Direxion Investments has launched the first 2x leveraged exchange-traded fund (ETF) tied to China A-shares – the Daily CSI 300 China A Share Bull 2x Shares.
The new ETF seeks daily investment results, before fees and expenses, of 200% of the performance of the CSI 300 Index, which consists of 300 market-capitalisation-weighted China A-share stocks.
“Until recently, US investors and traders had few options for accessing China A-shares, which have been available only to Chinese citizens and a few qualified foreign institutions,” says Brian Jacobs, President of Direxion Investments. “The CSI 300 Index tracks China A-shares, and this new ETF offers US investors a way to gain leveraged exposure to the index. CHAU provides an unprecedented opportunity for experienced traders to magnify their exposure to mainland Chinese stocks.”
China A-shares, which trade on the Shanghai and Shenzhen Stock Exchanges, account for roughly two-thirds of the market capitalisation of Chinese stocks. Since most foreign investors cannot purchase China A-shares, investors in most existing China ETFs lack exposure to the majority of Chinese companies. Aside from CHAU, no other ETF currently provides leveraged exposure to this asset category.
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.
