Direxion Daily FTSE China Bull 3x Shares (ARCA: YINN)

Direxion Daily FTSE China Bull 3x Shares (ARCA:YINN), Trade Ideas

Direxion’s YINN And YANG – Will Chinese Markets Move Up Or Down?

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The Direxion Daily FTSE China Bull 3X Shares (NYSEARCA: YINN) seeks daily investment results, before fees and expenses, of 300% of the performance of the FTSE China 50 Index.

Direxion&#39;s YINN And YANG – Will Chinese Markets Move Up Or Down?

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Direxion Daily FTSE China Bull 3X Shares (NYSE: YINN) and Direxion Daily FTSE China Bear 3X Shares (NYSE: YANG) are ETFs tracking the direct or inverse results of the FTSE China 50 Index by 300% a

YINN, YANG Pushed To Extremes As Chinese Stocks Rebound: How To Play The Funds

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

While the New York Stock Exchange had a hard time making up its mind regarding the listing fate of several of Chinese telecom companies, some index providers aren&#39;t playing around.

Despite All The Commotion, Delisting Controversy Not Taking Toll On Leveraged China ETF

Direxion Daily FTSE China Bull 3x Shares

The Direxion Daily FTSE China Bull 3X Shares (NYSEARCA: YINN) seeks daily investment results, before fees and expenses, of 300% of the performance of the FTSE China 50 Index.
The Direxion Daily FTSE China Bear 3X Shares (NYSEARCA: YANG) similarly seeks to magnify returns on the performance of the FTSE China 50 Index, but this time by seeking daily investment results of 300% of the inverse of the index&rsquo;s performance, before fees and expenses.
Consider trading these funds for the ability to potentially magnify returns based on the performance of that index &ndash; whether positive or negative.
The Chinese economy is the second largest economy in the world when ranked by nominal GDP and the largest when ranked by purchasing power parity. Home to some of the world&rsquo;s largest companies, China may be an attractive market for traders seeking to diversify their trades.
Weighted heavily in the consumer and financial sectors, the FTSE China 50 index is made up of the top 50 Chinese companies trading on the Hong Kong Stock Exchange in terms of size and liquidity. So the Direxion Daily FTSE China Bull and Bear 3x Shares provide daily exposure to Chinese giants like Tencent Holdings, Alibaba Group, Meituan, JD.com, China Construction Bank, Industrial Commerce Bank China, Ping An, Baidu, Bank of China and Wuxi Biologics.
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Direxion's YINN And YANG – Will Chinese Markets Move Up Or Down?

AAPL

AMZN

PLTR

TSLA

Top WallStreetBets Mentions for Tuesday May 31, 2022 Premarket: TSLA, GME, AMC, AMZN, PLTR, CEI, AMD, AAPL, YINN, CRM

Stock Split

Direxion Daily FTSE China Bull 3X Shares Trading Following Effect of 1:10 Reverse Stock Split

Direxion Daily FTSE&nbsp;China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) and Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>) are&nbsp;ETFs tracking the direct or inverse results of the FTSE China 50 Index by 300% and&nbsp;have experienced high levels of volatility over recent weeks.
The increasing volatility began on Feb. 23 following Russia&rsquo;s invasion of Ukraine, which stirred fear China could become at least partly involved in the crisis.
The Asian country has also been battling with a <a href="https://www.cbsnews.com/news/china-covid-lockdown-changchu-9-million-residents/">new wave</a> of the omicron COVID-19 virus, and on March 11 Chinese officials announced a lockdown for the city of Changchun, which has a population of nine&nbsp;million people.
The latest news has only accelerated the decline of Chinese stocks, which have plummeted over the past many months amid regulatory fears amid China&rsquo;s crackdown on its native companies. Alibaba Group Holdings&nbsp;Ltd - ADR&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>), the second-largest <a href="https://research.ftserussell.com/Analytics/FactSheets/temp/b0db0e50-1447-42d8-a48c-291f4e9fa84a.pdf">holding</a> in the FTSE China 50 Index with a weighting of 8.48%, plunged about 77% from Oct. 27, 2020, all-time high of $319.32 to reach a multi-year low of $73.28 on March 15.
On March 16, YINN and YANG reversed course after The China Securities Regulatory Commission <a href="https://www.reuters.com/business/china-securities-regulator-push-forward-overseas-listing-rules-2022-03-16/">said it would</a> work with U.S. regulators to find a solution over audit supervision, which has put some China-based stocks in risk of being delisted from U.S. stock exchanges.
YINN, a triple leveraged fund that is designed to outperform the China 50 Index by three times, plummeted more than&nbsp;63% between Feb. 23 and March 15 before beginning to rebound. YANG, which is inversely correlated to the FTSE China 50 and delivers three times its decline, soared 144% higher over that same time period before suffering a massive sell-off.
The massive amount of volatility in the funds appears to have somewhat subdued over the past few trading days, although on Friday, YINN was soaring about 17% higher and YANG was falling about 16% lower. 
Over the coming trading days, it is likely that both funds will enter into consolidation patterns before continuing in the trends YINN and YANG have developed into on their charts.
It should be noted&nbsp;that events affecting the general markets, negative or positive reactions to earnings prints and news headlines can quickly invalidate patterns and breakouts. As the saying goes, &quot;The trend is your friend until it isn&#39;t,&quot; and any trader in a position should have a clear stop set in place and manage their risk versus reward.
See Also:&nbsp;<a href="https://www.benzinga.com/government/22/03/26159944/heres-why-alibaba-and-other-chinese-stocks-are-trading-higher-premarket">Here&#39;s Why Alibaba And Other Chinese Stocks Are Trading Higher Premarket</a>
The YINN Chart: In YINN&rsquo;s decline, the fund formed into a falling channel between two parallel trendlines and on March 16, YINN gapped up about 25% on the open, which represented a bullish break from the channel. A falling channel is considered to be a bearish pattern until a stock or ETF breaks up from the upper descending trendline of the pattern on higher-than-average volume.
<ul>
<li>YINN consolidated on Thursday with a bullish inside bar pattern and on Friday, the fund broke up bullishly from the pattern.</li>
<li>The fund may be forming an uptrend but will need to print a higher low above $2.80 in order to confirm the pattern. Bullish traders may choose to take a position when the higher low is confirmed by a reversal candlestick such as a doji or hammer.</li>
<li>YINN is trading on higher-than-average volume again on Friday, which indicates there is a high level of bullish interest in the fund.</li>
<li>There is resistance above at $6.31 and $7.75 and support below at $4.45 and $2.80.</li>
</ul>
Want direct analysis? Find me in the BZ Pro lounge! <a href="https://benzinga.grsm.io/1ih7p9hphj9p">Click here</a> for a free trial.
<img alt="yinn_mar_18.png" src="https://www.benzinga.com/files/u278075/yinn_mar_18.png" style="height:427px; width:760px" />
The YANG Chart: After reaching a 52-week high of 48.44 on March 15, YANG gapped down more than 30% the following day and has continued to plummet since, plunging an additional 48% to trade below the $15 level.
<ul>
<li>Like YINN, YANG has had much higher-than-average volume but in this case the volume is bearish and indicates more downside may be in the cards.</li>
<li>The most likely scenario is that YANG will form an inside bar on Monday because the massive drop has pushed the relative strength index down to the 38% level.</li>
<li>The fund will eventually need to bounce up to form a lower high on the daily chart, and traders who are bearish on the FTSE China 50 Index may choose to take a position in YANG on confirmation of the lower high.</li>
<li>YANG has resistance above at $15.70 and $17.26 and support below at $12.68 and $10.35.</li>
</ul>
<img alt="yang_mar_18.png" src="https://www.benzinga.com/files/u278075/yang_mar_18.png" style="height:427px; width:760px" />

