FXI vs TDF: Correlation
Measured on weekly returns over the past three years, iShares China Large-Cap ETF (FXI) and Templeton Dragon Fund, Inc. (TDF) carry a correlation of 0.88, a very strong link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are FXI and TDF?
Across a 3-year window, the weekly returns of FXI and TDF correlate at 0.88, very strong, meaning they move nearly in lockstep. The link has loosened recently: the 1-year correlation (0.69) runs below the 3-year figure (0.88). Stretching to 5 years gives 0.91, with an annualized covariance of 495.9 %².
TDF is one of the assets that tracks FXI most closely: it ranks #2 out of the 74 assets we track against FXI. Over the last 12 months TDF came out ahead by 9.5 percentage points (-6.1% against +3.4%).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
FXI vs TDF: side by side
| FXI (iShares China Large-Cap ETF) | TDF (Templeton Dragon Fund, Inc.) | |
|---|---|---|
| 1-year return | -6.1% | +3.4% |
| 5-year return | -1.4% | -29.3% |
| Volatility (ann.) | 25.3% | 22.2% |
| Beta vs S&P 500 | 0.68 | 0.64 |
| Max drawdown (3Y) | -23.2% | -22.2% |
| Market cap | – | $0.3B |
| P/E (trailing) | – | 3.6 |
| Dividend yield | 1.87% | 3.68% |
| Expense ratio | 0.73% | – |
| Assets under management | $4.3B | – |
| Sector / category | ETF · International | US Listed |
FXI is a Greater China Region fund from iShares: $4.3B under management, 50 holdings, a 0.73% expense ratio, a 1.87% trailing dividend yield.
Year-by-year returns
| Year | FXI | TDF |
|---|---|---|
| 2022 | -20.7% | -32.9% |
| 2023 | -12.4% | -20.1% |
| 2024 | +29.0% | +5.5% |
| 2025 | +28.9% | +37.7% |
| 2026 | -7.3% | -1.2% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are FXI and TDF good diversifiers for each other?
No: a correlation of 0.88 means FXI and TDF tend to fall together, which is precisely when diversification is supposed to help.
FAQ
What is the correlation between FXI and TDF?
As of 2026-08-27, the correlation of weekly returns between FXI and TDF is 0.88 over 3 years, 0.69 over 1 year and 0.91 over 5 years.
Is TDF a good diversifier for FXI?
No: a correlation of 0.88 means FXI and TDF tend to fall together, which is precisely when diversification is supposed to help.
What does a correlation of 0.88 mean?
On the −1 to +1 scale, 0.88 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/fxi-vs-tdf.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/fxi-vs-tdf/)
The core API is free. Terms and every endpoint in the API documentation.
Related comparisons
Hubs: FXI correlations · TDF correlations
