This is a passive ETF that tracks the S&P China index, which covers the broad Chinese stock market, including Chinese companies listed in Hong Kong and the US as well as some mainland-listed stocks. It diversifies across Chinese industries such as technology, financials and consumer sectors.

It suits investors who want broad exposure to the entire Chinese market and can tolerate the volatility of single-country concentration.

It is an ETF managed passively (index tracking) by State Street.

The ETF tracks the S&P China index, which covers the broad Chinese stock market, including Chinese companies listed in Hong Kong and the US as well as some mainland-listed stocks. It spreads investments across Chinese companies in a range of industries, such as technology, financials and consumer sectors, in proportion to market capitalization, providing single-country exposure that broadly reflects the trend of the Chinese economy as a whole.

• Broad exposure across the Chinese market
• Diversification across multiple industries

Assets under management (AUM) stand at $426.1M, and the expense ratio is 0.59% per year.

Compared with other China ETFs such as MCHI and FXI, the main points of comparison are the makeup of holdings and the extent of mainland stock inclusion.

Chinese stocks react sensitively to China's economy, policy, the regulatory environment and global risk appetite, and given the high level of policy uncertainty they tend to show large swings. Because of the broadly diversified structure, concentration in a few large-cap stocks is reduced, which tends to ease individual sector risk.

Fund flows into and out of Chinese stocks diverge sharply depending on global risk appetite and news on Chinese policy and regulation, and money sometimes moves into related products when expectations for a Chinese economic recovery rise. It is also worth noting that performance can vary widely with changes in Chinese regulation and policy.

Broad exposure to the Chinese market as a whole is its strength, while single-country concentration, policy and regulatory risk, and exchange rates are considerations.

For a focus on Chinese internet and technology companies, direct substitutes include KWEB, and for exposure to mainland A-shares, products such as ASHR are also worth comparing. For a focus on private-sector companies excluding state-owned enterprises, products such as CXSE can also be considered. Among MCHI, FXI and INDA shown in the table, the first two invest in Chinese large caps and Hong Kong-listed large caps respectively, so their coverage differs, while the remaining product invests in India, so its country exposure is different. This ETF's differentiating factor is its broad exposure to the Chinese market as a whole.

Here are the points to review before investing in GXC. Exposure to the whole Chinese market is attractive, but single-country concentration, policy and regulatory risk, and exchange rates need to be checked in advance. It is also a good idea to compare it with other China and mainland A-share products.

Changes in Chinese policy and regulation, an economic slowdown and the yuan exchange rate are the main variables for short-term performance, and because of single-country concentration, volatility can be higher than in globally diversified emerging-market products. Geopolitical variables and the external policy environment can also have an impact.

This is a suitable candidate for investors who want broad exposure to the Chinese market. If you want to focus on Chinese internet companies or mainland A-shares, consider products such as KWEB and ASHR, and if you want exposure to the entire Chinese market, it is advisable to compare this product alongside them before choosing.