KraneShares Expands Single-Stock Levered ETF Suite With 2X Investment Exposure to Mercado Libre (KMLI)

NEW YORK, June 12, 2025 (GLOBE NEWSWIRE) -- Krane Funds Advisors (“KraneShares”), an asset management firm known for its global exchange-traded funds (ETFs), today announced the expansion of its Single-Stock Levered ETF Suite with the KraneShares 2X Long MELI Daily ETF (Ticker: KMLI), which listed today.

KMLI seeks daily investment results, before expenses and fees, of 2 times (200%) the daily percentage change of Mercado Libre, a key player in the digitalization of commerce in the developing world.

Mercado Libre is Latin America’s most popular E-Commerce platform, beating out Amazon in the region in terms of users.¹ Mercado Libre helps power the digital transformation in 18 developing and middle-income countries through frictionless commerce and financial inclusion.²

“Global consumer internet companies continue to represent an important growth theme, as internet adoption increases, especially in the developing world,” said James Maund, KraneShares Head of Capital Markets. “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. We hope to continue to expand the Suite to help our investors capitalize on the latest growth trends within international internet and technology markets.”

The global middle class already accounts for two-thirds of global spending,³ and an increasing portion of that spending is occurring online. Mercado Libre is an innovative player facilitating this transition and stands to benefit substantially from increasing E-Commerce penetration rates in global markets.

For more information on the KraneShares Single Stock Levered ETFs, please visit https://kraneshares.com/kmli or consult your financial advisor.

Investors should be aware that they can lose their entire investment. Single-stock ETFs, unlike traditional ETFs that diversify across a range of stocks, focus solely on the performance of a single stock, significantly increasing investment risk. KraneShares Single Stock Levered ETFs aim for daily investment results that match 2x the daily performance of the underlying stock. Investors should be aware that returns may diverge from the stock's actual performance if held for more than a day.

Due to their leveraged nature, these funds require close monitoring, as they can magnify both potential gains and losses. A flat performance of the underlying stock may lead to a loss, and in certain scenarios, these funds can incur losses even when the stock price fluctuates positively or negatively over several days. Therefore, they are not suitable for every investor and are specifically intended for knowledgeable individuals who grasp the mechanics of leveraged investing and are willing to actively manage risks. Understanding volatility is essential, as minor stock movements and increased volatility can result in returns that significantly deviate from the expected target.

About KraneShares

KraneShares is a specialist investment manager focused on China, Climate, and Alternatives. KraneShares seeks to provide innovative, high-conviction, and first-to-market strategies based on the firm and its partners' deep investing knowledge. KraneShares identifies and delivers groundbreaking capital market opportunities and believes investors should have cost-effective and transparent tools for attaining exposure to various asset classes. The firm was founded in 2013 and serves institutions and financial professionals globally. The firm is a signatory of the United Nations-supported Principles for Responsible Investment (UN PRI).

Citations:

1. Westberg Peter. “Mercado Libre: The Digital Backbone of Latin America,” Quartr. January 3, 2025.
2. Company Reports as of 12/31/2025.
3. Data from Brookings Institution as of 12/31/2021.
   

Important Notes:

Carefully consider the Fund’s investment objectives, risk factors, charges, and expenses before investing. This and additional information can be found in the Fund’s full and summary prospectus, which may be obtained by visiting: www.kraneshares.com/kmli. Read the prospectus carefully before investing.

Risk Disclosures:

Investing involves risk, including possible loss of principal. There can be no assurance that a Fund will achieve its stated objectives. Indices are unmanaged and do not include the effect of fees. One cannot invest directly in an index.

This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change. Certain content represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results; material is as of the dates noted and is subject to change without notice.

The Fund may invest in derivatives, which are often more volatile than other investments and may magnify Fund’s gains or losses. Derivatives (i.e., futures/forward contracts, swaps, and options) are contracts that derive their value from the performance of underlying assets. The primary risk of derivatives is that changes in the assets’ market values and the derivatives may not be proportionate, and some derivatives can have the potential for unlimited losses. Derivatives are also subject to liquidity and counterparty risks. The Fund is subject to liquidity risks, meaning that certain investments may become difficult to purchase or sell at a reasonable time and price. If transactions for these securities are large, it may not be possible to initiate them, which may cause the Fund to suffer losses. Counterparty risks are the risks of loss in the event that the counterparties to an agreement fail to make required payments or otherwise comply with the terms of the derivatives.

