MCHS vs. DRGN

Last updated Aug 2, 2026

MCHS (Matthews China Discovery Active ETF) and DRGN (Themes China Generative Artificial Intelligence ETF) are both exchange-traded funds - MCHS is a China Equities fund actively managed by Matthews, while DRGN is a Artificial Intelligence fund tracking the BITA China Generative AI Select Index. MCHS is actively managed, while DRGN is passively managed. Over the past year, MCHS returned 36.95% vs 34.63% for DRGN. Their 0.69 correlation means they have sometimes moved together and sometimes differently. MCHS charges 0.89%/yr vs 0.39%/yr for DRGN.

Performance

MCHS vs. DRGN - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Matthews China Discovery Active ETF (MCHS) and Themes China Generative Artificial Intelligence ETF (DRGN). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MCHS achieves a 23.90% return, which is significantly higher than DRGN's 8.73% return.

MCHS

• 1D: 1.71%
• 1M: -14.97%
• 6M: 11.94%
• YTD: 23.90%
• 1Y: 36.95%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 24.01%

DRGN

• 1D: 3.34%
• 1M: -0.11%
• 6M: -2.24%
• YTD: 8.73%
• 1Y: 34.63%
• 3Y*: —
• 5Y*: —
• 10Y*: —
• ALL TIME*: 36.21%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
DRGN Themes China Generative Artificial Intelligence ETF	$390.32K	$398.54K	$552.05K
MCHS Matthews China Discovery Active ETF	$339.44K	$914.40K	$775.38K

MCHS vs. DRGN - Yearly Performance Comparison

	2026 (YTD)	2025
MCHS Matthews China Discovery Active ETF	23.90%	11.07%
DRGN Themes China Generative Artificial Intelligence ETF	8.73%	26.96%

Correlation

The correlation between MCHS and DRGN is 0.70, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.70
Correlation (All Time) Calculated using the full available price history since Jul 15, 2025	0.69

The correlation between MCHS and DRGN has been stable across timeframes, ranging from 0.69 to 0.70 - a consistent structural relationship.

Return for Risk

MCHS vs. DRGN — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

MCHS

MCHS Risk / Return Rank: 46
MCHS Sharpe Ratio Rank: 47
MCHS Sortino Ratio Rank: 45
MCHS Omega Ratio Rank: 50
MCHS Calmar Ratio Rank: 40
MCHS Martin Ratio Rank: 46

DRGN

DRGN Risk / Return Rank: 37
DRGN Sharpe Ratio Rank: 36
DRGN Sortino Ratio Rank: 38
DRGN Omega Ratio Rank: 35
DRGN Calmar Ratio Rank: 43
DRGN Martin Ratio Rank: 33

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

MCHS vs. DRGN - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Matthews China Discovery Active ETF (MCHS) and Themes China Generative Artificial Intelligence ETF (DRGN). 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.

	MCHS	DRGN	Difference
Sharpe ratio: Return per unit of total volatility	1.18	0.88	+0.30
Sortino ratio: Return per unit of downside risk	1.65	1.43	+0.22
Omega ratio: Gain probability vs. loss probability	1.23	1.17	+0.06
Calmar ratio: Return relative to maximum drawdown	1.43	1.55	-0.13
Martin ratio: Return relative to average drawdown	5.25	3.10	+2.16

MCHS vs. DRGN - Sharpe Ratio Comparison

The current MCHS Sharpe Ratio is 1.18, which is higher than the DRGN Sharpe Ratio of 0.88. The chart below compares the historical Sharpe Ratios of MCHS and DRGN, 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

MCHS vs. DRGN - Drawdown Comparison

The maximum MCHS drawdown since its inception was -24.83%, which is greater than DRGN's maximum drawdown of -20.86%. Use the drawdown chart below to compare losses from any high point for MCHS and DRGN.

Drawdown Indicators

	MCHS	DRGN	Difference
Max Drawdown Largest peak-to-trough decline	-24.83%	-20.86%	-3.97%
Max Drawdown (1Y) Largest decline over 1 year	-24.83%	-20.86%	-3.97%
Current Drawdown Current decline from peak	-23.54%	-13.29%	-10.25%
Average Drawdown Average peak-to-trough decline	-7.79%	-8.39%	+0.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.72%	10.42%	-3.70%

Volatility

MCHS vs. DRGN - Volatility Comparison

Matthews China Discovery Active ETF (MCHS) has a higher volatility of 15.69% compared to Themes China Generative Artificial Intelligence ETF (DRGN) at 12.89%. This indicates that MCHS's price experiences larger fluctuations and is considered to be riskier than DRGN based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MCHS	DRGN	Difference
Volatility (1M) Calculated over the trailing 1-month period	15.69%	12.89%	+2.80%
Volatility (6M) Calculated over the trailing 6-month period	27.18%	25.82%	+1.36%
Volatility (1Y) Calculated over the trailing 1-year period	29.98%	36.63%	-6.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.25%	36.03%	-5.78%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	30.25%	36.03%	-5.78%

MCHS vs. DRGN - Expense Ratio Comparison

MCHS has a 0.89% expense ratio, which is higher than DRGN's 0.39% expense ratio.

Dividends

MCHS vs. DRGN - Dividend Comparison

MCHS's dividend yield for the trailing twelve months is around 2.88%, more than DRGN's 1.12% yield.

Position	TTM	2025	2024
DRGN Themes China Generative Artificial Intelligence ETF	1.12%	1.22%	0.00%
MCHS Matthews China Discovery Active ETF	2.88%	3.56%	5.48%

Frequently Asked Questions

Can I hold both MCHS and DRGN in my portfolio?

MCHS and DRGN have a correlation of 0.70, 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 DRGN?

MCHS has higher volatility (15.69%) compared to DRGN (12.89%). In terms of maximum drawdown, MCHS dropped -24.83% vs DRGN's -20.86%.

Which ETF is better, MCHS or DRGN?

On 1-year performance, MCHS leads with 36.95% vs 34.63% for DRGN. On fees, DRGN is cheaper at 0.39% per year. On volatility, DRGN has been the lower-risk option at 12.89%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MCHS or DRGN?

Over the 1-year period, MCHS has performed better with a 36.95% return vs 34.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MCHS or DRGN?

DRGN is cheaper with a 0.39% expense ratio, compared with 0.89% for MCHS.

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

MCHS has the higher dividend yield at 2.88%, compared with 1.12% for DRGN.

What is the main difference between MCHS and DRGN?

MCHS is categorized as China Equities, while DRGN is Artificial Intelligence. They also come from different issuers: Matthews and Themes. Their fees differ too: 0.89% for MCHS and 0.39% for DRGN.

Which has better risk-adjusted returns?

MCHS currently has the higher Sharpe Ratio (1.18 vs 0.88), 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.