CHAU: the 1st +2x China A shares ETF by Direxion

Direxion Investments begun trading the Direxion 2x Daily CSI 300 China A Share ETF (NYSEArca: CHAU) on Thursday, April 16, 2015.
Here is a synopsis of the new ETF:


Symbol: CHAU   Exchange: NYSE Arca
Name: Direxion Daily CSI 300 China A Share Bull 2x Shares Net Expense Ratio: 0.95%


The Direxion Daily CSI 300 China A Share Bull 2x Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the CSI 300 Index.


The CSI 300 Index is a modified free-float market capitalization weighted index comprised of the largest and most liquid stocks in the Chinese A-share market.
Index constituent stocks must have been listed for more than 3 months (unless the stock’s average daily A-share market capitalization since its initial listing ranks among the top 30 of all A-shares) and must not be experiencing obvious abnormal fluctuations or market manipulations.  As of December 31, 2014, the Index included 300 securities of companies with a market capitalization range of approximately $1.7 billion to $305 billion and an average market capitalization of $14.2 billion.  As of December 31, 2014, the Index was concentrated in the financial industry.

Index Top Components (04/16/15):

Ping An Insurance Group Co of China Ltd 4.18%
China Merchants Bank Co Ltd 2.67%
China Minsheng Banking Corp Ltd 2.66%
CITIC Securities Co Ltd 2.62%
Industrial Bank Co Ltd 2.22%
Haitong Securities Co Ltd 2.06%
Shanghai Pudong Development Bank Co Ltd 1.90%
China Vanke Co Ltd 1.31%
China State Construction Engineering Cor 1.09%
CSR Corp Ltd 1.08%


Index Sector Weightings (04/16/15):

Financials 41.29%
Industrials 16.78%
Consumer Discretionary 10.71%
Materials 7.02%
Information Technology 6.17%
Health Care 5.49%
Consumer Staples  5.35%
Utilities 3.25%
Energy 3.09%
Telecommunication Services  0.84%

Useful Links:

CHAU Home Page

ETFtrack comment:

CHAU is the 1st 2x leveraged ETF tied to China A-shares listed in the U.S.
As Brian Jacobs, President of Direxion Investments said ”CHAU provides an unprecedented opportunity for experienced traders to magnify their exposure to mainland Chinese stocks”. China A-shares, which trade on the Shanghai and Shenzhen Stock Exchanges, account for roughly two-thirds of the market capitalization of Chinese stocks.

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