MCHI vs SPY
iShares MSCI China ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. MCHI offers more diversification with 555 holdings.
Side-by-Side Comparison
| Metric | MCHI | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.59% | 0.09% | |
| AUM | $6.1B | $789.1B | |
| Dividend Yield | 2.14% | 1.01% | |
| Holdings | 582 | 505 | |
| YTD Return | -10.92% | +13.68% | |
| 1Y Return | -4.44% | +21.53% | |
| 3Y Return (annualized) | +8.97% | +21.44% | |
| 5Y Return (annualized) | -3.18% | +13.18% | |
| Volatility (annualized) | 23.4% | 15.3% | |
| Max Drawdown | -63.0% | -56.5% | |
| Fund Family | iShares by BlackRock (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Mar 29, 2011 | Jan 22, 1993 |
MCHI vs SPY Performance
iShares MSCI China ETF (MCHI) is a ETF from iShares by BlackRock (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year MCHI returned -4.44% while SPY returned +21.53%. Year to date, MCHI is down 10.92% versus a gain of 13.68% for SPY.
Over three years, MCHI compounded at +8.97% per year against +21.44% for SPY; over five years the annualized figures are -3.18% and +13.18% respectively. Across the full 15-year window we track, SPY has the edge at +8.85% annualized vs +1.06%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MCHI has been the more volatile fund, with annualized monthly volatility of 23.4% compared with 15.3% for SPY. 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 -56.5% for SPY. 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MCHI charges 0.59% per year while SPY charges 0.09%. On a $10,000 position that is $59 vs $9 annually, a gap of $50 per year that compounds over a long holding period. On income, MCHI currently yields 2.14% against 1.01% for SPY.
Holdings Overlap
MCHI and SPY share 0 holdings out of 1058 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, MCHI or SPY?
MCHI has an expense ratio of 0.59% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $50 per year of difference.
Which performed better, MCHI or SPY?
Over the past year MCHI returned -4.44% vs +21.53% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (15 years), MCHI annualized +1.06% vs +8.85% for SPY. Past performance does not guarantee future results.
Which is riskier, MCHI or SPY?
MCHI has been the more volatile fund at 23.4% annualized versus 15.3% for SPY. Worst drawdown: MCHI -63.0% vs SPY -56.5%.
Should I hold both MCHI and SPY?
MCHI and SPY have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MCHI and SPY?
MCHI and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1058 unique securities.
Which pays a higher dividend, MCHI or SPY?
MCHI yields 2.14% while SPY yields 1.01%, so MCHI currently pays the higher dividend yield.
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