KraneShares announced the launch of its newest single-stock leveraged ETF focused on Mercado Libre. The KraneShares 2x Long MELI Daily ETF (KMLI) trades on the Nasdaq and expands the firm’s existing single-stock leveraged suite.
“Global consumer internet companies continue to represent an important growth theme, as internet adoption increases, especially in the developing world,” James Maund, head of capital markets at KraneShares, said in the press release. “We are excited to expand our Single-Stock Levered ETF Suite with KMLI, whose underlying exposure, Mercado Libre, is a cornerstone of the digital transformation in Latin America.”
Mercado Libre is the top e-commerce platform in Latin America, providing services to 18 countries. The company’s MarketPlace connects buyers and sellers of a wide range of goods and services. It includes auctioning for items as well as the ability to purchase directly. The company also offers a payment system, a credit line and system, and more. Through its platforms, Mercado Libre helps to drive the digital transformation in the region, offering financial inclusion and streamlined commerce, according to KraneShares.
“KraneShares is the go-to partner for many ETF-centric advisors seeking exposure to emerging market growth companies,” remarked Todd Rosenbluth, head of research at VettaFi. “Expanding its lineup today further cements that leadership.”
KMLI: Bullish Opportunity for Experienced Investors
KMLI seeks to provide investors with twice the daily performance of Mercado Libre. The fund offers a bullish take on Mercado Libre through its long leveraged exposures. However, as with all leveraged funds, the ETF has a high-risk profile. That’s because potential gains and losses are amplified and should only be accessed by experienced investors.
As the fund seeks to provide twice the daily percentage change of Mercado Libre, holding the fund for investment periods longer or shorter than a day will result in differentiated results. Should investors hold for longer than a day, compounded daily returns will impact investment returns. Greater stock volatility will also impact leveraged performance.
The fund joins the firm’s existing leveraged ETF suite that includes the KraneShares 2x Long BABA Daily ETF (KBAB) and the KraneShares 2x Long PDD Daily ETF (KPDD). KMLI carries an expense ratio of 1.26%.
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