MCHI vs. VGK

Last updated Jun 9, 2026

MCHI (iShares MSCI China ETF) and VGK (Vanguard FTSE Europe ETF) are both exchange-traded funds - MCHI is a China Equities fund tracking the MSCI China Index, while VGK is a Europe Equities fund tracking the FTSE Developed Europe All Cap Index. Both are passively managed. Over the past 10 years, MCHI returned 4.43%/yr vs 9.63%/yr for VGK. A 0.59 correlation means they provide meaningful diversification when combined. MCHI charges 0.59%/yr vs 0.06%/yr for VGK.

Performance

MCHI vs. VGK - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI China ETF (MCHI) and Vanguard FTSE Europe ETF (VGK). 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 VGK's 5.17% return. Over the past 10 years, MCHI has underperformed VGK with an annualized return of 4.43%, while VGK has yielded a comparatively higher 9.63% 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%

VGK

• 1D: 0.45%
• 1M: -0.68%
• YTD: 5.17%
• 6M: 8.47%
• 1Y: 16.29%
• 3Y*: 16.24%
• 5Y*: 8.08%
• 10Y*: 9.63%

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

MCHI vs. VGK - 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%
VGK Vanguard FTSE Europe ETF	5.17%	35.83%	1.88%	20.19%	-15.98%	16.89%	5.43%	24.85%	-14.89%	26.98%

Correlation

The correlation between MCHI and VGK 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	0.50
Correlation (5Y) Calculated over the trailing 5-year period	0.50
Correlation (10Y) Calculated over the trailing 10-year period	0.56
Correlation (All Time) Calculated using the full available price history since Apr 1, 2011	0.59

The correlation between MCHI and VGK has been stable across timeframes, ranging from 0.50 to 0.59 - a consistent structural relationship.

MCHI vs. VGK - Sectors Allocation Comparison

Sectors	MCHI	VGK
Consumer Cyclical	26.4%	6.8%
Financial Services	19.1%	23.6%
Communication Services	18.8%	3.3%
Technology	9.6%	8.2%
Basic Materials	5.5%	5.3%
Healthcare	5.4%	11.9%
Industrials	5.0%	19.3%
Energy	3.7%	5.3%
Consumer Defensive	3.2%	8.4%
Utilities	1.7%	4.7%
Real Estate	1.5%	1.5%

Return for Risk

MCHI vs. VGK — 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

VGK

VGK Risk / Return Rank: 32
VGK Sharpe Ratio Rank: 32
VGK Sortino Ratio Rank: 32
VGK Omega Ratio Rank: 31
VGK Calmar Ratio Rank: 30
VGK Martin Ratio Rank: 36

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. VGK - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI China ETF (MCHI) and Vanguard FTSE Europe ETF (VGK). 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	VGK	Difference
Sharpe ratio: Return per unit of total volatility	0.02	1.05	-1.03
Sortino ratio: Return per unit of downside risk	0.17	1.55	-1.38
Omega ratio: Gain probability vs. loss probability	1.02	1.19	-0.17
Calmar ratio: Return relative to maximum drawdown	0.02	1.35	-1.33
Martin ratio: Return relative to average drawdown	0.04	5.01	-4.97
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. VGK - Sharpe Ratio Comparison

The current MCHI Sharpe Ratio is 0.02, which is lower than the VGK Sharpe Ratio of 1.05. The chart below compares the historical Sharpe Ratios of MCHI and VGK, 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	VGK	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.02	1.05	-1.03
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	0.51	-0.35
Sharpe Ratio (All Time) Calculated using the full available price history	0.08	0.28	-0.19

Drawdowns

MCHI vs. VGK - Drawdown Comparison

The maximum MCHI drawdown since its inception was -62.95%, roughly equal to the maximum VGK drawdown of -63.61%. Use the drawdown chart below to compare losses from any high point for MCHI and VGK.

Drawdown Indicators

	MCHI	VGK	Difference
Max Drawdown Largest peak-to-trough decline	-62.95%	-63.61%	+0.66%
Max Drawdown (1Y) Largest decline over 1 year	-18.51%	-12.09%	-6.42%
Max Drawdown (3Y) Largest decline over 3 years	-25.85%	-14.31%	-11.54%
Max Drawdown (5Y) Largest decline over 5 years	-56.98%	-32.74%	-24.24%
Max Drawdown (10Y) Largest decline over 10 years	-62.95%	-37.24%	-25.71%
Current Drawdown Current decline from peak	-38.78%	-2.83%	-35.95%
Average Drawdown Average peak-to-trough decline	-24.53%	-13.34%	-11.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.52%	3.26%	+5.26%

Volatility

MCHI vs. VGK - Volatility Comparison

iShares MSCI China ETF (MCHI) has a higher volatility of 7.03% compared to Vanguard FTSE Europe ETF (VGK) at 4.86%. This indicates that MCHI's price experiences larger fluctuations and is considered to be riskier than VGK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MCHI	VGK	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.03%	4.86%	+2.17%
Volatility (6M) Calculated over the trailing 6-month period	14.70%	12.97%	+1.73%
Volatility (1Y) Calculated over the trailing 1-year period	20.26%	15.57%	+4.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.73%	17.92%	+12.81%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.41%	18.97%	+8.44%

MCHI vs. VGK - Expense Ratio Comparison

MCHI has a 0.59% expense ratio, which is higher than VGK's 0.06% expense ratio.

Dividends

MCHI vs. VGK - Dividend Comparison

MCHI's dividend yield for the trailing twelve months is around 2.36%, less than VGK's 2.83% 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%
VGK Vanguard FTSE Europe ETF	2.83%	2.86%	3.61%	3.15%	3.25%	3.05%	2.11%	3.27%	3.95%	2.70%	3.52%	3.25%

Frequently Asked Questions

Can I hold both MCHI and VGK in my portfolio?

MCHI and VGK 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, MCHI or VGK?

MCHI has higher volatility (7.03%) compared to VGK (4.86%). In terms of maximum drawdown, MCHI dropped -62.95% vs VGK's -63.61%.

Which ETF is better, MCHI or VGK?

On 10-year performance, VGK leads with 9.63% vs 4.43% for MCHI. On fees, VGK is cheaper at 0.06% per year. On volatility, VGK has been the lower-risk option at 4.86%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MCHI or VGK?

Over the 10-year period, VGK has performed better with a 9.63% 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 VGK?

VGK is cheaper with a 0.06% expense ratio, compared with 0.59% for MCHI.

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

VGK has the higher dividend yield at 2.83%, compared with 2.36% for MCHI.

What is the main difference between MCHI and VGK?

MCHI is categorized as China Equities, while VGK is Europe Equities. MCHI tracks MSCI China Index, while VGK tracks FTSE Developed Europe All Cap Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.59% for MCHI and 0.06% for VGK.

Which has better risk-adjusted returns?

VGK currently has the higher Sharpe Ratio (1.05 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.