FXI vs. CXSE

Last updated Jun 4, 2026

FXI (iShares China Large-Cap ETF) and CXSE (WisdomTree China ex-State-Owned Enterprises Fund) are both China Equities funds - FXI tracks the FTSE China 25 Index while CXSE tracks the WisdomTree China ex-State-Owned Enterprises Index. Both are passively managed. Over the past 10 years, FXI returned 2.96%/yr vs 7.43%/yr for CXSE. Their correlation of 0.84 suggests significant overlap in exposure. FXI charges 0.74%/yr vs 0.32%/yr for CXSE.

Performance

FXI vs. CXSE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares China Large-Cap ETF (FXI) and WisdomTree China ex-State-Owned Enterprises Fund (CXSE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FXI achieves a -7.18% return, which is significantly lower than CXSE's 0.93% return. Over the past 10 years, FXI has underperformed CXSE with an annualized return of 2.96%, while CXSE has yielded a comparatively higher 7.43% annualized return.

FXI

• 1D: -2.26%
• 1M: -2.76%
• YTD: -7.18%
• 6M: -8.38%
• 1Y: 2.05%
• 3Y*: 11.73%
• 5Y*: -3.18%
• 10Y*: 2.96%

CXSE

• 1D: -1.05%
• 1M: 0.71%
• YTD: 0.93%
• 6M: 0.61%
• 1Y: 24.36%
• 3Y*: 10.95%
• 5Y*: -8.07%
• 10Y*: 7.43%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FXI vs. CXSE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FXI iShares China Large-Cap ETF	-7.18%	28.95%	28.98%	-12.42%	-20.66%	-20.06%	8.92%	14.90%	-13.28%	36.26%
CXSE WisdomTree China ex-State-Owned Enterprises Fund	0.93%	37.00%	8.56%	-18.02%	-29.32%	-23.67%	59.39%	37.96%	-28.55%	81.50%

Correlation

The correlation between FXI and CXSE is 0.86, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.86
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.89
Correlation (All Time) Calculated using the full available price history since Sep 21, 2012	0.84

The correlation between FXI and CXSE has been stable across timeframes, ranging from 0.84 to 0.94 - a consistent structural relationship.

FXI vs. CXSE - Sectors Allocation Comparison

Sectors	FXI	CXSE
Financial Services	34.4%	6.2%
Consumer Cyclical	25.7%	26.2%
Communication Services	12.2%	10.1%
Technology	9.3%	22.6%
Energy	5.2%	0.4%
Basic Materials	4.1%	3.4%
Industrials	3.8%	16.6%
Healthcare	2.2%	8.8%
Real Estate	1.1%	0.9%
Consumer Defensive	0.9%	3.9%
Utilities	0.4%	0.3%

Return for Risk

FXI vs. CXSE — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FXI

FXI Risk / Return Rank: 10
FXI Sharpe Ratio Rank: 10
FXI Sortino Ratio Rank: 10
FXI Omega Ratio Rank: 9
FXI Calmar Ratio Rank: 10
FXI Martin Ratio Rank: 10

CXSE

CXSE Risk / Return Rank: 28
CXSE Sharpe Ratio Rank: 31
CXSE Sortino Ratio Rank: 30
CXSE Omega Ratio Rank: 30
CXSE Calmar Ratio Rank: 28
CXSE Martin Ratio Rank: 22

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FXI vs. CXSE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares China Large-Cap ETF (FXI) and WisdomTree China ex-State-Owned Enterprises Fund (CXSE). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	FXI	CXSE	Difference
Sharpe ratio Return per unit of total volatility	0.10	1.14	-1.04
Sortino ratio Return per unit of downside risk	0.29	1.67	-1.38
Omega ratio Gain probability vs. loss probability	1.03	1.21	-0.17
Calmar ratio Return relative to maximum drawdown	0.13	1.38	-1.25
Martin ratio Return relative to average drawdown	0.28	2.90	-2.62
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FXI vs. CXSE - Sharpe Ratio Comparison

