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MercadoLibre, also referred to as the “Amazon of Latin America,” has operations in 18 nations and does much more than just online sales. Its ecosystem encompasses online marketplaces, digital payment wallets, credit services and logistics and is a one-stop provider of digital transformation for the entire continent.

But those interested in jumping into KMLI should understand this is not a classic buy-and-hold trade. As with all leveraged ETFs, KMLI daily resets, which means its performance compounds differently over the long run, particularly in volatile markets. Translation: this is a tactical asset, not an investment for the long run.

With its 1.26% expense ratio, KMLI is targeted squarely at seasoned traders who are bullish on Mercado Libre — and who have the stomach for heightened swings. For when you crank up the exposure, you also crank up the risk.

So if Mercado Libre rockets, KMLI might soar higher. But if it falters? You can expect a bumpy ride.

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