In recent years, when A-shares fluctuate sharply, there are two ETFs that are easy to attract everyone's attention, which are: FTSE China 3x Long ETF and FTSE China 3x Short ETF, the focus is that they will have greater volatility, and it can even be said to be huge.
Today, let's take a brief look at the relationship between these two ETFs and A-shares.
Both ETFs are exchange-traded** (ETFs) issued by Direxion Investments and are designed to provide triple daily returns in the same or opposite direction as their benchmark index.
These two ETFs are issued by Direxion, Inc., which is based in the United States, and it provides products and solutions for those who are leveraged enthusiasts.
In addition to the FTSE China 3x long and short ETF that we are going to talk about today, there are also S&P 500 3x long and short, Dow Jones 3x long and short, as well as some industry nature 3x long and short, and so on.
The two ETFs track the FTSE China 50 Index.
It should be noted here that this FTSE China 50 index is not what we often call the FTSE A50, it is missing a letter A.
There are three indices with similar names, and the full names are:
FTSE China 50, FTSE China A50 and FTSE China A-H50
The FTSE China 50, originally the FTSE China 25 Index, was later expanded to become the FTSE China 50 Index, which is the world's earliest index of Chinese companies, and it covers 50 China's top stocks listed in Hong Kong.
The rest is easy to understand :
FTSE China A50 is the 50 largest A-share listed companies by market capitalization;
The FTSE China A-H 50 is a group of 50 companies that integrate A-shares and Hong Kong stocks.
Therefore, from the perspective of reflecting China's economy: A-H50 is the most scientific, and in terms of correlation with A-shares, A50 is the most closely related.
The FTSE China triples long and short ETF is equivalent to H50, which is obviously not so correlated with A-shares!
It's just that the fluctuations are bigger, and it's more eye-catching!
Its major shareholding companies include: Alibaba, Tencent, Meituan, JD.com, Ping An, CCB, ICBC, NetEase, WuXi Biologics, etc.
First of all, the volatility of all leveraged products will definitely increase, and investors need to pay attention.
Secondly, this product is often not suitable for long-term holding, and is more used as an intraday leveraged product. Finally, if you configure such products, you must do a good job of risk assessment, and you must do a good job of dynamic rebalancing of leverage before every day, and you must not let the risk coefficient expand.
FTSE China A50 Index