YXI Profile
The ProShares Short FTSE China 50 fund is designed to achieve investment results that correspond to the inverse of the daily performance of the FTSE China 50 Index. This index includes 50 of the largest and most liquid Chinese stocks that are listed and traded on the Hong Kong Stock Exchange. By focusing on these high-cap, high-liquidity stocks, the fund aims to provide investors with a means to profit from declines in the performance of the Chinese equity market.
The fund employs financial instruments, such as derivatives, to meet its objective of delivering daily inverse returns relative to the FTSE China 50 Index. ProShare Advisors strategically manages these investments to ensure that the fund’s performance aligns with its goal of providing the opposite daily return of the index. This approach is particularly useful for investors seeking to hedge against or capitalize on potential downturns in the Chinese market.
Given its focus on inverse performance, the ProShares Short FTSE China 50 fund is non-diversified and concentrates its investments in financial instruments that offer inverse exposure to a concentrated index of major Chinese companies. This concentration is a deliberate choice to enhance the effectiveness of the fund’s strategy in tracking the daily inverse movements of the index, rather than spreading investments across a broader array of securities.
Investors in this fund should be aware that its performance is geared towards short-term trading strategies, given its daily rebalancing to maintain inverse exposure. The fund is designed for those looking to hedge against adverse movements in the Chinese equity market or to speculate on market declines. As such, it is essential for investors to understand the potential risks and rewards associated with inverse ETFs and to ensure that this fund aligns with their investment goals and risk tolerance.
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