Even though MCHI also has a high concentration in financials (35% versus 53% in FXI) it is more diversified as it has a basket of 144 stocks as opposed to just 25 in FXI.
This ETF and iShares MSCI China Index Fund ( MCHI) I both liked on November 13 because as I could target a buying level near support and a stop at a reasonable level.
Chart Analysis: Though the iShares Trust FTSE China 25 Index Fund ( FXI) is considered by most to be the favored China play, there are several reasons that I prefer the iShares MSCI China Index Fund ( MCHI).