CHAD is an inverse though not leveraged ETF that seeks to deliver the daily inverse returns of the CSI 300 Index, the underlying benchmark for ASHR, the largest U.S.-listed A-shares ETF. With A-shares valuations surging and investors growing wary of that, CHAD could be the right way to play mainland China stocks in the coming weeks.
“On the surface, the debut of a bearish China ETF seems like a risky proposition. After all, the top four ETFs in terms of year-to-date percentage gains — and five of the top six — are Chinese shares funds. But as this week has shown, mainland Chinese stocks can swiftly correct, and some investors are not waiting around for those declines to worsen. The Hang Seng China AH Premium Index recently traded at its highest levels since 2009,” reports TheStreet.com.
CHAD Index Sector Weights
ETF Trends editorial team contributed to this post.