FXP -2x ProShares UltraShort FTSE China 50 of ProShares Trust
FXP
ETF -2x BEAR standardProShares UltraShort FTSE China 50 of ProShares Trust
Realized return vs theoretical -2x China
Pair counterpart found:
CWEB
(+2x bull, Direxion Daily CSI China Internet Index Bull 2X ETF)
Shorting both legs of a daily-reset bull/bear pair captures combined decay drift over time. Theoretical "free money" — actual edge depends on borrow rates (often punitive on the bear leg) and assignment risk on hard-to-borrow products.
Other leveraged products tracking China
| Symbol | Factor | Direction | Issuer | Name | Implied AUM | 30d Vol | Options |
|---|---|---|---|---|---|---|---|
| YINN | +3x | BULL | Direxion | Direxion Daily FTSE China Bull 3X ETF | $688.8M | 1,963,608 | |
| CWEB | +2x | BULL | Direxion | Direxion Daily CSI China Internet Index Bull 2X ETF | $238.6M | 639,775 | |
| CHAU | +2x | BULL | Direxion | Direxion Daily CSI 300 China A Share Bull 2X ETF | $88.7M | 118,272 | |
| XPP | +2x | BULL | ProShares | ProShares Ultra FTSE China 50 of PROSHARES TRUST | $9.1M | 4,662 | |
| YANG | -3x | BEAR | Direxion | Direxion Daily FTSE China Bear 3X ETF | $83.4M | 795,961 |
How FXP works
FXP targets -2x the daily return of China — not the cumulative return over multi-day windows. The fund rebalances at the close each day using swaps or futures, which is what creates the volatility drag the chart above visualizes.
Mathematical headline: drag ≈ −0.5 × N × (N−1) × σ² per period. For a -2x product on an underlying with 25% annualized vol, expected annual drag is around 6.2%. Add expense ratio and the realized number is typically worse.
- Short-term tactical: daily and intraday holds are where these products were designed to live.
- Premium selling: options on FXP carry very rich IV — see the quote page for IV rank and straddle pricing.
- Multi-day directional: works in strong trends; gets eaten alive in chop. Use the chart above to gauge the realized vs theoretical track record.