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Pete Bucci for Ignites reports that this year investors have withdrawn around $162 million from three China-focused ETFs.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.
Corrected version.
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