Exchange-Traded Funds (ETFs) have brought a new dimension to investing, offering diversified exposure across various sectors and asset classes. In this article, we will delve into a comprehensive comparison between two prominent ETFs: FXI (iShares China Large-Cap ETF) and KWEB (KraneShares CSI China Internet ETF). We'll explore their tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.
FXI and KWEB are both ETFs that provide exposure to the Chinese market, but they focus on different segments within it. FXI is designed to track the performance of large-cap Chinese stocks, while KWEB targets the rapidly growing China internet sector. This distinction in focus leads to contrasting investment opportunities and risks, which we will dissect in the subsequent sections.
The FXI ETF primarily concentrates on large-cap Chinese companies, encompassing industries such as financials, technology, and consumer goods. On the other hand, KWEB invests in China-based internet companies, including e-commerce giants like Alibaba and innovative tech firms. Understanding the sectors and top holdings of these ETFs enables investors to make informed decisions aligned with their investment objectives.
FXI overlap FXI VS KWEB: A Comprehensive Comparison of ETFs
With a substantial asset under management (AUM), FXI is one of the prominent ETFs offering exposure to China's largest companies. KWEB's strategy centers around capturing the growth potential of China's internet industry. The difference in capitalization and strategy between these two ETFs leads to distinct potential returns and risk profiles, factors that investors must weigh carefully.
FXI seeks to mirror the performance of the FTSE China 50 Index, providing investors with exposure to large-cap Chinese companies. In contrast, KWEB aims to replicate the performance of the CSI Overseas China Internet Index, offering exposure to China's internet giants. Understanding the tracking methods and exposure strategies of these ETFs helps investors determine which aligns better with their investment goals.
FXI and KWEB present unique avenues for investors to access the Chinese market, each with its specialized approach. To gain deeper insights into holdings, correlations, overlaps, and other vital aspects, ETF Insider serves as an invaluable tool. With its user-friendly app, it offers comprehensive information on these and other financial instruments, empowering investors with crucial data for their decision-making process.
Disclaimer: This article is not intended to provide any investment advisory services.
Sources:
FXI ETF issuer
FXI ETF official page
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