What is XCX6 Xtrackers MSCI China? A Comprehensive Overview of the ETF

In global investing, Exchange-Traded Funds (ETFs) have become essential instruments for gaining diversified exposure to international markets.

One prominent option for investors looking to tap into China’s dynamic economy is the XCX6 ETF, formally known as the Xtrackers MSCI China UCITS ETF 1C. But what is XCX6 exactly, and how does it work?

What is XCX6?

XCX6 is the ticker symbol for the Xtrackers MSCI China UCITS ETF 1C, which DWS Group manages under the Xtrackers brand.

This ETF is designed to replicate the performance of the MSCI China Total Return Net (TRN) Index, offering investors access to a broad selection of Chinese equities. It was launched on June 24, 2010, and is listed on the London Stock Exchange.

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Index and Strategy: Xtrackers MSCI China

The MSCI China TRN Index represents large and mid-cap Chinese companies, covering:

1. A-shares (listed on mainland exchanges like Shanghai and Shenzhen)

2. H-shares (listed in Hong Kong)

3. B-shares

4. Red chips and P chips (mainland companies incorporated and listed overseas)

5. Foreign listings of Chinese firms

This index captures approximately 85% of China’s free-float market capitalization and is reviewed quarterly. It is weighted by free-float-adjusted market capitalization, ensuring proportional representation of each company relative to its market impact.

Fund Features and Composition

1. Replication Method: XCX6 uses full physical replication, meaning it directly holds the underlying Chinese stocks in the same proportions as the index.

2. Dividend Policy: It follows a capitalizing (accumulating) policy, where dividends from constituent stocks are reinvested rather than distributed.

3. Total Expense Ratio (TER): 0.65% annually, covering all operational costs.

4. Fund Size (AUM): As of June 3, 2025, the fund manages approximately £1.32 billion.

5. Net Asset Value (NAV): GBP: £12.97 & USD: $17.55

6. Share Price (June 5, 2025): £1,315.50

7. Price/Earnings Ratio (P/E): 12.27

8. Volatility (12-month): 27.73%

Key Holdings in the Portfolio

As of June 3, 2025, the fund holds a diversified set of equities, heavily weighted toward major Chinese tech and financial firms. The top holdings include:

1. Tencent Holdings Ltd – 16.98%

2. Alibaba Group Holding Ltd – 10.22%

3. Xiaomi Corp – 4.75%

4. China Construction Bank Corp – 3.59%

5. Meituan – 3.55%

6. PDD Holdings – 2.80%

7. BYD Ltd – 2.57%

8. Industrial and Commercial Bank of China – 1.97%

9. NetEase Inc – 1.79%

10. Bank of China Ltd – 1.71%

These top 10 holdings alone account for nearly 50% of the portfolio, reflecting a focus on technology, financials, and consumer discretionary sectors.

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Historical Performance

XCX6’s performance has mirrored the economic ebbs and flows of China. Historical annual returns (USD) include:

1. 2020–2021: +35.77%

2. 2021–2022: -35.34%

3. 2023–2024: +3.53%

4. 2024–2025: +25.84%

5. Latest 1-Year Return (USD): +25.84%

6. Worst Year (2021–2022): -35.34%

Note: Past performance is not indicative of future returns.

Currency and Sector Exposure

1. Currency Allocation: HKD: 81.70%, CNY: 12.99%, USD: 5.31%

2. Asset Class: Equities (99.86%)

3. Sectoral Exposure: Predominantly Communication Services, Consumer Discretionary, Financials, and Information Technology.

Is XCX6 a Good Investment?

XCX6 is ideal for investors seeking broad, diversified exposure to China’s equity market through a single, cost-efficient vehicle. It’s particularly useful for those who want to:

1. Access the Chinese growth story

2. Diversify geographically beyond Western markets

3. Gain exposure to major Chinese tech and financial companies

However, potential investors should also weigh the risks:

1. Geopolitical tension involving China

2. Regulatory uncertainty

3. Market volatility, as seen in its double-digit swings year-on-year

As of now, technical indicators suggest a neutral trading signal, meaning neither strong buy nor sell momentum is present.

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Conclusion

Whether you're a long-term investor betting on China’s growth or a global asset allocator looking to diversify, the XCX6 ETF offers a straightforward, transparent way to invest in the Chinese equity market.

Backed by DWS’s Xtrackers brand, with a solid track record and robust methodology tied to the MSCI China TRN Index, XCX6 stands out as a comprehensive and professionally managed China-focused ETF.

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FAQ

Q1. What is XCX6?
A: XCX6 is the ticker symbol for the Xtrackers MSCI China UCITS ETF 1C, an exchange-traded fund (ETF) managed by DWS Group. It aims to replicate the performance of the MSCI China Total Return Net Index, providing exposure to a wide range of Chinese equities.

Q2. How does XCX6 replicate its index?
A: The ETF uses full physical replication, meaning it directly holds the underlying Chinese stocks in the same proportions as the MSCI China TRN Index.

Q3. Does XCX6 pay dividends?
No, XCX6 follows an accumulating (capitalizing) dividend policy, reinvesting any income from its holdings back into the fund.

Q4. What is the Total Expense Ratio (TER) of XCX6?
A: The TER is 0.65% annually, covering all fund management and operational expenses.

Q5. Where is XCX6 listed and in which currency is it traded?
A: XCX6 is listed on the London Stock Exchange and is priced in British Pounds (GBP). However, it also reports NAVs in USD and includes assets denominated in HKD, CNY, and USD.