Power On: Mid-Term VIX Jumps as Asian ETFs Shift Strategies

Welcome to the latest edition of Power On. The focal point for trading desks this week is the persistent ripple effect of geopolitical instability. With the collapse of localized ceasefire agreements, macroeconomic tension has pushed the ProShares VIX Mid-Term Futures ETF (VIXM.US) right back to the forefront as institutional players look for a reliable cushion against mid-curve market shocks.

That underlying volatility is driving a recalibration in Asian allocations. We are seeing a distinct strategic split regarding Japan: leveraged players are tapping the ProShares Ultra MSCI Japan (EZJ.US) to amplify their large-cap exposure, while defensive bulls are using the WisdomTree Japan Hedged Equity Fund (DXJ.US) to neutralize currency risks and capitalize on an export-heavy index. Across the sea, Korea Electric Power (KEP.US) is facing a much bumpier ride. The utility giant recently froze its third-quarter electricity rates, sparking fresh concerns over its highly leveraged balance sheet and causing a recent pullback, completely overshadowing a solid Q1 2026 earnings bump.

Down at the corporate level, the divergence is striking. ATRenew Inc. (RERE.US) is flexing its financial muscle, posting a robust 32.4% year-over-year jump in Q1 2026 net revenues and decisively extending its USD 50 million share repurchase program by another 12 months. On the darker side of the ledger, Maxeon Solar Technologies (MAXNQ.US) is fighting for survival. Strangled by severe liquidity pressures and massive customer litigation exceeding USD 70 million, the solar tech firm has filed for judicial management in Singapore and was hit with yet another Nasdaq delisting notice.

Also in the portfolio...

• Greenpro Capital (GRNQ.US): The multinational financial services firm has been exceptionally busy. Following its strategic stock-swap acquisition of AI analytics provider Forekast Limited, it executed a 1-for-10 reverse stock split in late June, while CEO Lee Chong Kuang scooped up over 65,000 shares in early July.
• Direxion Daily Regional Banks Bull 3X Shares (DPST.US): Offering aggressive bulls a 3x daily dose of US regional bank action, this leveraged ETF has recently managed to outperform the broader S&P 500 index amidst shifting sector sentiments.
• Guggenheim Strategic Opportunities Fund (GOF.US): The value-oriented closed-end fund is keeping its payout rhythm perfectly steady, officially declaring its July 2026 distribution after maintaining the identical pace through May and June.
• Simplify Volt FOF Innovation ETF (FOFO.US): While hard intraday data on this specific bundled innovation tracker remains elusive on the broader tapes, institutional appetite for disruptive tech assets continues to simmer in the background.