PortfoliosLab logoPortfoliosLab logo

Documentation

Upgrade your plan
MCHI vs. QUAL
Performance
Return for Risk
Drawdowns
Volatility
Dividends

MCHI vs. QUAL

Last updated Jun 13, 2026

MCHI (iShares MSCI China ETF) and QUAL (iShares MSCI USA Quality Factor ETF) are both exchange-traded funds - MCHI is a China Equities fund tracking the MSCI China Index, while QUAL is a Large Cap Blend Equities fund tracking the MSCI USA Sector Neutral Quality Index. Both are passively managed. Over the past 10 years, MCHI returned 4.76%/yr vs 14.46%/yr for QUAL. A 0.52 correlation means they provide meaningful diversification when combined. MCHI charges 0.59%/yr vs 0.15%/yr for QUAL.

Performance

MCHI vs. QUAL - Performance Comparison

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

Loading charts...

Returns By Period

In the year-to-date period, MCHI achieves a -8.72% return, which is significantly lower than QUAL's 9.44% return. Over the past 10 years, MCHI has underperformed QUAL with an annualized return of 4.76%, while QUAL has yielded a comparatively higher 14.46% 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%

QUAL

1D
0.47%
1M
2.14%
YTD
9.44%
6M
9.29%
1Y
22.87%
3Y*
19.30%
5Y*
11.97%
10Y*
14.46%
*Multi-year figures are annualized to reflect compound growth (CAGR)

MCHI vs. QUAL - Yearly Performance Comparison

2026 (YTD)202520242023202220212020201920182017
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%
QUAL
iShares MSCI USA Quality Factor ETF		9.44%12.65%22.29%30.88%-20.50%26.94%17.04%33.89%-5.70%22.26%

Correlation

The correlation between MCHI and QUAL is 0.49, which is low. Their price movements are largely independent, making them effective diversification partners.

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

0.49

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

0.50

Correlation (All Time)
Calculated using the full available price history since Jul 18, 2013

0.52

The correlation between MCHI and QUAL shifts across timeframes, from 0.39 (3 years) to 0.52 (all time), reflecting how their relationship changes across market environments.

MCHI vs. QUAL - Sectors Allocation Comparison

Sectors
MCHI
QUAL

Consumer Cyclical

26.4%
9.3%

Financial Services

19.1%
11.5%

Communication Services

18.8%
11.1%

Technology

9.6%
36.5%

Basic Materials

5.5%
1.7%

Healthcare

5.4%
9.0%

Industrials

5.0%
8.2%

Energy

3.7%
4.0%

Consumer Defensive

3.2%
4.9%

Utilities

1.7%
1.9%

Real Estate

1.5%
1.8%

Consumer Cyclical

MCHI
26.4%
QUAL
9.3%

Financial Services

MCHI
19.1%
QUAL
11.5%

Communication Services

MCHI
18.8%
QUAL
11.1%

Technology

MCHI
9.6%
QUAL
36.5%

Basic Materials

MCHI
5.5%
QUAL
1.7%

Healthcare

MCHI
5.4%
QUAL
9.0%

Industrials

MCHI
5.0%
QUAL
8.2%

Energy

MCHI
3.7%
QUAL
4.0%

Consumer Defensive

MCHI
3.2%
QUAL
4.9%

Utilities

MCHI
1.7%
QUAL
1.9%

Real Estate

MCHI
1.5%
QUAL
1.8%

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 USA Quality Factor ETF

Often compared with MCHI:
MCHI vs. FXIMCHI vs. KWEBMCHI vs. CQQQMCHI vs. GXCMCHI vs. ASHRMCHI vs. FLCHMCHI vs. CNYA
Often compared with QUAL:
QUAL vs. SPHQQUAL vs. SPYQUAL vs. MTUMQUAL vs. USMVQUAL vs. VOOQUAL vs. IVVQUAL vs. SCHD

Return for Risk

MCHI vs. QUAL — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.
MCHI
MCHI Risk / Return Rank: 1010
Overall Rank
MCHI Sharpe Ratio Rank: 1010
Sharpe Ratio Rank
MCHI Sortino Ratio Rank: 1010
Sortino Ratio Rank
MCHI Omega Ratio Rank: 1010
Omega Ratio Rank
MCHI Calmar Ratio Rank: 1010
Calmar Ratio Rank
MCHI Martin Ratio Rank: 1010
Martin Ratio Rank
QUAL
QUAL Risk / Return Rank: 5959
Overall Rank
QUAL Sharpe Ratio Rank: 5959
Sharpe Ratio Rank
QUAL Sortino Ratio Rank: 6060
Sortino Ratio Rank
QUAL Omega Ratio Rank: 5656
Omega Ratio Rank
QUAL Calmar Ratio Rank: 5353
Calmar Ratio Rank
QUAL Martin Ratio Rank: 6767
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. QUAL - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI China ETF (MCHI) and iShares MSCI USA Quality Factor ETF (QUAL). 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.

