“China A-shares account for roughly two-thirds of the market capitalization of Chinese stocks, and are listed on the Shanghai and Shenzhen Stock Exchanges. Since most foreign investors cannot purchase China A-shares, investors in most existing China ETFs lack exposure to the majority of Chinese companies,” according to Direxion. “Since July 2014 China’s growth has drifted steadily lower, yet the A-shares have soared in value. Some think this means China’s markets may veer into bubble territory.”
CHAD is an inverse though not leveraged ETF that seeks to deliver the daily inverse returns of the CSI 300 Index. 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. [The Right China ETF for the Moment]
Granted, CHAD’s operating history is limited to say the least, but the ETF was active yesterday with 10 new creations, taking its shares outstanding tally to 600,000 from 100,000. Based on Monday’s close of $42.20, that means CHAD has needed just four days of trading to eclipse $25 million in assets under management.
Direxion 2x Daily CSI 300 China A Share ETF
