CGRO vs MCHI

CGRODCoreValues Alpha Greater China Growth ETF

MCHIAiShares MSCI China ETF

In short

CGRO Most China ETFs hand you an index and hundreds of tickers. CGRO goes the other way: a concentrated 30-to-40 stock book, built from top-down sector calls across the mainland, Hong Kong and Taiwan, at 0.89%.

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

CGRO The fund primarily invests in equity securities of growth companies with exposure to the economies of Greater China.

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

Why people hold it

• CGRO Active in the real sense: the team ranks Greater China sectors by growth potential first, then picks the stocks, landing on 30 to 40 names instead of an index roster.sec.govsec.gov 2
• "Greater China" here covers the mainland, Hong Kong and Taiwan, and the screen is revenue-based (companies with above 15% of sales from the region), not listing-based.cvafunds.comsec.gov
• Reaches mainland A-shares directly through Stock Connect alongside ADRs and Hong Kong listings, so it is not boxed into a single listing venue.sec.govcvafunds.com

• 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

• CGRO At 0.89% the fee sits above the China-fund median; index-tracking peers come cheaper, FLCH at 0.19% and CXSE at 0.32%.
• A small fund that trades lightly, so spreads can widen and bigger orders can move the price more than in the category's giants.
• Non-diversified by design: a handful of positions can drive results, and single-country China exposure carries policy and currency swings.sec.gov

• 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 CGRO profile⁠

Full MCHI profile⁠