“Like all leveraged ETFs, this Fund is intended only for traders with an in-depth understanding of the risks associated with seeking leveraged investment results, and who plan to actively monitor and manage their positions. There is no guarantee that the Fund will meet its objective,” said Direxion of CHAU.
Direxion is also planning inverse A-shares ETF, the Direxion -1x Daily CSI 300 China A Share ETF (NYSEArca: CHAD). That ETF was originally supposed to debut today, but its launch date has been pushed back.
CHAU is not Direxion’s first leveraged China ETF. The firm sponsors the Direxion Daily China 3x Bull (NYSEArca: YINN) and the Direxion Daily FTSE China Bear 3X Shares (NYSEArca: YANG), the triple-leveraged answers to the iShares China Large-Cap ETF (NYSEArca: FXI), the largest China ETF trading in the U.S.
CHAU charges 0.95% per year.
ETF Trends editorial team contributed to this post.