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
While the New York Stock Exchange had a hard time making up its mind regarding the listing fate of several of Chinese telecom companies, some index providers aren&#39;t playing around.
<h3>What Happened</h3>
On Thursday evening, FTSE Russell and MSCI, two of the largest sponsors of indexes used by issuers of exchange traded funds, announced the removal of some Chinese telecom companies from their benchmarks.
Add to that, next Monday, the &ldquo;Executive Order on Addressing the Threat from Securities Investments That Finance Communist Chinese Military Companies&rdquo; signed by President Trump goes into effect.
Combine those scenarios and it would be reasonable to expect these would be go-go days for the Direxion DailyFTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>). In reality, it&#39;s YANG&#39;s bullish counterpart, the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) that&#39;s looking appealing.
<h3>Why It&#39;s Important</h3>
YINN, which attempts to deliver <a href="https://www.direxion.com/product/daily-ftse-china-bull-bear-3x-etfs">triple the daily performance</a> of the FTSE China 50 Index, is higher by almost 7% over the past week, indicating an arguably surprising level of immunity to the China delisting controversy.
Still, there could be some reconfiguring in store for YINN&#39;s underlying index if more Chinese companies draw the ire of U.S. regulators and the major index providers.
&ldquo;Major international index providers completed their consultation processes and announced their plans,&rdquo; <a href="https://www.morningstar.com/articles/1017065/what-delisting-chinese-stocks-from-nyse-means-for-passive-funds">according to Morningstar</a>. &ldquo;The major benchmark providers will exclude the securities listed by the Office of Foreign Assets Control, or OFAC, from their equity and fixed-income indexes. Any index funds and exchange-traded funds whose benchmarks will be excluding the affected securities will follow suit.&rdquo;
Conversely, YINN could be in style for much of this year because analysts and asset allocators are bullish on emerging markets equities and its hard to extol that point of view while being on bearish on China &ndash; the largest developing economy.
<h3>What&#39;s Next</h3>
Given the fluidity of the listing situation, the bearish YANG may have its moments over the near-term, particularly if the scope of the aforementioned executive order is widened.
&ldquo;However, the interpretation of the executive order remains fluid. On Dec. 31, 2020, the New York Stock Exchange announced plans to delist the ADRs of three Chinese telecom companies,&rdquo; notes Morningstar. &ldquo;It put this on hold Jan. 4, 2021 but <a href="https://www.morningstar.com/articles/1017024">reverted to its original plan on Jan. 6</a>. The latest guidance from the OFAC, issued on Jan. 6, explicitly stated three NYSE-listed ADRs and subsidiaries of the military companies were subject to the executive order. As such, we expect that international index providers will make further announcements in the days to come.&rdquo;
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
The November rally in U.S. equities may be garnering most of the attention (especially as we get closer to having a COVID-19 vaccine) but don&rsquo;t sleep on China.
Among Direxion&rsquo;s stable of leveraged ETFs, two of the five top-performing funds year to date provide magnified exposure to China. Here&rsquo;s a breakdown of what has driven each fund higher.
<h3>Daily CSI 300 China A Share Bull 2X Shares</h3>
The <a href="https://www.direxion.com/product/daily-csi-300-china-a-share-bull-2x-etf?utm_source=fajardo&amp;utm_medium=Benzinga&amp;utm_campaign=David" style="color:blue; text-decoration:underline">Direxion Daily CSI 300 China A Share Bull 2X Shares</a>&nbsp;(NYSE:&nbsp;<a class="ticker" href="https://www.benzinga.com/stock/chau#NYSE">CHAU</a>) finds itself higher by about 17% over the past month. The ETF, which aims to deliver 200% the daily performance of the CSI 300 Index, has been propelled to its current levels thanks to strength across a surprising array of consumer-driven sectors including financials as well as consumer staples and discretionary stocks.
Standouts within the ETF include China Merchants Bank (Pink: <a class="ticker" href="https://www.benzinga.com/stock/cihky#Pink">CIHKY</a>), higher by about 25% in November, and appliance manufacturers Gree Electric and Midea Group, which both rose about 15% during the month.
Bolstering these and other Chinese A-share equities in the index are strong consumer spending numbers. However, those spending numbers aren&rsquo;t from Chinese consumers. Instead, these A-shares are being supported through strong export numbers to consumer economies outside of China, in neighboring countries like Singapore, Malaysia, and even the U.S. and Europe.
China&rsquo;s own consumers are not so eager to spend, especially as an estimated 9% of its workforce remains unemployed. As a result, much of the country&rsquo;s economic traction is coming from the country&rsquo;s booming export figures, which may diminish if and when the world bounces back from the pandemic.
Nevertheless, the numbers have been an encouraging driver for Chinese stocks at large. And even though exports are the primary economic driver, they&rsquo;re not the only one.
In a dynamic that U.S. investors are very familiar with, companies with large online presences have dominated and become increasingly central to China&rsquo;s economy, as evidenced by the strength in <a href="https://www.direxion.com/product/daily-csi-china-internet-index-bull-2x-etf?utm_source=fajardo&amp;utm_medium=Benzinga&amp;utm_campaign=David" style="color:blue; text-decoration:underline">Direxion&rsquo;s Daily CSI China Internet Index Bull 2X Shares</a>&nbsp;(NYSE:&nbsp;<a class="ticker" href="https://www.benzinga.com/stock/cweb#NYSE">CWEB</a>). Though the trade has cooled off of late, CWEB has still more than doubled in 2020.
That return is the product of fairly consistent growth across most of the country&rsquo;s many internet giants. This of course includes e-commerce powerhouses Alibaba Group Holding Limited (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) JD.com, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) and Meituan-Dianping (Pink: <a class="ticker" href="https://www.benzinga.com/stock/mpngf#Pink">MPNGF</a>), the latter of which has seen massive growth thanks to its online food delivery.
However, the biggest standout among this internet contingent is the recently IPO&rsquo;ed fintech KE Holdings, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/beke#NYSE">BEKE</a>), which has surged 72% since its listing in early August. Backed in part by Japan&rsquo;s SoftBank Group Corp (Pink: <a class="ticker" href="https://www.benzinga.com/stock/sftby#Pink">SFTBY</a>), the online property platform has drawn comparisons to Zillow Group Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/zg#NASDAQ">ZG</a>) and has ridden on rising enthusiasm in China&rsquo;s economic resilience and sustained growth in boosting the nation&rsquo;s real estate market.
In addition to CHAU and CWEB, <a href="https://www.direxion.com/product/daily-ftse-china-bull-bear-3x-etfs?utm_source=fajardo&amp;utm_medium=Benzinga&amp;utm_campaign=David" style="color:blue; text-decoration:underline">Daily FTSE China Bull 3X Shares</a>&nbsp;(NYSE:&nbsp;<a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) (up 15% in the last month) and <a href="https://www.direxion.com/product/daily-msci-emerging-markets-bull-bear-3x-etfs?utm_source=fajardo&amp;utm_medium=Benzinga&amp;utm_campaign=David" style="color:blue; text-decoration:underline">Direxion Daily Emerging Markets Bull 3X Shares</a>&nbsp;(NYSE:&nbsp;<a class="ticker" href="https://www.benzinga.com/stock/edc#NYSE">EDC</a>) (up 29%) have also outperformed.
Ultimately, what continues to drive China&rsquo;s growth is its dedication to building itself by investing in public services and utilities like high-speed internet and essential infrastructure to bolster both its manufacturing and technological capabilities. These investments, combined with the allure of its rising middle class, appear <a href="https://www.wsj.com/articles/china-has-one-powerful-friend-left-in-the-u-s-wall-street-11606924454?mod=hp_lead_pos5" style="color:blue; text-decoration:underline">likely to keep Wall Street bullish on China</a> in spite of any geopolitical headwinds.
&nbsp;
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate. An investor&rsquo;s shares, when redeemed, may be worth more or less than their original cost; current performance may be lower or higher than the performance quoted. Short term performance is not a good indication of the fund&rsquo;s future performance, and an investment should not be made based solely on returns.
For the most recent month-end and standardized performance <a href="https://www.direxion.com/etfs?utm_source=fajardo&amp;utm_medium=Benzinga&amp;utm_campaign=David" style="color:blue; text-decoration:underline">click here</a>
An investor should carefully consider a Fund&rsquo;s investment objective, risks, charges, and expenses before investing. A Fund&rsquo;s prospectus and summary prospectus contain this and other information about the Direxion Shares. To obtain a Fund&rsquo;s prospectus and summary prospectus call 866-476-7523 or visit our website at <a href="http://www.direxion.com" title="www.direxion.com">www.direxion.com</a>. A Fund&rsquo;s prospectus and summary prospectus should be read carefully before investing.
Market Disruptions Resulting from COVID-19.&nbsp;The outbreak of COVID-19 has negatively affected the worldwide economy, individual countries, individual companies and the market in general. The future impact of COVID-19 is currently unknown, and it may exacerbate other risks that apply to the Fund.
CUSIP Identifiers have been provided by CUSIP Global Services, managed on behalf of the American Bankers Association by Standard and Poor&rsquo;s Financial Services, LLC, and are not for use or dissemination in any manner that would serve as a substitute for a CUSIP service. The CUSIP Database, &copy; 2011 American Bankers Association. &ldquo;CUSIP&rdquo; is a registered trademark of the American Bankers Association.
Shares of the Direxion Shares are bought and sold at market price (not NAV) and are not individually redeemed from a Fund. Market Price returns are based upon the midpoint of the bid/ask spread at 4:00 pm EST (when NAV is normally calculated) and do not represent the returns you would receive if you traded shares at other times. Brokerage commissions will reduce returns. Fund returns assume that dividends and capital gains distributions have been reinvested in the Fund at NAV. Some performance results reflect expense reimbursements or recoupments and fee waivers in effect during certain periods shown. Absent these reimbursements or recoupments and fee waivers, results would have been less favorable.
The CSI 300 Index (&ldquo;Index&rdquo;) is calculated by China Securities Index Company (&ldquo;CSI&rdquo;). CSI does not make any warranties, express or implied, to any of their customers or anyone else regarding the accuracy or completeness of any data related to the Index. All information is provided for information purposes only. CSI accepts no liability for any errors or any loss arising from the use of information.
Investing in a Direxion Shares ETF may be more volatile than investing in broadly diversified funds. The use of leverage by a Fund increases the risk to the Fund. The Direxion Shares ETFs are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk, consequences of seeking daily leveraged investment results and intend to actively monitor and manage their investment.
Direxion Shares Risks&nbsp;&ndash;&nbsp;There are special risk considerations relating to Stock Connect Program and RQFII and QFII investors and the Chinese A-Share market. The Stock Connect Program is subject to daily and aggregate quota limitations, and an investor cannot purchase and sell the same security on the same trading day, which may restrict the other funds&rsquo; or counterparties&rsquo; ability to invest in A-Shares through the Stock Connect Program and to enter into or exit trades on a timely basis. A-shares are issued by companies incorporated in the People&rsquo;s Republic of China (&ldquo;PRC&rdquo;). The A-share market in China is made available to domestic PRC investors and certain foreign investors, including those foreign investors that have been approved as Renminbi Qualified Foreign Institutional Investors (&ldquo;RQFII&rdquo;) or as Qualified Foreign Institutional Investors (&ldquo;QFII&rdquo;). The Fund&rsquo;s ability to achieve its inverse investment objective is dependent on the ability of other ETFs and counterparties to obtain their QFII or RQFII quota. If the Fund is unable to obtain sufficient exposure to the Index due to the limited availability of necessary investments or financial instruments, the Fund could, among other things, as a defensive measure, limit or suspend creation units until the adviser determines that the requisite exposure to the Index is obtainable. During the period that creation units are suspended, the fund could trade at a significant premium or discount to its NAV and could experience substantial redemptions.
Risks associated with investments in Chinese companies include, among others,&nbsp;(i) the small size of the market for Chinese securities and low trading volume, resulting in a lack of liquidity and in price volatility; (ii) currency devaluations and other currency exchange rate fluctuations or blockages; (iii) the nature and extent of intervention by the PRC government in the Chinese securities markets, whether such intervention will continue and the impact of such intervention or its discontinuation; (iv) the risk of nationalization or expropriation of assets; (v) the risk that the PRC government may decide not to continue to support economic reform programs; (vi) limitation on the use of brokers; (vii) higher rates of inflation; (viii) greater political, economic and social uncertainty; (ix) market volatility caused by potential regional or territorial conflicts or natural disasters and; (x) the risk of increased trade tariffs, embargoes and other trade limitations. These factors can directly affect A-shares, and may indirectly affect investments that derive their value from A-shares. Any reduction or elimination of access to A-shares will have a material adverse effect on the ability of the fund to achieve its investments objective.
Risks of the Fund include Effects of Compounding and Market Volatility Risk, Derivatives Risk, Leverage Risk, Market Risk, Market Disruption Risk, Aggressive Investment Techniques Risk, Counterparty Risk, Intra-Day Investment Risk, Daily Index Correlation/Tracking Risk, Other Investment Companies (including ETFs) Risk, and Emerging Markets Risk. Investing in, and/or having exposure to, emerging markets instruments involves greater risks than investing in issuers located or operating in more developed markets. Please see the summary and full prospectuses for a more complete description of these and other risks of the Fund.
Direxion Funds Risks&nbsp;&ndash; An investment in the Funds involves risk, including the possible loss of principal. The Funds are non-diversified and include risks associated with concentration risk which results from the Funds&rsquo; investments in a particular industry or sector and can increase volatility over time. Active and frequent trading associated with a regular rebalance of a fund can cause the price to fluctuate, therefore impacting its performance compared to other investment vehicles. For other risks including correlation, compounding, market volatility and specific risks regarding each sector, please read the prospectus.
Distributor for Direxion Shares:&nbsp;Foreside Fund Services, LLC.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

