(FXI) iShares China Large-Cap - Ratings and Ratios

The iShares China Large-Cap ETF (FXI) is a U.S.-domiciled fund designed to track the performance of the largest and most liquid Chinese companies listed on the Stock Exchange of Hong Kong. These companies are part of the FTSE China 50 Index, which focuses on firms that are accessible to international investors. The fund invests at least 80% of its assets in the underlying index components or in securities with equivalent economic characteristics, ensuring tight tracking of the index.

FXI provides exposure to some of Chinas most prominent companies, primarily in sectors like technology, finance, and energy. As a non-diversified fund, it can have higher concentrations in its top holdings, which may amplify both returns and risks. The fund is listed on the NYSE ARCA under the ticker FXI, with a market capitalization of over $7.7 billion, making it one of the larger ETFs focused on Chinese equities. It’s important to note that FXI does not invest directly in China’s onshore market (A-shares) but rather in Hong Kong-listed H-shares and other eligible securities.

Investors should be aware that FXI’s performance can be influenced by China’s regulatory environment, geopolitical tensions, and currency fluctuations. The fund is structured as a U.S. investment company, which may have implications for tax efficiency compared to other ETF structures. For fund managers and investors, FXI serves as a liquid and established vehicle to gain exposure to China’s large-cap market, though it’s essential to evaluate the fund’s holdings and the broader macroeconomic context of Chinese equities.