This is a leveraged ETF that targets twice the daily return of the CSI 300 Index, a broad benchmark of large-cap mainland Chinese stocks. It uses a combination of derivatives such as swaps and resets its target multiple every day.

It suits short-term traders who are confident in a near-term rise in the Chinese A-share market and can tolerate high volatility.

It is a passive (index-tracking) ETF managed by Direxion.

The fund combines swap contracts with index-tracking securities to reset its 2x exposure to the CSI 300's daily return each day. Because of this daily reset structure, the actual cumulative return can diverge from twice the index's return when the fund is held for more than a few days.

• One of the few 2x leveraged ETFs focused on mainland China A-shares
• A daily reset structure that re-establishes the target multiple every day

Assets under management (AUM) stand at $70.1M, and the total expense ratio is 1.19% per year.

Fees tend to be high relative to peers in the same category, reflecting the costs of a swap-based leveraged structure.

The fund has seen volatility widen sharply in response to expectations for Chinese policy and the release of economic data. When the market's direction is clear, sharp short-term surges and drops have tended to recur.

Fund flows react sensitively to shifts in market sentiment toward Chinese equities, and trading volume tends to rise when policy events or hopes for economic stimulus come into focus.

When you are convinced China A-shares will rise, the fund allows capital-efficient expansion of exposure, but you must also accept the compounding risk inherent in leveraged structures.

TQQQ, SOXL, QLD, MUU, and SSO shown in the table share the trait of being leveraged ETFs, but they track the US Nasdaq, semiconductor, and S&P 500 indexes, so their underlying indexes are entirely different from that of CHAU. They are products for betting on the direction of large US technology stocks or the semiconductor sector. If you want China-related exposure, you could also consider alternatives such as FXI, a non-leveraged China large-cap ETF; YANG, an inverse product, if you need to bet in the opposite direction; or MCHI if you want exposure to the broader Hong Kong and China market.

These are the points to review before deciding to invest in CHAU. You should fully understand the 2x leveraged structure and the policy-driven volatility unique to the Chinese A-share market before getting involved.

The combination of leveraged structure and the policy and regulatory volatility unique to the Chinese A-share market means large price swings can occur even over short periods. You should also factor in the return divergence caused by compounding when holding for more than a few days.

This product suits traders who are confident in the short-term upward direction of the Chinese A-share market and can tolerate high volatility. For long-term investment purposes, it is advisable to consider non-leveraged China ETFs first.