General

BEKE

CHAU

CIHKY

CWEB

Direxion Daily Emerging Markets Bull 3x Shares

MPNGF

SFTBY

Wall Street Remains Bullish On China

The following was originally published on <a href="https://www.capitalwatch.com/article-6019-1.html">Capital Watch.</a> Some edits have been made
&quot;Will this be the day when investors sell-off and take some profits?&quot;
&quot;How long can the market remain divorced from all economic reality?&quot;
&quot;Will Spotify become the next Apple because it now offers podcasts?&quot;
&quot;And speaking of Apple, I know almost all of us said it was overvalued when the stock fell in March but now will it ever fall?
So say market experts&hellip;every single day.
While companies like Spotify (I bought at the recent dip) and other stay-at-home tech stocks will keep rising, the bulls will sell eventually. There is a tech bubble and it will burst, or at least deflate. To wit, Facebook Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fb#NASDAQ">FB</a>) has barely budged despite advertisers leaving in droves at Zuckerberg&#39;s intransigence to demands by civil rights leaders insisting he curbs hate speech on his platform. Whether motivated by pure arrogance or a firm commitment to the principle of free speech on his platform, Zuckerberg&#39;s business sense will prevail in the end.
Facebook, Amazon.com Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>), Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>), Netflix Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nflx#NASDAQ">NFLX</a>), Alphabet Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/googl#NASDAQ">GOOGL</a>), and often included, Microsoft Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>), will not see their F.A.A.N.G.s recede anytime soon. For all Warren Buffet&#39;s mistakes this year, Apple stock makes up more than half of his stock portfolio. I will continue to be long on Apple until there is a vast change in consumer behavior. Even when the world crumbles at our feet, we will take a video&nbsp;said&nbsp;Armageddon with&nbsp;our iPhone 23S.&nbsp;&nbsp;
Yes, buy Shopify Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/shop#NYSE">SHOP</a>) and Spotify (SPOT) and yes, they will go down, but if they do, just sell fast or hold long-term. Spotify&#39;s foray into podcasting is not a joke and will help drive growth long-term.&nbsp;
UPS? Sure, buy it. FedEx&#39;s earnings should bode well for UPS, whose stock (UPS) should move upwards after it releases its own earnings on July 22.&nbsp;
China in a Bull Shop
As one Chinese retail investor in a Bloomberg piece said this week, &quot;I can&#39;t lose.&quot; Well, lose they did the last time the Chinese stock market raucously rallied in 2014, losing $5 trillion nearly overnight.
In the last couple of weeks, Chinese indexes added $1 trillion in value spurred on by individual retail investors leveraging like crazy after receiving encouragement from Beijing. Chinese regulators are already panicked over the frenzy, but Goldman Sachs says the bull has more room to run. And while there will be hills and valleys, I see a long-term bull market in China for the next few years.
You can buy an ETF, but I would just go to back to the BAT stocks and also add Vipshop Holdings Ltd&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vips#NYSE">VIPS</a>),&nbsp;Baozun Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bzun#NASDAQ">BZUN</a>),&nbsp;Tencent Holding (OTC: <a class="ticker" href="https://www.benzinga.com/stock/tcehy#OTC">TCEHY</a>),&nbsp;New Oriental Education&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/edu#NYSE">EDU</a>), Pinduoduo Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pdd#NASDAQ">PDD</a>), GSX Techedu Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/gsx#NASDAQ">GSX</a>)&nbsp;and leverage away. GSX is likely another lying Luckin, but who cares short term? I was late to the party but got &quot;in&quot; Monday at $66, &quot;out&quot; at $86.&nbsp;
You can also ride the dragon by betting on it or against it with the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) and/or the&nbsp;Direxion Daily FTSE China Bull 3X Shares&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>). The 3X Shares ETF seeks daily investment results, before fees and expenses, of 300%, or 300% of the&nbsp;inverse&nbsp;(or opposite), of the performance of the FTSE China 50 Index.&nbsp;
CapitalWatch Disclaimer
The opinions expressed in this article do not reflect the position of CapitalWatch or its journalists. The analyst has no business relationship with any company whose stock is mentioned in this article. Information provided is for educational purposes only and does not constitute financial, legal, or investment advice.

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Your Week In Brief: Welcome To Groundhog Day.

