MCHI vs. QQQ

Last updated Jun 9, 2026

MCHI (iShares MSCI China ETF) and QQQ (Invesco QQQ ETF) are both exchange-traded funds - MCHI is a China Equities fund tracking the MSCI China Index, while QQQ is a Nasdaq-100 fund tracking the NASDAQ-100 Index. Both are passively managed. Over the past 10 years, MCHI returned 4.43%/yr vs 21.59%/yr for QQQ. A 0.56 correlation means they provide meaningful diversification when combined. MCHI charges 0.59%/yr vs 0.18%/yr for QQQ.

Performance

MCHI vs. QQQ - Performance Comparison

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

Returns By Period

In the year-to-date period, MCHI achieves a -10.22% return, which is significantly lower than QQQ's 16.71% return. Over the past 10 years, MCHI has underperformed QQQ with an annualized return of 4.43%, while QQQ has yielded a comparatively higher 21.59% annualized return.

MCHI

• 1D: -0.94%
• 1M: -7.53%
• YTD: -10.22%
• 6M: -12.26%
• 1Y: 0.38%
• 3Y*: 8.32%
• 5Y*: -6.07%
• 10Y*: 4.43%

QQQ

• 1D: 1.56%
• 1M: 0.68%
• YTD: 16.71%
• 6M: 15.00%
• 1Y: 35.78%
• 3Y*: 27.15%
• 5Y*: 16.98%
• 10Y*: 21.59%

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

MCHI vs. QQQ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MCHI iShares MSCI China ETF	-10.22%	31.04%	17.73%	-11.94%	-23.01%	-21.74%	27.78%	23.72%	-19.79%	54.67%
QQQ Invesco QQQ ETF	16.71%	20.77%	25.58%	54.86%	-32.58%	27.42%	48.62%	38.96%	-0.13%	32.66%

Correlation

The correlation between MCHI and QQQ is 0.48, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.48
Correlation (3Y) Calculated over the trailing 3-year period	0.38
Correlation (5Y) Calculated over the trailing 5-year period	0.42
Correlation (10Y) Calculated over the trailing 10-year period	0.53
Correlation (All Time) Calculated using the full available price history since Apr 1, 2011	0.56

The correlation between MCHI and QQQ shifts across timeframes, from 0.38 (3 years) to 0.56 (all time), reflecting how their relationship changes across market environments.

MCHI vs. QQQ - Sectors Allocation Comparison

Sectors	MCHI	QQQ
Consumer Cyclical	26.4%	12.3%
Financial Services	19.1%	0.2%
Communication Services	18.8%	15.8%
Technology	9.6%	53.8%
Basic Materials	5.5%	1.1%
Healthcare	5.4%	4.2%
Industrials	5.0%	2.8%
Energy	3.7%	0.6%
Consumer Defensive	3.2%	7.7%
Utilities	1.7%	1.4%
Real Estate	1.5%	0.1%

Return for Risk

MCHI vs. QQQ — Risk / Return Rank

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

MCHI

MCHI Risk / Return Rank: 9
MCHI Sharpe Ratio Rank: 10
MCHI Sortino Ratio Rank: 9
MCHI Omega Ratio Rank: 9
MCHI Calmar Ratio Rank: 9
MCHI Martin Ratio Rank: 9

QQQ

QQQ Risk / Return Rank: 69
QQQ Sharpe Ratio Rank: 74
QQQ Sortino Ratio Rank: 67
QQQ Omega Ratio Rank: 70
QQQ Calmar Ratio Rank: 66
QQQ Martin Ratio Rank: 68

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. QQQ - Risk-Adjusted Trends Comparison

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

	MCHI	QQQ	Difference
Sharpe ratio: Return per unit of total volatility	0.02	2.15	-2.13
Sortino ratio: Return per unit of downside risk	0.17	2.77	-2.60
Omega ratio: Gain probability vs. loss probability	1.02	1.38	-0.36
Calmar ratio: Return relative to maximum drawdown	0.02	3.00	-2.98
Martin ratio: Return relative to average drawdown	0.04	11.43	-11.39
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. QQQ - Sharpe Ratio Comparison

