iShares China Large-Cap ETF (FXI): Complete Beginner's Guide
Last updated: March 2026 • BlackRock • China Large-Cap
Expense Ratio
0.74%
AUM
$5.0B
Dividend Yield
2.50%
Inception
2004
Beginner Score
8.5/10
What is iShares China Large-Cap ETF?
FXI holds the 50 largest and most liquid Chinese companies listed on the Hong Kong Stock Exchange. It is one of the oldest and most traded China ETFs, focusing on blue-chip state-owned enterprises and major private companies. This fund provides concentrated exposure to China's economic heavyweights in banking, energy, and technology.
FXI is managed by BlackRock and has been available since 2004. With $5.0B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.74%, which means for every $10,000 you invest, you pay approximately $74 per year in management fees.
FXI at a Glance — Key Metrics
| Expense Ratio | 0.74% |
| Total Holdings | 50 |
| P/E Ratio | 10.0 |
| Beta | 0.95 |
| Dividend Yield | 2.50% |
| AUM | $5.0B |
| Inception Year | 2004 |
| Issuer | BlackRock |
Top 10 Holdings in FXI
FXI holds 50 different securities. Here are the largest positions that make up the core of this fund:
| # | Company | Ticker | Weight |
|---|---|---|---|
| 1 | Alibaba Group | BABA | 9.00% |
| 2 | Tencent Holdings | 0700.HK | 9.00% |
| 3 | China Construction Bank | 0939.HK | 7.00% |
| 4 | Meituan | 3690.HK | 6.00% |
| 5 | Industrial & Commercial Bank of China | 1398.HK | 5.00% |
| 6 | JD.com Inc. | JD | 4.00% |
| 7 | PDD Holdings | PDD | 4.00% |
| 8 | Bank of China | 3988.HK | 4.00% |
| 9 | China Mobile | 0941.HK | 3.50% |
| 10 | CNOOC Ltd. | 0883.HK | 3.00% |
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FXI Performance History
Here's how FXI has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:
YTD
2.00%
1 Year
6.00%
3 Year
-7.00%
5 Year
-4.00%
10 Year
1.00%
Beginner Suitability Score: 8.5/10
Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.
FXI scores 8.5/10 because it has very low fees, shows lower-than-average volatility, focuses on 50 selected holdings, and has been available since 2004, giving it a proven track record.
How to Buy FXI — Step by Step
- Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
- Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
- Search for "FXI" — Use the search bar in your brokerage platform to find iShares China Large-Cap ETF.
- Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
- Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.
Dollar Cost Averaging Into FXI
Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):
| Monthly | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $100/mo | $18,417 | $59,295 | $150,030 |
| $250/mo | $46,041 | $148,237 | $375,074 |
| $500/mo | $92,083 | $296,474 | $750,148 |
*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.
Fee impact: With FXI's expense ratio of 0.74%, a $10,000 investment would lose approximately $5,988 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.
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Pros and Cons of FXI
Pros
- ✓Longest-running China ETF with extensive track record dating to 2004
- ✓Extremely liquid with high daily trading volume and tight bid-ask spreads
- ✓Concentrated in 50 blue-chip names provides large-cap quality and stability
- ✓Higher dividend yield than most China ETFs due to state-owned bank holdings
Cons
- ✗Heavy weighting toward state-owned banks and enterprises limits growth potential
- ✗Only 50 holdings create significant concentration in a few large companies
- ✗Higher expense ratio than broader MCHI for less diversified exposure
Frequently Asked Questions
Is FXI a good ETF for beginners?▾
FXI has a Beginner Suitability Score of 8.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and focused strategy.
What is the expense ratio of FXI?▾
FXI has an expense ratio of 0.74%. This means for every $10,000 you invest, you pay approximately $74 per year in fees. This is considered very low and cost-efficient.
How much money do I need to invest in FXI?▾
You can invest in FXI with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.
Does FXI pay dividends?▾
Yes, FXI pays dividends with a current yield of approximately 2.50%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.
What are the top holdings in FXI?▾
The top holdings in FXI include Alibaba Group (9.00%), Tencent Holdings (9.00%), China Construction Bank (7.00%), and more. The fund holds 50 total positions, providing focused exposure to selected companies.