MCHI vs. EEM

Last updated Jun 13, 2026

MCHI (iShares MSCI China ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - MCHI is a China Equities fund tracking the MSCI China Index, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, MCHI returned 4.76%/yr vs 9.91%/yr for EEM. Their correlation of 0.85 suggests significant overlap in exposure. MCHI charges 0.59%/yr vs 0.72%/yr for EEM.

Performance

MCHI vs. EEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI China ETF (MCHI) and iShares MSCI Emerging Markets ETF (EEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MCHI achieves a -8.72% return, which is significantly lower than EEM's 24.07% return. Over the past 10 years, MCHI has underperformed EEM with an annualized return of 4.76%, while EEM has yielded a comparatively higher 9.91% annualized return.

MCHI

• 1D: 0.90%
• 1M: -5.63%
• YTD: -8.72%
• 6M: -9.79%
• 1Y: 2.33%
• 3Y*: 8.42%
• 5Y*: -5.82%
• 10Y*: 4.76%

EEM

• 1D: 0.56%
• 1M: 0.74%
• YTD: 24.07%
• 6M: 26.94%
• 1Y: 47.57%
• 3Y*: 21.60%
• 5Y*: 6.56%
• 10Y*: 9.91%

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

MCHI vs. EEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MCHI iShares MSCI China ETF	-8.72%	31.04%	17.73%	-11.94%	-23.01%	-21.74%	27.78%	23.72%	-19.79%	54.67%
EEM iShares MSCI Emerging Markets ETF	24.07%	33.98%	6.49%	8.95%	-20.56%	-3.63%	17.02%	18.22%	-15.31%	37.26%

Correlation

The correlation between MCHI and EEM is 0.71, 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	0.71
Correlation (3Y) Calculated over the trailing 3-year period	0.78
Correlation (5Y) Calculated over the trailing 5-year period	0.82
Correlation (10Y) Calculated over the trailing 10-year period	0.86
Correlation (All Time) Calculated using the full available price history since Mar 31, 2011	0.85

The correlation between MCHI and EEM shifts across timeframes, from 0.71 (1 year) to 0.86 (10 years), reflecting how their relationship changes across market environments.

MCHI vs. EEM - Sectors Allocation Comparison

Sectors	MCHI	EEM
Consumer Cyclical	26.4%	8.1%
Financial Services	19.1%	17.5%
Communication Services	18.8%	5.7%
Technology	9.6%	43.6%
Basic Materials	5.5%	6.1%
Healthcare	5.4%	2.5%
Industrials	5.0%	6.2%
Energy	3.7%	3.3%
Consumer Defensive	3.2%	2.7%
Utilities	1.7%	2.0%
Real Estate	1.5%	0.9%

Return for Risk

MCHI vs. EEM — Risk / Return Rank

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

MCHI

MCHI Risk / Return Rank: 10
MCHI Sharpe Ratio Rank: 10
MCHI Sortino Ratio Rank: 10
MCHI Omega Ratio Rank: 10
MCHI Calmar Ratio Rank: 10
MCHI Martin Ratio Rank: 10

EEM

EEM Risk / Return Rank: 75
EEM Sharpe Ratio Rank: 76
EEM Sortino Ratio Rank: 70
EEM Omega Ratio Rank: 78
EEM Calmar Ratio Rank: 75
EEM Martin Ratio Rank: 75

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.

MCHI vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI China ETF (MCHI) and iShares MSCI Emerging Markets ETF (EEM). 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.

	MCHI	EEM	Difference
Sharpe ratio: Return per unit of total volatility	0.02	2.10	-2.08
Sortino ratio: Return per unit of downside risk	0.18	2.73	-2.55
Omega ratio: Gain probability vs. loss probability	1.02	1.40	-0.38
Calmar ratio: Return relative to maximum drawdown	0.03	3.36	-3.34
Martin ratio: Return relative to average drawdown	0.05	12.38	-12.33

MCHI vs. EEM - Sharpe Ratio Comparison

The current MCHI Sharpe Ratio is 0.02, which is lower than the EEM Sharpe Ratio of 2.10. The chart below compares the historical Sharpe Ratios of MCHI and EEM, 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

MCHI vs. EEM - Drawdown Comparison

The maximum MCHI drawdown since its inception was -62.95%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for MCHI and EEM.

Drawdown Indicators

	MCHI	EEM	Difference
Max Drawdown Largest peak-to-trough decline	-62.95%	-66.43%	+3.48%
Max Drawdown (1Y) Largest decline over 1 year	-18.51%	-13.52%	-4.99%
Max Drawdown (3Y) Largest decline over 3 years	-25.85%	-17.29%	-8.56%
Max Drawdown (5Y) Largest decline over 5 years	-56.98%	-37.49%	-19.49%
Max Drawdown (10Y) Largest decline over 10 years	-62.95%	-39.82%	-23.13%
Current Drawdown Current decline from peak	-37.76%	-4.12%	-33.64%
Average Drawdown Average peak-to-trough decline	-24.54%	-16.00%	-8.54%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.81%	3.67%	+5.14%

Volatility

MCHI vs. EEM - Volatility Comparison

The current volatility for iShares MSCI China ETF (MCHI) is 6.46%, while iShares MSCI Emerging Markets ETF (EEM) has a volatility of 10.80%. This indicates that MCHI experiences smaller price fluctuations and is considered to be less risky than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MCHI	EEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.46%	10.80%	-4.34%
Volatility (6M) Calculated over the trailing 6-month period	14.62%	19.39%	-4.77%
Volatility (1Y) Calculated over the trailing 1-year period	20.23%	21.64%	-1.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.72%	19.26%	+11.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.38%	20.64%	+6.74%

MCHI vs. EEM - Expense Ratio Comparison

MCHI has a 0.59% expense ratio, which is lower than EEM's 0.72% expense ratio.

Dividends

MCHI vs. EEM - Dividend Comparison

MCHI's dividend yield for the trailing twelve months is around 2.32%, more than EEM's 1.79% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEM iShares MSCI Emerging Markets ETF	1.79%	2.22%	2.43%	2.63%	2.50%	1.99%	1.45%	2.76%	2.24%	1.89%	1.89%	2.49%
MCHI iShares MSCI China ETF	2.32%	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 MCHI and EEM in my portfolio?

MCHI and EEM have a correlation of 0.71, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MCHI or EEM?

EEM has higher volatility (10.80%) compared to MCHI (6.46%). In terms of maximum drawdown, MCHI dropped -62.95% vs EEM's -66.43%.

Which ETF is better, MCHI or EEM?

On 10-year performance, EEM leads with 9.91% vs 4.76% for MCHI. On fees, MCHI is cheaper at 0.59% per year. On volatility, MCHI has been the lower-risk option at 6.46%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MCHI or EEM?

Over the 10-year period, EEM has performed better with a 9.91% return vs 4.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MCHI or EEM?

MCHI is cheaper with a 0.59% expense ratio, compared with 0.72% for EEM.

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

MCHI has the higher dividend yield at 2.32%, compared with 1.79% for EEM.

What is the main difference between MCHI and EEM?

MCHI is categorized as China Equities, while EEM is Emerging Markets Diversified. MCHI tracks MSCI China Index, while EEM tracks MSCI Emerging Markets Index (Net). Their fees differ too: 0.59% for MCHI and 0.72% for EEM.

Which has better risk-adjusted returns?

EEM currently has the higher Sharpe Ratio (2.10 vs 0.02), 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.