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
The FTSE China 50 Index jumped 9.50% on Monday and the basic exchange traded fund tracking that index followed suit on volume that was more than double the daily average.
That&#39;s an impressive move for an index that allocates 46% of its weight to bank stocks and one that confirms that despite all the coronavirus controversy, China is one of <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/06/16327893/3-china-etfs-hitting-new-highs">best-performing major equity</a> markets in the world this year.
Big rallies in short time frames with Chinese stocks have a way of fostering doubt and while it remains to be seen if this time is different, there could be more to had over the near-term with Chinese equities.
&ldquo;While some strategists are cautious about fundamentals and other risks, investor momentum, strong economic data, and supportive policies could give the rally, especially in domestic A-share stocks, further legs, at least for a bit,&rdquo; <a href="https://www.barrons.com/articles/chinas-stocks-are-on-a-tear-can-they-keep-going-51594062360?mod=hp_FUNDS&amp;refsec=funds">reports Barron&#39;s</a>.
Traders looking to capitalize on more near-term upside, emphasis on &ldquo;near-term,&rdquo; the following leveraged exchange traded funds are worth considering.
<h3>Direxion Daily FTSE China Bull 3X Shares (YINN)</h3>
The Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) attempts to deliver <a href="https://www.direxion.com/product/daily-ftse-china-bull-bear-3x-etfs">triple the daily results</a> of the aforementioned FTSE China 50 Index. In other words, if a trader is looking for a geared bet on Chinese banks with some Tencent (OTC: <a class="ticker" href="https://www.benzinga.com/stock/tcehy#OTC">TCEHY</a>) sprinkled in, YINN is the way to go.
Yes, YINN&#39;s underlying index is prosaic in its approach to Chinese stocks, but that doesn&#39;t diminish the fund&#39;s ability to deliver near-term excitement. On Monday, YINN surged 28.46% on volume that was more than triple the daily average.
<h3>Direxion Daily CSI China Internet Index Bull 2X Shares (CWEB)</h3>
The Direxion Daily CSI China Internet Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cweb#NYSE">CWEB</a>) looks to deliver <a href="https://www.direxion.com/product/daily-csi-china-internet-index-bull-2x-etf">double the daily returns</a> of the CSI Overseas China Internet Index, giving traders a geared option on a group of equities that are leading the China rally.
Tencent, Alibaba (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) and JD.com (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) combine for more than 28% of that index. Data confirm online shopping and e-commerce are rebounding in China after being dented by the coronavirus earlier this year.
&ldquo;The number of unique visitors to online shopping sites has improved 5% from the low in February and insurance premiums have resumed growth,&rdquo; according to Barron&#39;s.
CWEB is up almost 43% over the past month.
<h3>Direxion Daily CSI 300 China A Share Bull 2X Shares (CHAU)</h3>
The Direxion Daily CSI 300 China A Share Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chau#NYSE">CHAU</a>) is the dominant name among geared ETFs with exposure to A-shares, the stocks trading on mainland China. While it&#39;s a double-leveraged fund, that&#39;s enough for some excitement as was seen on Monday when CHAU surged nearly 23% on more than six times the average volume.
What&#39;s potentially compelling about A-shares over the near-term is that the rally in the group is, in large part, being facilitated <a href="https://www.shine.cn/biz/finance/2007061583/">by an influx</a> of foreign capital.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

3 Exciting China ETFs For A Hot Summer

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
Imagine a world where Alibaba (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) doesn&#39;t trade in the U.S. If some senators have their way, Chinese stocks would either be booted from U.S. exchanges or subject to significantly more scrutiny.
<h3>What Happened</h3>
On Wednesday, the Senate easily passed a bill that would forbid the likes of Alibaba, JD.com (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) and scores of other Chinese companies from listing in the U.S. &ndash; a political push that could put the spotlight on leveraged exchange-traded funds such as the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) and the Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>).
The bullish YINN attempts to deliver <a href="https://www.direxion.com/products/direxion-daily-china-bull-3x-etf">triple the daily returns</a> of the FTSE China 50 Index, which contains Hong Kong-listed Chinese firms, several of which also trade in New York.
<h3>Why It&#39;s Important </h3>
It may seem far flung that Chinese companies will be barred from trading in the New York, but in the wake of the Luckin Coffee fiasco and increasing tensions between the world&#39;s two largest economies, the aforementioned Senate bill enjoys bipartisan support, a rarity on Capitol Hill.
&ldquo;If a company can&rsquo;t show that it is not under such control or the Public Company Accounting Oversight Board isn&rsquo;t able to audit the company for three consecutive years to determine that it is not under the control of a foreign government, the company&rsquo;s securities would be banned from the exchanges,&rdquo; <a href="https://www.bloomberg.com/news/articles/2020-05-20/senate-passes-bill-to-delist-chinese-companies-from-exchanges">according to Bloomberg</a>.
For now, markets don&#39;t appear convinced the bill will be signed into law as the bullish YINN gained 3.67% on Wednesday.
<h3>What&#39;s Next </h3>
While odds are currently long on the bill&#39;s passage, that could be a case of market&#39;s underestimating the legislation&#39;s practicality.
Not only does President Trump not shy away from heavy-handed stances against China, but the bill&#39;s authors &ndash; Sen. John Kennedy (R-LA) and Chris Van Hollen (D-MD) &ndash; are pragmatic in their approach. That could bode well for the bill&#39;s fate and YANG&#39;s play on its passage.
Kennedy said the aim isn&#39;t to start a rift with China. He merely wants Chinese public companies trading in the U.S. to be held to the same standards as their American counterparts.
&ldquo;Publicly listed companies should all be held to the same standards, and this bill makes common sense changes to level the playing field and give investors the transparency they need to make informed decisions,&rdquo; said Van Hollen in a press release.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

Politics

China Delisting Bill Could Put These Geared ETFs Into Gear

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
Broadly speaking, emerging markets a mess this year and the coronavirus is just one reason. What&#39;s interesting about that scenario is that China &ndash; previously the epicenter of the virus &ndash; is outperforming broader developing world benchmarks.
<h3>What Happened</h3>
For example, the FTSE China 50 Index is performing 700 basis points less poorly this year than the MSCI Emerging Markets Index and while some bearish <a href="https://www.benzinga.com/trading-ideas/long-ideas/20/05/16028572/3-bearish-etfs-to-profit-bullish-counterparts-with-elevated-short-interest">emerging markets ETFs look attractive</a>, the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) could be worth a look for risk-tolerant, short term traders.
YINN tries to deliver <a href="http://www.direxion.com/products/direxion-daily-china-bull-3x-etf">triple the daily returns</a> of the aforementioned FTSE China 50 Index, a collection of the largest Chinese companies with Hong Kong listings.
Why It&#39;s Important 
While the following are longer-ranging factors, they do bode well for the near-term case for YINN: Chinese stocks, broadly speaking, are profitable and less expensive than their U.S. counterparts.
&ldquo;U.S. stocks may score higher on profitability than their Chinese counterparts, but they are also much more expensive,&rdquo; <a href="https://www.blackrockblog.com/2020/05/14/three-reasons-to-like-chinese-stocks/">according to BlackRock</a>. &ldquo;Chinese equities trading on the Shanghai exchange are valued at roughly 11x FY1 earnings. Companies listed on Hong Kong&rsquo;s exchange are trading at slightly above 8x earnings.&rdquo;
As YINN itself is recently showing, there&#39;s something to the &ldquo;first in, first out&rdquo; notion, meaning China was the first to be hit by the coronavirus and it&#39;s the first major economy to emerge from the virus&#39;s wrath.
&ldquo;As China was the first country to be devastated by the virus, it is also the first to start to recover. While investors should always be a bit skeptical of Chinese economic data, there are credible signs that their economy is slowly beginning to improve,&rdquo; adds BlackRock. &ldquo;Currently China is about the only place in the world where manufacturing surveys are positive, indicating a tepid expansion.&rdquo;
<h3>What&#39;s Next</h3>
As is always the case with any leveraged ETF, there&#39;s no free lunch with YINN. President Trump is none too pleased with China and is renewing trade deal threats. It&#39;s clear there&#39;s strain on US/China ties with the White House framing that stress around COVID-19.
&ldquo;What was originally a trade dispute with the United States has metastasized into a broader strategic conflict, a conflict now inflamed by questions around China&rsquo;s handling of the early stages of the crisis,&rdquo; said BlackRock.
Should tensions manifest into equity market downside, YINN&#39;s bearish cousin &ndash; the Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>) &ndash; becomes appealing.
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

Why This Adventurous China ETF Is Worth A Look

The following post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga.
China is widely viewed as the epicenter of the coronavirus and, predictably, that status is affecting Chinese equities, but not by as much as investors may suspect.
<h3>What Happened</h3>
The COVID-19 pandemic struck the world&#39;s largest country by population in earnest in January, forcing stocks there lower. However, Chinese equity markets have been surprisingly resilient over the past couple of months, potentially presenting investors opportunity with the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>).
YINN is designed to deliver <a href="http://www.direxion.com/products/direxion-daily-china-bull-3x-etf">triple the daily returns</a> of the FTSE China 50 Index (TXIN0UNU), a collection of the 50 largest Hong Kong-listed Chinese firms.
<h3>Why It&#39;s Important </h3>
Year-to-date, the FTSE China 50 Index is lagging the S&amp;P 500 by 240 basis, but the Chinese benchmark is performing far less worse than the MSCI Emerging Markets Index. Plus, over the past three months, the China index has been about half as bad as the S&amp;P 500 and 1,000 basis points better the MSCI benchmark.
&ldquo;Media headlines outdid each other in broadcasting China&rsquo;s 6.8% contraction in GDP in the first quarter this year,&rdquo; a <a href="https://www.forbes.com/sites/yuwahedrickwong/2020/04/19/chinas-unprecedented-gdp-contraction-opens-the-opportunity-for-sweeping-reforms/#2372fcbc1652" target="_blank">Forbes report</a> noted. &ldquo;It was indeed breaking news in that it was the first-ever contraction since China started reporting quarterly GDP data in 1992. However, beyond the headlines, there is surprisingly little that is newsworthy. It is not telling us anything we didn&rsquo;t know already.&rdquo;
The issue confounding the near-term opportunity set for YINN &ndash; and to be sure, this is a near-term instrument &ndash; is by how much the Chinese economy will rebound in the current quarter and how large the contributions to that recovery will be derived from bank stocks. Financial services account for 46% of the Direxion fund&#39;s underlying index.
<h3>What&#39;s Next </h3>
Some analysts expect industrials will contribute to a Chinese economy recovery, one that will be spurred by reduced lagging from the energy and technology sectors. Those groups combine for about 10% of YINN&#39;s index.
&ldquo;Call it a case of first in, first out. Despite the distinction of being the initial epicenter of the now global coronavirus outbreak, China&rsquo;s equity market suffered far less than both the emerging and developed indexes in the March downdraft and for the year so far,&rdquo; said Philip Lawlor, FTSE Russellmanaging director for global markets research <a href="https://www.ftserussell.com/blogs/index-idea-china-has-fared-best-2020-covid-19-global-equity-market-stall">in a recent note</a>. &ldquo;We see two key drivers behind Chinese equity outperformance year-to-date; a rebound in Chinese manufacturing data and much more muted underperformance in the industrial, technology, oil &amp; gas and financial sectors relative to other markets.&rdquo;
The preceding post was written and/or published as a collaboration between Benzinga&rsquo;s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.

