Bigger Not Better for This China ETF

As Balchunas notes, FXI has some new competitors in addition to GXC and MCHI. That group includes the db X-trackers Harvest MSCI All China Equity Fund (NYSEArca: CN).

CN is up 13.6% since April 30, trailing FXI over the same period. However, if GXC and MCHI are accurate indicators, a broader approach to Chinese equities will prove superior to FXI over time. CN offers exposure to China A-shares in addition to China B-shares, China H-shares, China Red Chips, China P-Chips, China ADRs, and securities of Chinese companies listed in the US and Singapore. The ETF holds nearly 150 stocks or more than five times as many as FXI. [A Chinese Buffet With This ETF]

CN’s largest holding is the db X-trackers Harvest CSI 300 China A-Shares Fund (NYSEArca: ASHR). ASHR has outpaced FXI by 170 basis points over the past month.

Three-Year Chart FXI vs. GXC and MCHI

Chart Courtesy: ETF Replay