MCHI vs QQQ
iShares MSCI China ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. MCHI offers more diversification with 555 holdings.
Side-by-Side Comparison
| Metric | MCHI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.59% | 0.18% | |
| AUM | $6.1B | $455.8B | |
| Dividend Yield | 2.14% | 0.41% | |
| Holdings | 582 | 108 | |
| YTD Return | -11.98% | +19.68% | |
| 1Y Return | -8.44% | +26.75% | |
| 3Y Return (annualized) | +8.52% | +26.25% | |
| 5Y Return (annualized) | -3.31% | +15.39% | |
| Volatility (annualized) | 23.4% | 30.6% | |
| Max Drawdown | -63.0% | -83.0% | |
| Fund Family | iShares by BlackRock (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Mar 29, 2011 | Mar 10, 1999 |
MCHI vs QQQ Performance
iShares MSCI China ETF (MCHI) is a ETF from iShares by BlackRock (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MCHI returned -8.44% while QQQ returned +26.75%. Year to date, MCHI is down 11.98% versus a gain of 19.68% for QQQ.
Over three years, MCHI compounded at +8.52% per year against +26.25% for QQQ; over five years the annualized figures are -3.31% and +15.39% respectively. Across the full 15-year window we track, QQQ has the edge at +13.15% annualized vs +0.98%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 23.4% for MCHI. 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 -63.0% for MCHI 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 0.37. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MCHI charges 0.59% per year while QQQ charges 0.18%. On a $10,000 position that is $59 vs $18 annually, a gap of $41 per year that compounds over a long holding period. On income, MCHI currently yields 2.14% against 0.41% for QQQ.
Holdings Overlap
MCHI and QQQ share 1 holdings out of 657 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 MCHI | Weight in QQQ | Difference |
|---|---|---|---|
| PDD | 1.95% | 0.25% | 1.70% |
Frequently Asked Questions
Which is cheaper, MCHI or QQQ?
MCHI has an expense ratio of 0.59% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, MCHI or QQQ?
Over the past year MCHI returned -8.44% vs +26.75% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), MCHI annualized +0.98% vs +13.15% for QQQ. Past performance does not guarantee future results.
Which is riskier, MCHI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 23.4% for MCHI. Worst drawdown: MCHI -63.0% vs QQQ -83.0%.
Should I hold both MCHI and QQQ?
MCHI and QQQ have a monthly-return correlation of 0.37, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MCHI and QQQ?
MCHI and QQQ share 1 common holdings with a 0.3% weight overlap. Combined, they hold 657 unique securities.
Which pays a higher dividend, MCHI or QQQ?
MCHI yields 2.14% while QQQ yields 0.41%, so MCHI currently pays the higher dividend yield.
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