KTEC vs. MCHI

Last updated Jun 23, 2026

KTEC (KraneShares Hang Seng TECH Index ETF) and MCHI (iShares MSCI China ETF) are both China Equities funds - KTEC tracks the Hang Seng Tech Index while MCHI tracks the MSCI China Index. Both are passively managed. Over the past 5 years, KTEC returned -12.02%/yr vs -6.21%/yr for MCHI. Their correlation of 0.93 suggests significant overlap in exposure. KTEC charges 0.69%/yr vs 0.59%/yr for MCHI.

Performance

KTEC vs. MCHI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KraneShares Hang Seng TECH Index ETF (KTEC) 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, KTEC achieves a -19.54% return, which is significantly lower than MCHI's -11.42% return.

KTEC

• 1D: -1.41%
• 1M: -5.76%
• YTD: -19.54%
• 6M: -21.08%
• 1Y: -15.69%
• 3Y*: 3.95%
• 5Y*: -12.02%
• 10Y*: —

MCHI

• 1D: 0.17%
• 1M: -4.19%
• YTD: -11.42%
• 6M: -12.61%
• 1Y: 0.67%
• 3Y*: 8.89%
• 5Y*: -6.21%
• 10Y*: 4.51%

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

KTEC vs. MCHI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
KTEC KraneShares Hang Seng TECH Index ETF	-19.54%	21.01%	16.13%	-10.41%	-26.12%	-29.98%
MCHI iShares MSCI China ETF	-11.42%	31.04%	17.73%	-11.94%	-23.01%	-22.23%

Correlation

The correlation between KTEC and MCHI is 0.92, 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	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (All Time) Calculated using the full available price history since Jun 9, 2021	0.93

The correlation between KTEC and MCHI has been stable across timeframes, ranging from 0.92 to 0.93 - a consistent structural relationship.

KTEC vs. MCHI - Sectors Allocation Comparison

Sectors	KTEC	MCHI
Consumer Cyclical	45.1%	24.9%
Communication Services	28.2%	18.1%
Technology	24.5%	12.1%
Healthcare	2.2%	5.1%
Basic Materials	-	5.5%
Consumer Defensive	-	3.0%
Energy	-	3.7%
Financial Services	-	18.8%
Industrials	-	5.3%
Real Estate	-	1.6%
Utilities	-	1.8%

Return for Risk

KTEC vs. MCHI — Risk / Return Rank

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

KTEC

KTEC Risk / Return Rank: 4
KTEC Sharpe Ratio Rank: 4
KTEC Sortino Ratio Rank: 4
KTEC Omega Ratio Rank: 4
KTEC Calmar Ratio Rank: 5
KTEC Martin Ratio Rank: 5

MCHI

MCHI Risk / Return Rank: 9
MCHI Sharpe Ratio Rank: 9
MCHI Sortino Ratio Rank: 9
MCHI Omega Ratio Rank: 8
MCHI Calmar Ratio Rank: 9
MCHI Martin Ratio Rank: 9

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.

KTEC vs. MCHI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for KraneShares Hang Seng TECH Index ETF (KTEC) 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.

	KTEC	MCHI	Difference
Sharpe ratio: Return per unit of total volatility	-0.57	0.03	-0.60
Sortino ratio: Return per unit of downside risk	-0.68	0.19	-0.87
Omega ratio: Gain probability vs. loss probability	0.92	1.02	-0.10
Calmar ratio: Return relative to maximum drawdown	-0.47	0.03	-0.51
Martin ratio: Return relative to average drawdown	-0.90	0.07	-0.97

KTEC vs. MCHI - Sharpe Ratio Comparison

The current KTEC Sharpe Ratio is -0.57, which is lower than the MCHI Sharpe Ratio of 0.03. The chart below compares the historical Sharpe Ratios of KTEC 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

KTEC vs. MCHI - Drawdown Comparison

The maximum KTEC drawdown since its inception was -66.90%, which is greater than MCHI's maximum drawdown of -62.95%. Use the drawdown chart below to compare losses from any high point for KTEC and MCHI.

Drawdown Indicators

	KTEC	MCHI	Difference
Max Drawdown Largest peak-to-trough decline	-66.90%	-62.95%	-3.95%
Max Drawdown (1Y) Largest decline over 1 year	-33.28%	-19.74%	-13.54%
Max Drawdown (3Y) Largest decline over 3 years	-34.71%	-25.85%	-8.86%
Max Drawdown (5Y) Largest decline over 5 years	-66.90%	-56.98%	-9.92%
Max Drawdown (10Y) Largest decline over 10 years	—	-62.95%	—
Current Drawdown Current decline from peak	-49.22%	-39.60%	-9.62%
Average Drawdown Average peak-to-trough decline	-43.96%	-24.56%	-19.40%
Ulcer Index Depth and duration of drawdowns from previous peaks	17.54%	9.18%	+8.36%

Volatility

KTEC vs. MCHI - Volatility Comparison

KraneShares Hang Seng TECH Index ETF (KTEC) has a higher volatility of 8.04% compared to iShares MSCI China ETF (MCHI) at 5.96%. This indicates that KTEC'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

	KTEC	MCHI	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.04%	5.96%	+2.08%
Volatility (6M) Calculated over the trailing 6-month period	20.82%	14.81%	+6.01%
Volatility (1Y) Calculated over the trailing 1-year period	27.85%	20.25%	+7.60%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	43.20%	30.74%	+12.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	43.06%	27.39%	+15.67%

KTEC vs. MCHI - Expense Ratio Comparison

KTEC has a 0.69% expense ratio, which is higher than MCHI's 0.59% expense ratio.

Dividends

KTEC vs. MCHI - Dividend Comparison

KTEC's dividend yield for the trailing twelve months is around 4.17%, more than MCHI's 2.07% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KTEC KraneShares Hang Seng TECH Index ETF	4.17%	3.36%	0.27%	0.81%	0.16%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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 KTEC and MCHI in my portfolio?

With a correlation of 0.92, KTEC 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, KTEC or MCHI?

KTEC has higher volatility (8.04%) compared to MCHI (5.96%). In terms of maximum drawdown, KTEC dropped -66.90% vs MCHI's -62.95%.

Which ETF is better, KTEC or MCHI?

On 5-year performance, MCHI leads with -6.21% vs -12.02% for KTEC. On fees, MCHI is cheaper at 0.59% per year. On volatility, MCHI has been the lower-risk option at 5.96%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KTEC or MCHI?

Over the 5-year period, MCHI has performed better with a -6.21% return vs -12.02%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KTEC or MCHI?

MCHI is cheaper with a 0.59% expense ratio, compared with 0.69% for KTEC.

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

KTEC has the higher dividend yield at 4.17%, compared with 2.07% for MCHI.

What is the main difference between KTEC and MCHI?

KTEC tracks Hang Seng Tech Index, while MCHI tracks MSCI China Index. They also come from different issuers: KraneShares and iShares. Their fees differ too: 0.69% for KTEC and 0.59% for MCHI.

Which has better risk-adjusted returns?

MCHI currently has the higher Sharpe Ratio (0.03 vs -0.57), 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.