DRGN vs. MCHS

Last updated Jul 16, 2026

DRGN (Themes China Generative Artificial Intelligence ETF) and MCHS (Matthews China Discovery Active ETF) are both China Equities funds. DRGN is passively managed, while MCHS is actively managed. Over the past year, DRGN returned 44.44% vs 53.82% for MCHS. A 0.68 correlation means they provide meaningful diversification when combined. DRGN charges 0.39%/yr vs 0.89%/yr for MCHS.

Performance

DRGN vs. MCHS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Themes China Generative Artificial Intelligence ETF (DRGN) and Matthews China Discovery Active ETF (MCHS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DRGN achieves a 14.26% return, which is significantly lower than MCHS's 39.63% return.

DRGN

• 1D: -0.54%
• 1M: 1.83%
• 6M: -0.75%
• YTD: 14.26%
• 1Y: 44.44%
• 3Y*: —
• 5Y*: —
• 10Y*: —

MCHS

• 1D: -2.39%
• 1M: -4.40%
• 6M: 32.59%
• YTD: 39.63%
• 1Y: 53.82%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

DRGN vs. MCHS - Yearly Performance Comparison

	2026 (YTD)	2025
DRGN Themes China Generative Artificial Intelligence ETF	14.26%	26.96%
MCHS Matthews China Discovery Active ETF	39.63%	11.07%

Correlation

The correlation between DRGN and MCHS is 0.68, 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	0.68
Correlation (All Time) Calculated using the full available price history since Jul 15, 2025	0.68

The correlation between DRGN and MCHS has been stable across timeframes, ranging from 0.68 to 0.68 - a consistent structural relationship.

Return for Risk

DRGN vs. MCHS — Risk / Return Rank

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

DRGN

DRGN Risk / Return Rank: 42
DRGN Sharpe Ratio Rank: 42
DRGN Sortino Ratio Rank: 43
DRGN Omega Ratio Rank: 39
DRGN Calmar Ratio Rank: 52
DRGN Martin Ratio Rank: 36

MCHS

MCHS Risk / Return Rank: 75
MCHS Sharpe Ratio Rank: 75
MCHS Sortino Ratio Rank: 65
MCHS Omega Ratio Rank: 74
MCHS Calmar Ratio Rank: 85
MCHS Martin Ratio Rank: 77

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.

DRGN vs. MCHS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Themes China Generative Artificial Intelligence ETF (DRGN) and Matthews China Discovery Active ETF (MCHS). 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.

	DRGN	MCHS	Difference
Sharpe ratio: Return per unit of total volatility	1.25	1.92	-0.67
Sortino ratio: Return per unit of downside risk	1.84	2.46	-0.61
Omega ratio: Gain probability vs. loss probability	1.22	1.35	-0.13
Calmar ratio: Return relative to maximum drawdown	2.14	3.78	-1.64
Martin ratio: Return relative to average drawdown	4.45	11.50	-7.06

DRGN vs. MCHS - Sharpe Ratio Comparison

The current DRGN Sharpe Ratio is 1.25, which is lower than the MCHS Sharpe Ratio of 1.92. The chart below compares the historical Sharpe Ratios of DRGN and MCHS, 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

DRGN vs. MCHS - Drawdown Comparison

The maximum DRGN drawdown since its inception was -20.86%, smaller than the maximum MCHS drawdown of -23.75%. Use the drawdown chart below to compare losses from any high point for DRGN and MCHS.

Drawdown Indicators

	DRGN	MCHS	Difference
Max Drawdown Largest peak-to-trough decline	-20.86%	-23.75%	+2.89%
Max Drawdown (1Y) Largest decline over 1 year	-20.86%	-14.32%	-6.54%
Current Drawdown Current decline from peak	-8.88%	-13.83%	+4.95%
Average Drawdown Average peak-to-trough decline	-8.16%	-7.52%	-0.64%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.02%	4.69%	+5.33%

Volatility

DRGN vs. MCHS - Volatility Comparison

The current volatility for Themes China Generative Artificial Intelligence ETF (DRGN) is 13.08%, while Matthews China Discovery Active ETF (MCHS) has a volatility of 16.56%. This indicates that DRGN experiences smaller price fluctuations and is considered to be less risky than MCHS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DRGN	MCHS	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.08%	16.56%	-3.48%
Volatility (6M) Calculated over the trailing 6-month period	25.46%	25.23%	+0.23%
Volatility (1Y) Calculated over the trailing 1-year period	35.74%	28.16%	+7.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	35.74%	29.80%	+5.94%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	35.74%	29.80%	+5.94%

DRGN vs. MCHS - Expense Ratio Comparison

DRGN has a 0.39% expense ratio, which is lower than MCHS's 0.89% expense ratio.

Dividends

DRGN vs. MCHS - Dividend Comparison

DRGN's dividend yield for the trailing twelve months is around 1.06%, less than MCHS's 2.55% yield.

Position	TTM	2025	2024
DRGN Themes China Generative Artificial Intelligence ETF	1.06%	1.22%	0.00%
MCHS Matthews China Discovery Active ETF	2.55%	3.56%	5.48%

Frequently Asked Questions

Can I hold both DRGN and MCHS in my portfolio?

DRGN and MCHS have a correlation of 0.68, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DRGN or MCHS?

MCHS has higher volatility (16.56%) compared to DRGN (13.08%). In terms of maximum drawdown, DRGN dropped -20.86% vs MCHS's -23.75%.

Which ETF is better, DRGN or MCHS?

On 1-year performance, MCHS leads with 53.82% vs 44.44% for DRGN. On fees, DRGN is cheaper at 0.39% per year. On volatility, DRGN has been the lower-risk option at 13.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DRGN or MCHS?

Over the 1-year period, MCHS has performed better with a 53.82% return vs 44.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DRGN or MCHS?

DRGN is cheaper with a 0.39% expense ratio, compared with 0.89% for MCHS.

Which ETF pays a higher dividend yield, DRGN or MCHS?

MCHS has the higher dividend yield at 2.55%, compared with 1.06% for DRGN.

What is the main difference between DRGN and MCHS?

They also come from different issuers: Themes and Matthews. Their fees differ too: 0.39% for DRGN and 0.89% for MCHS.

Which has better risk-adjusted returns?

MCHS currently has the higher Sharpe Ratio (1.92 vs 1.25), 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.