CHAU Profile
CHAU
(CSI 300 China A 2X ETF Direxion) is an exchange-traded fund (ETF)
managed by Direxion Investments. The ETF seeks to provide investors
with daily leveraged exposure to the CSI 300 Index, which is a
benchmark that tracks the performance of the top 300 stocks listed on
the Shanghai and Shenzhen stock exchanges in China.
As a
leveraged ETF, CHAU seeks to provide investors with daily 2x leveraged
exposure to the performance of the CSI 300 Index, meaning that it is
designed to deliver twice the return of the index on a daily basis.
The ETF aims to provide investors with a way to profit from potential
increases in the Chinese stock market.
As of September 2021,
the CHAU ETF had total net assets of around $46 million and was
invested in a diversified portfolio of financial instruments and
derivatives that are designed to provide leveraged exposure to the CSI
300 Index. The fund's holdings are managed by the investment
professionals at Direxion Investments, who have extensive experience
in managing leveraged ETFs.
In terms of performance, CHAU has
delivered strong returns over the short term when the Chinese stock
market has experienced gains. However, it's important to note that the
ETF's daily leveraged exposure means that its performance can diverge
significantly from the performance of the CSI 300 Index over longer
periods of time, and it may not be suitable for all investors.
Investors should keep in mind that like all investments, CHAU carries
risks, including the risk that the Chinese stock market may not
increase as expected, resulting in potential losses for investors.
Additionally, the ETF charges a relatively high expense ratio of
1.07%, which is in line with the average expense ratio for leveraged
ETFs. Investors should carefully consider their investment objectives
and risk tolerance before investing in CHAU or any other leveraged
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