For investors seeking momentum, Direxion Daily CSI 300 China A Share Bear 1X Shares is probably on radar now. The fund just hit a 52-week high and is up over 33.2% from its 52-week low price of $27.67 per share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

CHAD in Focus    

The fund tracks 100% of the inverse of the performance of the CSI 300 Index. Financials (33.38%), Industrials (13.50%) and Consumer Discretionary (11.44%) take top three spots in the index. The product charges 80 bps in fees (see all Inverse Equity ETFs here).

Why the Move?

Trade war tensions between the United States and China led to this lackluster performance in the fund. Notably, the Shanghai Composite Index has plunged 20% in June from its peak in January, confirming a bear market.

More Gains Ahead?

It seems that this fund can be exercised a little further as evident by the positive weighted alpha of 11.67.

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