Direxion, begun trading a new China Internet 2x Bull ETF, the Direxion Daily CSI China Internet Index Bull 2X Shares (Nyse Arca: CWEB), on Wednesday, November 02, 2016. Here is a synopsis of the new ETF:
FUND INFORMATION:
| Symbol: CWEB | Exchange: NYSE ARCA |
| Name: Direxion Daily CSI China Internet Index Bull 2x Shares | Net Expense Ratio: 0.95% |
FUND OBJECTIVE:
The Direxion Daily CSI China Internet Index Bull 2x Shares seeks daily investment results, before fees and expenses, of 200% of the performance of the CSI Overseas China Internet Index.
REFERENCE INDEX:
The CSI Overseas China Internet Index is provided by China Securities Index Co., LTD (Index Provider). The securities included in the Index are primarily listed outside of China, have been listed for at least 3 months and meet one of the three following criteria:
1) the company is incorporated in mainland China;
2) the operation center for the company is in mainland China; or
3) at least 50% of the revenue from the company is from mainland China.
The Index Provider then removes securities that during the past year had a daily average trading value of less than $500,000 or a daily average market cap of less than $500 million. China internet companies include, but are not limited to, companies that develop and market internet software and/or provide internet services; manufacture home entertainment software and education software for home use; provide retail or commercial services primarily through the internet; and develop and market mobile internet software and/or provide mobile internet services. Constituents of the Index are ranked by market capitalization in US Dollars and then weighted so that no constituent weighting exceeds 10%. The Index is reviewed semi-annually.
As of September 30, 2016, the Index consisted of 48 constituents with an average market capitalization of approximately $1.4 billion and market capitalizations ranging from $49.2 million to $7.6 billion.
Index Top 10 Consituents (09/30/16):
| Alibaba Group Holding Ltd | 12.09% |
| Tencent Holdings Ltd | 10.23% |
| JD.com Inc | 8.16% |
| Baidu Inc | 7.99% |
| NetEase Inc | 7.89% |
| TAL Education Group | 4.91% |
| Ctrip.com International Ltd | 4.36% |
| SINA Corp/China | 4.33% |
| Vipshop Holdings Ltd | 4.30% |
| 58.com Inc | 3.68% |
Index Sector Weightings (09/30/16):
| Internet Software & Services | 65.21% |
| Internet & Direct Marketing | 21.24% |
| Software | 5.86% |
| Diversified Consumer Services | 4.91% |
| Hotels Restaurants & Leisure | 1.73% |
| Professional Services | 1.0% |
Useful Links:
CWEB Home Page
Category: Equities> Regions>Asia> Emerging Asia Equities> China
ETFtrack Comment:
Here is a comment from Sylvia Jablonski, Managing Director at Direxion:
“The Chinese internet sector is booming with continued growth of not only the internet user population, but the full adoption of web-based online retailer models. The launch of CWEB is timely, as companies like Alibaba, which has just announced quarterly earnings, along with Tencent Holdings and Baidu, gain popularity among traders.”