Name of ETF: iShares FTSE China Large-Cap ETF
Benchmark Index: FTSE China 50 Index
Ticker Symbol: FXI
- FXI is one of the most well-known and liquid ETFs focusing on China.
- This ETF attempts to replicate the performance of the FTSE China 50 Index which contains some of the largest Chinese companies traded on the Hong Kong Stock Exchange.
- Tencent Holdings, China Mobile, PetroChina and many of the largest Chinese banking institutions are just a few of the large-cap companies included in this index and ETF.
- Investors will often invest in an ETF based on Chinese large-cap stocks to diversify their portfolio. They may specifically choose a Chinese large-cap focused ETF believing in the short and/or long-term growth prospects of Chinese economy and the stocks within the index.
- Investors should take note that while several different types of industries are represented in this index, the financial sector represents a significant percentage of this index.