It’s Cheap to Hedge the Biggest China ETF

The iShares China Large-Cap ETF (NYSEArca: FXI), the largest exchange traded fund tracking Chinese stocks, has surged 15.3% over the past 90 days, forcing the cost of downside protection on the fund to record lows. “Puts hedging against a 10 percent decline on FXI cost 0.94 point more than...