MCHI vs. VO

Last updated Jun 9, 2026

MCHI (iShares MSCI China ETF) and VO (Vanguard Mid-Cap ETF) are both exchange-traded funds - MCHI is a China Equities fund tracking the MSCI China Index, while VO is a Mid Cap Blend Equities fund tracking the CRSP US Mid Cap Index. Both are passively managed. Over the past 10 years, MCHI returned 4.43%/yr vs 11.44%/yr for VO. A 0.56 correlation means they provide meaningful diversification when combined. MCHI charges 0.59%/yr vs 0.03%/yr for VO.

Performance

MCHI vs. VO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI China ETF (MCHI) and Vanguard Mid-Cap ETF (VO). 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 VO's 8.60% return. Over the past 10 years, MCHI has underperformed VO with an annualized return of 4.43%, while VO has yielded a comparatively higher 11.44% 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%

VO

• 1D: -0.04%
• 1M: 1.75%
• YTD: 8.60%
• 6M: 8.43%
• 1Y: 16.32%
• 3Y*: 15.78%
• 5Y*: 7.59%
• 10Y*: 11.44%

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

MCHI vs. VO - 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%
VO Vanguard Mid-Cap ETF	8.60%	11.62%	15.31%	16.03%	-18.73%	24.70%	18.10%	30.98%	-9.24%	19.28%

Correlation

The correlation between MCHI and VO is 0.41, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.41
Correlation (3Y) Calculated over the trailing 3-year period	0.39
Correlation (5Y) Calculated over the trailing 5-year period	0.42
Correlation (10Y) Calculated over the trailing 10-year period	0.51
Correlation (All Time) Calculated using the full available price history since Apr 1, 2011	0.56

The correlation between MCHI and VO shifts across timeframes, from 0.39 (3 years) to 0.56 (all time), reflecting how their relationship changes across market environments.

MCHI vs. VO - Sectors Allocation Comparison

Sectors	MCHI	VO
Consumer Cyclical	26.4%	8.6%
Financial Services	19.1%	12.8%
Communication Services	18.8%	3.1%
Technology	9.6%	18.6%
Basic Materials	5.5%	4.2%
Healthcare	5.4%	7.6%
Industrials	5.0%	17.9%
Energy	3.7%	8.5%
Consumer Defensive	3.2%	4.8%
Utilities	1.7%	8.3%
Real Estate	1.5%	5.4%

Return for Risk

MCHI vs. VO — 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

VO

VO Risk / Return Rank: 43
VO Sharpe Ratio Rank: 41
VO Sortino Ratio Rank: 41
VO Omega Ratio Rank: 38
VO Calmar Ratio Rank: 45
VO Martin Ratio Rank: 50

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. VO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI China ETF (MCHI) and Vanguard Mid-Cap ETF (VO). 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	VO	Difference
Sharpe ratio: Return per unit of total volatility	0.02	1.31	-1.29
Sortino ratio: Return per unit of downside risk	0.17	1.89	-1.72
Omega ratio: Gain probability vs. loss probability	1.02	1.23	-0.21
Calmar ratio: Return relative to maximum drawdown	0.02	2.01	-1.99
Martin ratio: Return relative to average drawdown	0.04	7.62	-7.57
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. VO - Sharpe Ratio Comparison

The current MCHI Sharpe Ratio is 0.02, which is lower than the VO Sharpe Ratio of 1.31. The chart below compares the historical Sharpe Ratios of MCHI and VO, 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	VO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.02	1.31	-1.29
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.20	0.43	-0.63
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.16	0.61	-0.44
Sharpe Ratio (All Time) Calculated using the full available price history	0.08	0.50	-0.42

Drawdowns

MCHI vs. VO - Drawdown Comparison

The maximum MCHI drawdown since its inception was -62.95%, which is greater than VO's maximum drawdown of -58.87%. Use the drawdown chart below to compare losses from any high point for MCHI and VO.

Drawdown Indicators

	MCHI	VO	Difference
Max Drawdown Largest peak-to-trough decline	-62.95%	-58.87%	-4.08%
Max Drawdown (1Y) Largest decline over 1 year	-18.51%	-8.17%	-10.34%
Max Drawdown (3Y) Largest decline over 3 years	-25.85%	-19.02%	-6.83%
Max Drawdown (5Y) Largest decline over 5 years	-56.98%	-27.57%	-29.41%
Max Drawdown (10Y) Largest decline over 10 years	-62.95%	-39.37%	-23.58%
Current Drawdown Current decline from peak	-38.78%	-2.10%	-36.68%
Average Drawdown Average peak-to-trough decline	-24.53%	-7.86%	-16.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	8.52%	2.15%	+6.37%

Volatility

MCHI vs. VO - Volatility Comparison

iShares MSCI China ETF (MCHI) has a higher volatility of 7.03% compared to Vanguard Mid-Cap ETF (VO) at 3.51%. This indicates that MCHI's price experiences larger fluctuations and is considered to be riskier than VO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MCHI	VO	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.03%	3.51%	+3.52%
Volatility (6M) Calculated over the trailing 6-month period	14.70%	9.46%	+5.24%
Volatility (1Y) Calculated over the trailing 1-year period	20.26%	12.51%	+7.75%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.73%	17.62%	+13.11%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.41%	18.96%	+8.45%

MCHI vs. VO - Expense Ratio Comparison

MCHI has a 0.59% expense ratio, which is higher than VO's 0.03% expense ratio.

Dividends

MCHI vs. VO - Dividend Comparison

MCHI's dividend yield for the trailing twelve months is around 2.36%, more than VO's 1.38% 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%
VO Vanguard Mid-Cap ETF	1.38%	1.52%	1.49%	1.52%	1.60%	1.12%	1.45%	1.48%	1.82%	1.35%	1.45%	1.47%

Frequently Asked Questions

Can I hold both MCHI and VO in my portfolio?

MCHI and VO have a correlation of 0.41, 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 VO?

MCHI has higher volatility (7.03%) compared to VO (3.51%). In terms of maximum drawdown, MCHI dropped -62.95% vs VO's -58.87%.

Which ETF is better, MCHI or VO?

On 10-year performance, VO leads with 11.44% vs 4.43% for MCHI. On fees, VO is cheaper at 0.03% per year. On volatility, VO has been the lower-risk option at 3.51%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MCHI or VO?

Over the 10-year period, VO has performed better with a 11.44% 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 VO?

VO is cheaper with a 0.03% expense ratio, compared with 0.59% for MCHI.

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

MCHI has the higher dividend yield at 2.36%, compared with 1.38% for VO.

What is the main difference between MCHI and VO?

MCHI is categorized as China Equities, while VO is Mid Cap Blend Equities. MCHI tracks MSCI China Index, while VO tracks CRSP US Mid Cap Index. They also come from different issuers: iShares and Vanguard. Their fees differ too: 0.59% for MCHI and 0.03% for VO.

Which has better risk-adjusted returns?

VO currently has the higher Sharpe Ratio (1.31 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.