YANG Plunges 44% And Now The Macro Clock Is Ticking

"Direxion Daily FTSE China Bear 3X Shares (NYSEARCA:YANG) seeks to deliver three times the inverse daily performance of the FTSE China 50 Index, which tracks the 50 largest Chinese companies listed on the Hong Kong Stock Exchange. This ETF exists for investors who want to profit when China's largest equities decline or to hedge long exposure to Chinese markets. Over the past year, YANG has lost 44.26% as Chinese large-caps climbed - a direct consequence of the fund's inverse design."

"The macro factor most likely to drive YANG's performance over the next 12 months is the trajectory of U.S.-China trade relations, particularly tariff announcements and retaliatory measures. In October 2025, headlines around China's rare earth export restrictions and Trump tariff threats triggered a downturn that sent the VIX above 30 and the S&P 500 down 2.7%. When geopolitical tensions flare, Chinese equities typically sell off, directly benefiting inverse products like YANG."

"Investors should monitor the Office of the U.S. Trade Representative's tariff announcements and China's Ministry of Commerce statements on retaliatory duties. The USD/CNY exchange rate also serves as a real-time stress indicator. A sharp yuan depreciation would signal capital flight and weakness in Chinese assets, likely pushing YANG higher. Conversely, any trade compromise or tariff rollback would pressure YANG as Chinese equities rally."

Direxion Daily FTSE China Bear 3X Shares (YANG) targets three times the inverse daily return of the FTSE China 50 Index, providing profit or hedge potential when China's largest equities fall. YANG lost 44.26% over the past year while the iShares China Large-Cap ETF (FXI) gained 12.91%, and YANG was down 4.46% year-to-date through February 19, 2026. The primary macro driver is U.S.-China trade policy, including tariffs, retaliatory duties, and USD/CNY moves. The primary micro driver is the fund's daily 3x inverse reset, causing compounding decay and a structural headwind during sustained rallies.

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