4 min read
By Ron Koren, ETF Insider


Exchange-Traded Funds (ETFs) have become increasingly popular among investors for their ability to offer diversified exposure to different sectors and asset classes. In this article, we will conduct a thorough comparison between two prominent ETFs: FXI (iShares China Large-Cap ETF) and EWJ (iShares MSCI Japan ETF). By examining various aspects including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure, we aim to provide valuable insights for investors interested in these financial instruments.

FXI Vs EWJ: Overview

The FXI and EWJ ETFs represent distinct investment opportunities within the realm of global equity markets. FXI is designed to track the performance of large-cap Chinese companies, while EWJ aims to mirror the performance of the MSCI Japan Index. This fundamental difference in geographic focus lays the foundation for diverse risk and return profiles, which we will explore further in the subsequent sections.

FXI Vs EWJ: Sectors and Top Holdings

FXI primarily focuses on sectors such as technology, financials, and consumer discretionary, given the composition of China's economy. Its top holdings include well-known companies like Tencent Holdings, Alibaba Group, and Meituan Dianping. On the other hand, EWJ's sectors revolve around industrials, consumer discretionary, and technology, reflective of Japan's economic landscape. Companies like Toyota Motor, Sony Corporation, and SoftBank Group constitute its significant holdings. Understanding the sectors and top holdings is crucial for investors looking to align their investment goals with the prevailing economic conditions.

FXI  overlap FXI VS EWJFXI overlap FXI VS EWJ

FXI Vs EWJ: Capitalization and Strategy

The FXI ETF boasts a substantial asset under management (AUM), underscoring its popularity among investors seeking exposure to China's growing economy. EWJ's investment strategy revolves around replicating the performance of Japanese equity markets, making it a valuable tool for those interested in Japanese companies. The disparity in capitalization and investment strategy between the two ETFs underscores the varying potentials for risk and returns, necessitating careful consideration from potential investors.

FXI Vs EWJ: Tracking and Exposure

FXI's primary objective is to provide investors with exposure to the performance of China's largest publicly traded companies. It accomplishes this by tracking the FTSE China 50 Index, which includes major Chinese blue-chip stocks. On the other hand, EWJ offers investors exposure to Japanese equities through its tracking of the MSCI Japan Index. The distinct tracking methodologies employed by FXI and EWJ showcase their unique approaches to capturing the performance of their respective markets.


FXI and EWJ stand as distinctive investment options, each catering to investors seeking exposure to specific regions of the global equity landscape. For those aiming to delve deeper into the intricacies of these ETFs, including holdings, correlations, overlaps, and various insights, ETF Insider emerges as an indispensable tool. With its user-friendly app, it furnishes comprehensive details on these financial instruments, empowering investors with the information they need to make informed decisions.

Disclaimer: This article is intended for informational purposes only and does not provide investment advisory services. Investors should conduct their research and consider seeking advice from qualified financial professionals before making any investment decisions.


https://www.ishares.com/us EWJ ETF issuer
https://www.ishares.com/us/products/239665/ishares-msci-japan-etfEWJ ETF official page

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  • Why is FXI better than EWJ?

    FXI may be considered better than EWJ for some investors due to its specific focus, offering diversification.

  • Does EWJ beat FXI?

    EWJ's performance relative to FXI will vary over time, depending on market conditions.

  • Should I invest in FXI or EWJ?

    The choice between FXI and EWJ should align with your investment goals, risk tolerance, and desired exposure.

  • Are FXI and EWJ good investments?

    Both FXI and EWJ can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between FXI and EWJ?

    The correlation between FXI and EWJ can vary over time, reflecting differences in performance.