MCH vs MCHI

MCHCMatthews China Active ETF

MCHIAiShares MSCI China ETF

In short

MCH A stock-picker's China fund from an Asia-focused boutique: roughly 60 Chinese common and preferred shares chosen name by name rather than copied from an index. Launched in 2022.

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

MCH The fund seeks long-term capital appreciation while investing at least 80% of net assets in common and preferred stocks of companies located in China, including Hong Kong and Macau.

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

Why people hold it

• MCH Genuinely active, not index-shadowing: about 60 holdings, with at least 80% of net assets in common and preferred stocks of companies located in China, Hong Kong and Macau.
• Mandate discipline is the strong suit. The portfolio has stayed squarely inside the China brief its prospectus describes, with no drift into the broader Asia region.
• Run by Matthews Asia, a shop built around Asian equity research rather than a full-line issuer bolting on a China sleeve.

• 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

• MCH Active management costs here: 0.79% a year against a 0.70% median for China funds, with index rivals like FLCH at 0.19% and active JCHI at 0.15%.
• One of the smaller, less-traded names in the China group, so spreads tend to be wider than at the category giants and limit orders carry more weight.
• Concentrated single-country exposure in roughly 60 stocks, so Chinese policy and market swings land with full force. Distributions come once or twice a year at most.

• 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 MCH profile⁠

Full MCHI profile⁠