ProShares launched an exchange traded fund (ETF) that moves opposite of an index that trades shares of Chinese companies trading on the Hong Kong stock exchange. The Ultrashort FTSE/Xinhua China 25 Index (FXP) seeks results that correspond twice (200%) the inverse of the daily performance of the FTSE/Xinhua China 25 Index. The expense ratio is 0.95%.
Carl Delfeld for ETFXRAY suggests another way to hedge China: by buying a put option on iShares FTSE/Xinhua China 25 Index (FXI). This ETF fell 10% on Monday, after China pulled out of their proposal allowing Mainland China investors to buy shares in Hong Kong.
Pete Bucci for Ignites reports that this year investors have withdrawn around $162 million from three China-focused ETFs. The new ProShares ETF suggests that providers anticipate the market will lose favor for U.S. investors.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.