KraneShares 2X Long BABA Daily ETF​

Frequently Asked Questions About KBAB

What does KBAB invest in?

The KraneShares 2x Long BABA Daily ETF (KBAB) is an exchange-traded fund designed to deliver daily investment performance that mirrors two hundred percent (200%) of the daily price movement of Alibaba Group Holding Limited's (NYSE: BABA) American Depositary Receipt (ADR), prior to the deduction of fees and expenses. To achieve this magnified exposure, the fund strategically employs various derivative instruments, including swap agreements and options.

What is the expense ratio of KBAB?

KraneShares 2X Long BABA Daily ETF​ (KBAB) charges an expense ratio of 1.26%. This is the annual fee deducted from fund assets to cover management and operations.

Is KBAB a good long-term hold?

KBAB is a leveraged fund designed to deliver a daily multiple of its underlying index. Daily reset compounding means returns over multi-day periods can diverge significantly from the headline multiple — typically negative drift in choppy markets. These funds are designed for short-term tactical use, not buy-and-hold. Review the fund's prospectus before holding more than a few days.

How does KBAB's daily reset work?

KBAB rebalances exposure each trading day to maintain its target leverage ratio against the next day's move. The daily reset means returns compound at the daily level — so a +1%, −1% sequence on the underlying doesn't return the underlying to flat after the leverage multiplier. Over time this path-dependence erodes returns in volatile markets and amplifies them in trending markets.

How big is KBAB?

KraneShares 2X Long BABA Daily ETF​ (KBAB) manages $3.0M in total assets. AUM determines bid-ask liquidity and the fund's vulnerability to closure — funds below ~$50M are at higher risk of liquidation.

Is KBAB actively managed or an index fund?

KBAB's management style is described in the fund's prospectus. See the description on the Summary tab for the published strategy.