KraneShares 2x Long MELI Daily ETF (KMLI) seeks to provide 200% of the daily performance of MercadoLibre Inc. (MELI), Latin America's largest e-commerce and fintech company. This leveraged single-stock ETF amplifies exposure to Argentina-based MELI's stock movements through derivatives.
How It Works
KMLI uses swap agreements and other derivatives to deliver twice the daily return of MELI stock, resetting exposure each trading day. The fund does not hold MELI shares directly but instead uses financial instruments that track the stock's performance. Daily rebalancing means the fund's leverage ratio returns to 2:1 each day regardless of previous performance. As a single-stock leveraged ETF, it provides concentrated exposure to one company's fortunes.
Key Features
- Only ETF providing 2x leveraged exposure to MercadoLibre, Latin America's dominant e-commerce and digital payments platform
- Daily reset mechanism maintains consistent 2x leverage ratio, unlike buy-and-hold leveraged positions that drift over time
- Newly launched fund with 0.00% expense ratio, though this promotional rate may increase after initial period
Risks
- This ETF can lose significant value if MELI stock declines, with losses amplified 2x—a 25% MELI drop results in approximately 50% ETF loss
- Daily rebalancing causes compounding decay over multiple days; consecutive volatile sessions can erode value even if MELI ends unchanged
- Single-stock concentration means total dependence on MercadoLibre's business performance, Latin American economic conditions, and Argentine regulatory environment
Who Should Own This
Designed for active traders with very high risk tolerance seeking short-term (hours to days) amplified exposure to MercadoLibre stock movements. Requires daily monitoring and should represent less than 5% of portfolio. Unsuitable for buy-and-hold investors due to compounding decay effects over extended periods.