CXSE vs. MCHI

Last updated Jun 18, 2026

CXSE (WisdomTree China ex-State-Owned Enterprises Fund) and MCHI (iShares MSCI China ETF) are both China Equities funds - CXSE tracks the WisdomTree China ex-State-Owned Enterprises Index while MCHI tracks the MSCI China Index. Both are passively managed. Over the past 10 years, CXSE returned 7.34%/yr vs 4.51%/yr for MCHI. Their correlation of 0.88 suggests significant overlap in exposure. CXSE charges 0.32%/yr vs 0.59%/yr for MCHI.

Performance

CXSE vs. MCHI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree China ex-State-Owned Enterprises Fund (CXSE) and iShares MSCI China ETF (MCHI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, CXSE achieves a -2.87% return, which is significantly higher than MCHI's -11.18% return. Over the past 10 years, CXSE has outperformed MCHI with an annualized return of 7.34%, while MCHI has yielded a comparatively lower 4.51% annualized return.

CXSE

• 1D: -1.01%
• 1M: -2.59%
• YTD: -2.87%
• 6M: -2.68%
• 1Y: 16.70%
• 3Y*: 7.56%
• 5Y*: -8.33%
• 10Y*: 7.34%

MCHI

• 1D: -2.09%
• 1M: -5.34%
• YTD: -11.18%
• 6M: -10.29%
• 1Y: -0.80%
• 3Y*: 6.28%
• 5Y*: -6.07%
• 10Y*: 4.51%

*Multi-year figures are annualized to reflect compound growth (CAGR)

CXSE vs. MCHI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
CXSE WisdomTree China ex-State-Owned Enterprises Fund	-2.87%	37.00%	8.56%	-18.02%	-29.32%	-23.67%	59.39%	37.96%	-28.55%	81.50%
MCHI iShares MSCI China ETF	-11.18%	31.04%	17.73%	-11.94%	-23.01%	-21.74%	27.78%	23.72%	-19.79%	54.67%

Correlation

The correlation between CXSE and MCHI is 0.93, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.93
Correlation (All Time) Calculated using the full available price history since Sep 20, 2012	0.88

The correlation between CXSE and MCHI has been stable across timeframes, ranging from 0.88 to 0.97 - a consistent structural relationship.

CXSE vs. MCHI - Sectors Allocation Comparison

Sectors	CXSE	MCHI
Technology	27.4%	12.1%
Consumer Cyclical	24.6%	24.9%
Industrials	12.7%	5.3%
Communication Services	12.1%	18.1%
Healthcare	8.6%	5.1%
Financial Services	6.2%	18.8%
Consumer Defensive	4.0%	3.0%
Basic Materials	3.2%	5.5%
Real Estate	0.8%	1.6%
Energy	0.4%	3.7%
Utilities	0.2%	1.8%

Return for Risk

CXSE vs. MCHI — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

CXSE

CXSE Risk / Return Rank: 21
CXSE Sharpe Ratio Rank: 22
CXSE Sortino Ratio Rank: 22
CXSE Omega Ratio Rank: 22
CXSE Calmar Ratio Rank: 21
CXSE Martin Ratio Rank: 17

MCHI

MCHI Risk / Return Rank: 8
MCHI Sharpe Ratio Rank: 8
MCHI Sortino Ratio Rank: 8
MCHI Omega Ratio Rank: 8
MCHI Calmar Ratio Rank: 8
MCHI Martin Ratio Rank: 8

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.

CXSE vs. MCHI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree China ex-State-Owned Enterprises Fund (CXSE) 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.

	CXSE	MCHI	Difference
Sharpe ratio: Return per unit of total volatility	0.77	-0.04	+0.81
Sortino ratio: Return per unit of downside risk	1.20	0.09	+1.11
Omega ratio: Gain probability vs. loss probability	1.15	1.01	+0.14
Calmar ratio: Return relative to maximum drawdown	0.95	-0.04	+0.99
Martin ratio: Return relative to average drawdown	1.90	-0.09	+1.99

CXSE vs. MCHI - Sharpe Ratio Comparison

The current CXSE Sharpe Ratio is 0.77, which is higher than the MCHI Sharpe Ratio of -0.04. The chart below compares the historical Sharpe Ratios of CXSE 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.

