CNQQ vs MCHI

CNQQDRayliant-ChinaAMC Transformative China Tech ETF

MCHIAiShares MSCI China ETF

In short

CNQQ A thematic slice of China tech instead of the whole market: CNQQ tracks a Solactive index built with ChinaAMC around companies driving China's tech transformation, across mainland China and Hong Kong.

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

CNQQ The Fund seeks to track, before fees and expenses, the Solactive ChinaAMC Transformative China Tech Index.

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

Why people hold it

• CNQQ Not another all-of-China index fund. It follows the Solactive ChinaAMC Transformative China Tech Index, a rules-based screen pointed at China's tech transformers.
• Passive by design: the index picks the holdings, not a manager's conviction, so the rulebook you own is published rather than discretionary.
• A US-listed 1940 Act fund giving mainland China and Hong Kong equity exposure in dollars, with distributions paid quarterly.

• 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

• CNQQ At 0.75%, it sits above the median fee for China single-country funds. Broad alternatives cost far less: FLCH at 0.19%, JCHI at 0.15%.
• A small, lightly traded fund, so spreads and premiums or discounts can run wider than at the category's household names.
• It launched in September 2025, so the record of how closely it hugs its index is still short, and a concentrated tech theme moves harder than broad China exposure.

• 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 CNQQ profile⁠

Full MCHI profile⁠