ASHR vs MCHI

ASHRAXtrackers Harvest CSI 300 China A-Shares ETF

MCHIAiShares MSCI China ETF

In short

ASHR The mainland, not the offshore proxy. ASHR tracks the CSI 300, an index of the largest and most liquid stocks listed inside China's domestic A-share market, and it has been doing that job since 2013.

MCHI The default one-ticker way to own China. MCHI has tracked the MSCI China Index since 2011, holding roughly 600 stocks open to international investors, and it stays actively traded.

Stated mandate

ASHR The fund tracks an index representing the largest and most liquid stocks in China's A-share market.

MCHI The fund seeks to track an index of Chinese equities available to international investors.

Why people hold it

• ASHR Roughly 300 mainland-listed companies picked for size and liquidity, so one ticker covers the heart of China's domestic market rather than its offshore listings.
• Hugs its index closely and trades actively, which is why it rates as one of the stronger implementations among the China funds we cover.
• The 0.65% expense ratio comes in under the 0.70% median for China single-country ETFs, unusual for a fund reaching a market most rivals do not touch directly.
• Running since 2013 and now a multi-billion-dollar fund, so the A-share access plumbing has years of live use behind it.

• MCHI One ticker, roughly 600 Chinese stocks. Instead of picking among share classes and listings, you get the MSCI China Index (Net) in a single line item.ishares.com
• 0.59% expense ratio, below the middle of the single-country China pack, and the fund has hewed closely to its stated index mandate.
• Running since 2011 and now a multi-billion-dollar fund that trades actively, which is why it turns up as the reference China holding in so many portfolios.
• One of the stronger implementations in its peer group on tradability and staying power, both scored in the top tier of the China cohort.

Worth knowing

• ASHR Broad China exposure can be had for less: FLCH charges 0.19% and JCHI 0.15%, both well below ASHR's 0.65%.
• One country, one market. There is no other geography in the basket to cushion a move in Chinese equities or a shift in Beijing's policy.
• Distributions land once or twice a year, so this is a growth-style holding rather than a steady income stream.

• MCHI Cheaper broad-China options exist: FLCH charges 0.19% and JPMorgan's active JCHI 0.15%. You are paying up for MCHI's depth and liquidity.
• Single-country equity risk, undiluted. Chinese regulation, currency and policy swings hit the whole basket at once, and the index leans heavily on its biggest names.
• Distributions come once or twice a year, not monthly, so cash flow arrives in lumps.

Full ASHR profile⁠

Full MCHI profile⁠