One China ETF Lost You Money Regardless of Your Correct Research
The Shanghai Stock Exchange Composite Index is down about 13 percent year to date. The Chinese market is one of the worst performing major world markets this calendar year.
On hindsight it seems investors who did their homework and shorted the China general market, at the beginning of the year, by way of owning bear China ETF’s have made a handsome return.
This is true on the surface because it seems, at least, one of the bear China ETF’s is a decaying asset and quite frankly should not be trusted or owned by investors.
While the ProShares UltraShort FTSE China 25 (NYSE: FXP) is up 18 percent year to date the Direxion Daily China Bear 3X Shares (NYSE: YANG) is down 28 percent year to date.
Clearly not all ETF’s are structured correctly and investors need to beware of the decaying factor in some ETF’s.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.