MCH vs. KCAI

Last updated Jun 24, 2026

MCH (Matthews China Active ETF) and KCAI (KraneShares China Alpha Index ETF) are both China Equities funds. MCH is actively managed, while KCAI is passively managed. Over the past year, MCH returned 23.79% vs 48.99% for KCAI. A 0.66 correlation means they provide meaningful diversification when combined. Both charge a 0.79% expense ratio.

Performance

MCH vs. KCAI - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Matthews China Active ETF (MCH) and KraneShares China Alpha Index ETF (KCAI). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MCH achieves a 3.54% return, which is significantly lower than KCAI's 6.15% return.

MCH

• 1D: -2.85%
• 1M: 0.40%
• YTD: 3.54%
• 6M: 2.21%
• 1Y: 23.79%
• 3Y*: 13.78%
• 5Y*: —
• 10Y*: —

KCAI

• 1D: -1.05%
• 1M: 1.41%
• YTD: 6.15%
• 6M: 6.87%
• 1Y: 48.99%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

MCH vs. KCAI - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MCH Matthews China Active ETF	3.54%	30.20%	20.40%
KCAI KraneShares China Alpha Index ETF	6.15%	53.29%	11.36%

Correlation

The correlation between MCH and KCAI is 0.59, 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	0.59
Correlation (All Time) Calculated using the full available price history since Aug 28, 2024	0.66

The correlation between MCH and KCAI has been stable across timeframes, ranging from 0.59 to 0.66 - a consistent structural relationship.

MCH vs. KCAI - Sectors Allocation Comparison

Sectors	MCH	KCAI
Financial Services	20.7%	39.0%
Technology	17.5%	13.2%
Industrials	17.0%	23.6%
Consumer Cyclical	13.3%	11.5%
Communication Services	12.2%	-
Basic Materials	7.0%	11.3%
Healthcare	4.4%	1.3%
Real Estate	2.9%	-
Energy	0.8%	-
Consumer Defensive	0.6%	-
Utilities	-	-

Return for Risk

MCH vs. KCAI — Risk / Return Rank

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

MCH

MCH Risk / Return Rank: 33
MCH Sharpe Ratio Rank: 34
MCH Sortino Ratio Rank: 34
MCH Omega Ratio Rank: 32
MCH Calmar Ratio Rank: 34
MCH Martin Ratio Rank: 31

KCAI

KCAI Risk / Return Rank: 96
KCAI Sharpe Ratio Rank: 96
KCAI Sortino Ratio Rank: 96
KCAI Omega Ratio Rank: 95
KCAI Calmar Ratio Rank: 98
KCAI Martin Ratio Rank: 96

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. KCAI - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Matthews China Active ETF (MCH) and KraneShares China Alpha Index ETF (KCAI). 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	KCAI	Difference
Sharpe ratio: Return per unit of total volatility	1.14	3.65	-2.50
Sortino ratio: Return per unit of downside risk	1.68	5.19	-3.51
Omega ratio: Gain probability vs. loss probability	1.21	1.64	-0.44
Calmar ratio: Return relative to maximum drawdown	1.59	11.65	-10.06
Martin ratio: Return relative to average drawdown	4.20	32.95	-28.76

MCH vs. KCAI - Sharpe Ratio Comparison

The current MCH Sharpe Ratio is 1.14, which is lower than the KCAI Sharpe Ratio of 3.65. The chart below compares the historical Sharpe Ratios of MCH and KCAI, 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. KCAI - Drawdown Comparison

The maximum MCH drawdown since its inception was -40.53%, which is greater than KCAI's maximum drawdown of -25.48%. Use the drawdown chart below to compare losses from any high point for MCH and KCAI.

Drawdown Indicators

	MCH	KCAI	Difference
Max Drawdown Largest peak-to-trough decline	-40.53%	-25.48%	-15.05%
Max Drawdown (1Y) Largest decline over 1 year	-15.05%	-4.23%	-10.82%
Max Drawdown (3Y) Largest decline over 3 years	-30.57%	—	—
Current Drawdown Current decline from peak	-3.82%	-2.69%	-1.13%
Average Drawdown Average peak-to-trough decline	-18.31%	-7.01%	-11.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.68%	1.49%	+4.19%

Volatility

MCH vs. KCAI - Volatility Comparison

Matthews China Active ETF (MCH) has a higher volatility of 8.12% compared to KraneShares China Alpha Index ETF (KCAI) at 4.27%. This indicates that MCH's price experiences larger fluctuations and is considered to be riskier than KCAI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MCH	KCAI	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.12%	4.27%	+3.85%
Volatility (6M) Calculated over the trailing 6-month period	15.66%	8.73%	+6.93%
Volatility (1Y) Calculated over the trailing 1-year period	20.89%	13.50%	+7.39%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.51%	21.01%	+8.50%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.51%	21.01%	+8.50%

MCH vs. KCAI - Expense Ratio Comparison

Both MCH and KCAI have an expense ratio of 0.79%.

Dividends

MCH vs. KCAI - Dividend Comparison

MCH's dividend yield for the trailing twelve months is around 1.70%, less than KCAI's 33.37% yield.

Position	TTM	2025	2024	2023
KCAI KraneShares China Alpha Index ETF	33.37%	35.42%	2.19%	0.00%
MCH Matthews China Active ETF	1.70%	1.76%	1.31%	1.62%

Frequently Asked Questions

Can I hold both MCH and KCAI in my portfolio?

MCH and KCAI have a correlation of 0.59, 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 KCAI?

MCH has higher volatility (8.12%) compared to KCAI (4.27%). In terms of maximum drawdown, MCH dropped -40.53% vs KCAI's -25.48%.

Which ETF is better, MCH or KCAI?

On 1-year performance, KCAI leads with 48.99% vs 23.79% for MCH. Both ETFs have the same 0.79% expense ratio. On volatility, KCAI has been the lower-risk option at 4.27%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MCH or KCAI?

Over the 1-year period, KCAI has performed better with a 48.99% return vs 23.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MCH or KCAI?

MCH and KCAI have the same expense ratio: 0.79% per year.

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

KCAI has the higher dividend yield at 33.37%, compared with 1.70% for MCH.

What is the main difference between MCH and KCAI?

They also come from different issuers: Matthews and KraneShares.

Which has better risk-adjusted returns?

KCAI currently has the higher Sharpe Ratio (3.65 vs 1.14), 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.