It Might Be Time To Get Sporty With A Geared China ETF

The standoff between the U.S. and China seems to be reaching a tipping point.
Even as <a href="https://www.benzinga.com/government/19/09/14421387/trump-tariff-delay"> trade tensions </a> between the&nbsp;two nations have been roiling the markets and economy for a while, the U.S. is reportedly considering an additional step.&nbsp;
As part of a plan to limit U.S. investments in China, the White House is considering blocking all U.S. financial investments in Chinese companies, <a href="https://www.cnbc.com/2019/09/27/white-house-deliberates-block-on-all-us-investments-in-china.html">CNBC </a> reported Friday,&nbsp;citing a source familiar with the matter.
Additionally, the White House is also looking at possibilities of limiting the investment of U.S. government pension funds in Chinese equities.
The plan is reportedly in the conception stage, with no concrete details finalized,&nbsp;including the timeframe for enaction.&nbsp;
<h3>China Shares, ETFs Nosedive</h3>
U.S.-listed Chinese equities took a tumble on the news.&nbsp;
Chinese e-commerce giant Alibaba Group Holding Ltd &ndash; ADR (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) was last seen sliding 5.39% to $165.57.
Chinese search engine Baidu Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bidu#NASDAQ">BIDU</a>) was losing 3.67% to $101.21. NetEase Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ntes#NASDAQ">NTES</a>) shares were slipping 5.79% to $257.52, and JD.Com Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) was losing 5.98% to $27.81.
OTC-listed TENCENT HOLDING/ADR (OTC: <a class="ticker" href="https://www.benzinga.com/stock/tcehy#OTC">TCEHY</a>) was slipping 3.02% to $40.72.
China ETFs were also in a sea of red, with the DIREXION SHS ET/DAILY FTSE CHINA BU (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>), iShares FTSE/Xinhua China 25 Index (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/fxi#NYSE">FXI</a>) and the ISHARES TR/MSCI CHINA ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mchi#NASDAQ">MCHI</a>) losing 4.28%. 1.53%&nbsp;and 2.52%, respectively.
<h3>Pressure Tactics?</h3>
As the reported move comes ahead of the resumption of the U.S.-China trade talks Oct. 10 in Washington, D.C., it is seen as a step by the U.S. to take control of the negotiation.
The two parties have locked horns with each other over the trade issue, engaging in verbal warfare and imposing sanctions on billions of dollars&#39; worth of each other&#39;s goods. After several start-stop attempts, there has been a prolonged stalemate in negotiations.
Separately,&nbsp;<a href=" https://www.bloomberg.com/news/articles/2019-09-27/white-house-weighs-limits-on-u-s-portfolio-flows-into-china-k12ahk4g">Bloomberg </a> also reported a potential move to stall U.S. portfolio investment flows into China and delist Chinese stocks from U.S. exchanges.
As of February, about 156 Chinese companies with a total market cap of $1.2 trillion were listed on the main U.S. exchanges, <a href="https://www.ft.com/content/a263d2c6-e13e-11e9-9743-db5a370481bc">the Financial Times reported</a>, quoting the U.S.-China Economic and Security Review Commission.
These measures couldn&#39;t have come at a worse time for China, as it is opening up its market for foreign investment.
<h3>Curbs Likely On Inbound Investments</h3>
Earlier this month, the U.S. Treasury proposed&nbsp;regulations that would give the Committee On Foreign Investment In the U.S., or CFIUS, more power to prevent foreign investment in&nbsp;areas where protection is needed. The law will&nbsp;take effect next year.
The regulations were drawn up to prevent China investing in U.S. technology and other valuable assets.
Even as the markets deliberate the pros and cons of these moves, the standoff between the world&#39;s first- and second-largest economies is bound to have ramifications for not only these two nations, but also for the global economy at large.
Related Links:
<a href="https://www.benzinga.com/news/19/09/14436631/china-suffers-two-blows-high-oil-prices-lowest-industrial-output-since-2002">China Suffers Two Blows: High Oil Prices, Lowest Industrial Output Since 2002 </a>
<a href="https://www.benzinga.com/news/19/09/14435775/details-emerge-on-apples-iphone-strategy-in-china">Details Emerge On Apple&#39;s iPhone Strategy In China </a>

Media

BIDU

MCHI

NTES

Chinese Stocks Slump As US Reportedly Weighs Options To Block Investments

Geopolitical events and the related headlines are often the ideal catalysts for leveraged regional and single-country exchange traded funds. With the G-20 summit looming, the time could be right for the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>).
<h3>What Happened</h3>
President Donald Trump and Chinese President Xi Jinping will meet at the G-20 summit in Japan, a get together that is widely expected to bring much <a href="https://investorplace.com/2019/06/dow-jones-today-steady-but-some-patches-of-excitement/">anticipated relief</a> to the trade tensions between the world&#39;s two largest economies.
&ldquo;What remains far more crucial about this meeting is whether it helps steer the increasingly complex relationship back on a familiar course or whether it stirs winds and currents that sweep us further off into uncharted waters,&rdquo; <a href="https://www.barrons.com/articles/dow-jones-industrial-average-fell-as-trump-xi-meeting-may-be-more-than-trade-51561497144?mod=hp_BRIEF&amp;mod=article_inline" target="_blank">according to a recent note</a> by Christopher Smart of the Barings Investment Institute.
YANG attempts to deliver <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">triple the daily returns</a> of the FTSE China 50 Index, a popular gauge of Chinese large caps trading in Hong Kong.
<h3>Why It&#39;s Important </h3>
Ahead of the G-20 meeting, there have some signs traders are betting on a favorable outcome and are using the triple-leveraged YANG to make those bets.
On Tuesday, YANG saw inflows of $2.45 million, a total exceeded by just seven other Direxion leveraged ETFs, <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">according to issuer data</a>. That brought YANG&#39;s five-day inflow total to $4.80 million, good for seventh-best among Direxion&#39;s leveraged funds.
YANG&#39;s underlying index allocates over 45% of its weight to financial services stocks, but the fund has adequate leverage to some tariff-sensitive sectors, including communication services, consumer discretionary and technology.
<h3>What&#39;s Next</h3>
Given his penchant for harsh rhetoric aimed at China, President Trump could find the meeting with Xi not to be to his liking and talks deteriorate from there. Not saying that is going to happen, but traders can make that bet with YANG&#39;s bearish counterpart, the Direxion Daily FTSE China 3X Bear Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>). YINN tries to deliver triple the daily inverse returns of the FTSE China 50 Index.
In what may prove to be a positive sign, there has not recently been much in the way of unusual activity in the bearish YINN, according to Direxion data. YINN is up nearly 2% this week.
Related Links
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/06/13981831/robo-global-expands-with-health-care-innovation-etf">This Is A Nifty New Healthcare ETF</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/06/13981809/a-safe-bet-on-european-equities">A Conservative European Idea</a>

