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MCHI vs. EWJ
Performance
Return for Risk
Drawdowns
Volatility
Dividends

MCHI vs. EWJ

Last updated Jun 10, 2026

MCHI (iShares MSCI China ETF) and EWJ (iShares MSCI Japan ETF) are both exchange-traded funds - MCHI is a China Equities fund tracking the MSCI China Index, while EWJ is a Japan Equities fund tracking the MSCI Japan Index. Both are passively managed. Over the past 10 years, MCHI returned 4.50%/yr vs 9.09%/yr for EWJ. A 0.51 correlation means they provide meaningful diversification when combined. MCHI charges 0.59%/yr vs 0.49%/yr for EWJ.

Performance

MCHI vs. EWJ - Performance Comparison

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

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Returns By Period

In the year-to-date period, MCHI achieves a -9.61% return, which is significantly lower than EWJ's 12.65% return. Over the past 10 years, MCHI has underperformed EWJ with an annualized return of 4.50%, while EWJ has yielded a comparatively higher 9.09% annualized return.

MCHI

1D
0.69%
1M
-6.89%
YTD
-9.61%
6M
-10.41%
1Y
-0.02%
3Y*
8.57%
5Y*
-6.07%
10Y*
4.50%

EWJ

1D
-1.09%
1M
-1.38%
YTD
12.65%
6M
13.26%
1Y
28.66%
3Y*
16.62%
5Y*
8.17%
10Y*
9.09%
*Multi-year figures are annualized to reflect compound growth (CAGR)

MCHI vs. EWJ - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
MCHI
iShares MSCI China ETF		-9.61%31.04%17.73%-11.94%-23.01%-21.74%27.78%23.72%-19.79%54.67%
EWJ
iShares MSCI Japan ETF		12.65%25.84%7.03%20.29%-17.72%1.16%15.40%19.34%-14.10%24.27%

Correlation

The correlation between MCHI and EWJ is 0.42, which is low. Their price movements are largely independent, making them effective diversification partners.

Correlation
Correlation (1Y)
Calculated over the trailing 1-year period

0.42

Correlation (3Y)
Calculated over the trailing 3-year period

0.39

Correlation (5Y)
Calculated over the trailing 5-year period

0.40

Correlation (10Y)
Calculated over the trailing 10-year period

0.49

Correlation (All Time)
Calculated using the full available price history since Mar 31, 2011

0.51

The correlation between MCHI and EWJ shifts across timeframes, from 0.39 (3 years) to 0.51 (all time), reflecting how their relationship changes across market environments.

MCHI vs. EWJ - Sectors Allocation Comparison

Sectors
MCHI
EWJ

Consumer Cyclical

26.4%
12.2%

Financial Services

19.1%
17.5%

Communication Services

18.8%
7.9%

Technology

9.6%
19.1%

Basic Materials

5.5%
3.0%

Healthcare

5.4%
6.3%

Industrials

5.0%
26.0%

Energy

3.7%
1.1%

Consumer Defensive

3.2%
3.6%

Utilities

1.7%
1.1%

Real Estate

1.5%
2.3%

Consumer Cyclical

MCHI
26.4%
EWJ
12.2%

Financial Services

MCHI
19.1%
EWJ
17.5%

Communication Services

MCHI
18.8%
EWJ
7.9%

Technology

MCHI
9.6%
EWJ
19.1%

Basic Materials

MCHI
5.5%
EWJ
3.0%

Healthcare

MCHI
5.4%
EWJ
6.3%

Industrials

MCHI
5.0%
EWJ
26.0%

Energy

MCHI
3.7%
EWJ
1.1%

Consumer Defensive

MCHI
3.2%
EWJ
3.6%

Utilities

MCHI
1.7%
EWJ
1.1%

Real Estate

MCHI
1.5%
EWJ
2.3%

Compare stocks, funds, or ETFs

Search for stocks, ETFs, and funds for a quick comparison or use the comparison tool for more options.

iShares MSCI China ETF

iShares MSCI Japan ETF

Often compared with MCHI:
MCHI vs. FXIMCHI vs. KWEBMCHI vs. CQQQMCHI vs. GXCMCHI vs. ASHRMCHI vs. FLCHMCHI vs. CNYA
Often compared with EWJ:
EWJ vs. DXJEWJ vs. ^N225EWJ vs. EWJVEWJ vs. EWYEWJ vs. FLJPEWJ vs. HEWJEWJ vs. JPXN

Return for Risk

MCHI vs. EWJ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
MCHI
MCHI Risk / Return Rank: 99
Overall Rank
MCHI Sharpe Ratio Rank: 1010
Sharpe Ratio Rank
MCHI Sortino Ratio Rank: 99
Sortino Ratio Rank
MCHI Omega Ratio Rank: 99
Omega Ratio Rank
MCHI Calmar Ratio Rank: 1010
Calmar Ratio Rank
MCHI Martin Ratio Rank: 99
Martin Ratio Rank
EWJ
EWJ Risk / Return Rank: 4848
Overall Rank
EWJ Sharpe Ratio Rank: 4747
Sharpe Ratio Rank
EWJ Sortino Ratio Rank: 4747
Sortino Ratio Rank
EWJ Omega Ratio Rank: 4848
Omega Ratio Rank
EWJ Calmar Ratio Rank: 4848
Calmar Ratio Rank
EWJ Martin Ratio Rank: 4848
Martin Ratio Rank
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. EWJ - Risk-Adjusted Trends Comparison

