MCHI vs. VUG

Last updated Jul 21, 2026

MCHI (iShares MSCI China ETF) and VUG (Vanguard Growth ETF) are both exchange-traded funds - MCHI is a China Equities fund tracking the MSCI China Index, while VUG is a Large Cap Growth Equities fund tracking the CRSP US Large Cap Growth Index. Both are passively managed. Over the past 10 years, MCHI returned 3.79%/yr vs 17.41%/yr for VUG. A 0.56 correlation means they provide meaningful diversification when combined. MCHI charges 0.59%/yr vs 0.03%/yr for VUG.

Performance

MCHI vs. VUG - Performance Comparison

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

Returns By Period

In the year-to-date period, MCHI achieves a -9.37% return, which is significantly lower than VUG's 5.18% return. Over the past 10 years, MCHI has underperformed VUG with an annualized return of 3.79%, while VUG has yielded a comparatively higher 17.41% annualized return.

MCHI

• 1D: 2.13%
• 1M: 2.48%
• 6M: -12.93%
• YTD: -9.37%
• 1Y: -4.08%
• 3Y*: 8.75%
• 5Y*: -5.02%
• 10Y*: 3.79%
• ALL TIME*: 2.28%

VUG

• 1D: 0.07%
• 1M: -1.79%
• 6M: 5.78%
• YTD: 5.18%
• 1Y: 14.67%
• 3Y*: 21.89%
• 5Y*: 12.42%
• 10Y*: 17.41%
• ALL TIME*: 12.11%

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

MCHI vs. VUG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MCHI iShares MSCI China ETF	-9.37%	31.04%	17.73%	-11.94%	-23.01%	-21.74%	27.78%	23.72%	-19.79%	54.67%
VUG Vanguard Growth ETF	5.18%	19.40%	32.69%	46.83%	-33.16%	27.35%	40.25%	37.03%	-3.32%	27.72%

Correlation

The correlation between MCHI and VUG 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	0.36
Correlation (5Y) Calculated over the trailing 5-year period	0.41
Correlation (10Y) Calculated over the trailing 10-year period	0.51
Correlation (All Time) Calculated using the full available price history since Mar 31, 2011	0.56

The correlation between MCHI and VUG shifts across timeframes, from 0.36 (3 years) to 0.56 (all time), reflecting how their relationship changes across market environments.

MCHI vs. VUG - Sectors Allocation Comparison

Sectors	MCHI	VUG
Consumer Cyclical	22.4%	11.5%
Communication Services	19.3%	15.4%
Financial Services	19.2%	3.8%
Technology	13.9%	56.2%
Industrials	5.4%	5.3%
Healthcare	5.3%	4.7%
Basic Materials	5.1%	0.5%
Energy	3.4%	0.3%
Consumer Defensive	2.9%	1.4%
Utilities	1.6%	0.7%
Real Estate	1.5%	1.0%

Return for Risk

MCHI vs. VUG — Risk / Return Rank

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

MCHI

MCHI Risk / Return Rank: 8
MCHI Sharpe Ratio Rank: 8
MCHI Sortino Ratio Rank: 8
MCHI Omega Ratio Rank: 8
MCHI Calmar Ratio Rank: 8
MCHI Martin Ratio Rank: 8

VUG

VUG Risk / Return Rank: 28
VUG Sharpe Ratio Rank: 31
VUG Sortino Ratio Rank: 29
VUG Omega Ratio Rank: 29
VUG Calmar Ratio Rank: 25
VUG Martin Ratio Rank: 28

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. VUG - Risk-Adjusted Trends Comparison

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

	MCHI	VUG	Difference
Sharpe ratio: Return per unit of total volatility	-0.20	0.85	-1.05
Sortino ratio: Return per unit of downside risk	-0.14	1.26	-1.40
Omega ratio: Gain probability vs. loss probability	0.98	1.16	-0.17
Calmar ratio: Return relative to maximum drawdown	-0.18	0.89	-1.07
Martin ratio: Return relative to average drawdown	-0.38	2.92	-3.30

MCHI vs. VUG - Sharpe Ratio Comparison

The current MCHI Sharpe Ratio is -0.20, which is lower than the VUG Sharpe Ratio of 0.85. The chart below compares the historical Sharpe Ratios of MCHI and VUG, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

MCHI vs. VUG - Drawdown Comparison

The maximum MCHI drawdown since its inception was -62.95%, which is greater than VUG's maximum drawdown of -50.68%. Use the drawdown chart below to compare losses from any high point for MCHI and VUG.

Drawdown Indicators

	MCHI	VUG	Difference
Max Drawdown Largest peak-to-trough decline	-62.95%	-50.68%	-12.27%
Max Drawdown (1Y) Largest decline over 1 year	-23.22%	-16.53%	-6.69%
Max Drawdown (3Y) Largest decline over 3 years	-25.85%	-22.85%	-3.00%
Max Drawdown (5Y) Largest decline over 5 years	-53.66%	-35.61%	-18.05%
Max Drawdown (10Y) Largest decline over 10 years	-62.95%	-35.61%	-27.34%
Current Drawdown Current decline from peak	-38.20%	-5.39%	-32.81%
Average Drawdown Average peak-to-trough decline	-24.64%	-7.08%	-17.56%
Ulcer Index Depth and duration of drawdowns from previous peaks	10.78%	5.04%	+5.74%

Volatility

MCHI vs. VUG - Volatility Comparison

iShares MSCI China ETF (MCHI) has a higher volatility of 6.01% compared to Vanguard Growth ETF (VUG) at 5.71%. This indicates that MCHI's price experiences larger fluctuations and is considered to be riskier than VUG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MCHI	VUG	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.01%	5.71%	+0.30%
Volatility (6M) Calculated over the trailing 6-month period	14.81%	14.01%	+0.80%
Volatility (1Y) Calculated over the trailing 1-year period	20.64%	17.34%	+3.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.73%	22.45%	+8.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	27.35%	21.52%	+5.83%

MCHI vs. VUG - Expense Ratio Comparison

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

Dividends

MCHI vs. VUG - Dividend Comparison

MCHI's dividend yield for the trailing twelve months is around 2.03%, more than VUG's 0.40% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
MCHI iShares MSCI China ETF	2.03%	2.12%	2.31%	2.66%	1.78%	1.04%	1.04%	1.45%	1.60%	1.56%	1.66%	2.76%
VUG Vanguard Growth ETF	0.40%	0.41%	0.47%	0.58%	0.70%	0.48%	0.66%	0.95%	1.32%	1.14%	1.39%	1.30%

Frequently Asked Questions

Can I hold both MCHI and VUG in my portfolio?

MCHI and VUG 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.

Which is riskier, MCHI or VUG?

MCHI has higher volatility (6.01%) compared to VUG (5.71%). In terms of maximum drawdown, MCHI dropped -62.95% vs VUG's -50.68%.

Which ETF is better, MCHI or VUG?

On 10-year performance, VUG leads with 17.41% vs 3.79% for MCHI. On fees, VUG is cheaper at 0.03% per year. On volatility, VUG has been the lower-risk option at 5.71%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MCHI or VUG?

Over the 10-year period, VUG has performed better with a 17.41% return vs 3.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MCHI or VUG?

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

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

MCHI has the higher dividend yield at 2.03%, compared with 0.40% for VUG.

What is the main difference between MCHI and VUG?

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

Which has better risk-adjusted returns?

VUG currently has the higher Sharpe Ratio (0.85 vs -0.20), 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.