There are many ways to invest in China including exchange-traded funds (ETFs). The SPDR S&P China (GXC ) and iShares China Large-Cap (FXI ) are two ETFs that are similar for many reasons. But there are also subtle differences. (For more, see: Emerging Markets and the Way to Profit: China ETFs ).

Tale of the Tape

Expense Ratios:

GXC: 0.59%

FXI: 0.74%

GXC: 1.81%

FXI: 1.75%

Annual Holdings Turnover:

A Quick Look at Tencent

Tencent is an investment holding company that provides internet and mobile value-added services, online advertising services and e-commerce transactions services. It is currently trading at 38 times earnings and four times forward earnings. Over the past 12 months it has had a profit margin of 29.18%, a return on equity of 33.88%, a debt-to-equity ratio of 0.45 and has generated $4.67 billion in operational cash flow. In its most recent quarter, revenue and net earnings grew at 27.50% and 46.30%, respectively, on a year-over-year basis. (For more, see: Chinese Sector Investing with ETFs ).

While Tencent’s stock has suffered recently, it has appreciated 264.90% over the past three years. The recent slide likely has more to do with economic news coming out of China than the company itself, and plays into the risks associated with investing in GXC and/or FXI.

Economic Concerns

Since 1979, China has averaged nearly 10% gross domestic product (GDP) growth, which leads to better lives as well as increased consumer spending. It’s a virtuous cycle. Unfortunately, growth for 2014 is expected to be 7.5%. This is still rampant growth, but it’s not at the same pace as it has been. Worse yet, whispers out of the Chinese government are that the economy will grow at a 7% clip next year versus a prior expectation of 7.3%. Once again, these are still good numbers, but direction plays a major role when it comes to the perception of investors. (For more, see: China’s GDP Examined: A Service-Sector Surge ).

Another potential concern is that copper recently fell to a four-and-a-half-year low. This could be yet another sign that growth is slowing in China. Meanwhile, liquidity is tightening in China, a responsible decision for the long haul but it doesn’t boost business and consumer confidence.

The Bottom Line

GXC and FXI have been quality long-term investments offering exposure to China. A decent yield and maneuverability with holdings are both positives. But those positives won’t mean much if China’s economy is slowing. While a rebound is possible, it’s unwise to fight the trend. (For more, see: China ETFs Move With the Market ) .

Dan Moskowitz does not own any shares in GXC or FXI.