FXI tracks the FTSE China 50 Index, which holds 50 of the largest Chinese companies listed on the Hong Kong stock exchange. Financials and large internet and technology companies make up the largest weights, so the fund is concentrated. Returns are strongly affected by Chinese regulation, the property sector, US-China relations and currency movements. FXI is narrower than broad China funds such as MCHI and has historically been more volatile than diversified developed-market funds.