The current FXI Sharpe Ratio is 0.10, which is lower than the CXSE Sharpe Ratio of 1.14. The chart below compares the historical Sharpe Ratios of FXI and CXSE, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FXI	CXSE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.10	1.14	-1.04
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.10	-0.25	+0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.11	0.26	-0.15
Sharpe Ratio (All Time) Calculated using the full available price history	0.17	0.19	-0.02

Drawdowns

FXI vs. CXSE - Drawdown Comparison

The maximum FXI drawdown since its inception was -72.68%, roughly equal to the maximum CXSE drawdown of -70.01%. Use the drawdown chart below to compare losses from any high point for FXI and CXSE.

Drawdown Indicators

	FXI	CXSE	Difference
Max Drawdown Largest peak-to-trough decline	-72.68%	-70.01%	-2.67%
Max Drawdown (1Y) Largest decline over 1 year	-15.62%	-17.70%	+2.08%
Max Drawdown (3Y) Largest decline over 3 years	-28.72%	-32.12%	+3.40%
Max Drawdown (5Y) Largest decline over 5 years	-54.94%	-64.47%	+9.53%
Max Drawdown (10Y) Largest decline over 10 years	-60.81%	-70.01%	+9.20%
Current Drawdown Current decline from peak	-26.91%	-46.01%	+19.10%
Average Drawdown Average peak-to-trough decline	-31.22%	-27.83%	-3.39%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.22%	8.42%	-1.20%

Volatility

FXI vs. CXSE - Volatility Comparison

iShares China Large-Cap ETF (FXI) and WisdomTree China ex-State-Owned Enterprises Fund (CXSE) have volatilities of 7.13% and 7.29%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FXI	CXSE	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.13%	7.29%	-0.16%
Volatility (6M) Calculated over the trailing 6-month period	14.35%	14.54%	-0.19%
Volatility (1Y) Calculated over the trailing 1-year period	19.93%	21.39%	-1.46%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	31.68%	32.30%	-0.62%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.67%	28.70%	-1.03%

FXI vs. CXSE - Expense Ratio Comparison

FXI has a 0.74% expense ratio, which is higher than CXSE's 0.32% expense ratio.

Dividends

FXI vs. CXSE - Dividend Comparison

FXI's dividend yield for the trailing twelve months is around 2.60%, more than CXSE's 1.99% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CXSE WisdomTree China ex-State-Owned Enterprises Fund	1.99%	1.95%	1.70%	1.71%	1.55%	0.86%	0.54%	0.96%	1.49%	1.24%	1.39%	2.50%
FXI iShares China Large-Cap ETF	2.60%	2.42%	1.76%	3.17%	2.61%	1.60%	2.19%	2.74%	2.69%	2.31%	2.69%	2.90%

Frequently Asked Questions

Can I hold both FXI and CXSE in my portfolio?

FXI and CXSE have a correlation of 0.86, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FXI or CXSE?

CXSE has higher volatility (7.29%) compared to FXI (7.13%). In terms of maximum drawdown, FXI dropped -72.68% vs CXSE's -70.01%.

Which ETF is better, FXI or CXSE?

On 10-year performance, CXSE leads with 7.43% vs 2.96% for FXI. On fees, CXSE is cheaper at 0.32% per year. On volatility, FXI has been the lower-risk option at 7.13%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FXI or CXSE?

Over the 10-year period, CXSE has performed better with a 7.43% return vs 2.96%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FXI or CXSE?

CXSE is cheaper with a 0.32% expense ratio, compared with 0.74% for FXI.

Which ETF pays a higher dividend yield, FXI or CXSE?

FXI has the higher dividend yield at 2.60%, compared with 1.99% for CXSE.

What is the main difference between FXI and CXSE?

FXI tracks FTSE China 25 Index, while CXSE tracks WisdomTree China ex-State-Owned Enterprises Index. They also come from different issuers: iShares and WisdomTree. Their fees differ too: 0.74% for FXI and 0.32% for CXSE.

Which has better risk-adjusted returns?

CXSE currently has the higher Sharpe Ratio (1.14 vs 0.10), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.