What this ETF is trying to do

The KRANESHARES 2X LONG MELI DAILY ETF (KMLI) is a leveraged ETF. It is designed to provide two times (2x) the daily return of its target investment. Based on the supplied holdings, this fund focuses on MercadoLibre Inc (MELI). Because it is leveraged, it is built for short-term trading rather than long-term investing.

What the numbers show

The recent price data for KMLI shows a significant decline. As of September 24, 2026, the current price is $8.40. An estimated price from roughly one year ago was $26.07.

The performance figures are as follows:

• Year-to-Date (YTD) Price Return: -39.14%

• One-Year Price Return: -67.77%

• One-Year Total Return: -64.30%

The total return is slightly different from the price return because it includes the impact of distributions.

Income and distribution explanation

KMLI has a distribution yield of approximately 17.46%. Over the last 12 months, it has made two payouts totaling $1.47 per share. The distribution frequency is listed as irregular or less frequent.

It is important for beginners to know that a high distribution yield can be misleading. In this case, while the fund paid out cash, the total return for the year was still -64.30%. This shows that the income provided did not offset the large drop in the share price.

NAV erosion explanation

The supplied data is sufficient to evaluate price erosion, but it does not include enough historical NAV-per-share data to confirm or rule out NAV erosion.

However, the price-based evidence is significant. KMLI has an erosion score of 10, which is labeled as "severe price erosion." Additionally, a severe erosion-risk flag is active. This flag was triggered because the split-adjusted price trend and the erosion score show substantial price deterioration.

Pros

• High Distribution Yield: The fund provides a high percentage of cash distributions relative to its price.

• Targeted Exposure: It provides a way to get leveraged exposure to a specific company (MercadoLibre Inc).

Cons

• Severe Price Decline: The share price has dropped significantly over the last year.

• High Risk: As a leveraged ETF, it is subject to more volatility than a standard ETF.

• Poor Income Grade: The fund has an income rating grade of "F."

Beginner takeaway

KMLI is a high-risk, leveraged tool. While it offers a high distribution yield, the share price has fallen sharply, leading to a severe erosion-risk warning. This is a reminder that receiving cash distributions does not guarantee that your original investment (the principal) is safe.