Wall Street Is Making Global Macro Bets With This BlackRock ETF
- Cheap options on FXI allow for bullish or bearish tariff bets
- Correlation with SPY suggests possibility of U.S. equity hedge
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A $5.9 billion ETF is fast becoming the epicenter for Wall Street bets on everything from the global trade war, U.S. equity volatility and China’s sputtering growth engine.
Strategists are touting the allure of options on the iShares China Large-Cap exchange-traded fund, ticker FXI, as a cheap way to wager whether global markets can surmount the wall of worry that cut about $5 trillion from American equities during the December meltdown.