iShares FTSE China 25 Index FundFXI

Morningstar Rating

ETF Research and Analysis

by Patricia Oey
Suitability
IShares FTSE China 25 Index FXI tracks an index composed of the 25 largest Chinese companies listed in Hong Kong and has significant exposure to state-run banks and energy firms. These mega-cap state-run companies benefit   Read more 

Bull Case

FXI invests in some of the largest Chinese companies with substantial economies of scale and healthy profit margins.
Long-term investors in this fund may benefit from a strengthening Chinese yuan.
Valuations for Chinese equities are currently near all-time lows. Read more 

Bear Case

Holdings in this fund face political risks, as many are state-owned firms.
The liberalization of interest rates will weigh on the margins of the state-owned banks, which account for about 30% of this fund.
There is new leadership in China. There could be some policy and regulation uncertainty in the near term. Read more 

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