IVV VS EWJ
4 min read
By Beqa Bumbeishvili, ETF Insider

IVV VS EWJ

Exchange-Traded Funds (ETFs) have transformed the way investors approach the financial markets, providing an efficient and diversified way to gain exposure to various sectors and asset classes. In this article, we will delve into a detailed comparison between two prominent ETFs: VEA (Vanguard FTSE Developed Markets ETF) and FXI (iShares China Large-Cap ETF). We'll explore essential aspects including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

VEA &; FXI: Overview

VEA and FXI are two distinct ETFs that offer exposure to different markets. VEA focuses on developed markets outside of the United States, while FXI concentrates on Chinese large-cap stocks. These differences in geographical focus result in varying risk and return profiles, which we will delve into in the subsequent sections.

VEA &; FXI: Sectors and Top Holdings

The VEA ETF provides exposure to a wide range of sectors within developed markets, including technology, finance, healthcare, and more. Its top holdings may include companies like Nestlé, Samsung, and Toyota. In contrast, FXI is centered on Chinese companies, including prominent names like Tencent, Alibaba, and China Construction Bank. Understanding the sectors and top holdings helps investors gauge the diversity and potential concentration of each ETF.

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VEA & FXI: Capitalization and Strategy

VEA boasts a substantial asset under management (AUM), reflecting investors' interest in accessing developed international markets. Its strategy revolves around mirroring the performance of the FTSE Developed All Cap ex US Index. On the other hand, FXI focuses on the performance of large-cap Chinese companies and aims to track the FTSE China 50 Index. Investors should assess the differences in capitalization and strategy to align their investments with their objectives.

VEA & FXI: Tracking and Exposure

VEA's goal is to provide investors with comprehensive exposure to developed markets, excluding the United States. Its tracking mechanism involves closely mirroring the index's performance through a diversified portfolio of stocks. In contrast, FXI aims to mirror the performance of the largest Chinese companies, providing exposure to China's economic growth. Understanding these tracking methods and exposure strategies is vital for choosing the ETF that aligns with one's investment strategy.

Conclusion

In the realm of ETFs, VEA and FXI stand as distinctive choices, catering to investors' preferences for international exposure and exposure to the Chinese market, respectively. For those seeking in-depth insights into ETF holdings, correlations, overlaps, and other critical details, the ETF Insider serves as the ultimate tool. This user-friendly app empowers investors to make informed decisions by offering comprehensive information about these and other financial instruments.

Disclaimer: This article is intended solely for informational purposes and does not provide investment advisory services.

Sources:

https://www.ishares.com/us IVV ETF issuer
https://www.ishares.com/us/products/239726/ishares-core-sp-500-etf IVV ETF official page

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FAQ

  • Why is IVV better than EWJ?

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

  • Does EWJ beat IVV?

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

  • Should I invest in IVV or EWJ?

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

  • Are IVV and EWJ good investments?

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

  • What is the correlation between IVV and EWJ?

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