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Bridgewater Shies Away From China: Time for Inverse China ETFs?

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Hedge fund giant Bridgewater Associates exited U.S.-listed Chinese equities in the second quarter, due to rising geopolitical tensions and wavering confidence in China’s economic outlook, as quoted on CNBC.

According to its latest 13F filing with the U.S. SEC, Bridgewater closed out positions in several high-profile Chinese companies, including Baidu, Alibaba, JD.com, PDD Holdings, Nio, Trip.com Group, Yum China, Qifu Technology and Ke Holdings.

The firm also trimmed its stake in Apple, while boosting its holdings in Microsoft and NVIDIA — pointing toward a preference for U.S. tech giants amid the strategic repositioning and Microsoft and NVIDIA’s more focus on the artificial intelligence.

Dalio’s Shifting Stance on China

Bridgewater founder Ray Dalio, long known as a China bull, has shown concerns about Beijing’s conflict with the United States. Last April, he highlighted U.S.-China tensions and weak asset prices but argued that issues were “manageable if Chinese leaders do their jobs well,” as quoted on CNBC.

Note thatas of early August, Dalio sold his remaining stake in Bridgewater and left the firm’s board, though he continues to serve as a mentor to its investment team.

Tariff Truce Extended

Meanwhile, Washington and Beijing extended their tariff truce by 90 days on Aug. 11, 2025. Without the extension, U.S. tariffs on Chinese goods would have surged to 145%, with Chinese duties rising to 125%. Currently, tariffs stand at 30% on Chinese imports into the United States and 10% on U.S. exports to China.

Time for Inverse China ETFs?

Against this backdrop, below we highlight a few inverse China ETFs that could be your picks if you want to follow the footsteps of Bridgewater.

ProShares Short FTSE China 50 (YXI - Free Report)

The ProShares Short FTSE China 50 seeks daily investment results, before fees and expenses, that correspond to the inverse of the daily performance of the FTSE China 50 Index. The fund charges 95 bps in fees.

ProShares UltraShort FTSE China 50 (FXP - Free Report)

The ProShares UltraShort FTSE China 50 seeks daily investment results, before fees and expenses, which correspond to two times the inverse of the daily performance of the FTSE China 50 Index. The fund charges 95 bps in fees.

Direxion Daily FTSE China Bear 3X Shares (YANG - Free Report)

The Direxion Daily FTSE China Bear 3X Shares seeks daily investment results, before fees and expenses, of 300% of the inverse (or opposite) of the performance of the FTSE China 50 Index. The expense ratio is 1.02%.

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