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

MCHIEWJDifference
Sharpe ratioReturn per unit of total volatility
-0.00
1.45

-1.45

Sortino ratioReturn per unit of downside risk
0.14
2.10

-1.96

Omega ratioGain probability vs. loss probability

1.02

1.27

-0.26

Calmar ratioReturn relative to maximum drawdown

-0.00

2.12

-2.12

Martin ratioReturn relative to average drawdown

-0.00

7.14

-7.15

Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MCHI vs. EWJ - Sharpe Ratio Comparison

The current MCHI Sharpe Ratio is -0.00, which is lower than the EWJ Sharpe Ratio of 1.45. The chart below compares the historical Sharpe Ratios of MCHI and EWJ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

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Sharpe Ratios by Period

MCHIEWJDifference

Sharpe Ratio (1Y)

Calculated over the trailing 1-year period

-0.00

1.45

-1.45

Sharpe Ratio (5Y)

Calculated over the trailing 5-year period

-0.20

0.45

-0.65

Sharpe Ratio (10Y)

Calculated over the trailing 10-year period

0.16

0.53

-0.36

Sharpe Ratio (All Time)

Calculated using the full available price history

0.09

0.11

-0.02

Drawdowns

MCHI vs. EWJ - Drawdown Comparison

The maximum MCHI drawdown since its inception was -62.95%, roughly equal to the maximum EWJ drawdown of -60.93%. Use the drawdown chart below to compare losses from any high point for MCHI and EWJ.

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Drawdown Indicators

MCHIEWJDifference

Max Drawdown

Largest peak-to-trough decline

-62.95%

-60.93%

-2.02%

Max Drawdown (1Y)

Largest decline over 1 year

-18.51%

-13.59%

-4.92%

Max Drawdown (3Y)

Largest decline over 3 years

-25.85%

-14.68%

-11.17%

Max Drawdown (5Y)

Largest decline over 5 years

-56.98%

-33.14%

-23.84%

Max Drawdown (10Y)

Largest decline over 10 years

-62.95%

-33.14%

-29.81%

Current Drawdown

Current decline from peak

-38.36%

-3.38%

-34.98%

Average Drawdown

Average peak-to-trough decline

-24.53%

-21.73%

-2.80%

Ulcer Index

Depth and duration of drawdowns from previous peaks

8.59%

4.02%

+4.57%

Volatility

MCHI vs. EWJ - Volatility Comparison

iShares MSCI China ETF (MCHI) has a higher volatility of 7.10% compared to iShares MSCI Japan ETF (EWJ) at 5.14%. This indicates that MCHI's price experiences larger fluctuations and is considered to be riskier than EWJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

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Volatility by Period

MCHIEWJDifference

Volatility (1M)

Calculated over the trailing 1-month period

7.10%

5.14%

+1.96%

Volatility (6M)

Calculated over the trailing 6-month period

14.67%

15.55%

-0.88%

Volatility (1Y)

Calculated over the trailing 1-year period

20.23%

19.89%

+0.34%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

30.73%

18.31%

+12.42%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

27.40%

17.31%

+10.09%

MCHI vs. EWJ - Expense Ratio Comparison

MCHI has a 0.59% expense ratio, which is higher than EWJ's 0.49% expense ratio.

Dividends

MCHI vs. EWJ - Dividend Comparison

MCHI's dividend yield for the trailing twelve months is around 2.34%, less than EWJ's 4.02% yield.

PositionTTM20252024202320222021202020192018201720162015
EWJ
iShares MSCI Japan ETF		4.02%4.52%2.34%2.03%1.23%2.08%1.04%2.03%1.71%1.25%1.95%1.27%
MCHI
iShares MSCI China ETF		2.34%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

MCHI and EWJ have a correlation of 0.42, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

MCHI has higher volatility (7.10%) compared to EWJ (5.14%). In terms of maximum drawdown, MCHI dropped -62.95% vs EWJ's -60.93%.

On 10-year performance, EWJ leads with 9.09% vs 4.50% for MCHI. On fees, EWJ is cheaper at 0.49% per year. On volatility, EWJ has been the lower-risk option at 5.14%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, EWJ has performed better with a 9.09% return vs 4.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

EWJ is cheaper with a 0.49% expense ratio, compared with 0.59% for MCHI.

EWJ has the higher dividend yield at 4.02%, compared with 2.34% for MCHI.

MCHI is categorized as China Equities, while EWJ is Japan Equities. MCHI tracks MSCI China Index, while EWJ tracks MSCI Japan Index. Their fees differ too: 0.59% for MCHI and 0.49% for EWJ.

EWJ currently has the higher Sharpe Ratio (1.45 vs -0.00), 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.

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