Events

Ahead Of G-20 Summit, Leveraged China ETF Stirs

These should be go-go days for leveraged China exchange-traded funds, and they are. As the U.S. and China, the world&#39;s two largest economies, continue grappling over trade, some traders are enjoying the ride offered by the Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>) or profiting from shorting the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>).
<h3>What Happened</h3>
The bullish YINN attempts to deliver triple the daily returns of the FTSE China 50 Index (TXIN0UNU), a widely followed gauge of Chinese large-cap stocks listed in Hong Kong; while the bearish YANG seeks results that correspond with<a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf"> triple the daily inverse performance</a> of that index.
In the current environment, it is not surprising that YINN is getting drubbed while YANG is surging. On Monday, YINN plunged 10 percent on above-average volume, extending its one-week loss to just over 21 percent. Conversely, the bearish YANG surged 10 percent on volume that was more than triple the daily average. YANG is up almost 24 percent over the past week.
<h3>Why It&#39;s Important </h3>
So with YINN tumbling and YANG soaring, it would be reasonable to expect that traders are chasing the latter while avoiding the former. Actually, data suggest the opposite is true. Over the trailing one-, five- and 10-day periods entering Monday, the bullish YINN was among the top 10 asset gatherers among <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">Direxion&#39;s leveraged ETFs</a>.
Last Friday, traders added $24 million to YINN, a total surpassed by just two other leveraged Direxion ETFs. That brought YINN&#39;s five- and 10-day inflows totals to $37.22 million and $82.87 million, respectively. Over those 10 days, YINN&#39;s inflows equaled 21.80 percent of the fund&#39;s total assets, <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">according to issuer data</a>.
On the other hand, traders are taking profits in the bearish YANG. Over the aforementioned one-, five- and 10-day periods, YANG was a top five offender in terms of assets lost among Direxion&#39;s leveraged ETFs. For the 10 days ending May 10, YANG saw departures of $20.72 million, the equivalent of 24.40 percent of the fund&#39;s total assets, <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">according to Direxion data</a>.
<h3>What&#39;s Next </h3>
As for what is next, the longer Chinese stocks slide, it is possible traders will continue tempting fate with the bullish YINN. A rebound in Chinese stocks is not likely to be advertised, but when it happens, YINN could easily deliver double-digit intraday gains, but waiting for that day could prove risky for some traders.
Related Links
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/05/13689318/time-for-these-china-etfs-to-shine">Time For These China ETFs</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/05/13689527/an-avenue-for-small-cap-promise-relatively-speaking">Consider This Small-Cap ETF</a>

Something Interesting Is Happening With Leveraged China ETFs

With trade tensions again running hot between the U.S. and China, stocks in both countries are being punished, but that scenario is putting the spotlight on a pair leveraged exchange-traded funds.
<h3>What Happened</h3>
Over the course of last week, the FTSE China 50 Index (TXIN0UNU), a widely followed gauge of large- and mega-cap Chinese stocks trading in Hong Kong, slid 5.72 percent, putting the index back into territory its hasn&#39;t seen since the end of January.
This decline comes following another escalation in the prolonged trade spat, as Beijing announced Monday its plan to <a href="https://www.benzinga.com/analyst-ratings/analyst-color/19/05/13724953/china-will-raise-tariffs-on-60b-worth-of-us-goods-to-25-by-june-1">raise tariffs on $60 billion in U.S. goods</a> from 10 percent to 25 percent. This was in response to the Trump Administration&#39;s own declaration earlier in the month that it would increase tariffs on $200 billion in Chinese by that same margin.
Increased volatility in Chinese stocks and subsequent declines are proving to be a boon for the Direxion Daily FTSE China Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>), which attempts to deliver <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">triple the daily inverse returns </a>of the FTSE China 50 Index.
<h3>Why It&#39;s Important </h3>
Entering Monday, YANG opened the day more 9 percent above its Friday close. As of that open, the ETF is up 30 percent on a month-to-date basis, making it the best performer among Direxion&#39;s leveraged bearish ETFs this month.
YANG&#39;s recent price action underscores an important point: when treated as the short-term instruments they are intended to be, leveraged ETFs can be the ideal avenues for active traders to profit from geopolitical headline risk, such as trade tensions.
Predictably, YANG&#39;s bullish counterpart, the Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>), has been getting decimated. YINN, which looks to deliver <a href="http://www.direxioninvestments.com/products/direxion-daily-china-bull-3x-etf">triple the daily returns</a> of the FTSE China 50 Index, lost 9.5 percent over the tumultuous trade weekend, bringing its month-to-date loss to over 25 percent and making the fund one of the worst-performing Direxion leveraged bullish funds to start May.
<h3>What&#39;s Next </h3>
As for what&#39;s next for YINN and YANG, data suggest some traders are positioning for a rebound in Chinese stocks. For the 10 days ended May 12, traders added $44.30 million to the bullish YINN, while the bearish YANG ranked among the top 10 Direxion bearish funds for outflows during that period.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/05/13676684/in-the-search-for-safety-dont-miss-the-swiss">A Super Switzerland ETF</a>
<a href="https://www.benzinga.com/personal-finance/financial-advisors/19/05/13676648/td-ameritrade-unveils-big-expansion-of-commission-free-etf-roster">Lots Of Commission-Free ETFs Here</a>

Time For These China ETFs To Shine

Chinese stocks have been skyrocketing this year, rising to a nine-month high. Logging in the biggest monthly gain since April 2015 in February, the Shanghai Composite Index reclaimed its above 3,000 level on March 4 for the first time since June 2018. With the current rally, the index is up about 23 percent&nbsp;since its January 3 low and added nearly $1.5 trillion in value to China&#39;s stock market.
Below, we have highlighted some reasons for the outperformance that will likely continue in the near term, and some ETFs investors can use to play the trend.
<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" frameborder="0" height="315" src="https://www.youtube.com/embed/An4AZULEbD4?rel=0" width="560"></iframe>
<h3>A Potential Trade Deal</h3>
The optimism over the trade deal with the United States has been the biggest catalyst behind the rally. Washington and Beijing are close to striking a deal as early as this month to end the nearly one-year tariff war. According to the Bloomberg News and The Wall Street Journal, China offered to ease tariffs and other restrictions on U.S. farm, chemical, auto and other products. Meanwhile, Washington is considering removing most, if not all, sanctions on Chinese imports placed last year.
<h3>MSCI Inclusion Of Chinese Stocks</h3>
The MSCI move has instilled further confidence in Chinese stocks. The global index provider will quadruple the weighting of Chinese mainland shares (A-shares) from the current 5 percent&nbsp;to 20 percent&nbsp;for a number of its indexes &mdash;&nbsp;most notably the MSCI Emerging Markets Index in three phases &mdash; 10 percent&nbsp;in May, 15 percent in August and 20 percent&nbsp;in November. MSCI added 236 China-listed large-cap stocks to its Emerging Markets Index in 2018. Notably, Chinese A-shares were included in the MSCI Emerging Markets Index for the first time last year.
MSCI will also add 168 new mid-cap stocks in November and include 27 shares listed on the tech-heavy ChiNext board for the first time. On completion of the full implementation, the weighting of Chinese stocks in the MSCI Emerging Market Index will jump to 3.3 percent&nbsp;from the current 0.7 percent as the index will include 253 large-cap and 168 mid-cap China A-shares.
The move will likely trigger more than $80 billion of fresh foreign inflows into the world&#39;s second-biggest economy, per the index provider.
<h3>Stimulus And&nbsp;Reforms</h3>
Though the Chinese economy expanded 6.6 percnet&nbsp;&mdash;&nbsp;the slowest rate since 1990 &mdash;&nbsp;last year, the slew of Beijing&#39;s economic policies are likely to revitalize growth in the world&#39;s second-largest economy, raising the appeal for these stocks. Policymakers have promised to cut taxes, increase infrastructure spending for this year, and improve liquidity of the Chinese financial system in response to slowing growth.
Among the notable measures, China&#39;s central bank cut its reserve requirement ratio (RRR) for the fifth time early this year and offered financial institutions $83 billion in liquidity as part of a wider economic stimulus. The bank signaled more stimulus measures in the near term. The lifting of some trading curbs and deeper reforms in the finance sector also added to the enthusiasm. Moreover, depressed valuations have also encouraged investors to charge up at lower levels.
<h3>How To Play</h3>
Amid bullishness, many investors have turned confident on China stocks and are seeking to tap this opportunity. For them, a leveraged play on the stocks could be an excellent idea as these could see huge gains in a very short time frame when compared to the simple products.
We&#39;ve&nbsp;highlighted several leveraged ETFs and the key differences between them:
Direxion Daily China 3x Bull Shares ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>)
This product provides three times exposure to the FTSE China 50 Index, which consists of the 50 largest and most liquid public Chinese companies currently trading on the Hong Kong Stock Exchange. It charges annual fee of 97 bps and has AUM of $417.3 million. The fund trades in a heavy volume of around 2.8 million shares.
Direxion Daily CSI 300 China A Share Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chau#NYSE">CHAU</a>)
This product offers two times the exposure to the CSI 300 Index, charging investors 95 bps in annual fees. It has AUM of 117.5 million and average daily volume of 294,000 shares. The ETF is up 70&nbsp;percent&nbsp;this year.
Daily CSI China Internet Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cweb#NYSE">CWEB</a>)
This fund offers twice the leveraged exposure to the Chinese Internet market by tracking the CSI Overseas China Internet Index. It charges an annual fee of 95 bps and trades in a moderate average daily volume of about 97,000 shares. The fund has accumulated AUM of $73.1 million.
ProShares Ultra FTSE China 50 ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xpp#NYSE">XPP</a>)
This fund provides two times leveraged exposure to the daily performance of the FTSE China 50 Index. It is an unpopular and illiquid choice in the space with AUM of $30.4 million and average daily volume of 9,000 shares. Expense ratio comes in at 0.95 percent.
<h3>Bottom Line</h3>
As a caveat, investors should note that such products are suitable only for short-term traders as these are rebalanced on a daily basis.
However, for ETF investors, who are bullish on the Chinese stocks for the near term, either of the above products could make an interesting choice. Clearly, a near-term long could be intriguing for those with high-risk tolerance, and a belief that &quot;trend is the friend&quot; in this corner of the investing world.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/03/13275007/msci-indexes-will-see-larger-a-shares-weights">MSCI Indexes Will See Larger A-Shares Weights</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/02/13245838/emerging-markets-you-should-be-overweight-according-to-quant">Emerging Markets You Should Be Overweight According To Quantamize&#39;s AI Models</a>

