MCHFX vs. MSMLX

Last updated Jun 25, 2026

MCHFX (Matthews China Fund) and MSMLX (Matthews Emerging Markets Small Companies Fund) are both mutual funds - MCHFX is a China Equities fund managed by Matthews, while MSMLX is a Emerging Markets Diversified fund managed by Matthews. Over the past 10 years, MCHFX returned 7.67%/yr vs 11.89%/yr for MSMLX. A 0.72 correlation means they provide meaningful diversification when combined. MCHFX charges 1.12%/yr vs 1.37%/yr for MSMLX.

Performance

MCHFX vs. MSMLX - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Matthews China Fund (MCHFX) and Matthews Emerging Markets Small Companies Fund (MSMLX). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MCHFX achieves a 1.69% return, which is significantly lower than MSMLX's 23.10% return. Over the past 10 years, MCHFX has underperformed MSMLX with an annualized return of 7.67%, while MSMLX has yielded a comparatively higher 11.89% annualized return.

MCHFX

• 1D: -3.21%
• 1M: 2.04%
• YTD: 1.69%
• 6M: 0.69%
• 1Y: 18.35%
• 3Y*: 12.94%
• 5Y*: -6.14%
• 10Y*: 7.67%

MSMLX

• 1D: -4.11%
• 1M: -0.03%
• YTD: 23.10%
• 6M: 22.86%
• 1Y: 27.41%
• 3Y*: 11.99%
• 5Y*: 7.27%
• 10Y*: 11.89%

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

MCHFX vs. MSMLX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MCHFX Matthews China Fund	1.69%	29.82%	17.84%	-19.21%	-24.38%	-19.41%	43.07%	34.57%	-21.17%	59.08%
MSMLX Matthews Emerging Markets Small Companies Fund	23.10%	13.50%	-6.10%	20.04%	-16.78%	26.40%	43.69%	17.38%	-17.80%	30.43%

Correlation

The correlation between MCHFX and MSMLX is 0.51, 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	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.57
Correlation (5Y) Calculated over the trailing 5-year period	0.60
Correlation (10Y) Calculated over the trailing 10-year period	0.67
Correlation (All Time) Calculated using the full available price history since Sep 15, 2008	0.72

Over the past year, the correlation between MCHFX and MSMLX has dropped to 0.51 - well below their long-term average of 0.72, suggesting their price drivers have been diverging.

Return for Risk

MCHFX vs. MSMLX — Risk / Return Rank

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

MCHFX

MCHFX Risk / Return Rank: 18
MCHFX Sharpe Ratio Rank: 18
MCHFX Sortino Ratio Rank: 19
MCHFX Omega Ratio Rank: 18
MCHFX Calmar Ratio Rank: 20
MCHFX Martin Ratio Rank: 15

MSMLX

MSMLX Risk / Return Rank: 38
MSMLX Sharpe Ratio Rank: 36
MSMLX Sortino Ratio Rank: 34
MSMLX Omega Ratio Rank: 36
MSMLX Calmar Ratio Rank: 46
MSMLX Martin Ratio Rank: 39

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.

MCHFX vs. MSMLX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Matthews China Fund (MCHFX) and Matthews Emerging Markets Small Companies Fund (MSMLX). 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.

	MCHFX	MSMLX	Difference
Sharpe ratio: Return per unit of total volatility	1.08	1.58	-0.50
Sortino ratio: Return per unit of downside risk	1.64	2.20	-0.56
Omega ratio: Gain probability vs. loss probability	1.20	1.29	-0.10
Calmar ratio: Return relative to maximum drawdown	1.44	2.44	-1.00
Martin ratio: Return relative to average drawdown	3.75	7.90	-4.15

MCHFX vs. MSMLX - Sharpe Ratio Comparison

The current MCHFX Sharpe Ratio is 1.08, which is lower than the MSMLX Sharpe Ratio of 1.58. The chart below compares the historical Sharpe Ratios of MCHFX and MSMLX, 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

MCHFX vs. MSMLX - Drawdown Comparison

The maximum MCHFX drawdown since its inception was -67.02%, which is greater than MSMLX's maximum drawdown of -36.40%. Use the drawdown chart below to compare losses from any high point for MCHFX and MSMLX.

Drawdown Indicators

	MCHFX	MSMLX	Difference
Max Drawdown Largest peak-to-trough decline	-67.02%	-36.40%	-30.62%
Max Drawdown (1Y) Largest decline over 1 year	-15.58%	-12.89%	-2.69%
Max Drawdown (3Y) Largest decline over 3 years	-27.77%	-22.62%	-5.15%
Max Drawdown (5Y) Largest decline over 5 years	-59.96%	-28.00%	-31.96%
Max Drawdown (10Y) Largest decline over 10 years	-64.75%	-34.33%	-30.42%
Current Drawdown Current decline from peak	-37.29%	-4.11%	-33.18%
Average Drawdown Average peak-to-trough decline	-22.13%	-9.22%	-12.91%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.91%	3.95%	+1.96%

Volatility

MCHFX vs. MSMLX - Volatility Comparison

Matthews China Fund (MCHFX) and Matthews Emerging Markets Small Companies Fund (MSMLX) have volatilities of 8.30% and 8.72%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MCHFX	MSMLX	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.30%	8.72%	-0.42%
Volatility (6M) Calculated over the trailing 6-month period	16.32%	17.49%	-1.17%
Volatility (1Y) Calculated over the trailing 1-year period	20.83%	19.95%	+0.88%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.08%	18.01%	+12.07%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.68%	17.32%	+9.36%

MCHFX vs. MSMLX - Expense Ratio Comparison

MCHFX has a 1.12% expense ratio, which is lower than MSMLX's 1.37% expense ratio.

Dividends

MCHFX vs. MSMLX - Dividend Comparison

MCHFX's dividend yield for the trailing twelve months is around 1.33%, more than MSMLX's 1.22% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MCHFX Matthews China Fund	1.33%	1.36%	1.91%	0.78%	7.53%	6.54%	1.25%	1.12%	22.28%	10.31%	13.66%	19.24%
MSMLX Matthews Emerging Markets Small Companies Fund	1.22%	1.50%	3.95%	8.36%	8.04%	9.18%	0.28%	0.51%	21.31%	8.12%	0.43%	0.13%

Frequently Asked Questions

Can I hold both MCHFX and MSMLX in my portfolio?

MCHFX and MSMLX have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MCHFX or MSMLX?

MSMLX has higher volatility (8.72%) compared to MCHFX (8.30%). In terms of maximum drawdown, MCHFX dropped -67.02% vs MSMLX's -36.40%.

Which has better risk-adjusted returns?

MSMLX currently has the higher Sharpe Ratio (1.58 vs 1.08), 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.