MCHS vs. CXSE

Last updated Jun 3, 2026

MCHS (Matthews China Discovery Active ETF) and CXSE (WisdomTree China ex-State-Owned Enterprises Fund) are both China Equities funds. MCHS is actively managed, while CXSE is passively managed. Over the past year, MCHS returned 75.68% vs 26.37% for CXSE. Their correlation of 0.81 suggests significant overlap in exposure. MCHS charges 0.89%/yr vs 0.32%/yr for CXSE.

Performance

MCHS vs. CXSE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Matthews China Discovery Active ETF (MCHS) and WisdomTree China ex-State-Owned Enterprises Fund (CXSE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MCHS achieves a 44.06% return, which is significantly higher than CXSE's 2.00% return.

MCHS

• 1D: 1.99%
• 1M: 8.90%
• YTD: 44.06%
• 6M: 45.71%
• 1Y: 75.68%
• 3Y*: —
• 5Y*: —
• 10Y*: —

CXSE

• 1D: 3.21%
• 1M: 1.22%
• YTD: 2.00%
• 6M: 0.93%
• 1Y: 26.37%
• 3Y*: 11.34%
• 5Y*: -7.67%
• 10Y*: 7.54%

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

MCHS vs. CXSE - Yearly Performance Comparison

	2026 (YTD)	2025	2024
MCHS Matthews China Discovery Active ETF	44.06%	31.19%	6.53%
CXSE WisdomTree China ex-State-Owned Enterprises Fund	2.00%	37.00%	15.57%

Correlation

The correlation between MCHS and CXSE is 0.72, 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	0.72
Correlation (All Time) Calculated using the full available price history since Jan 12, 2024	0.81

The correlation between MCHS and CXSE has been stable across timeframes, ranging from 0.72 to 0.81 - a consistent structural relationship.

MCHS vs. CXSE - Sectors Allocation Comparison

Sectors	MCHS	CXSE
Industrials	32.9%	16.6%
Technology	31.5%	22.6%
Consumer Cyclical	12.5%	26.2%
Basic Materials	9.0%	3.4%
Healthcare	4.4%	8.8%
Energy	3.9%	0.4%
Real Estate	3.7%	0.9%
Utilities	2.1%	0.3%
Communication Services	1.2%	10.1%
Consumer Defensive	0.8%	3.9%
Financial Services	-	6.2%

Return for Risk

MCHS vs. CXSE — Risk / Return Rank

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

MCHS

MCHS Risk / Return Rank: 89
MCHS Sharpe Ratio Rank: 92
MCHS Sortino Ratio Rank: 89
MCHS Omega Ratio Rank: 88
MCHS Calmar Ratio Rank: 92
MCHS Martin Ratio Rank: 87

CXSE

CXSE Risk / Return Rank: 31
CXSE Sharpe Ratio Rank: 34
CXSE Sortino Ratio Rank: 33
CXSE Omega Ratio Rank: 33
CXSE Calmar Ratio Rank: 31
CXSE Martin Ratio Rank: 24

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.

MCHS vs. CXSE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Matthews China Discovery Active ETF (MCHS) and WisdomTree China ex-State-Owned Enterprises Fund (CXSE). 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.

	MCHS	CXSE	Difference
Sharpe ratio Return per unit of total volatility	3.35	1.24	+2.10
Sortino ratio Return per unit of downside risk	4.16	1.79	+2.37
Omega ratio Gain probability vs. loss probability	1.56	1.22	+0.34
Calmar ratio Return relative to maximum drawdown	6.28	1.54	+4.74
Martin ratio Return relative to average drawdown	19.01	3.25	+15.77
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MCHS vs. CXSE - Sharpe Ratio Comparison

The current MCHS Sharpe Ratio is 3.35, which is higher than the CXSE Sharpe Ratio of 1.24. The chart below compares the historical Sharpe Ratios of MCHS and CXSE, 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

	MCHS	CXSE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.35	1.24	+2.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	-0.24	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.26	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.21	0.20	+1.02

Drawdowns

MCHS vs. CXSE - Drawdown Comparison

The maximum MCHS drawdown since its inception was -23.75%, smaller than the maximum CXSE drawdown of -70.01%. Use the drawdown chart below to compare losses from any high point for MCHS and CXSE.

Drawdown Indicators

	MCHS	CXSE	Difference
Max Drawdown Largest peak-to-trough decline	-23.75%	-70.01%	+46.26%
Max Drawdown (1Y) Largest decline over 1 year	-12.15%	-17.70%	+5.55%
Max Drawdown (3Y) Largest decline over 3 years	—	-32.12%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-64.47%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-70.01%	—
Current Drawdown Current decline from peak	-3.29%	-45.44%	+42.15%
Average Drawdown Average peak-to-trough decline	-7.62%	-27.83%	+20.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.01%	8.40%	-4.39%

Volatility

MCHS vs. CXSE - Volatility Comparison

Matthews China Discovery Active ETF (MCHS) has a higher volatility of 10.79% compared to WisdomTree China ex-State-Owned Enterprises Fund (CXSE) at 7.22%. This indicates that MCHS's price experiences larger fluctuations and is considered to be riskier than CXSE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MCHS	CXSE	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.79%	7.22%	+3.57%
Volatility (6M) Calculated over the trailing 6-month period	18.21%	14.53%	+3.68%
Volatility (1Y) Calculated over the trailing 1-year period	22.74%	21.37%	+1.37%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	28.26%	32.31%	-4.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.26%	28.70%	-0.44%

MCHS vs. CXSE - Expense Ratio Comparison

MCHS has a 0.89% expense ratio, which is higher than CXSE's 0.32% expense ratio.

Dividends

MCHS vs. CXSE - Dividend Comparison

MCHS's dividend yield for the trailing twelve months is around 2.47%, more than CXSE's 1.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CXSE WisdomTree China ex-State-Owned Enterprises Fund	1.96%	1.95%	1.70%	1.71%	1.55%	0.86%	0.54%	0.96%	1.49%	1.24%	1.39%	2.50%
MCHS Matthews China Discovery Active ETF	2.47%	3.56%	5.48%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both MCHS and CXSE in my portfolio?

MCHS and CXSE have a correlation of 0.72, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MCHS or CXSE?

MCHS has higher volatility (10.79%) compared to CXSE (7.22%). In terms of maximum drawdown, MCHS dropped -23.75% vs CXSE's -70.01%.

Which ETF is better, MCHS or CXSE?

On 1-year performance, MCHS leads with 75.68% vs 26.37% for CXSE. On fees, CXSE is cheaper at 0.32% per year. On volatility, CXSE has been the lower-risk option at 7.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MCHS or CXSE?

Over the 1-year period, MCHS has performed better with a 75.68% return vs 26.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MCHS or CXSE?

CXSE is cheaper with a 0.32% expense ratio, compared with 0.89% for MCHS.

Which ETF pays a higher dividend yield, MCHS or CXSE?

MCHS has the higher dividend yield at 2.47%, compared with 1.96% for CXSE.

What is the main difference between MCHS and CXSE?

They also come from different issuers: Matthews and WisdomTree. Their fees differ too: 0.89% for MCHS and 0.32% for CXSE.

Which has better risk-adjusted returns?

MCHS currently has the higher Sharpe Ratio (3.35 vs 1.24), 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.