MCHIQUALDifference
Sharpe ratioReturn per unit of total volatility
0.02
1.74

-1.71

Sortino ratioReturn per unit of downside risk
0.18
2.46

-2.28

Omega ratioGain probability vs. loss probability

1.02

1.31

-0.28

Calmar ratioReturn relative to maximum drawdown

0.03

2.32

-2.30

Martin ratioReturn relative to average drawdown

0.05

10.60

-10.55

MCHI vs. QUAL - Sharpe Ratio Comparison

The current MCHI Sharpe Ratio is 0.02, which is lower than the QUAL Sharpe Ratio of 1.74. The chart below compares the historical Sharpe Ratios of MCHI and QUAL, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Loading charts...

Drawdowns

MCHI vs. QUAL - Drawdown Comparison

The maximum MCHI drawdown since its inception was -62.95%, which is greater than QUAL's maximum drawdown of -34.06%. Use the drawdown chart below to compare losses from any high point for MCHI and QUAL.

Loading charts...

Drawdown Indicators

MCHIQUALDifference

Max Drawdown

Largest peak-to-trough decline

-62.95%

-34.06%

-28.89%

Max Drawdown (1Y)

Largest decline over 1 year

-18.51%

-9.03%

-9.48%

Max Drawdown (3Y)

Largest decline over 3 years

-25.85%

-18.00%

-7.85%

Max Drawdown (5Y)

Largest decline over 5 years

-56.98%

-28.23%

-28.75%

Max Drawdown (10Y)

Largest decline over 10 years

-62.95%

-34.06%

-28.89%

Current Drawdown

Current decline from peak

-37.76%

-0.19%

-37.57%

Average Drawdown

Average peak-to-trough decline

-24.54%

-4.10%

-20.44%

Ulcer Index

Depth and duration of drawdowns from previous peaks

8.81%

1.99%

+6.82%

Volatility

MCHI vs. QUAL - Volatility Comparison

iShares MSCI China ETF (MCHI) has a higher volatility of 6.46% compared to iShares MSCI USA Quality Factor ETF (QUAL) at 3.63%. This indicates that MCHI's price experiences larger fluctuations and is considered to be riskier than QUAL based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Loading charts...

Volatility by Period

MCHIQUALDifference

Volatility (1M)

Calculated over the trailing 1-month period

6.46%

3.63%

+2.83%

Volatility (6M)

Calculated over the trailing 6-month period

14.62%

9.43%

+5.19%

Volatility (1Y)

Calculated over the trailing 1-year period

20.23%

12.10%

+8.13%

Volatility (5Y)

Calculated over the trailing 5-year period, annualized

30.72%

17.36%

+13.36%

Volatility (10Y)

Calculated over the trailing 10-year period, annualized

27.38%

18.11%

+9.27%

MCHI vs. QUAL - Expense Ratio Comparison

MCHI has a 0.59% expense ratio, which is higher than QUAL's 0.15% expense ratio.

Dividends

MCHI vs. QUAL - Dividend Comparison

MCHI's dividend yield for the trailing twelve months is around 2.32%, more than QUAL's 0.87% yield.

PositionTTM20252024202320222021202020192018201720162015
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%
QUAL
iShares MSCI USA Quality Factor ETF		0.87%0.94%1.02%1.23%1.59%1.20%1.39%1.60%2.00%1.76%1.96%1.63%

Frequently Asked Questions

MCHI and QUAL have a correlation of 0.49, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

MCHI has higher volatility (6.46%) compared to QUAL (3.63%). In terms of maximum drawdown, MCHI dropped -62.95% vs QUAL's -34.06%.

On 10-year performance, QUAL leads with 14.46% vs 4.76% for MCHI. On fees, QUAL is cheaper at 0.15% per year. On volatility, QUAL has been the lower-risk option at 3.63%. The better choice depends on whether you care most about return, fees, risk, or income.

Over the 10-year period, QUAL has performed better with a 14.46% return vs 4.76%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

QUAL is cheaper with a 0.15% expense ratio, compared with 0.59% for MCHI.

MCHI has the higher dividend yield at 2.32%, compared with 0.87% for QUAL.

MCHI is categorized as China Equities, while QUAL is Large Cap Blend Equities. MCHI tracks MSCI China Index, while QUAL tracks MSCI USA Sector Neutral Quality Index. Their fees differ too: 0.59% for MCHI and 0.15% for QUAL.

QUAL currently has the higher Sharpe Ratio (1.74 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.

Portfolio Optimizer

Find the right allocation for MCHI and QUAL

Add both to a portfolio and optimize allocations for your target — whether that's maximizing returns, minimizing drawdowns, or balancing risk across holdings.

Open Portfolio Optimizer