Why is SPY better than FXI?

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

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

Should I invest in SPY or FXI?

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

Are SPY and FXI good investments?

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

What is the correlation between SPY and FXI?

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

4 min read

By Beqa Bumbeishvili, ETF Insider

SPY VS FXI : ETF comparison Tool

Exchange-Traded Funds (ETFs) have revolutionized the investment world, offering diversified exposure across various sectors and asset classes. In this article, we will delve into a comprehensive comparison between two popular ETFs: SPY (SPDR S&P 500 ETF Trust) and FXI (iShares China Large-Cap ETF). We'll examine various aspects including ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

SPY & FXI: Overview

SPY and FXI are two ETFs that cater to different investment strategies within distinct markets. While SPY aims to replicate the performance of the S&P 500 index, FXI is focused on providing exposure to large-cap Chinese equities. This fundamental difference in investment focus leads to varied potential returns and risks, which we will explore in the following sections.

SPY & FXI: Sectors and Top Holdings

The SPY ETF is designed to mirror the performance of the S&P 500 index, encompassing a broad range of sectors including technology, healthcare, finance, and more. On the other hand, FXI concentrates its investments in companies listed on the Hong Kong Stock Exchange and tracks large-cap Chinese stocks. Understanding the sectors and top holdings of these ETFs is crucial for investors seeking to align their investments with specific industry sectors and regions.

SPY overlap SPY VS FXI

SPY & FXI: Capitalization and Strategy

With its focus on the S&P 500, SPY boasts a substantial asset under management (AUM), reflecting its popularity among investors seeking broad exposure to the US equity market. FXI's strategy involves providing investors with exposure to large-cap Chinese companies, reflecting the growth potential of the Chinese market. Differing in capitalization and investment strategy, SPY and FXI offer distinct avenues for potential returns and risk management.

SPY & FXI: Tracking and Exposure

SPY's objective is to closely replicate the performance of the S&P 500 index, which is composed of 500 leading US companies. FXI, on the other hand, aims to mirror the performance of the FTSE China 50 Index, composed of 50 large-cap Chinese stocks. The tracking methodologies of these ETFs reflect their underlying indices and offer investors the opportunity to gain exposure to well-established markets.

Conclusion

SPY and FXI represent unique investment opportunities, each catering to different market segments and strategies. To gain deeper insights into the holdings, correlations, overlaps, and other crucial aspects of these ETFs, investors can turn to ETF Insider – the ultimate tool for detailed exploration. This user-friendly app empowers investors with extensive information on a variety of financial instruments, aiding in well-informed investment decisions.

Disclaimer: This article does not provide any investment advisory services.

Sources:

https://etfdb.com/SPY ETF issuer
https://etfdb.com/etf/SPY/SPY ETF official page

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FAQ

Why is SPY better than FXI?
SPY may be considered better than FXI for some investors due to its specific focus, offering diversification.
Does FXI beat SPY?
FXI's performance relative to SPY will vary over time, depending on market conditions.
Should I invest in SPY or FXI?
The choice between SPY and FXI should align with your investment goals, risk tolerance, and desired exposure.
Are SPY and FXI good investments?
Both SPY and FXI can be suitable investments depending on individual investment strategies, goals, and risk profiles.
What is the correlation between SPY and FXI?
The correlation between SPY and FXI can vary over time, reflecting differences in performance.