China ETFs Take Off on Trade Data

China-focused ETFs ProShares Ultra FTSE China 50 (XPP) and Direxion Daily China Bull 3x Shares ETF (YINN) are trading higher today

Apr 13, 2016 at 10:34 AM
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U.S. stocks are trading higher this morning, thanks mainly to better-than-expected export data out of China. While stocks across the board are getting a lift, those with exposure to China are faring even better. Case in point, exchange-traded funds (ETFs) ProShares Ultra FTSE China 50 (XPP) and Direxion Daily China Bull 3x Shares ETF (YINN) are both enjoying huge days. 

XPP has jumped 6.8% to $45.75, earlier hitting a year-to-date high of $46.18. On a longer-term basis, the ETF has struggled in sympathy with Chinese stocks, giving back over half its value during the past 12 months. While the fund is still below its year-to-date breakeven level, it's performed much better recently, gaining 51.6% since hitting an all-time low of $30.17 on Feb. 11. 

Meanwhile, YINN is up 10.5% at $15.63, putting the fund on pace for its highest close since early January -- similar to the Shanghai Composite. YINN touched record lows in mid-February around $8.50, but has battled back, with today's gains setting the ETF up for its first close above the 100-day moving average since late June. 

Obviously, both the ProShares Ultra FTSE China 50 (XPP) and Direxion Daily China Bull 3x Shares ETF (YINN) have a long way to go to make up for their dreadful long-term performances. Both ETFs could remain in focus through week's end, with China set to unveil first-quarter gross domestic product (GDP) figures tomorrow. 

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