Still Looking To Cash In On Surging China Stocks? Consider These Leveraged ETFs

To say expectations surrounding the market were grim heading into 2019 is a bit of an understatement. However through January, the S&amp;P 500 has already regained more than half of the losses it sustained over the final quarter of 2018. That&rsquo;s a gain of about 9.5 percent. Thank you January effect.
Putting that in context, that&rsquo;s a faster rate of increase than the index posted over same period in 2018, results further emphasized when comparing the charts for those spans in a broad market ETF like the Direxion Daily S&amp;P 500 Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spxl#NYSE">SPXL</a>), both of which show a substantial uptick heading into the new year.
<a href="https://www.benzinga.com/files/u105576/spxl.png" onclick="imce.send('spxl.png'); return false;" title=""><img alt="spxl.png" src="https://www.benzinga.com/files/u105576/spxl.png" /></a> 
Source: Yahoo Finance
However, U.S. equity isn&rsquo;t the only place where a silver lining is beginning to show through. Below, we&rsquo;ll take a look at four international ETFs that have seen 30 percent or more growth over the start of 2019.
<h3>Mexico</h3>
First off, the Direxion Daily MSCI Mexico Bull 3X Shares (NYSE: MEXX) is up a whopping 31 percent on the year, primarily from enthusiasm for Andr&eacute;s Manuel L&oacute;pez Obrado, the country&rsquo;s new, recently elected president. In one of his first major displays of authority in office, he has taken aim at stopping thieves from <a href="https://www.npr.org/2019/01/15/685555098/mexicos-president-fights-gas-crisis-while-mexicans-endure-long-lines-with-jokes" style="text-decoration:none;">siphoning gas from pipelines</a> belonging the county&rsquo;s socialized oil company. This approach to curbing waste likely helped steady investor&rsquo;s nerves as Obrado&rsquo;s finance ministry has outlined a <a href="https://www.ft.com/content/3787351c-19b4-11e9-9e64-d150b3105d21" style="text-decoration:none;">$500 million bond sale program </a>to fund the country&rsquo;s fiscal budget.
<a href="https://www.benzinga.com/files/u105576/screen_shot_2019-02-06_at_12.38.44_pm.png" onclick="imce.send('screen_shot_2019-02-06_at_12.38.44_pm.png'); return false;" title=""><img alt="screen_shot_2019-02-06_at_12.38.44_pm.png" src="https://www.benzinga.com/files/u105576/screen_shot_2019-02-06_at_12.38.44_pm.png" /></a> 
Source: Yahoo Finance
<h3>China</h3>
After disappointing growth and export data hit the Shanghai exchange to the tune of 0.7 percent and threatened to ruin what was turning into a healthy rally, the Chinese government announced just a day later a massive tax cut plan with an estimated impact of <a href="https://www.scmp.com/business/china-business/article/2182122/impact-chinas-tax-cut-stimulus-estimated-us300-billion-or-12" style="text-decoration:none;">around $300 billion</a>. That same day, China&rsquo;s central bank also<a href="https://www.cnbc.com/2019/01/16/chinas-central-bank-injects-record-amount-to-stimulate-economy.html" style="text-decoration:none;"> issued 560 billion yuan ($83 billion)</a> to its constituent branches. That activity rekindled the market and caused the Direxion Daily FTSE China Bull 3X Share (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) to jump 8.25 percent in just two days. The ETF is up nearly 40 percent YTD.
<a href="https://www.benzinga.com/files/u105576/screen_shot_2019-02-06_at_12.48.25_pm.png" onclick="imce.send('screen_shot_2019-02-06_at_12.48.25_pm.png'); return false;" title=""><img alt="screen_shot_2019-02-06_at_12.48.25_pm.png" src="https://www.benzinga.com/files/u105576/screen_shot_2019-02-06_at_12.48.25_pm.png" /></a> 
Source: Yahoo Finance
<h3>Japan</h3>
In a stunning reversal that mirrors Wall Street&rsquo;s own, Japan&rsquo;s Nikkei has bounced after spending most of 2018 being devoured by Bears. The Direxion Daily MSCI Japan Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpnl#NYSE">JPNL</a>), which tracks the MSCI Japan Index (NDDUJN), is up 41 percent year-to-date, largely due to <a href="https://asia.nikkei.com/Business/Markets/Nikkei-PMI/Japan-manufacturing-PMI-shows-high-output-growth-in-December" style="text-decoration:none;">strong December manufacturing data </a>both internally and from its global partners. However, weaker economic signals within the country might spoil the comeback, especially if international trade conditions worsen.
<a href="https://www.benzinga.com/files/u105576/screen_shot_2019-02-06_at_12.32.05_pm.png" onclick="imce.send('screen_shot_2019-02-06_at_12.32.05_pm.png'); return false;" title=""><img alt="screen_shot_2019-02-06_at_12.32.05_pm.png" src="https://www.benzinga.com/files/u105576/screen_shot_2019-02-06_at_12.32.05_pm.png" /></a> 
Source: Yahoo Finance
<h3>Russia</h3>
Climbing an impressive 43 percent YTD, the Direxion Daily Russia Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rusl#NYSE">RUSL</a>) spiked early in January thanks largely to its exposure to the country&rsquo;s energy industry. Along ith OPEC&rsquo;s planned cuts, Russia&rsquo;s own contribution has already fallen by <a href="https://www.spglobal.com/platts/en/market-insights/latest-news/oil/011119-russian-oil-output-already-around-30000-b-d-below-october-level-novak" style="text-decoration:none;">30,000 barrels/day from a December high of 11.45 million b/d</a>, and he country plans to further cut that amount by an additional 20,000 b/d. However, worries of rising U.S. stockpiles and uncertainty surrounding global demand has <a href="http://www.cnbc.com/2019/01/16/oil-markets-economic-slowdown-and-opec-supply-cuts-in-focus.html">caused oil prices to waver in the month</a>, which might put a damper on the Russian bear&rsquo;s bull run.
<a href="https://www.benzinga.com/files/u105576/screen_shot_2019-02-06_at_12.48.49_pm.png" onclick="imce.send('screen_shot_2019-02-06_at_12.48.49_pm.png'); return false;" title=""><img alt="screen_shot_2019-02-06_at_12.48.49_pm.png" src="https://www.benzinga.com/files/u105576/screen_shot_2019-02-06_at_12.48.49_pm.png" /></a> 
Source: Yahoo Finance

Broad U.S. Equity ETFs

Topics

JPNL

RUSL

SPXL

US Markets Are Rebounding, Here's What's Happening In The Rest Of The World

The third quarter earnings season is in full swing, with the busiest week of earnings upon us.
But what makes this earnings season unique is it has been accompanied by a bought of volatility that, to be frank, is rather unusual in this market. Not only has the VIX reached levels not seen since the end of March, but the market has officially given back all its 2018 gains.
While it&rsquo;s likely causing headaches for investors, this general market/earnings volatility is a dream for traders, especially ones who use daily trading strategies.
&ldquo;As short-term traders, you like when there&rsquo;s volatility because it gives you a chance to be more tactical in your trading,&rdquo; said Sylvia Jablonski, managing director of leveraged ETF provider Direxion ETFs. &ldquo;And it lets you use active trading tools like leveraged products to gain more exposure or hedge yourself.&rdquo;
Jablonski was quick to note that leveraged ETFs, like those at Direxion, are short-term vehicles only and shouldn&rsquo;t be held for more than a few days. But they can be used around news catalysts by traders making a call on a whether a stock or sector will go up or down.
Over the past few weeks, for instance, she said that traders had been active in the Direxion Daily FTSE China 3X Bull and Bear Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>) (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>) as the country&rsquo;s weakness has seemed to spearhead the sell-off in U.S. equities.
&ldquo;When we see a lot of traders coming in and out of funds like that, it&rsquo;s a signal that we should watch for volatility in the sector because a lot of traders are paying attention.&rdquo;
Jablonski also she&rsquo;s observed a lot of attention recently in the Direxion Daily Gold Miners Index Bull and Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nugt#NYSE">NUGT</a>) (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dust#NYSE">DUST</a>), which she said was not surprising considering gold&rsquo;s longstanding use as a hedge.
Looking ahead to next week&rsquo;s earnings slate, the Direxion Daily Technology 3X Bull and Bear Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tecl#NYSE">TECL</a>) (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/tecs#NYSE">TECS</a>) and Direxion Daily Energy Bull and Bear 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/erx#NYSE">ERX</a>) (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ery#NYSE">ERY</a>) will likely experience more activity, as some of the top holdings in those funds report earnings.
In technology, Mastercard Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ma#NYSE">MA</a>) and Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>), which report Tuesday and Thursday respectively, make up 24 percent of the Technology Select Sector Index tracked by TECS and TECL.
In energy, Exxon Mobil Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/xom#NYSE">XOM</a>) and Chevron Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cvx#NYSE">CVX</a>), which are the two largest holdings and make up nearly 40 percent of the Energy Select Sector Index, will report Thursday afternoon. So traders can more volatility in those stocks and corresponding ETFs.
&ldquo;We typically see a lot of attention paid to our leveraged sector products in the run-up to earnings,&rdquo; said Jablonski. &ldquo;And that can even last a few days after a big earnings report depending on the strategy. I would expect that to be the case through the rest of this earnings season.
&nbsp;

