MCH vs QQQ
Matthews China Active ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. QQQ offers more diversification with 103 holdings.
Side-by-Side Comparison
| Metric | MCH | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.18% | |
| AUM | $23M | $455.8B | |
| Dividend Yield | 1.72% | 0.41% | |
| Holdings | 65 | 108 | |
| YTD Return | -2.37% | +18.31% | |
| 1Y Return | +9.25% | +25.37% | |
| 3Y Return (annualized) | +11.26% | +25.79% | |
| 5Y Return (annualized) | - | +15.20% | |
| Volatility (annualized) | 30.6% | 30.6% | |
| Max Drawdown | -40.5% | -83.0% | |
| Fund Family | Matthews Asia Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jul 13, 2022 | Mar 10, 1999 |
MCH vs QQQ Performance
Matthews China Active ETF (MCH) is a ETF from Matthews Asia Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MCH returned +9.25% while QQQ returned +25.37%. Year to date, MCH is down 2.37% versus a gain of 18.31% for QQQ.
Over three years, MCH compounded at +11.26% per year against +25.79% for QQQ. Across the full 4-year window we track, QQQ has the edge at +13.10% annualized vs +4.54%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MCH has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 30.6% for QQQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -40.5% for MCH and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MCH charges 0.79% per year while QQQ charges 0.18%. On a $10,000 position that is $79 vs $18 annually, a gap of $61 per year that compounds over a long holding period. On income, MCH currently yields 1.72% against 0.41% for QQQ.
Holdings Overlap
MCH and QQQ share 1 holdings out of 157 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in MCH | Weight in QQQ | Difference |
|---|---|---|---|
| PDD | 1.70% | 0.25% | 1.45% |
Frequently Asked Questions
Which is cheaper, MCH or QQQ?
MCH has an expense ratio of 0.79% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $61 per year of difference.
Which performed better, MCH or QQQ?
Over the past year MCH returned +9.25% vs +25.37% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (4 years), MCH annualized +4.54% vs +13.10% for QQQ. Past performance does not guarantee future results.
Which is riskier, MCH or QQQ?
MCH has been the more volatile fund at 30.6% annualized versus 30.6% for QQQ. Worst drawdown: MCH -40.5% vs QQQ -83.0%.
Should I hold both MCH and QQQ?
MCH and QQQ have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MCH and QQQ?
MCH and QQQ share 1 common holdings with a 0.3% weight overlap. Combined, they hold 157 unique securities.
Which pays a higher dividend, MCH or QQQ?
MCH yields 1.72% while QQQ yields 0.41%, so MCH currently pays the higher dividend yield.
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