KraneShares Unveils Leveraged ETF For Investors Bullish On Mercado Libre

KraneShares is doubling down on Latin America’s digital economy, literally. The company on Thursday introduced the KraneShares 2x Long MELI Daily ETF KMLI, a new leveraged fund that is intended to track twice the daily movement of MercadoLibre MELI, the region’s top e-commerce and fintech giant.

Now listed on the Nasdaq, KMLI is the newest single-stock leveraged ETF of KraneShares’ expanding lineup. The company has already launched funds tracking China tech stalwarts such as Alibaba Group Holding Ltd – ADR BABA and PDD Holdings Inc – ADR PDD, and now is focusing on Latin America’s digital crown jewel.

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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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