What is YANG ETF?

Direxion Daily FTSE China Bear 3X Shares (YANG) is a passively managed fund by Direxion that tracks the performance of the FTSE China 50 Index (-300%).YANG and YINN are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. They are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.This ETF offers 3x daily short leverage to the FTSE China 50 Index, making it a powerful tool for investors with a bearish short-term outlook for China large cap stocks.For example, if the FTSE 50 A50 Index rises by 5 points, then YANG would approximately rise by 15 points. However, there is a risk with these 3x leveraged ETFs that they may not track the index accurately. For instance, on January 15, 2016, YINN fell by 18.91% at one point, even though the FTSE 50 Index did not drop by 6% that day. The daily pricing of leveraged ETFs is also determined by market participants. When the market is pessimistic about the FTSE 50 Index, it may overshoot on the downside. These ETFs are well-suited for intraday trading but are not ideal for holding over volatile periods in the long term.A 3x leverage can amplify your profits by a factor of three, but similarly, your losses can also be magnified threefold. This strategy is highly risky and is only suitable for investors who can withstand the possibility of significant losses and understand the risks associated with leverage.Investors should note that YANG’s leverage resets on a daily basis, which results in compounding of returns when held for multiple periods. YANG can be a powerful tool for sophisticated investors, but should be avoided by those with a low risk tolerance or a buy-and-hold strategy.