Since its inception in October 2004, FXI has delivered an annual average return of 11.4%. The fund invests at least 90% of its $3.66 billion in assets in the 50 largest and most liquid Chinese companies whose stocks are actively trading on the Hong Kong Stock Exchange.

This means that U.S.-listed Chinese mega-caps, such as Baidu, Inc., are not included in the fund. FXI is very liquid and has high daily volume. Even so, the fund’s expense ratio of 0.73% is a bit high when compared with its peers.

As far as the fund’s holdings, it carries a heavy focus on China’s financial sector, with 49.1% of its assets invested in the country’s big, state-owned banks. Other sectors the fund concentrates on include communication services, 11%, and technology, 8.5%, which are amongst the fastest-growing sectors in China. The rest of the holdings of FXI are in other sectors, including basic materials, real estate and industrials.