fxi

FXI is the ticker symbol for the iShares China Large-Cap ETF, an exchange-traded fund listed on the NYSE Arca. The fund aims to provide investors with exposure to large-cap Chinese equities by tracking the FTSE China 25 Index, which is composed of 25 of the largest and most liquid Chinese stocks listed in Hong Kong, on mainland exchanges, or traded as American depositary receipts.

Investment approach and holdings

FXI uses a passive indexing strategy designed to mirror the performance of the FTSE China 25 Index. The fund generally holds the underlying constituents in weights intended to reflect the index, subject to practical factors such as liquidity and trading efficiency. Holdings are predominantly large, well-known Chinese companies across sectors such as information technology, financials, energy, and telecommunications. Holdings and weights are updated as the underlying index is reconstituted or rebalanced.

Fees and liquidity

The ETF charges an expense ratio (management fee) that has been around the mid-to-high tenths of a percent. As a widely traded China-focused vehicle, FXI typically exhibits high liquidity and active intraday trading, though liquidity can vary with broader market conditions and events affecting Chinese equities.

Risks and considerations

Investors in FXI are exposed to country-specific risk related to China, including regulatory changes, economic policy shifts, and market volatility. Currency risk is also a factor because the fund’s price can be influenced by fluctuations in the renminbi versus the investor’s home currency. As with any single-country equity vehicle, FXI represents a concentrated exposure within the broader global stock market.