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Latest KraneShares 2x Long PDD Daily ETF  News | NASDAQ:KPDD | Benzinga

Munich,,Bavaria,,Germany,-,March,31,2023:,Kraneshares,Is,A

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KraneShares launches leveraged ETFs KPDD and KBAB for 200% daily exposure to PDD Holdings and Alibaba respectively. High risk, short-term trading.

KraneShares Launches Single-Stock Leveraged ETF Suite Featuring Alibaba And PDD Holdings

KraneShares 2x Long PDD Daily ETF

Global asset management firm Krane Funds Advisors introduced its Single-Stock Levered ETF Suite with the launch of the KraneShares 2X Long PDD Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KPDD#NASDAQ">KPDD</a>) and the KraneShares 2X Long BABA Daily ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/KBAB#NASDAQ">KBAB</a>) that began trading Thursday on Nasdaq.



KPDD and KBAB are structured to provide 200% of the daily percentage change of their respective underlying stocks, prior to fees and expenses. This gives investors with<a href="https://www.benzinga.com/etfs"> leveraged exposure </a>to PDD Holdings (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PDD#NASDAQ">PDD</a>) and Alibaba (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BABA#NYSE">BABA</a>).



KPDD comes with an expense ratio of 1.26%, and KBAB has a management charge of 0.99%. Nonetheless, KraneShares has imposed a fee waiver for KBAB until Aug. 1, 2026.



Also Read:<a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/03/44301370/smart-etf-picks-for-a-cooling-inflation-era"> Smart ETF Picks For A Cooling Inflation Era</a>



PDD Holdings is a&nbsp;world-leading&nbsp;e-commerce&nbsp;player&nbsp;with&nbsp;presence&nbsp;in&nbsp;more&nbsp;than&nbsp;19 countries. Its&nbsp;overseas&nbsp;platform, Temu,&nbsp;outpaced&nbsp;Amazon&#8217;s&nbsp;monthly active&nbsp;buyers&nbsp;and&nbsp;reached&nbsp;$50 billion&nbsp;annual gross merchandise&nbsp;volume&nbsp;in 2024.



Meanwhile, Alibaba, the world&#8217;s third-largest e-commerce retailer, has increased its footprint in AI, cloud computing, logistics, fintech, and media. Its shares have recently picked up pace after it introduced its Qwen2.5 series large language model and a new AI collaboration with Apple (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AAPL#NASDAQ">AAPL</a>) to include cutting-edge features on iPhones being sold in China.



Both PDD and Alibaba have&nbsp;been&nbsp;among the&nbsp;most&nbsp;prominent&nbsp;holdings&nbsp;within&nbsp;the KraneShares CSI China Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/KWEB#NYSE">KWEB</a>). 



Leveraged ETFs like KPDD and KBAB provide an efficient way for investors to amplify their exposure to leading Chinese internet stocks. "China Internet continues to be an important global growth theme," <a href="https://kraneshares.com/kraneshares-launches-single-stock-levered-etf-suite-with-2x-investment-exposure-to-temu-parent-pdd-holdings-kpdd-and-alibaba-kbab/">said </a>James Maund, KraneShares' Head of Capital Markets. "Our Single-Stock Levered ETF Suite provides a convenient way for bullish investors to gain levered exposure to top companies, including the largest China internet stocks."



These funds do,&nbsp;however,&nbsp;contain&nbsp;a&nbsp;lot&nbsp;of&nbsp;risk. They are&nbsp;meant&nbsp;for&nbsp;single-day trading,&nbsp;so&nbsp;their&nbsp;performance&nbsp;is&nbsp;best&nbsp;used&nbsp;for short-term&nbsp;purposes.&nbsp;Keeping&nbsp;them&nbsp;for&nbsp;more&nbsp;than&nbsp;a day can&nbsp;result&nbsp;in&nbsp;returns&nbsp;compounding in a way&nbsp;that&nbsp;could&nbsp;stray&nbsp;from twice the&nbsp;performance of the&nbsp;stock&nbsp;due to market&nbsp;conditions.



Mechanics of KPDD and KBAB



The KBAB&nbsp;seeks&nbsp;to&nbsp;replicate&nbsp;200% of&nbsp;Alibaba&#8217;s ADR,&nbsp;on&nbsp;a&nbsp;daily basis.&nbsp;This&nbsp;is&nbsp;accomplished&nbsp;through an investment&nbsp;in Alibaba&nbsp;stock and&nbsp;the&nbsp;use of&nbsp;swap agreements and options to&nbsp;multiply&nbsp;returns.



In the same way, the KPDD&nbsp;aims&nbsp;to&nbsp;double the daily returns of PDD Holdings&#8217;&nbsp;ADR.&nbsp;Similar&nbsp;to&nbsp;KBAB, it&nbsp;uses&nbsp;swaps and options for leveraged exposure and&nbsp;daily&nbsp;rebalancing.



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