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AAXJ vs. MCHI
Performance
Return for Risk
Drawdowns
Volatility
Dividends

AAXJ vs. MCHI

Last updated Jun 26, 2026

AAXJ (iShares MSCI All Country Asia ex-Japan ETF) and MCHI (iShares MSCI China ETF) are both exchange-traded funds - AAXJ is a Asia Pacific Equities fund tracking the MSCI All Country Asia ex Japan Index, while MCHI is a China Equities fund tracking the MSCI China Index. Both are passively managed. Over the past 10 years, AAXJ returned 10.62%/yr vs 4.19%/yr for MCHI. Their correlation of 0.88 suggests significant overlap in exposure. AAXJ charges 0.68%/yr vs 0.59%/yr for MCHI.

Performance

AAXJ vs. MCHI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI All Country Asia ex-Japan ETF (AAXJ) and iShares MSCI China ETF (MCHI). The values are adjusted to include any dividend payments, if applicable.

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Returns By Period

In the year-to-date period, AAXJ achieves a 27.57% return, which is significantly higher than MCHI's -14.90% return. Over the past 10 years, AAXJ has outperformed MCHI with an annualized return of 10.62%, while MCHI has yielded a comparatively lower 4.19% annualized return.

AAXJ

1D
1.00%
1M
0.30%
YTD
27.57%
6M
28.45%
1Y
45.68%
3Y*
23.86%
5Y*
6.54%
10Y*
10.62%

MCHI

1D
-1.26%
1M
-8.88%
YTD
-14.90%
6M
-15.66%
1Y
-6.82%
3Y*
7.30%
5Y*
-7.48%
10Y*
4.19%
*Multi-year figures are annualized to reflect compound growth (CAGR)

AAXJ vs. MCHI - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
AAXJ
iShares MSCI All Country Asia ex-Japan ETF		27.57%31.53%10.41%4.79%-20.35%-5.73%23.35%17.93%-15.04%41.76%
MCHI
iShares MSCI China ETF		-14.90%31.04%17.73%-11.94%-23.01%-21.74%27.78%23.72%-19.79%54.67%

Correlation

The correlation between AAXJ and MCHI is 0.70, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.70

Correlation (3Y)
Calculated over the trailing 3-year period

0.79

Correlation (5Y)
Calculated over the trailing 5-year period

0.85

Correlation (10Y)
Calculated over the trailing 10-year period

0.88

Correlation (All Time)
Calculated using the full available price history since Mar 31, 2011

0.88

The correlation between AAXJ and MCHI shifts across timeframes, from 0.70 (1 year) to 0.88 (all time), reflecting how their relationship changes across market environments.

AAXJ vs. MCHI - Sectors Allocation Comparison

Sectors
AAXJ
MCHI

Technology

49.4%
12.1%

Financial Services

15.8%
18.8%

Consumer Cyclical

8.9%
24.9%

Industrials

7.3%
5.3%

Communication Services

5.9%
18.1%

Basic Materials

3.1%
5.5%

Healthcare

2.6%
5.1%

Energy

2.2%
3.7%

Consumer Defensive

2.0%
3.0%

Utilities

1.6%
1.8%

Real Estate

1.4%
1.6%

Technology

AAXJ
49.4%
MCHI
12.1%

Financial Services

AAXJ
15.8%
MCHI
18.8%

Consumer Cyclical

AAXJ
8.9%
MCHI
24.9%

Industrials

AAXJ
7.3%
MCHI
5.3%

Communication Services

AAXJ
5.9%
MCHI
18.1%

Basic Materials

AAXJ
3.1%
MCHI
5.5%

Healthcare

AAXJ
2.6%
MCHI
5.1%

Energy

AAXJ
2.2%
MCHI
3.7%

Consumer Defensive

AAXJ
2.0%
MCHI
3.0%

Utilities

AAXJ
1.6%
MCHI
1.8%

Real Estate

AAXJ
1.4%
MCHI
1.6%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares MSCI All Country Asia ex-Japan ETF

iShares MSCI China ETF

Often compared with AAXJ:
AAXJ vs. VPLAAXJ vs. IEMGAAXJ vs. VWOAAXJ vs. BBAXAAXJ vs. EPPAAXJ vs. CQQQAAXJ vs. THD
Often compared with MCHI:
MCHI vs. FXIMCHI vs. KWEBMCHI vs. CQQQMCHI vs. GXCMCHI vs. ASHRMCHI vs. FLCHMCHI vs. CNYA

