FLCH vs FXI

FLCHAFranklin FTSE China ETF

FXIBiShares China Large-Cap ETF

In short

FLCH Cheap and wide, in the best way. FLCH holds roughly a thousand Chinese stocks and charges 0.19% a year, a fraction of what most single-country China funds ask. Whole market, small toll.

FXI The old-guard China trade: since 2004, FXI has held about 50 of the largest Chinese companies listed in Hong Kong, and it is built for heavy, fast trading more than for lowest-cost buy-and-hold.

Stated mandate

FLCH The Fund seeks investment results that closely correspond, before fees and expenses, to the performance of the FTSE China RIC Capped Index.

FXI The fund seeks to track an index of large-capitalization Chinese equities traded on the Hong Kong Stock Exchange.

Why people hold it

• FLCH 0.19% a year, against a roughly 0.70% median for China funds. It also undercuts the category stalwarts MCHI and GXC, both at 0.59%.
• About 1,000 holdings, so you own the long tail of Chinese listings rather than a short list of mega-cap headline names.
• One job, done tightly: mirror the FTSE China RIC Capped Index before fees. On tracking it ranks among the strongest builds in its China peer group.sec.gov

• FXI One of the longest-running US-listed China funds, trading since 2004, with two decades of history through China's booms and busts.
• Very actively traded, which is why it is a common vehicle for quick, sizable China positioning rather than a thinly traded niche listing.
• Plain index mechanics: it tracks the FTSE China 50 Index closely, with no leverage or derivative overlays bolted on.ishares.com
• Stands in the upper half of the roughly two dozen US-listed single-country China funds on our overall assessment.

Worth knowing

• FLCH It is China or nothing. Policy shifts, regulatory news and the currency drive the ride, with no other market in the basket to cushion it.
• Mid-sized and only moderately traded next to the category's giants, so bid-ask spreads can bite more on larger orders.
• Cash comes once or twice a year, not monthly. This is an equity index vehicle, not an income schedule.

• FXI At 0.73% a year it sits slightly above the China-fund median, and cheaper index alternatives exist, including FLCH at 0.19% and MCHI at 0.59%.
• Concentrated by design: about 50 names, all Hong Kong listings, so mainland-listed A-shares fall outside the mandate.ishares.com
• A single-country equity fund tied to one market, and it distributes once or twice a year rather than monthly.

Full FLCH profile⁠

Full FXI profile⁠