Drawdowns

CXSE vs. MCHI - Drawdown Comparison

The maximum CXSE drawdown since its inception was -70.01%, which is greater than MCHI's maximum drawdown of -62.95%. Use the drawdown chart below to compare losses from any high point for CXSE and MCHI.

Drawdown Indicators

	CXSE	MCHI	Difference
Max Drawdown Largest peak-to-trough decline	-70.01%	-62.95%	-7.06%
Max Drawdown (1Y) Largest decline over 1 year	-17.70%	-19.39%	+1.69%
Max Drawdown (3Y) Largest decline over 3 years	-32.12%	-25.85%	-6.27%
Max Drawdown (5Y) Largest decline over 5 years	-64.47%	-56.98%	-7.49%
Max Drawdown (10Y) Largest decline over 10 years	-70.01%	-62.95%	-7.06%
Current Drawdown Current decline from peak	-48.04%	-39.44%	-8.60%
Average Drawdown Average peak-to-trough decline	-27.88%	-24.55%	-3.33%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.80%	9.02%	-0.22%

Volatility

CXSE vs. MCHI - Volatility Comparison

WisdomTree China ex-State-Owned Enterprises Fund (CXSE) has a higher volatility of 6.86% compared to iShares MSCI China ETF (MCHI) at 5.99%. This indicates that CXSE'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.

Volatility by Period

	CXSE	MCHI	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.86%	5.99%	+0.87%
Volatility (6M) Calculated over the trailing 6-month period	15.28%	14.82%	+0.46%
Volatility (1Y) Calculated over the trailing 1-year period	21.69%	20.27%	+1.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	32.33%	30.73%	+1.60%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.71%	27.40%	+1.31%

CXSE vs. MCHI - Expense Ratio Comparison

CXSE has a 0.32% expense ratio, which is lower than MCHI's 0.59% expense ratio.

Dividends

CXSE vs. MCHI - Dividend Comparison

CXSE's dividend yield for the trailing twelve months is around 2.06%, which matches MCHI's 2.07% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CXSE WisdomTree China ex-State-Owned Enterprises Fund	2.06%	1.95%	1.70%	1.71%	1.55%	0.86%	0.54%	0.96%	1.49%	1.24%	1.39%	2.50%
MCHI iShares MSCI China ETF	2.07%	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

Can I hold both CXSE and MCHI in my portfolio?

With a correlation of 0.93, CXSE and MCHI move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, CXSE or MCHI?

CXSE has higher volatility (6.86%) compared to MCHI (5.99%). In terms of maximum drawdown, CXSE dropped -70.01% vs MCHI's -62.95%.

Which ETF is better, CXSE or MCHI?

On 10-year performance, CXSE leads with 7.34% vs 4.51% for MCHI. On fees, CXSE is cheaper at 0.32% per year. On volatility, MCHI has been the lower-risk option at 5.99%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, CXSE or MCHI?

Over the 10-year period, CXSE has performed better with a 7.34% return vs 4.51%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, CXSE or MCHI?

CXSE is cheaper with a 0.32% expense ratio, compared with 0.59% for MCHI.

Which ETF pays a higher dividend yield, CXSE or MCHI?

CXSE and MCHI have nearly identical dividend yields, around 2.06%.

What is the main difference between CXSE and MCHI?

CXSE tracks WisdomTree China ex-State-Owned Enterprises Index, while MCHI tracks MSCI China Index. They also come from different issuers: WisdomTree and iShares. Their fees differ too: 0.32% for CXSE and 0.59% for MCHI.

Which has better risk-adjusted returns?

CXSE currently has the higher Sharpe Ratio (0.77 vs -0.04), 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.