ProShares Ultra FTSE China 50 (XPP) Covered Calls

ProShares Ultra FTSE China 50 provides daily 2x leveraged exposure to the FTSE China 50 Index. The fund tracks 50 of the largest and most liquid Chinese companies listed on the Hong Kong Stock Exchange, providing a high-octane vehicle for tactical traders. As a leveraged product, it is designed for short-term objectives and requires active monitoring due to the effects of daily compounding and market volatility.

You can sell covered calls on ProShares Ultra FTSE China 50 to lower risk and earn monthly income. Born To Sell's covered call screener gives you customized search capabilities across all possible covered calls but here are a couple of examples for XPP (prices last updated Wed 4:16 PM ET):

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Core Business and Products

ProShares Ultra FTSE China 50 (XPP) is a leveraged exchange-traded fund that seeks to deliver 200% of the daily performance of the FTSE China 50 Index. The index consists of the 50 largest "H-shares," "Red chips," and "P-chips" traded on the Hong Kong Stock Exchange. In 2026, the fund continues to serve as a primary tool for traders looking to capitalize on bullish sentiment in the Chinese large-cap equity market without needing a margin account.

The fund achieves its 2x leverage through the use of derivative instruments, primarily swap agreements with major global financial institutions. Its underlying exposure is heavily concentrated in the giants of the Chinese economy:

1. Tencent Holdings: A dominant force in social media, gaming, and fintech.
2. Alibaba Group: The global e-commerce and cloud computing leader.
3. Meituan: A key player in China's massive local services and food delivery ecosystem.
4. China Construction Bank & ICBC: Leading state-owned financial institutions that anchor the index.
5. Xiaomi Corporation: A top global consumer electronics and smart manufacturing brand.

Competitive Landscape

XPP operates in the high-volatility "Leveraged Equity" category. It differentiates itself by focusing on the Hong Kong-listed "Large-Cap" universe, which offers higher liquidity than Mainland-listed A-shares. While XPP is technically optionable, liquidity in its options chain is often thin compared to its 3x rival, YINN. It is primarily used by sophisticated traders for directional bets or to hedge short-term geopolitical risks in the Asia-Pacific region.

Key peers and related volatility vehicles include:

1. iShares China Large-Cap ETF: The non-leveraged 1x benchmark that XPP seeks to double.
2. Direxion Daily FTSE China Bull 3X Shares: A more aggressive 3x leveraged peer with significantly higher trading volume.
3. Direxion Daily FTSE China Bear 3X Shares: The inverse 3x peer used to bet against Chinese large-caps.
4. KraneShares CSI China Internet ETF: A non-leveraged peer focusing specifically on the volatile Chinese tech sector.
5. ProShares UltraShort FTSE China 50: The inverse 2x sibling to XPP, designed to profit from daily declines in the index.

Strategic Outlook and Innovation

In 2026, the strategic outlook for XPP is closely tied to Chinese stimulus measures and global trade dynamics. As a leveraged fund, it suffers from "volatility decay" if held over long periods during choppy markets. Consequently, innovation for the fund is focused on the underlying swap management—ProShares works to minimize "tracking error" relative to the 2x daily target by optimizing collateral with its new affiliated money market vehicle.

The fund maintains an expense ratio of 0.95%, which is standard for specialized leveraged products. While XPP does occasionally distribute small dividends (most recently in March 2026), it is not an income-oriented vehicle. For investors navigating the complex 2026 regulatory environment in China, XPP remains a efficient, albeit high-risk, instrument for expressing a concentrated, amplified bullish view on the region’s corporate titans.

Want more examples? XPO Covered Calls | XPRO Covered Calls