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

Group 1 - Hedge fund Bridgewater Associates exited U.S.-listed Chinese equities in Q2 due to rising geopolitical tensions and concerns about China's economic outlook [1] - The firm closed positions in several major Chinese companies, including Baidu, Alibaba, JD.com, PDD Holdings, Nio, Trip.com Group, Yum China, Qifu Technology, and Ke Holdings [1] - Bridgewater trimmed its stake in Apple while increasing holdings in Microsoft and NVIDIA, indicating a preference for U.S. tech companies focused on artificial intelligence [2] Group 2 - Ray Dalio, founder of Bridgewater, has expressed concerns about U.S.-China tensions, shifting from a previously bullish stance on China [3] - Despite selling his remaining stake in Bridgewater and leaving the board, Dalio continues to mentor the investment team [3] Group 3 - The U.S. and China extended their tariff truce by 90 days, preventing a potential increase in tariffs on Chinese goods to 145% and U.S. exports to 125% [4] - Current tariffs are at 30% on Chinese imports to the U.S. and 10% on U.S. exports to China [4] Group 4 - In light of Bridgewater's actions, inverse China ETFs are highlighted as potential investment options [5] - ProShares Short FTSE China 50 seeks to provide inverse daily performance of the FTSE China 50 Index with a fee of 95 bps [6] - ProShares UltraShort FTSE China 50 aims for two times the inverse daily performance of the FTSE China 50 Index, also with a fee of 95 bps [7] - Direxion Daily FTSE China Bear 3X Shares seeks 300% of the inverse performance of the FTSE China 50 Index, with an expense ratio of 1.02% [8]