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:
FUND INFORMATION:
| Symbol: CHAU | Exchange: NYSE Arca |
| Name: Direxion Daily CSI 300 China A Share Bull 2x Shares | Net Expense Ratio: 0.95% |
FUND OBJECTIVE:
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.
REFERENCE 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.