Developed ex-US (EFA) vs China (FXI)
Live side-by-side comparison with current values, changes, and key statistics.
Why This Comparison Matters
When FXI outperforms EFA, Chinese stimulus or valuation recovery dominates. When EFA outperforms FXI, developed markets lead EM and China faces idiosyncratic pressure (property, tech crackdown, trade tensions). Persistent FXI underperformance signals capital flight from China regardless of developed-market direction.
Cross-Asset Analysis
EAFE Developed (EFA) measures iShares MSCI EAFE ETF, developed markets excluding US and Canada, while China Large-Cap (FXI) measures iShares China Large-Cap ETF, proxy for Chinese equity market; tracking the two side by side turns that distinction into a tradable signal for the peer pair relationship. EAFE Developed (EFA) and China Large-Cap (FXI) occupy the same asset class, and the relative performance between them isolates the specific factor that distinguishes one from the other. EAFE Developed (EFA) and China Large-Cap (FXI) look similar at a glance, but the embedded factor tilts between them matter substantially over time.
Late-cycle environments force EAFE Developed (EFA) and China Large-Cap (FXI) to express their respective defensive and cyclical tilts more sharply, making the spread a useful regime tell. Sector, style, and geographic dominance cycles each produce multi-year relative performance episodes between EAFE Developed (EFA) and China Large-Cap (FXI). Pairs like EAFE Developed (EFA) and China Large-Cap (FXI) trade tighter than either leg does individually, because the common component is high and the remaining idiosyncratic share is what the pair expresses.
Overlay strategies trade the EAFE Developed (EFA)-China Large-Cap (FXI) spread through options or swaps when the underlying pair is directly tradable, sizing against realized spread volatility. Liquidity differences between EAFE Developed (EFA) and China Large-Cap (FXI) produce asymmetric spread moves during risk-off episodes.
90-Day Statistics
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Frequently Asked Questions
What is the relationship between EAFE Developed (EFA) and China Large-Cap (FXI)?+
EAFE Developed (EFA) and China Large-Cap (FXI) are connected through shared asset class exposure with different factor tilts. When the underlying asset class shifts, both respond, though with different sensitivities and at different speeds. The spread between EAFE Developed (EFA) and China Large-Cap (FXI) captures the specific macro signal that flows through this relationship.
When does EAFE Developed (EFA) typically lead China Large-Cap (FXI)?+
EAFE Developed (EFA) tends to lead China Large-Cap (FXI) during rotation episodes between the two factor exposures. In those periods, moves in EAFE Developed (EFA) precede corresponding moves in China Large-Cap (FXI) by days to weeks, depending on the transmission channel and the depth of each market.
How are EAFE Developed (EFA) and China Large-Cap (FXI) historically correlated?+
Long-run correlation between EAFE Developed (EFA) and China Large-Cap (FXI) varies by regime. Peers in the same asset class are highly correlated in direction, with the spread reflecting factor tilts and rotation dynamics. The correlation is not stable: it shifts with macro conditions, and the periods when it breaks down are often the most informative moments in the EAFE Developed (EFA)-China Large-Cap (FXI) relationship.
What macro conditions drive divergence between EAFE Developed (EFA) and China Large-Cap (FXI)?+
Divergence between EAFE Developed (EFA) and China Large-Cap (FXI) typically arises from index reconstitution, mega-cap earnings surprises, or liquidity differences between the peers. When one asset's idiosyncratic drivers dominate, the spread moves in ways that the common macro story does not predict, which is usually a signal to look more carefully at the specific drivers at work in EAFE Developed (EFA) or China Large-Cap (FXI).
Is EAFE Developed (EFA) a hedge for China Large-Cap (FXI)?+
Peers like EAFE Developed (EFA) and China Large-Cap (FXI) do not hedge each other; both rise or fall with the shared asset class, and using the pair as a spread trade is different from using it as a hedge. Effective hedging requires matching the hedge to the specific risk being protected, and the EAFE Developed (EFA)-China Large-Cap (FXI) pair is best stress-tested under scenarios the investor most worries about before being sized into a real portfolio.
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Data sourced from FRED, CoinGecko, CBOE, and other providers. This page is for informational purposes only and does not constitute financial advice. Past performance does not guarantee future results.