It is not representative of the "China" market whatsoever. Since August 3rd when the Shanghai (SSEC) hit a high, the SSEC is down 20%. The FXP was over $9 on August 3rd and should now be up 40% or $3.6 to $12.60; if this was at all representative.
So where are we? $10.50. When the Shanghai was rallying this ETF was cleaned out; down over 80%. Now it will not move when the Shanghai is getting crushed. The thing for all of us to do is call the manager and tell them they have to publish their holdings daily and explain its lack of correlation. I did not look at this thing for weeks but when I saw the collapse in the Shangai, I realized I was making good money but was sadly shocked to realize this crap ETF has zero correlation when the Shanghai goes down but perfect correlation (gets killed) when it goes up.
interesting post; was just listening to Tommy O'Brien (stock trader) on radio and he said Shanghai went down 20% in 11 days and has been on a counter trend bounce the last few days; from its most recent low of around 9.25 FXP went to 11--seems like it would have gone up alot more w/Shanghai exch. down 20% !!(?)
FXP is the double inverse of the Hang Seng Index (HSI) in Hong Kong and NOT Shanghai. HSI is not down nearly as much as Shanghai. Also, FXP more closely mimics the US FXI ETF but as a double inverse. Please read up on this ETF before investing in it. It is used more as a hedge for Day Traders and not long term investors. Just my 2cents...
This is the double inverse of the HSI index, or FXI. It's not guaranteed over time to be exact double inverse so that's why this ETF is more of a hedge for day traders. I would not use a buy hold strategy for this ETF. Look at 1 month and 3 month comparison charts with FXI and FXP and you will see... Good luck...
That's just about right folks. Except it's not made up of stocks. It's made up of options, derivatives and other financial instruments to mimic it. After trading on the US exchange daily it's gets recalibrated and there is ALWAYS degradation over time.
So yes, only for DAY TRADING and maybe an occasional overnigter.
Guaranteed to disintigrate over time.
And yes, you can make money with it. But NOT if you hold.
Dont you guys get it they are stealing your money. I had a hardcurency fund with --- which went up 8 percent only, on the other hand the EURO and Yen are 30 percent gained against the dollar. Clear indication something is not right.
Read this article, this fund doesn't have anything to do with the Chinese Shanghai market.
This tracks Chinese H stocks as listed on the Hang Seng. The Hang Seng is off about 5% from it's high. The same stocks off 21% in Shanghai are only off 5% HK. This will track with FXP.
I am not saying this is right but it is fact