KraneShares 2x Long JD Daily ETF (KJD)

Overview

KJD is a specialized short-term tactical fund aimed at making bullish investments on the price fluctuations of JD's American Depository Receipts (ADR). Designed to achieve double the daily price return—after fees and expenses—of JD, this fund leverages direct investments in JD and various financial derivatives, including swaps. The essence of KJD is rooted in its daily rebalancing strategy, which helps maintain its investment exposure to JD. However, investors must be aware that holding this fund for longer than a single day may result in returns deviating from the expected 2x due to compounding effects. The fund presents unique risks, particularly if JD's value declines by over 50%, which could lead to a total loss for investors. Furthermore, there exists the potential for losses over time, even in cases where JD's performance seems to strengthen. Therefore, it is crucial for potential purchasers to carry out their stock research thoroughly before making an investment and to approach trading decisions with strong conviction. This fund is tailored primarily for investors who possess a high tolerance for risk and a short-term investment horizon.

Products and Services

• Short-term Tactical Fund:

  KJD is engineered specifically for quick trades, providing investors a framework to capitalize on short-term price movements of JD's ADR. This fund offers a strategy for investors willing to assume higher risks in pursuit of greater rewards.

• 2x Daily Investment Exposure:

  Through a strategy of leveraging direct investments and derivatives, KJD aims to provide 2x the daily price return of JD. This offer is geared towards those interested in amplified returns from their investments, with a focus on a one-day timeframe.

• Daily Rebalancing:

  The fund utilizes a daily rebalancing mechanism to maintain its exposure levels effectively. This process helps rebalance the investment to meet the fund's target return, ensuring that it stays aligned with market movements.

• High-risk Investment Profile:

  KJD is suitable for investors who embrace a high-risk tolerance level. This fund is not for the faint-hearted; it is designed for those who can accept the risk of total loss in exchange for the potential of substantial short-term profit.

• Guidance for Investors:

  The fund emphasizes the importance of conducting thorough research prior to initiating a position. It encourages traders to make informed decisions based on comprehensive analysis, ensuring they engage in trading with firm conviction.