MCH vs. DRGN

Last updated Jul 16, 2026

MCH (Matthews China Active ETF) and DRGN (Themes China Generative Artificial Intelligence ETF) are both China Equities funds. MCH is actively managed, while DRGN is passively managed. Over the past year, MCH returned 14.97% vs 44.44% for DRGN. A 0.74 correlation means they provide meaningful diversification when combined. MCH charges 0.79%/yr vs 0.39%/yr for DRGN.

Performance

MCH vs. DRGN - Performance Comparison

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

Returns By Period

In the year-to-date period, MCH achieves a 1.40% return, which is significantly lower than DRGN's 14.26% return.

MCH

• 1D: 1.38%
• 1M: -3.62%
• 6M: -4.23%
• YTD: 1.40%
• 1Y: 14.97%
• 3Y*: 11.09%
• 5Y*: —
• 10Y*: —

DRGN

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

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

MCH vs. DRGN - Yearly Performance Comparison

	2026 (YTD)	2025
MCH Matthews China Active ETF	1.40%	15.25%
DRGN Themes China Generative Artificial Intelligence ETF	14.26%	26.96%

Correlation

The correlation between MCH and DRGN is 0.75, 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	0.75
Correlation (All Time) Calculated using the full available price history since Jul 15, 2025	0.74

The correlation between MCH and DRGN has been stable across timeframes, ranging from 0.74 to 0.75 - a consistent structural relationship.

Return for Risk

MCH vs. DRGN — Risk / Return Rank

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

MCH

MCH Risk / Return Rank: 24
MCH Sharpe Ratio Rank: 23
MCH Sortino Ratio Rank: 23
MCH Omega Ratio Rank: 22
MCH Calmar Ratio Rank: 25
MCH Martin Ratio Rank: 24

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

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.

MCH vs. DRGN - Risk-Adjusted Trends Comparison

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

	MCH	DRGN	Difference
Sharpe ratio: Return per unit of total volatility	0.70	1.25	-0.55
Sortino ratio: Return per unit of downside risk	1.10	1.84	-0.75
Omega ratio: Gain probability vs. loss probability	1.13	1.22	-0.08
Calmar ratio: Return relative to maximum drawdown	1.00	2.14	-1.14
Martin ratio: Return relative to average drawdown	2.55	4.45	-1.90

MCH vs. DRGN - Sharpe Ratio Comparison

The current MCH Sharpe Ratio is 0.70, which is lower than the DRGN Sharpe Ratio of 1.25. The chart below compares the historical Sharpe Ratios of MCH and DRGN, 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

MCH vs. DRGN - Drawdown Comparison

The maximum MCH drawdown since its inception was -40.53%, which is greater than DRGN's maximum drawdown of -20.86%. Use the drawdown chart below to compare losses from any high point for MCH and DRGN.

Drawdown Indicators

	MCH	DRGN	Difference
Max Drawdown Largest peak-to-trough decline	-40.53%	-20.86%	-19.67%
Max Drawdown (1Y) Largest decline over 1 year	-15.05%	-20.86%	+5.81%
Max Drawdown (3Y) Largest decline over 3 years	-30.57%	—	—
Current Drawdown Current decline from peak	-5.80%	-8.88%	+3.08%
Average Drawdown Average peak-to-trough decline	-18.13%	-8.16%	-9.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.88%	10.02%	-4.14%

Volatility

MCH vs. DRGN - Volatility Comparison

The current volatility for Matthews China Active ETF (MCH) is 7.99%, while Themes China Generative Artificial Intelligence ETF (DRGN) has a volatility of 13.08%. This indicates that MCH experiences smaller price fluctuations and is considered to be less risky than DRGN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MCH	DRGN	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.99%	13.08%	-5.09%
Volatility (6M) Calculated over the trailing 6-month period	16.03%	25.46%	-9.43%
Volatility (1Y) Calculated over the trailing 1-year period	21.47%	35.74%	-14.27%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.45%	35.74%	-6.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.45%	35.74%	-6.29%

MCH vs. DRGN - Expense Ratio Comparison

MCH has a 0.79% expense ratio, which is higher than DRGN's 0.39% expense ratio.

Dividends

MCH vs. DRGN - Dividend Comparison

MCH's dividend yield for the trailing twelve months is around 1.74%, more than DRGN's 1.06% yield.

Position	TTM	2025	2024	2023
DRGN Themes China Generative Artificial Intelligence ETF	1.06%	1.22%	0.00%	0.00%
MCH Matthews China Active ETF	1.74%	1.76%	1.31%	1.62%

Frequently Asked Questions

Can I hold both MCH and DRGN in my portfolio?

MCH and DRGN have a correlation of 0.75, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MCH or DRGN?

DRGN has higher volatility (13.08%) compared to MCH (7.99%). In terms of maximum drawdown, MCH dropped -40.53% vs DRGN's -20.86%.

Which ETF is better, MCH or DRGN?

On 1-year performance, DRGN leads with 44.44% vs 14.97% for MCH. On fees, DRGN is cheaper at 0.39% per year. On volatility, MCH has been the lower-risk option at 7.99%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MCH or DRGN?

Over the 1-year period, DRGN has performed better with a 44.44% return vs 14.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MCH or DRGN?

DRGN is cheaper with a 0.39% expense ratio, compared with 0.79% for MCH.

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

MCH has the higher dividend yield at 1.74%, compared with 1.06% for DRGN.

What is the main difference between MCH and DRGN?

They also come from different issuers: Matthews and Themes. Their fees differ too: 0.79% for MCH and 0.39% for DRGN.

Which has better risk-adjusted returns?

DRGN currently has the higher Sharpe Ratio (1.25 vs 0.70), 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.