VGK vs. MCHI

Last updated Jun 9, 2026

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

Performance

VGK vs. MCHI - Performance Comparison

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

Returns By Period

In the year-to-date period, VGK achieves a 5.17% return, which is significantly higher than MCHI's -10.22% return. Over the past 10 years, VGK has outperformed MCHI with an annualized return of 9.63%, while MCHI has yielded a comparatively lower 4.43% annualized return.

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%

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%

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

VGK vs. MCHI - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
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%
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%

Correlation

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

VGK vs. MCHI - Sectors Allocation Comparison

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

Return for Risk

VGK vs. MCHI — Risk / Return Rank

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

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

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

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.

VGK vs. MCHI - Risk-Adjusted Trends Comparison

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

	VGK	MCHI	Difference
Sharpe ratio: Return per unit of total volatility	1.05	0.02	+1.03
Sortino ratio: Return per unit of downside risk	1.55	0.17	+1.38
Omega ratio: Gain probability vs. loss probability	1.19	1.02	+0.17
Calmar ratio: Return relative to maximum drawdown	1.35	0.02	+1.33
Martin ratio: Return relative to average drawdown	5.01	0.04	+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.

VGK vs. MCHI - Sharpe Ratio Comparison

The current VGK Sharpe Ratio is 1.05, which is higher than the MCHI Sharpe Ratio of 0.02. The chart below compares the historical Sharpe Ratios of VGK and MCHI, 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

	VGK	MCHI	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.05	0.02	+1.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.45	-0.20	+0.65
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.51	0.16	+0.35
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	0.08	+0.19

Drawdowns

VGK vs. MCHI - Drawdown Comparison

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

Drawdown Indicators

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

Volatility

VGK vs. MCHI - Volatility Comparison

The current volatility for Vanguard FTSE Europe ETF (VGK) is 4.86%, while iShares MSCI China ETF (MCHI) has a volatility of 7.03%. This indicates that VGK experiences smaller price fluctuations and is considered to be less risky than MCHI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

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

VGK vs. MCHI - Expense Ratio Comparison

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

Dividends

VGK vs. MCHI - Dividend Comparison

VGK's dividend yield for the trailing twelve months is around 2.83%, more than MCHI's 2.36% 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 VGK and MCHI in my portfolio?

VGK and MCHI 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, VGK or MCHI?

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

Which ETF is better, VGK or MCHI?

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, VGK or MCHI?

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, VGK or MCHI?

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

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

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

What is the main difference between VGK and MCHI?

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

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.