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

by Josh Selway

Published on Apr 13, 2016 at 10:34 AM
Updated on Jun 24, 2020 at 10:16 AM

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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