ProShares Short FTSE China 50 (YXI) Covered Calls

ProShares Short FTSE China 50 provides inverse (-1x) exposure to the daily performance of the FTSE China 50 Index. The fund is designed to profit from daily declines in 50 of the largest and most liquid Chinese companies listed on the Hong Kong Stock Exchange. Unlike its leveraged siblings, YXI offers a single-strength hedge, making it a more conservative tactical tool for managing exposure to Chinese large-cap equities.

You can sell covered calls on ProShares Short 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 YXI (prices last updated Fri 4:16 PM ET):

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Core Business and Products

ProShares Short FTSE China 50 (YXI) is an inverse exchange-traded fund that seeks to deliver the opposite (-100%) of the daily return of the FTSE China 50 Index. In 2026, the fund remains a primary tool for investors seeking a "1-to-1" short hedge against Chinese large-cap stocks without the volatility decay typically associated with 2x or 3x leveraged vehicles.

The fund achieves its daily inverse objective primarily through swap agreements. The underlying index is a heavy-hitter list of the 50 largest Chinese companies trading in Hong Kong, including tech giants like Tencent and Alibaba, and financial anchors like China Construction Bank. By providing the inverse of this index, YXI allows traders to express a bearish view on the primary drivers of the Chinese economy.

Competitive Landscape

YXI serves as the "conservative" alternative to aggressive inverse funds like YANG. It is fully optionable, allowing for advanced hedging strategies, though it faces stiff competition for liquidity from broader market products. With an expense ratio of 0.95%, it is priced as a specialty tactical instrument rather than a long-term core holding.

Key peers and related China-focused vehicles include:

1. iShares China Large-Cap ETF: The direct 1x long benchmark that YXI seeks to inverse.
2. iShares MSCI China ETF: A massive, liquid long-only peer that covers a broader range of the Chinese market and is a staple for option traders.
3. Direxion Daily FTSE China Bear 3X Shares: The high-leverage 3x inverse peer for more aggressive bearish bets.
4. ProShares UltraShort FTSE China 50: The 2x leveraged inverse sibling to YXI.
5. KraneShares CSI China Internet ETF: A popular sector-specific peer used for pair trading against YXI to isolate tech-specific risk.

Strategic Outlook and Innovation

In 2026, YXI is frequently positioned as a "portfolio stabilizer." As trade dynamics and regulatory cycles in China create periods of high uncertainty, YXI provides a straightforward way for investors to reduce their net exposure. The fund’s monthly management of its swap positions is optimized to keep tracking error low, even during the high-volatility gaps often seen in overnight Hong Kong trading sessions.

The fund pays a quarterly dividend—most recently $0.0858 in March 2026—which provides a small yield that can help offset the expense ratio for tactical holders. For the modern investor navigating the "New Normal" of Chinese markets, YXI remains a vital single-strength instrument for tactical downside protection.

Want more examples? YUMC Covered Calls | YYY Covered Calls