The MSCI China index is up about 13% year-to-date, so it’s no surprise investors are piling into Chinese equities amid a vaccine rollout. This is feeding into strength for a pair of bullish leveraged ETFs from Direxion Investments: the Direxion Daily FTSE China Bull 3X ETF (YINN) and the Direxion Daily CSI China Internet Bull 2X Shares (CWEB).
YINN is up 41.67% to start the the year, and as China continues to recover after being in the eye of the storm of the pandemic, more gains could be ahead for bullish traders. As for the fund itself, YINN seeks daily investment results equal to 300% of the daily performance of the FTSE China 50 Index.
The fund, under normal circumstances, invests at least 80% of its net assets in financial instruments, such as swap agreements, and securities of the index, ETFs that track the index, and other financial instruments that provide daily leveraged exposure to the index or ETFs that track the index.
As far as the index is concerned, it consists of the 50 largest and most liquid public Chinese companies currently trading on the Stock Exchange of Hong Kong.
To summarize its benefits, YINN gives traders the ability to:
- Magnify short-term perspective with daily 3X leverage;
- Go where there’s opportunity, with bull and bear funds for both sides of the trade; and
- Stay agile with liquidity to trade through rapidly changing markets
Over the past six months, YINN has gained almost 90%:
An Internet Bull in China Keeps Charging
The Direxion Daily CSI China Internet Bull 2X Shares (CWEB) reached a high of $86.44 just recently, beating its previous high of $69.10. Fast forward to today and the ETF continues to climb on the back of momentum from a heavier reliance on the internet amid social distancing measures.
CWEB seeks daily investment results equal to 200% of the daily performance of the CSI Overseas China Internet Index, which is designed to measure the performance of the investable universe of publicly traded China-based companies whose primary business or businesses are in the Internet and Internet-related sectors.
The fund is not too far from reaching the 200% gain level within the past year. Momentum is clearly on CWEB’s side. so this milestone could come sooner rather than later.
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