Share-split context: A reverse split was recorded on May 31, 2022 with coefficient 0.05. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

ETF Education Report: YINN (DIREXION DAILY FTSE CHINA BULL 3X SHARES)

What this ETF is trying to do

YINN is an ETF designed to provide leveraged exposure to the Chinese market. Specifically, it is a "3X" fund, which means it aims to provide three times the daily performance of its target index. Because it is a leveraged ETF, its price movements can be much larger and faster than the regular market.

What the numbers show

The data shows significant declines in share prices over various timeframes.

• Year-to-Date (YTD): The price return is approximately -44.68%. When including distributions, the total return is approximately -42.96%.

• One-Year: The price return is approximately -55.88%. The total return is approximately -54.40%.

• Three-Year: The price return is approximately -15.19%. The total return is approximately -8.12%.

It is important to note that this ETF has a history of reverse splits. In a reverse split, multiple old shares are combined into fewer new shares. This causes the quoted per-share price to rise mechanically, but it does not restore lost investment value. Because of this history, an estimated price from one year ago is not provided; instead, we use the split-adjusted percentage returns listed above.

Income and distribution explanation

YINN has a distribution yield of approximately 3.95%. This represents the cash distributions paid out relative to the ETF's price. Over the last 12 months, it has made four distributions, usually occurring on a quarterly basis. While these payments provide cash income, they are not the same as total return.

NAV erosion explanation

This ETF has a severe erosion-risk flag. This warning was triggered because the split-adjusted price trend and the erosion-risk score indicate significant price deterioration. The fund has an erosion score of 10, which is labeled as "Severe price erosion."

"NAV erosion" refers to a decline in the Net Asset Value (the actual value of the assets held by the fund). While a falling market price does not always prove NAV erosion, the high erosion-risk score here suggests a pattern of substantial price decline.

Pros

• The fund provides high leveraged exposure to the Chinese market for those seeking amplified daily movements.

• It provides regular cash distributions (usually quarterly).

Cons

• The fund has experienced significant share-price declines over the last year and year-to-date.

• It carries a severe erosion-risk flag.

• The fund has a history of reverse splits.

Beginner takeaway

When looking at YINN, it is important to distinguish between price return (the change in share price) and total return (which includes distributions). High distribution yields can sometimes be misleading if the share price is falling significantly at the same time. Because this is a leveraged ETF with a severe erosion-risk flag, investors should understand that price movements can be very extreme.