Interview

DUST

NUGT

TECL

TECS

How The Market's Volatility Is Shaking Out In Leveraged ETFs

2018 has not been a kind year for international equity investors.
The whiplash has been especially bad for the Chinese markets, which were among the strongest in 2017. The FTSE China 50 Index, for example, rose 22 percent last year, but is down about 12 percent year-to-date. This is true for both US-listed stocks, and Chinese-listed ones.
In Hong Kong, internet conglomerate Tencent Holdings (OTC: <a class="ticker" href="https://www.benzinga.com/stock/tcehy#OTC">TCEHY</a>) is down 24 percent for the year, and financial stocks like Industrial and Commercial Bank of China (OTC: <a class="ticker" href="https://www.benzinga.com/stock/idcby#OTC">IDCBY</a>) and China Construction Bank (OTC: <a class="ticker" href="https://www.benzinga.com/stock/cichy#OTC">CICHY</a>) are down 15 and 12 percent respectively.
In the US, Baidu Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/bidu#NASDAQ">BIDU</a>) is down 10 percent for the year, while JD.com Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/jd#NASDAQ">JD</a>) and Weibo Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wb#NASDAQ">WB</a>) are both down more than 35 percent. Even cream-of-the-crop Alibaba Group Holding Ltd (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/baba#NYSE">BABA</a>) is trading at 15 percent deficit. And all of this while the S&amp;P 500 has risen nearly 8 percent to new all-time highs.
While investors have struggled, the constant back-and-forth between the US and China on trade policies and tariffs has created an opportunity for traders, at least according to Direxion, the largest provider of leveraged ETFs.
They told Benzinga that traffic to their China pages&mdash; which include the Direxion Daily CSI 300 China A Share Bear 1X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chad#NYSE">CHAD</a>), Direxion Daily CSI 300 China A Share Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/chau#NYSE">CHAU</a>), Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yinn#NYSE">YINN</a>), Direxion Daily FTSE China Bear 3X (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/yang#NYSE">YANG</a>), and Daily CSI China Internet Index Bull 2X Shares (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cweb#NYSE">CWEB</a>) Shares&mdash;were all dramatically higher this summer.
Looking at fund flows, which can provide clues about how traders are using ETFs, every one of those ETFs except CWEB has seen large inflows since the beginning of June, according to ETF.com. While it&rsquo;s hard to discern too much from that because these funds are commonly used by institutional traders as part of larger strategies, it does tell us that money has been pouring into the funds (though we don&rsquo;t know whether it&rsquo;s on the long or short side).
Here is the flow data for this group since June 1:
<ul>
<li>Direxion Daily FTSE China Bull 3X Shares&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $67.10 million</li>
<li>Direxion Daily CSI 300 China A Share Bear 1X Shares&nbsp;&nbsp; &nbsp; &nbsp; $30.51 million</li>
<li>Direxion Daily CSI 300 China A Share Bull 2X Shares&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $21.06 million</li>
<li>Direxion Daily CSI China Internet Index Bull 2X Shares&nbsp;&nbsp;&nbsp; -$31.29 million</li>
<li>Direxion Daily FTSE China Bear 3X Shares&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; -$7.31 million</li>
</ul>
If this trend is to be believed, it appears likely these vehicles will continue to be popular at least through September or until the US and China come to a definitive agreement on trade deals.

Sector ETFs

CHAD

CICHY

IDCBY

As The US And China Duke It Out Over Trade, Traders Flock To Chinese Leveraged ETFs

The semiconductor and financials sectors have been two of the most popular sectors among short-term traders in 2018, according to fund flow data from ETF.com.
Looking at the year-to-date fund flows of Direxion ETFs, the largest issuer of leveraged ETFs, the Direxion Daily Financial Bull 3x Shares (NYSE: <a class="ticker" href="/stock/fas#NYSE">FAS</a>) has had $227.78 million of inflows in 2018, making it the Direxion fund with the most growth this year. That&rsquo;s followed by the Direxion Daily Semiconductor Bull 3x Shares (NYSE: <a class="ticker" href="/stock/soxl#NYSE">SOXL</a>), which has seen $168.53 million of inflows, and the Direxion Daily Gold Miners Index Bull 3x Shares (NYSE: <a class="ticker" href="/stock/nugt#NYSE">NUGT</a>), which has seen $86.59 of inflows.
Interestingly, the Direxion Daily S&amp;P 500 Bull 3x Shares (NYSE: <a class="ticker" href="/stock/spxl#NYSE">SPXL</a>) has had $217.56 million of inflows this year, making it the second most popular of Direxion&rsquo;s 70 leveraged ETFs.
&ldquo;If you look at 2017, the growth flow we had in our S&amp;P products for the entire year, we&rsquo;ve had more than half of that amount in the first few months of this year,&rdquo; said Sylvia Jablonski, managing director of Direxion. &ldquo;So that confirms to me that volatility is back, because when volatility is back we see high turnover and we see an increase in absolute activity. So bottom line the funds are picking up with the increase in volatility.&rdquo;
Leveraged ETFs represent a good way to observe the movements of short-term traders because of their uses as a hedging tool and a way to play immediate volatility, such as earnings season that we&rsquo;re just coming out of. Jablonski said that specific to earnings, they traders putting the ticker on the day before an earnings announcement and unwind it at the end of that day or the following day.
However, she noted that it can be difficult to come to long-term conclusions from this data alone since the instruments are mostly used for short-term trading.
&ldquo;With three-beta funds, it&rsquo;s really hard to come to any conclusions on this because you have people who take the contrarian view, they buy on the dip, and people using the funds to hedge on a position in the short term for a day or two.
&ldquo;The three-beta products, they&rsquo;re daily rebalanced, so traders should have a high conviction both on the direction of the underlying index or sector and the volatility,&rdquo; Jablonski added. Traders should look at a trade as a one day trade, and if they have the same conviction on day two, fine hold the position on day two. But make sure you&rsquo;re actively checking that position and resetting your outlook on that sector. We always say the trend is your friend with these ETF products.&rdquo;
Here&rsquo;s a list of the Direxion funds with the most fund inflows and outflows in 2018, according to ETF.com.
<h3>
	Top Inflows</h3>
Direxion Daily Financial Bull 3x Shares (NYSE: <a class="ticker" href="/stock/fas#NYSE">FAS</a>) $227.78 million 
	Direxion Daily S&amp;P 500 Bull 3x Shares (NYSE: <a class="ticker" href="/stock/spxl#NYSE">SPXL</a>) $217.56 million 
	Direxion Daily Semiconductor Bull 3x Shares (NYSE: <a class="ticker" href="/stock/soxl#NYSE">SOXL</a>) $168.53 milion 
	Direxion Daily Gold Miners Index Bull 3x Shares (NYSE: <a class="ticker" href="/stock/nugt#NYSE">NUGT</a>) $86.59 million 
	Direxion Daily FTSE China Bull 3X Shares (NYSE: <a class="ticker" href="/stock/yinn#NYSE">YINN</a>) 81.34 million 
	Direxion Daily S&amp;P Oil &amp; Gas Exp. &amp; Prod. Bear 3X Shares (NYSE: <a class="ticker" href="/stock/drip#NYSE">DRIP</a>) $59.57 million 
	Direxion Daily MSCI Emerging Markets Bull 3x Shares (NYSE: <a class="ticker" href="/stock/edc#NYSE">EDC</a>) $55.36 million 
	Direxion Daily Aerospace &amp; Defense Bull 3X Shares (NYSE: <a class="ticker" href="/stock/dfen#NYSE">DFEN</a>) $45.96 million
<h3>
	Top Outflows</h3>
Direxion Daily Small Cap Bear 3x Shares (NYSE: <a class="ticker" href="/stock/tza#NYSE">TZA</a>) -$92.97 million 
	Direxion Daily Energy Bull 3x Shares (NYSE: <a class="ticker" href="/stock/erx#NYSE">ERX</a>) -$35.68 million 
	Direxion Daily S&amp;P Oil &amp; Gas Exp. &amp; Prod. Bull 3X Shares (NYSE: <a class="ticker" href="/stock/gush#NYSE">GUSH</a>) -$24.12 million

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Direxion Daily FTSE China Bull 3x Shares (ARCA:YINN), Trade Ideas