XPP +2x ProShares Ultra FTSE China 50 of PROSHARES TRUST
XPP
ETF +2x BULL standardProShares Ultra FTSE China 50 of PROSHARES TRUST
Realized return vs theoretical +2x China
Pair counterpart found:
FXP
(-2x bear, ProShares UltraShort FTSE China 50 of ProShares Trust)
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 | |
| FXP | -2x | BEAR | ProShares | ProShares UltraShort FTSE China 50 of ProShares Trust | $6.1M | 4,625 | |
| YANG | -3x | BEAR | Direxion | Direxion Daily FTSE China Bear 3X ETF | $83.4M | 795,961 |
How XPP works
XPP 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 XPP 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.