China Large Cap

FXI is among the largest and most popular China ETFs, with superb AUM and strong daily volume. The fund holds 50 of the largest H-shares, P-chips and Red Chips listed in Hong Kong—mainland-listed A-shares and US-listed Chinese mega-caps, like Baidu (classified as an N-share), aren't included. Understandably, FXI doesn't fit well with our MSCI benchmark, which holds hundreds of securities and includes A-shares traded in Shanghai and Shenzhen which still aren't fully accessible to foreign investors. The fund also carries a heavy concentration in financials, with China's big, state-run banks making up a huge portion of the portfolio.FXI is one of the oldest China-focused ETFs on the market, and it has recently faced increasing competition from newer large-cap and total-market funds with lower fees and more complete portfolios. However, the fund's strong liquidity is still a point in its favor for short-term traders.