MCH vs. KLIP

Last updated Aug 5, 2026

MCH (Matthews China Active ETF) and KLIP (KraneShares China Internet and Covered Call Strategy ETF) are both China Equities funds. Both are actively managed. Over the past 3 years, MCH returned 9.01%/yr vs 6.46%/yr for KLIP. Their correlation of 0.81 means they have usually moved in the same direction. MCH charges 0.79%/yr vs 0.95%/yr for KLIP.

Performance

MCH vs. KLIP - Performance Comparison

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

Returns By Period

In the year-to-date period, MCH achieves a 0.60% return, which is significantly higher than KLIP's -6.43% return.

MCH

• 1D: 1.35%
• 1M: 1.55%
• 6M: -2.23%
• YTD: 0.60%
• 1Y: 12.16%
• 3Y*: 9.01%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 4.31%

KLIP

• 1D: 0.37%
• 1M: 7.28%
• 6M: -9.42%
• YTD: -6.43%
• 1Y: -3.80%
• 3Y*: 6.46%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 6.63%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
KLIP KraneShares China Internet and Covered Call Strategy ETF	$648.17K	$565.25K	$989.65K
MCH Matthews China Active ETF	$41.25K	$45.58K	$81.23K

MCH vs. KLIP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
MCH Matthews China Active ETF	0.60%	30.20%	17.32%	-28.07%
KLIP KraneShares China Internet and Covered Call Strategy ETF	-6.43%	16.92%	3.37%	11.11%

Correlation

The correlation between MCH and KLIP is 0.68, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.68
Correlation (3Y) Balances recent behavior with more history.	0.79
Correlation (All Time) Calculated using the full available price history since Jan 12, 2023	0.81

The correlation between MCH and KLIP shifts across timeframes, from 0.68 (1 year) to 0.81 (all time), reflecting how their relationship changes across market environments.

MCH vs. KLIP - Sectors Allocation Comparison

Sectors	MCH	KLIP
Financial Services	23.4%	2.0%
Consumer Cyclical	17.9%	34.2%
Technology	13.4%	4.2%
Communication Services	13.0%	45.8%
Industrials	9.5%	-
Basic Materials	9.3%	-
Healthcare	5.7%	6.0%
Real Estate	2.8%	3.9%
Energy	0.7%	-
Consumer Defensive	0.6%	4.0%
Utilities	-	-

Return for Risk

MCH vs. KLIP — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

MCH

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

KLIP

KLIP Risk / Return Rank: 7
KLIP Sharpe Ratio Rank: 7
KLIP Sortino Ratio Rank: 7
KLIP Omega Ratio Rank: 7
KLIP Calmar Ratio Rank: 8
KLIP Martin Ratio Rank: 8

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

MCH vs. KLIP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Matthews China Active ETF (MCH) and KraneShares China Internet and Covered Call Strategy ETF (KLIP). 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	KLIP	Difference
Sharpe ratio: Return per unit of total volatility	0.56	-0.23	+0.79
Sortino ratio: Return per unit of downside risk	0.91	-0.21	+1.11
Omega ratio: Gain probability vs. loss probability	1.11	0.97	+0.14
Calmar ratio: Return relative to maximum drawdown	0.81	-0.18	+0.99
Martin ratio: Return relative to average drawdown	1.96	-0.41	+2.37

MCH vs. KLIP - Sharpe Ratio Comparison

The current MCH Sharpe Ratio is 0.56, which is higher than the KLIP Sharpe Ratio of -0.23. The chart below compares the historical Sharpe Ratios of MCH and KLIP, 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. KLIP - Drawdown Comparison

The maximum MCH drawdown since its inception was -40.53%, which is greater than KLIP's maximum drawdown of -21.48%. Use the drawdown chart below to compare losses from any high point for MCH and KLIP.

Drawdown Indicators

	MCH	KLIP	Difference
Max Drawdown Largest peak-to-trough decline	-40.53%	-21.48%	-19.05%
Max Drawdown (1Y) Largest decline over 1 year	-15.05%	-21.48%	+6.43%
Max Drawdown (3Y) Largest decline over 3 years	-30.57%	-21.48%	-9.09%
Current Drawdown Current decline from peak	-6.55%	-11.80%	+5.25%
Average Drawdown Average peak-to-trough decline	-17.99%	-4.34%	-13.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.21%	9.25%	-3.04%

Volatility

MCH vs. KLIP - Volatility Comparison

Matthews China Active ETF (MCH) has a higher volatility of 7.61% compared to KraneShares China Internet and Covered Call Strategy ETF (KLIP) at 2.03%. This indicates that MCH's price experiences larger fluctuations and is considered to be riskier than KLIP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MCH	KLIP	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.61%	2.03%	+5.58%
Volatility (6M) Calculated over the trailing 6-month period	16.63%	13.00%	+3.63%
Volatility (1Y) Calculated over the trailing 1-year period	21.97%	16.57%	+5.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.39%	17.97%	+11.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.39%	17.97%	+11.42%

MCH vs. KLIP - Expense Ratio Comparison

MCH has a 0.79% expense ratio, which is lower than KLIP's 0.95% expense ratio.

Dividends

MCH vs. KLIP - Dividend Comparison

MCH's dividend yield for the trailing twelve months is around 1.75%, less than KLIP's 27.43% yield.

Position	TTM	2025	2024	2023
KLIP KraneShares China Internet and Covered Call Strategy ETF	27.43%	25.14%	54.26%	61.22%
MCH Matthews China Active ETF	1.75%	1.76%	1.31%	1.62%

Frequently Asked Questions

Can I hold both MCH and KLIP in my portfolio?

MCH and KLIP 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, MCH or KLIP?

MCH has higher volatility (7.61%) compared to KLIP (2.03%). In terms of maximum drawdown, MCH dropped -40.53% vs KLIP's -21.48%.

Which ETF is better, MCH or KLIP?

On 3-year performance, MCH leads with 9.01% vs 6.46% for KLIP. On fees, MCH is cheaper at 0.79% per year. On volatility, KLIP has been the lower-risk option at 2.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MCH or KLIP?

Over the 3-year period, MCH has performed better with a 9.01% return vs 6.46%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MCH or KLIP?

MCH is cheaper with a 0.79% expense ratio, compared with 0.95% for KLIP.

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

KLIP has the higher dividend yield at 27.43%, compared with 1.75% for MCH.

What is the main difference between MCH and KLIP?

They also come from different issuers: Matthews and KraneShares. Their fees differ too: 0.79% for MCH and 0.95% for KLIP.

Which has better risk-adjusted returns?

MCH currently has the higher Sharpe Ratio (0.56 vs -0.23), 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.