No longer ignored, the recently impressive rallies among China exchange traded funds are, finally, getting some much-deserved attention.

That means a lot of eyeballs are turning to the iShares China Large-Cap ETF (NYSEArca: FXI). With $5.3 billion in assets under management, FXI is the largest China ETF. It is also the most heavily traded and home to the most robust options market of any China ETF. [Ignored Rally for China ETFs]

FXI also has some well-documented flaws that make the ETF overrated in the eyes of some.

“FXI’s flaws make up a double whammy. First, while it’s the largest China ETF, with $5.3 billion in assets, it’s also the narrowest. It tracks 25 stocks, and has a disproportionate 55 percent allocation to the financial sector,” reports Eric Balchunas for Bloomberg.

In fairness, FXI has surged 23.4% since March 20, when it and some rival China ETFs showed signs of bottoming. That is an undeniably impressive performance. What also cannot be denied is that long-term investors have been disappointed by FXI.

Over the three years ending Aug. 1, FXI is up just 3.6%, according to ETF Replay data. That is less than half the return posted by the iShares MSCI China ETF (NYSEArca: MCHI) and less than a third of the performance by the SPDR S&P China ETF (NYSEArca: GXC) over the same period. [A Resurgent China ETF]

Perhaps that is not a coincidence when considering MCHI and GXC hold 142 an 283 stocks, respectively. MCHI charges 0.62% per year while GXC charges 0.59%, both below the 0.74% annual fee on FXI.

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