The Direxion Daily FTSE CHINA BEAR 3X SHARES, has been up nearly 100% over the last month. From the prospectus, the Fund seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the daily performance of the FTSE China 50 Index (the “Index”).
The Top 10 Holdings of the fund are,
Tencent Holdings – 9.27
Alibaba Group – 9.23
Meituan – 8.72
China Construction Bank – 6.52
Industrial Commerc Bk China – 4.71
PING An – 4.57
JD.com – 4.47
Baidu Class A (Proposed) – 4.25
WUXI Biologics (Cayman) – 4.06
Xiaomi Corp – 3.12
ETF Newz Says:
There is growing pressure from the SEC on the ADRs or American Depository Recepits of many of these Chinese companies. The SEC has requested further documentation from some of the Chinese Companies as the US requirements for listing are higher than those of Chinese Stocks. There is a risk that the ADRs could be delisted in the US.