The current MCHI Sharpe Ratio is 0.02, which is lower than the QQQ Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of MCHI and QQQ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	MCHI	QQQ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.02	2.15	-2.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.20	0.76	-0.96
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.16	0.97	-0.81
Sharpe Ratio (All Time) Calculated using the full available price history	0.08	0.40	-0.32

Drawdowns

MCHI vs. QQQ - Drawdown Comparison

The maximum MCHI drawdown since its inception was -62.95%, smaller than the maximum QQQ drawdown of -82.97%. Use the drawdown chart below to compare losses from any high point for MCHI and QQQ.

Drawdown Indicators

	MCHI	QQQ	Difference
Max Drawdown Largest peak-to-trough decline	-62.95%	-82.97%	+20.02%
Max Drawdown (1Y) Largest decline over 1 year	-18.51%	-11.96%	-6.55%
Max Drawdown (3Y) Largest decline over 3 years	-25.85%	-22.77%	-3.08%
Max Drawdown (5Y) Largest decline over 5 years	-56.98%	-35.12%	-21.86%
Max Drawdown (10Y) Largest decline over 10 years	-62.95%	-35.12%	-27.83%
Current Drawdown Current decline from peak	-38.78%	-4.03%	-34.75%
Average Drawdown Average peak-to-trough decline	-24.53%	-32.77%	+8.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.52%	3.14%	+5.38%

Volatility

MCHI vs. QQQ - Volatility Comparison

iShares MSCI China ETF (MCHI) and Invesco QQQ ETF (QQQ) have volatilities of 7.03% and 6.84%, 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

	MCHI	QQQ	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.03%	6.84%	+0.19%
Volatility (6M) Calculated over the trailing 6-month period	14.70%	13.20%	+1.50%
Volatility (1Y) Calculated over the trailing 1-year period	20.26%	16.74%	+3.52%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.73%	22.49%	+8.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.41%	22.36%	+5.05%

MCHI vs. QQQ - Expense Ratio Comparison

MCHI has a 0.59% expense ratio, which is higher than QQQ's 0.18% expense ratio.

Dividends

MCHI vs. QQQ - Dividend Comparison

MCHI's dividend yield for the trailing twelve months is around 2.36%, more than QQQ's 0.39% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MCHI iShares MSCI China ETF	2.36%	2.12%	2.31%	2.66%	1.78%	1.04%	1.04%	1.45%	1.60%	1.56%	1.66%	2.76%
QQQ Invesco QQQ ETF	0.39%	0.45%	0.56%	0.62%	0.80%	0.43%	0.55%	0.74%	0.91%	0.84%	1.06%	0.99%

Frequently Asked Questions

Can I hold both MCHI and QQQ in my portfolio?

MCHI and QQQ have a correlation of 0.48, 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 QQQ?

MCHI has higher volatility (7.03%) compared to QQQ (6.84%). In terms of maximum drawdown, MCHI dropped -62.95% vs QQQ's -82.97%.

Which ETF is better, MCHI or QQQ?

On 10-year performance, QQQ leads with 21.59% vs 4.43% for MCHI. On fees, QQQ is cheaper at 0.18% per year. On volatility, QQQ has been the lower-risk option at 6.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MCHI or QQQ?

Over the 10-year period, QQQ has performed better with a 21.59% return vs 4.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MCHI or QQQ?

QQQ is cheaper with a 0.18% expense ratio, compared with 0.59% for MCHI.

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

MCHI has the higher dividend yield at 2.36%, compared with 0.39% for QQQ.

What is the main difference between MCHI and QQQ?

MCHI is categorized as China Equities, while QQQ is Nasdaq-100. MCHI tracks MSCI China Index, while QQQ tracks NASDAQ-100 Index. They also come from different issuers: iShares and Invesco. Their fees differ too: 0.59% for MCHI and 0.18% for QQQ.

Which has better risk-adjusted returns?

QQQ currently has the higher Sharpe Ratio (2.15 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.