KBAB +2x KraneShares 2x Long BABA Daily ETF

KBAB

ETF +2x BULL standard
KraneShares 2x Long BABA Daily ETF
Issuer: KraneShares · Tracks: BABA · Listed: 2025-03-07
Implied AUM
$3.8M
Last Close
$8.36
20260720
30d Avg Vol
28,304
Options
—
Realized return vs theoretical +2x BABA
Other leveraged products tracking BABA
Symbol Factor Direction Issuer Name Implied AUM 30d Vol Options
BABX +2x BULL GraniteShares GraniteShares ETF Trust GraniteShares 2x Long BABA Daily ETF $114.6M 1,025,275
BABU +2x BULL Direxion Direxion Daily BABA Bull 2X ETF $13.3M 257,255

How KBAB works

KBAB targets +2x the daily return of BABA — not the cumulative return over multi-day windows. The fund rebalances at the close each day using swaps or futures, which is what creates the volatility drag the chart above visualizes.

Mathematical headline: drag ≈ −0.5 × N × (N−1) × σ² per period. For a +2x product on an underlying with 25% annualized vol, expected annual drag is around 6.2%. Add expense ratio and the realized number is typically worse.

  • Short-term tactical: daily and intraday holds are where these products were designed to live.
  • Premium selling: options on KBAB carry very rich IV — see the quote page for IV rank and straddle pricing.
  • Multi-day directional: works in strong trends; gets eaten alive in chop. Use the chart above to gauge the realized vs theoretical track record.