ProFunds has created two new mutual funds designed for investors who are bullish on Chinese stocks and for those who believe the Chinese market will plummet.
The new UltraChina ProFund offers the chance to get magnified exposure to the Chinese markets, ProFunds says. For investors who believe that they are due for a fall, UltraShort China ProFund is designed to go up when Chinese stocks go down.
“After several years of incredible performance in Chinese stocks, many experts are making the case for continued strong growth in China. Others have been talking of a bubble, and believe recent volatility may be a harbinger of worse to come,” says Michael Sapir, chairman and CEO of ProFund Advisors LLC in a statement. “ProFunds is giving mutual fund investors tools that make it easy to act on either point of view,” he says. “And because we don’t restrict how often investors can trade ProFunds, it’s also easy to adjust your exposure if that point of view changes.”