Shareholder
Fees (fees paid directly from your
investment) |
|
Annual Fund Operating
Expenses (expenses
that you pay each year as a percentage of the value of your
investment) |
|
Management
Fees |
|
Distribution
and/or Service (12b-1) Fees* |
|
Other
Expenses** |
|
Total Annual Fund
Operating Expenses |
|
* |
Pursuant
to a Distribution Plan, the Fund may bear a Rule 12b-1 fee not to exceed
0.25% per year of the Fund’s average daily net assets. However, no
such fee is currently paid by the Fund, and the Board of Trustees has not
currently approved the commencement of any payments under the Distribution
Plan. |
** |
|
1
Year |
3
Years |
$ |
$ |
The
Fund intends to invest in futures contracts on carbon offset credits that
are traded on the Chicago Mercantile Exchange (CME) -- Global Emissions
Offsets (“GEOs”) and Nature-Based Global Emission Offsets (“N-GEOs”). GEOs
and N-GEOs are designed to allow businesses to manage their GHG-reduction
goals by purchasing today carbon offset credits for delivery in the
future. Under
normal circumstances, the Fun
d will
be exposed primarily to
carbon offset credit futures, including
GEOs and N-GEOs that mature in the next two years. As the carbon offset
credit market grows, Krane Funds Advisors, LLC (“Adviser”) may invest in
other types of carbon offset credit futures in addition to or in lieu of
GEOs and N-GEOs, provided that they meet certain liquidity
requirements.In
addition to carbon offset credit futures, the Fund may invest in futures
on carbon credits issued under cap-and-trade regimes (“carbon credit
futures”) in order to obtain investment exposures that are consistent with
the GHG-reducing goal of carbon offset credits. The
Fund may also invest in other instruments, such as options on futures
contracts, swap contracts, other exchange-traded funds (“ETFs”), and
notes, which may or may not be exchange-traded, in order to gain
investment exposure to carbon offset credit futures and carbon credit
futures. The Fund may also invest in debt instruments. The debt
instruments in which the Fund intends to invest include government
securities and corporate or other non-government fixed-income securities
with maturities of up to 12 months of any investment grade. The Fund may
invest in debt instruments indirectly through short-term bond funds and
ETFs. The Fund may also invest in cash and cash equivalents, including
money market funds. |
GEO
futures contracts are based on voluntary carbon offset credits from three
registries: Verified Carbon Standard (VCS), American Carbon Registry
(ACR), and Climate Action Reserve (CAR). N-GEO futures contracts are based
on voluntary carbon offset credits from VCS that are Agriculture,
Forestry, and Other Land Use (AFOLU) projects and certified by Verra
Registry’s Climate Community and Biodiversity (CCB)
Standard. | |
Cap-and-trade
regimes involve a cap set by a regulator, such as a governmental entity,
on the total greenhouse gas emissions that regulated entities can emit.
The regulated entities are issued or sold emission allowances (i.e.,
carbon credits), which the regulated entities can buy or sell (“trade”) on
the open market. To the extent that the regulator may then reduce the cap
on emission allowances, regulated entities are thereby incentivized to
reduce their emissions; otherwise they must purchase emission allowances
on the open market, where the price of such allowances will likely be
increasing as a result of demand, and regulated entities that reduce their
emissions will be able to sell unneeded emission allowances for
profit. |
KraneShares
Global Carbon
Offset Strategy ETF |
0.78% |
|
● |
Taking
the current market value of its total assets |
|
|
|
|
● |
Subtracting
any liabilities and withholdings (if any) |
|
|
|
|
● |
Dividing
that amount by the total number of shares owned by the
shareholders |