Dallas, Texas 02/27/2014 (FINANCIALSTRENDS) – iShares FTSE/Xinhua China 25 Index (ETF)(NYSEARCA:FXI) is an $5.44 billion market capped exchange traded fund which tracks its returns against those provided by the FTSE China 25 Index. The index taacks the top 25 publicly traded companies in China across different business verticals.
Top Holdings
The fund has poured in a major part of its investments into companies like Tencent Holdings Ltd and China Construction Bank Corp H Shares, which constitutes 11.45 percent and 9.79 percent respectively of its entire portfolio. China Mobile Ltd. is another communications firm which has seen a substantive investment by iShares FTSE/Xinhua China 25 Index (ETF) (NYSEARCA:FXI). The telecom stock accounts for 7.96% of its portfolio. Banking stock are the other favourites of the fund, with Industrial and Commercial Bank of China Ltd. H Shares and Bank Of China Ltd. H Shares constituting 6.83 percent and 5.95 percent respectively.
Sector Break Up
Financial services make up 51 percent of the stock, while communication services constitute 14 percent of its total portfolio. Energy, technology and basic metals are the other sectors which have seen a heavy influx of investments from this fund. Real estate, consumer cyclical and industrial are the other verticals which iShares FTSE/Xinhua China 25 Index (ETF)(NYSEARCA:FXI) has invested into recently. All its investments are into large caps and are heavily exposed to the Asian market, as one can expect from Chinese index traded firms.
Competition
iShares FTSE/Xinhua China 25 Index (ETF)(NYSEARCA:FXI) has been a better performer among its ETF peer group which is exposed to the Chinese market. SPDR Nuveen Barclays with a market cap of 24.57 million, iShares MSCI Australia Index Fund (ETF) (NYSEARCA:EWA) with a market cap of 1.79 billion and ProShares Ultra 7-10 Year Treasury ETF(NYSEARCA:UST) are its primary competitors.
In the past one month the ETF has gained by 1.79 percent.
