Signal Du Jour - FXI - Sharpe 2.33 Win Rate 77%

FXI, the iShares China Large-Cap ETF's ticker, presents an attractive opportunity. This ETF, tracking the FTSE China 50 Index, has about $5 billion in assets and is a popular choice for exposure to Chinese equities.

Context and signal analysis

After a challenging period in 2021 and 2022, with a 20% decline, 2023 has shown some stabilization, with only a 6% decrease. This 50% drop over 30 months is why we prefer a neutral stance on the direction, focusing instead on premium collection via volatility trade.