KWEB vs. MCHI

Last updated Jun 4, 2026

KWEB (KraneShares CSI China Internet ETF) and MCHI (iShares MSCI China ETF) are both China Equities funds - KWEB tracks the CSI Overseas China Internet while MCHI tracks the MSCI China Index. Both are passively managed. Over the past 10 years, KWEB returned 0.02%/yr vs 4.68%/yr for MCHI. Their correlation of 0.86 suggests significant overlap in exposure. KWEB charges 0.76%/yr vs 0.59%/yr for MCHI.

Performance

KWEB vs. MCHI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KraneShares CSI China Internet ETF (KWEB) 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, KWEB achieves a -20.06% return, which is significantly lower than MCHI's -6.81% return. Over the past 10 years, KWEB has underperformed MCHI with an annualized return of 0.02%, while MCHI has yielded a comparatively higher 4.68% annualized return.

KWEB

• 1D: -3.92%
• 1M: -4.79%
• YTD: -20.06%
• 6M: -22.24%
• 1Y: -12.78%
• 3Y*: 4.05%
• 5Y*: -14.28%
• 10Y*: 0.02%

MCHI

• 1D: -2.12%
• 1M: -2.30%
• YTD: -6.81%
• 6M: -8.43%
• 1Y: 6.44%
• 3Y*: 9.73%
• 5Y*: -5.67%
• 10Y*: 4.68%

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

KWEB vs. MCHI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
KWEB KraneShares CSI China Internet ETF	-20.06%	23.55%	12.01%	-9.06%	-17.24%	-49.01%	58.23%	29.92%	-33.80%	69.73%
MCHI iShares MSCI China ETF	-6.81%	31.04%	17.73%	-11.94%	-23.01%	-21.74%	27.78%	23.72%	-19.79%	54.67%

Correlation

The correlation between KWEB 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	0.94
Correlation (10Y) Calculated over the trailing 10-year period	0.92
Correlation (All Time) Calculated using the full available price history since Aug 2, 2013	0.86

The correlation between KWEB and MCHI has been stable across timeframes, ranging from 0.86 to 0.95 - a consistent structural relationship.

KWEB vs. MCHI - Sectors Allocation Comparison

Sectors	KWEB	MCHI
Consumer Cyclical	37.7%	26.4%
Communication Services	24.8%	18.8%
Technology	17.6%	9.6%
Healthcare	6.0%	5.4%
Real Estate	5.2%	1.5%
Industrials	3.1%	5.0%
Consumer Defensive	3.1%	3.2%
Financial Services	2.2%	19.1%
Basic Materials	-	5.5%
Energy	-	3.7%
Utilities	-	1.7%

Return for Risk

KWEB vs. MCHI — Risk / Return Rank

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

KWEB

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

MCHI

MCHI Risk / Return Rank: 13
MCHI Sharpe Ratio Rank: 13
MCHI Sortino Ratio Rank: 13
MCHI Omega Ratio Rank: 13
MCHI Calmar Ratio Rank: 13
MCHI Martin Ratio Rank: 12

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.

KWEB vs. MCHI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for KraneShares CSI China Internet ETF (KWEB) 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.

	KWEB	MCHI	Difference
Sharpe ratio Return per unit of total volatility	-0.47	0.32	-0.79
Sortino ratio Return per unit of downside risk	-0.52	0.59	-1.12
Omega ratio Gain probability vs. loss probability	0.94	1.07	-0.13
Calmar ratio Return relative to maximum drawdown	-0.38	0.38	-0.75
Martin ratio Return relative to average drawdown	-0.76	0.78	-1.54
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KWEB vs. MCHI - Sharpe Ratio Comparison

The current KWEB Sharpe Ratio is -0.47, which is lower than the MCHI Sharpe Ratio of 0.32. The chart below compares the historical Sharpe Ratios of KWEB 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.

Sharpe Ratios by Period

	KWEB	MCHI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.47	0.32	-0.79
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.30	-0.19	-0.12
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.00	0.17	-0.17
Sharpe Ratio (All Time) Calculated using the full available price history	0.06	0.09	-0.03

Drawdowns

KWEB vs. MCHI - Drawdown Comparison

The maximum KWEB drawdown since its inception was -80.92%, which is greater than MCHI's maximum drawdown of -62.95%. Use the drawdown chart below to compare losses from any high point for KWEB and MCHI.

Drawdown Indicators

	KWEB	MCHI	Difference
Max Drawdown Largest peak-to-trough decline	-80.92%	-62.95%	-17.97%
Max Drawdown (1Y) Largest decline over 1 year	-34.13%	-17.17%	-16.96%
Max Drawdown (3Y) Largest decline over 3 years	-34.13%	-25.85%	-8.28%
Max Drawdown (5Y) Largest decline over 5 years	-72.17%	-56.98%	-15.19%
Max Drawdown (10Y) Largest decline over 10 years	-80.92%	-62.95%	-17.97%
Current Drawdown Current decline from peak	-68.52%	-36.45%	-32.07%
Average Drawdown Average peak-to-trough decline	-35.24%	-24.52%	-10.72%
Ulcer Index Depth and duration of drawdowns from previous peaks	16.85%	8.30%	+8.55%

Volatility

KWEB vs. MCHI - Volatility Comparison

KraneShares CSI China Internet ETF (KWEB) has a higher volatility of 11.52% compared to iShares MSCI China ETF (MCHI) at 7.26%. This indicates that KWEB'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

	KWEB	MCHI	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.52%	7.26%	+4.26%
Volatility (6M) Calculated over the trailing 6-month period	20.11%	14.51%	+5.60%
Volatility (1Y) Calculated over the trailing 1-year period	27.25%	20.17%	+7.08%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	47.67%	30.71%	+16.96%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	39.99%	27.39%	+12.60%

KWEB vs. MCHI - Expense Ratio Comparison

KWEB has a 0.76% expense ratio, which is higher than MCHI's 0.59% expense ratio.

Dividends

KWEB vs. MCHI - Dividend Comparison

KWEB's dividend yield for the trailing twelve months is around 7.70%, more than MCHI's 2.27% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KWEB KraneShares CSI China Internet ETF	7.70%	6.16%	3.51%	1.71%	0.00%	7.07%	0.29%	0.08%	3.40%	0.58%	1.19%	0.46%
MCHI iShares MSCI China ETF	2.27%	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 KWEB and MCHI in my portfolio?

With a correlation of 0.93, KWEB 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, KWEB or MCHI?

KWEB has higher volatility (11.52%) compared to MCHI (7.26%). In terms of maximum drawdown, KWEB dropped -80.92% vs MCHI's -62.95%.

Which ETF is better, KWEB or MCHI?

On 10-year performance, MCHI leads with 4.68% vs 0.02% for KWEB. On fees, MCHI is cheaper at 0.59% per year. On volatility, MCHI has been the lower-risk option at 7.26%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KWEB or MCHI?

Over the 10-year period, MCHI has performed better with a 4.68% return vs 0.02%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KWEB or MCHI?

MCHI is cheaper with a 0.59% expense ratio, compared with 0.76% for KWEB.

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

KWEB has the higher dividend yield at 7.70%, compared with 2.27% for MCHI.

What is the main difference between KWEB and MCHI?

KWEB tracks CSI Overseas China Internet, while MCHI tracks MSCI China Index. They also come from different issuers: CICC and iShares. Their fees differ too: 0.76% for KWEB and 0.59% for MCHI.

Which has better risk-adjusted returns?

MCHI currently has the higher Sharpe Ratio (0.32 vs -0.47), 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.