Return for Risk

AAXJ vs. MCHI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
AAXJ
AAXJ Risk / Return Rank: 7272
Overall Rank
AAXJ Sharpe Ratio Rank: 7171
Sharpe Ratio Rank
AAXJ Sortino Ratio Rank: 6363
Sortino Ratio Rank
AAXJ Omega Ratio Rank: 7575
Omega Ratio Rank
AAXJ Calmar Ratio Rank: 7575
Calmar Ratio Rank
AAXJ Martin Ratio Rank: 7575
Martin Ratio Rank
MCHI
MCHI Risk / Return Rank: 66
Overall Rank
MCHI Sharpe Ratio Rank: 66
Sharpe Ratio Rank
MCHI Sortino Ratio Rank: 66
Sortino Ratio Rank
MCHI Omega Ratio Rank: 66
Omega Ratio Rank
MCHI Calmar Ratio Rank: 77
Calmar Ratio Rank
MCHI Martin Ratio Rank: 66
Martin Ratio Rank
The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AAXJ vs. MCHI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI All Country Asia ex-Japan ETF (AAXJ) and iShares MSCI China ETF (MCHI). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

AAXJMCHIDifference
Sharpe ratioReturn per unit of total volatility
1.97
-0.34

+2.31

Sortino ratioReturn per unit of downside risk
2.53
-0.35

+2.88

Omega ratioGain probability vs. loss probability

1.38

0.96

+0.42

Calmar ratioReturn relative to maximum drawdown

3.36

-0.30

+3.66

Martin ratioReturn relative to average drawdown

12.18

-0.72

+12.90

AAXJ vs. MCHI - Sharpe Ratio Comparison

The current AAXJ Sharpe Ratio is 1.97, which is higher than the MCHI Sharpe Ratio of -0.34. The chart below compares the historical Sharpe Ratios of AAXJ and MCHI, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Drawdowns

AAXJ vs. MCHI - Drawdown Comparison

The maximum AAXJ drawdown since its inception was -49.37%, smaller than the maximum MCHI drawdown of -62.95%. Use the drawdown chart below to compare losses from any high point for AAXJ and MCHI.

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Drawdown Indicators

AAXJMCHIDifference

Max Drawdown

Largest peak-to-trough decline

-49.37%

-62.95%

+13.58%

Max Drawdown (1Y)

Largest decline over 1 year

-13.66%

-22.76%

+9.10%

Max Drawdown (3Y)

Largest decline over 3 years

-19.74%

-25.85%

+6.11%

Max Drawdown (5Y)

Largest decline over 5 years

-40.64%

-56.98%

+16.34%

Max Drawdown (10Y)

Largest decline over 10 years

-44.52%

-62.95%

+18.43%

Current Drawdown

Current decline from peak

-4.70%

-41.97%

+37.27%

Average Drawdown

Average peak-to-trough decline

-13.99%

-24.57%

+10.58%

Ulcer Index

Depth and duration of drawdowns from previous peaks

3.76%

9.49%

-5.73%

Volatility

AAXJ vs. MCHI - Volatility Comparison

iShares MSCI All Country Asia ex-Japan ETF (AAXJ) has a higher volatility of 12.93% compared to iShares MSCI China ETF (MCHI) at 6.05%. This indicates that AAXJ's price experiences larger fluctuations and is considered to be riskier than MCHI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

AAXJMCHIDifference

Volatility (1M)

Calculated over the trailing 1-month period

12.93%

6.05%

+6.88%

Volatility (6M)

Calculated over the trailing 6-month period

21.20%

14.90%

+6.30%

Volatility (1Y)

Calculated over the trailing 1-year period

23.27%

20.15%

+3.12%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

20.63%

30.74%

-10.11%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

20.50%

27.34%

-6.84%

AAXJ vs. MCHI - Expense Ratio Comparison

AAXJ has a 0.68% expense ratio, which is higher than MCHI's 0.59% expense ratio.

Dividends

AAXJ vs. MCHI - Dividend Comparison

AAXJ's dividend yield for the trailing twelve months is around 1.31%, less than MCHI's 2.16% yield.

PositionTTM20252024202320222021202020192018201720162015
AAXJ
iShares MSCI All Country Asia ex-Japan ETF		1.31%1.81%1.86%1.95%1.74%2.21%1.06%1.83%2.10%1.99%1.77%2.44%
MCHI
iShares MSCI China ETF		2.16%2.12%2.31%2.66%1.78%1.04%1.04%1.45%1.60%1.56%1.66%2.76%

Frequently Asked Questions

AAXJ and MCHI have a correlation of 0.70, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

AAXJ has higher volatility (12.93%) compared to MCHI (6.05%). In terms of maximum drawdown, AAXJ dropped -49.37% vs MCHI's -62.95%.

On 10-year performance, AAXJ leads with 10.62% vs 4.19% for MCHI. On fees, MCHI is cheaper at 0.59% per year. On volatility, MCHI has been the lower-risk option at 6.05%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, AAXJ has performed better with a 10.62% return vs 4.19%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

MCHI is cheaper with a 0.59% expense ratio, compared with 0.68% for AAXJ.

MCHI has the higher dividend yield at 2.16%, compared with 1.31% for AAXJ.

AAXJ is categorized as Asia Pacific Equities, while MCHI is China Equities. AAXJ tracks MSCI All Country Asia ex Japan Index, while MCHI tracks MSCI China Index. Their fees differ too: 0.68% for AAXJ and 0.59% for MCHI.

AAXJ currently has the higher Sharpe Ratio (1.97 vs -0.34), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.

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