.wxi
file) and a WiX fragment (.wxs
file)?
The file extension is a convenience, the content of the file is what really matters. The distinction makes it easier to manage the difference between the actual installation (wxs files) and the properties required to create the installation (wxi files).
For example, your wxs files specify the product and its contents (which files you install) whereas you would use your wxi files to specify product version, upgrade codes, common paths, etc.
The WiX documentation provides some clear information.