The Underlying Stocks are exposed to numerous risks that can impact their revenues and viability, such as price volatility, management, inflation, global economic conditions, and natural disasters. Their performances may be influenced by trends in commerce, cloud computing, international trade policies, and regulatory changes. The Fund’s daily returns rely on the Underlying Stocks' performances and volatility. Issuer-specific factors may increase Fund investment volatility compared to the overall market. Mercado Libre faces risks from competition in E-Commerce, economic uncertainties, demand declines, revenue concentration, geopolitical events, intellectual property issues, exchange rates, reliance on third-party manufacturing, shortages, cybersecurity threats, system failures, rising costs, government regulations, compliance expenses, litigation, taxes, debt, and talent retention.

The Fund aims for daily investment results of 200% of the daily percentage changes of the Underlying Stock. Their performances over longer periods will likely differ from the Underlying Stock due to compounded returns, which significantly affect leveraged funds. If the Underlying Stock perform poorly, the dollar losses for shareholders will be smaller if their investments have already decreased. Conversely, if the stocks perform well, future losses will be larger as the investment values have increased. Compounding effects become more pronounced with higher volatility and longer holding periods, impacting shareholders differently based on their investment durations and the stocks' volatility. Various factors can impact the Fund’s correlations with Underlying Stocks, and achieving high correlations is not guaranteed. If the Fund fails to achieve correlation, they may not meet their investment objectives, with NAV changes varying significantly from 200% of the Underlying Stocks' changes. To maintain correlations, the Fund’s attempt daily rebalancing for consistent exposures. Major deviations can increase leverage risks. Market disruptions and volatility can hinder the Fund’s ability to adjust. Target exposures fluctuate, making perfect 200% exposures unlikely, especially on volatile days. Other elements, like fees and market conditions, can also affect correlations. The Fund may change positions for tax efficiency, which could harm correlations. Large asset movements or trading discrepancies may lead to under- or overexposures, reducing the Fund’s ability to meet their daily objectives. The Fund uses leverage to gain investment exposure beyond their net assets, leading to potentially greater losses in adverse conditions than non-leveraged funds. A decline in the Underlying Stocks' daily performance can magnify losses, decreasing the Fund’s value by 2% for each 1% drop, excluding costs. Losses could exceed net assets if the Underlying Stock falls over 50%. Due to limited investments, the Fund may need to limit or suspend the creation or redemption of Creation Units. During these times, shares might trade at significant premiums or discounts to their net asset values. If creations are halted, large redemptions could force the Fund to sell securities at unfavorable prices, increasing costs and taxable distributions to shareholders. The Underlying Stock is listed on an exchange, but an active trading market isn't guaranteed, and trading can be halted. A halt in the Underlying Stock usually leads to a halt in the Fund's shares. Trading may stop due to market conditions or exchange decisions, and halts can occur from extraordinary volatility under circuit breaker rules. Extended trading halts may hinder the Fund's ability to arrange necessary swaps for its investment strategy.

Narrowly focused investments typically exhibit higher volatility. The Fund’s assets are expected to be concentrated in a single stock. The securities or futures in that concentration could react similarly to market developments. Thus, the Fund is subject to loss due to adverse occurrences that affect that concentration. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility. KMLI is non-diversified.

The Latin American economy is an emerging market, vulnerable to domestic and regional economic and political changes, often showing more volatility than developed markets. Companies face risks from potential government interventions, and the export-driven economy is sensitive to downturns in key trading partners, impacting the Fund. Regulatory standards in these markets are less stringent than in the U.S., resulting in limited information about issuers. Tax laws are unclear and subject to change, potentially impacting the Fund and leading to unexpected liabilities for foreign investors. The economies of certain Latin American countries have experienced high interest rates, economic volatility, inflation, and high unemployment rates. Fluctuations in the currencies of foreign countries may have an adverse effect on domestic currency values. The Fund is new and does not yet have a significant number of shares outstanding. If the Fund does not grow in size, it will be at greater risk than larger funds of wider bid-ask spreads for its shares, trading at a greater premium or discount to NAV, liquidation and/or a trading halt.

ETF shares are bought and sold on an exchange at market price (not NAV) and are not individually redeemed from the Fund. However, shares may be redeemed at NAV directly by certain authorized broker-dealers (Authorized Participants) in very large creation/redemption units. The returns shown do not represent the returns you would receive if you traded shares at other times. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns. Beginning 12/23/2020, market price returns are based on the official closing price of an ETF share or, if the official closing price isn't available, the midpoint between the national best bid and national best offer ("NBBO") as of the time the ETF calculates the current NAV per share. Prior to that date, market price returns were based on the midpoint between the Bid and Ask price. NAVs are calculated using prices as of 4:00 PM Eastern Time.

The KraneShares ETFs and KFA Funds ETFs are distributed by SEI Investments Distribution Company (SIDCO), 1 Freedom Valley Drive, Oaks, PA 19456, which is not affiliated with Krane Funds Advisors, LLC, the Investment Adviser for the Fund, or any sub-advisers for the Fund.

Contact:
KraneShares Investor Relations
info@kraneshares.com

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