MCH vs VYM
Matthews China Active ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | MCH | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.79% | 0.04% | |
| AUM | $23M | $79.0B | |
| Dividend Yield | 1.72% | 2.86% | |
| Holdings | 65 | 568 | |
| YTD Return | +0.12% | +16.10% | |
| 1Y Return | +14.37% | +25.99% | |
| 3Y Return (annualized) | +11.97% | +18.29% | |
| 5Y Return (annualized) | - | +12.35% | |
| Volatility (annualized) | 30.7% | 14.6% | |
| Max Drawdown | -40.5% | -58.8% | |
| Fund Family | Matthews Asia Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jul 13, 2022 | Nov 10, 2006 |
MCH vs VYM Performance
Matthews China Active ETF (MCH) is a ETF from Matthews Asia Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MCH returned +14.37% while VYM returned +25.99%. Year to date, MCH is up 0.12% versus a gain of 16.10% for VYM.
Over three years, MCH compounded at +11.97% per year against +18.29% for VYM. Across the full 4-year window we track, VYM has the edge at +7.08% annualized vs +5.19%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MCH has been the more volatile fund, with annualized monthly volatility of 30.7% compared with 14.6% for VYM. 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 -58.8% for VYM. 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 0.35. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MCH charges 0.79% per year while VYM charges 0.04%. On a $10,000 position that is $79 vs $4 annually, a gap of $75 per year that compounds over a long holding period. On income, MCH currently yields 1.72% against 2.86% for VYM.
Holdings Overlap
MCH and VYM share 0 holdings out of 613 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MCH or VYM?
MCH has an expense ratio of 0.79% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $75 per year of difference.
Which performed better, MCH or VYM?
Over the past year MCH returned +14.37% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (4 years), MCH annualized +5.19% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, MCH or VYM?
MCH has been the more volatile fund at 30.7% annualized versus 14.6% for VYM. Worst drawdown: MCH -40.5% vs VYM -58.8%.
Should I hold both MCH and VYM?
MCH and VYM have a monthly-return correlation of 0.35, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MCH and VYM?
MCH and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 613 unique securities.
Which pays a higher dividend, MCH or VYM?
MCH yields 1.72% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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