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 FXP is up 18 percent year to date the Direxion Daily China Bear 3X Shares 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.