U.S. Markets closed

Direxion’s Leveraged China ETFs Move to FTSE Indices


Direxion, the second-largest issuer of inverse and leveraged ETFs, said it will transition the Direxion Daily China 3x Bull (YINN) and the Direxion Daily China 3x Bear (YANG) to the FTSE China 25 Index.

The index swap takes effect on Dec. 12. YINN and YANG currently track the BNY Mellon China Select ADR Index.  The two ETFs will be the first triple-leveraged funds in the U.S. to track the FTSE China 25 Index, which is the underlying benchmark for the iShares China Large-Cap ETF (FXI) . FXI is the largest China ETF trading in the U.S. [November Reign for China ETFs]

YINN and YANG were launched in December 2009 and are nearing $100 million in combined assets under management, as of October 31, 2013, according to a statement.

“FTSE provides benchmarks for more than 60 percent of assets tracking China-themed, U.S.-listed ETFs, and we’re delighted by Direxion’s adoption of the FTSE China 25 Index,” said Jonathan Horton, President of FTSE North America and Head of FTSE’s Exchange-Traded Product Service Unit, in the statement. “Our relationship with Direxion reflects the growing global demand for multiple ETF vehicles offering exposure to the largest and most liquid Chinese stocks.”

Earlier this year, FTSE announced over 100 North American ETFs are benchmarked some of their funds to FTSE indices. Globally, FTSE-linked ETFs are offered by nine of the top ten issuers. [FTSE Hits Century Mark for North American ETFs]

The recent bounce in Chinese equities has predictably been good news for YINN. The ETF has surged nearly 41% in the past 90 days. YANG is down 36.4% over the same time.

Direxion Daily China 3x Bull

ETF Trends editorial team contributed to this post.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.