Krane Funds Advisors added a new single-stock leveraged ETF following one of China’s largest online retailers. KraneShares 2X Long JD Daily ETF (NASDAQ:KJD) began trading on Oct. 15, providing investors with double (200%) daily exposure to JD.com Inc.’s (NASDAQ:JD) stock, before expenses and fees.
• JD shares are experiencing downward pressure. Check the full analysis here.
JD.com, which has been called China’s “Amazon equivalent,” is the nation’s largest retail e-commerce company by sales and one of the first to establish an in-house logistics network.
The firm now sells that infrastructure internationally under a “retail-as-a-service” concept, assisting foreign merchants in optimizing supply chains and delivery operations.
Only days after the launch of the ETF, JD.com shares fell by close to 3% on Friday, Oct. 17, as tensions between Washington and Beijing over global politics rose.
The decline mirrored wider investor nerves with mounting trade tensions that are remapping international supply chains. Chinese exporters are diversifying more out of the U.S. and redirecting exports to Europe, Latin America, the Middle East and Africa, as per a report by Reuters.
The round of tariffs, retaliations and possible triple-digit tariffs on Chinese products following Beijing’s restrictions on rare earth exports, has contributed to market volatility and increased competition abroad.
The launch emphasizes KraneShares’ expansion into leveraged single-stock ETFs, optimized for traders looking for leveraged, short-term exposure to individual names. The company continues to expand the suite in key growth categories such as technology, e-commerce and global internet platforms.
Even in the face of near-term geopolitical headwinds, KraneShares pointed out that the world’s middle class already provides two-thirds of total global spending, with a growing proportion occurring online. As more consumers move to digital platforms, e-commerce penetration rises and logistics demand globally increases, companies such as JD.com stand to gain.
Read Next:
Photo: Shutterstock
