MCHI vs VXUS
iShares MSCI China ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 7861 holdings.
Side-by-Side Comparison
| Metric | MCHI | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.59% | 0.05% | |
| AUM | $6.1B | $156.5B | |
| Dividend Yield | 2.14% | 2.60% | |
| Holdings | 582 | 8,747 | |
| YTD Return | -10.04% | +14.19% | |
| 1Y Return | -1.98% | +27.38% | |
| 3Y Return (annualized) | +9.33% | +19.53% | |
| 5Y Return (annualized) | -3.31% | +9.03% | |
| Volatility (annualized) | 23.4% | 15.1% | |
| Max Drawdown | -63.0% | -39.9% | |
| Fund Family | iShares by BlackRock (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Mar 29, 2011 | Jan 26, 2011 |
MCHI vs VXUS Performance
iShares MSCI China ETF (MCHI) is a ETF from iShares by BlackRock (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year MCHI returned -1.98% while VXUS returned +27.38%. Year to date, MCHI is down 10.04% versus a gain of 14.19% for VXUS.
Over three years, MCHI compounded at +9.33% per year against +19.53% for VXUS; over five years the annualized figures are -3.31% and +9.03% respectively. Across the full 15-year window we track, VXUS has the edge at +4.83% annualized vs +1.12%. 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 15.1% for VXUS. 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 -39.9% for VXUS. 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 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MCHI charges 0.59% per year while VXUS charges 0.05%. On a $10,000 position that is $59 vs $5 annually, a gap of $54 per year that compounds over a long holding period. On income, MCHI currently yields 2.14% against 2.60% for VXUS.
Holdings Overlap
MCHI and VXUS share 414 holdings out of 8002 unique holdings combined, representing a 3.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, MCHI or VXUS?
MCHI has an expense ratio of 0.59% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $54 per year of difference.
Which performed better, MCHI or VXUS?
Over the past year MCHI returned -1.98% vs +27.38% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (15 years), MCHI annualized +1.12% vs +4.83% for VXUS. Past performance does not guarantee future results.
Which is riskier, MCHI or VXUS?
MCHI has been the more volatile fund at 23.4% annualized versus 15.1% for VXUS. Worst drawdown: MCHI -63.0% vs VXUS -39.9%.
Should I hold both MCHI and VXUS?
MCHI and VXUS have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MCHI and VXUS?
MCHI and VXUS share 414 common holdings with a 3.2% weight overlap. Combined, they hold 8002 unique securities.
Which pays a higher dividend, MCHI or VXUS?
MCHI yields 2.14% while VXUS yields 2.60%, so VXUS currently pays the higher dividend yield.
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