Luxury Index ETF (Ticker: KLXY), visit kraneshares.com/klxy or consult your financial advisor.

About KraneShares

KraneShares is a specialist investment manager focused on China, climate, and uncorrelated assets. KraneShares seeks to provide innovative, high-conviction, and first-to-market strategies based on the firm and its partners' deep investing knowledge. KraneShares identifies and delivers groundbreaking capital market opportunities and believes investors should have cost-effective and transparent tools for attaining exposure to various asset classes. The firm was founded in 2013 and serves institutions and financial professionals globally. The firm is a signatory of the United Nations-supported Principles for Responsible Investing (UN PRI).

Citations:

1. Bain & Company, "Global luxury goods market takes 2022 leap forward and remains poised for further growth despite economic turbulence", Nov 2022. Retrieved 8/30/2023.

Carefully consider the Fund's investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund's full and summary prospectus, which may be obtained by visiting www.kraneshares.com Read the prospectus carefully before investing.

Risk Disclosures:Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. Indices are unmanaged and do not include the effect of fees. One cannot invest directly in an index.

This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change. Certain content represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results; material is as of the dates noted and is subject to change without notice.

The Fund invests in companies in luxury-related sectors that may face intense competition and be dependent on their ability to maintain brand image. These companies may be subject to changes in consumer preferences and the spending of a relatively small segment of the general population, and technologies employed by the companies that may become obsolete. The companies can be especially sensitive to a decline in consumer confidence or any downturns in the broader economy. Demand for luxury products may be seasonal, and incorrect assessment of future demand can lead to overproduction or underproduction, which can impact company profitability.

The Fund is subject to non-U.S. issuers risk, which may be less liquid than investments in U.S. issuers, may have less governmental regulation and oversight, are typically subject to different investor protection standards than U.S. issuers, and the economic instability of the non-U.S. countries. Fluctuations in currency of foreign countries may have an adverse effect to domestic currency values.

Narrowly focused investments typically exhibit higher volatility. The Fund's assets are expected to be concentrated in a sector, industry, market, or group of concentrations to the extent that the Underlying Index has such concentrations. The securities or futures in that concentration could react similarly to market developments. Thus, the Fund is subject to loss due to adverse occurrences that affect that concentration. KLXY is non-diversified.

The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses. A derivative (i.e., futures/forward contracts, swaps, and options) is a contract that derives its value from the performance of an underlying asset. The primary risk of derivatives is that changes in the asset’s market value and the derivative may not be proportionate, and some derivatives can have the potential for unlimited losses. Derivatives are also subject to liquidity and counterparty risk. The Fund is subject to liquidity risk, meaning that certain investments may become difficult to purchase or sell at a reasonable time and price. If a transaction for these securities is large, it may not be possible to initiate, which may cause the Fund to suffer losses. Counterparty risk is the risk of loss in the event that the counterparty to an agreement fails to make required payments or otherwise comply with the terms of the derivative.

The Fund is new and does not yet have a significant number of shares outstanding. If the Fund does not grow in size, 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 trading halt.

ETF shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the Fund. However, shares may be redeemed at NAV directly by certain authorized broker-dealers (Authorized Participants) in very large creation/redemption units. The returns shown do not represent the returns you would receive if you traded shares at other times. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Beginning 12/23/2020, market price returns are based on the official closing price of an ETF share or, if the official closing price isn't available, the midpoint between the national best bid and national best offer ("NBBO") as of the time the ETF calculates the current NAV per share. Prior to that date, market price returns were based on the midpoint between the Bid and Ask price. NAVs are calculated using prices as of 4:00 PM Eastern Time.

The KraneShares ETFs and KFA Funds ETFs are distributed by SEI Investments Distribution Company (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456, which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Funds, or any sub-advisers for the Funds.

Media Contactjoseph.dube@kraneshares.com