FXI vs. EEM
Compare and contrast key facts about iShares China Large-Cap ETF (FXI) and iShares MSCI Emerging Markets ETF (EEM).
FXI and EEM are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. FXI is a passively managed fund by iShares that tracks the performance of the FTSE China 25 Index. It was launched on Oct 5, 2004. EEM is a passively managed fund by iShares that tracks the performance of the MSCI Emerging Markets Index. It was launched on Apr 11, 2003. Both FXI and EEM are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: FXI or EEM.
Key characteristics
| FXI | EEM | |
|---|---|---|
| YTD Return | 5.87% | 1.22% |
| 1Y Return | -5.61% | 8.81% |
| 3Y Return (Ann) | -16.51% | -7.28% |
| 5Y Return (Ann) | -8.42% | 0.78% |
| 10Y Return (Ann) | -0.57% | 2.13% |
| Sharpe Ratio | -0.15 | 0.64 |
| Daily Std Dev | 27.57% | 14.64% |
| Max Drawdown | -72.68% | -66.44% |
| Current Drawdown | -49.88% | -24.74% |
Correlation
The correlation between FXI and EEM is 0.85, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
FXI vs. EEM - Performance Comparison
In the year-to-date period, FXI achieves a 5.87% return, which is significantly higher than EEM's 1.22% return. Over the past 10 years, FXI has underperformed EEM with an annualized return of -0.57%, while EEM has yielded a comparatively higher 2.13% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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FXI vs. EEM - Expense Ratio Comparison
FXI has a 0.74% expense ratio, which is higher than EEM's 0.68% expense ratio.
Risk-Adjusted Performance
FXI vs. EEM - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares China Large-Cap ETF (FXI) and iShares MSCI Emerging Markets ETF (EEM). 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.
Dividends
FXI vs. EEM - Dividend Comparison
FXI's dividend yield for the trailing twelve months is around 2.99%, more than EEM's 2.60% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
FXI iShares China Large-Cap ETF | 2.99% | 3.17% | 2.60% | 1.59% | 2.18% | 2.72% | 2.68% | 2.30% | 2.68% | 2.89% | 2.50% | 2.63% |
EEM iShares MSCI Emerging Markets ETF | 2.60% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.22% | 1.87% | 1.88% | 2.48% | 2.22% | 2.04% |
Drawdowns
FXI vs. EEM - Drawdown Comparison
The maximum FXI drawdown since its inception was -72.68%, which is greater than EEM's maximum drawdown of -66.44%. Use the drawdown chart below to compare losses from any high point for FXI and EEM. For additional features, visit the drawdowns tool.
Volatility
FXI vs. EEM - Volatility Comparison
iShares China Large-Cap ETF (FXI) has a higher volatility of 5.75% compared to iShares MSCI Emerging Markets ETF (EEM) at 3.76%. This indicates that FXI's price experiences larger fluctuations and is considered to be riskier than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.