MCHS vs QQQ
Matthews China Discovery Active ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. MCHS delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | MCHS | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.89% | 0.18% | |
| AUM | $20M | $496.3B | |
| Dividend Yield | 2.02% | 0.44% | |
| Holdings | 55 | 108 | |
| YTD Return | +28.68% | +19.52% | |
| 1Y Return | +38.02% | +26.68% | |
| 3Y Return (annualized) | - | +26.64% | |
| 5Y Return (annualized) | - | +15.36% | |
| Volatility (annualized) | 29.8% | 30.6% | |
| Max Drawdown | -24.8% | -83.0% | |
| Fund Family | Matthews Asia Funds | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jan 10, 2024 | Mar 10, 1999 |
MCHS vs QQQ Performance
Matthews China Discovery Active ETF (MCHS) is a ETF from Matthews Asia Funds and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year MCHS returned +38.02% while QQQ returned +26.68%. Year to date, MCHS is up 28.68% versus a gain of 19.52% for QQQ.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 29.8% for MCHS. 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 -24.8% for MCHS 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 0.46. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MCHS charges 0.89% per year while QQQ charges 0.18%. On a $10,000 position that is $89 vs $18 annually, a gap of $71 per year that compounds over a long holding period. On income, MCHS currently yields 2.02% against 0.44% for QQQ.
Holdings Overlap
MCHS and QQQ share 0 holdings out of 152 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, MCHS or QQQ?
MCHS has an expense ratio of 0.89% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $71 per year of difference.
Which performed better, MCHS or QQQ?
Over the past year MCHS returned +38.02% vs +26.68% for QQQ, so MCHS leads on 1-year performance. Over the longest common window we track (3 years), MCHS annualized +28.66% vs +13.14% for QQQ. Past performance does not guarantee future results.
Which is riskier, MCHS or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 29.8% for MCHS. Worst drawdown: MCHS -24.8% vs QQQ -83.0%.
Should I hold both MCHS and QQQ?
MCHS and QQQ have a monthly-return correlation of 0.46, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MCHS and QQQ?
MCHS and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 152 unique securities.
Which pays a higher dividend, MCHS or QQQ?
MCHS yields 2.02% while QQQ yields 0.44%, so MCHS currently pays the higher dividend yield.
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