MCHS vs VYM
Matthews China Discovery Active ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. MCHS delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | MCHS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.89% | 0.04% | |
| AUM | $20M | $79.0B | |
| Dividend Yield | 1.56% | 2.86% | |
| Holdings | 55 | 568 | |
| YTD Return | +28.01% | +16.53% | |
| 1Y Return | +37.93% | +25.03% | |
| 3Y Return (annualized) | - | +18.54% | |
| 5Y Return (annualized) | - | +12.25% | |
| Volatility (annualized) | 29.8% | 14.6% | |
| Max Drawdown | -24.8% | -58.8% | |
| Fund Family | Matthews Asia Funds | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jan 10, 2024 | Nov 10, 2006 |
MCHS vs VYM Performance
Matthews China Discovery Active ETF (MCHS) is a ETF from Matthews Asia Funds and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year MCHS returned +37.93% while VYM returned +25.03%. Year to date, MCHS is up 28.01% versus a gain of 16.53% for VYM.
Risk: Volatility and Drawdowns
MCHS has been the more volatile fund, with annualized monthly volatility of 29.8% 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 -24.8% for MCHS 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 0.22. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
MCHS charges 0.89% per year while VYM charges 0.04%. On a $10,000 position that is $89 vs $4 annually, a gap of $85 per year that compounds over a long holding period. On income, MCHS currently yields 1.56% against 2.86% for VYM.
Holdings Overlap
MCHS and VYM share 0 holdings out of 609 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 VYM?
MCHS has an expense ratio of 0.89% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $85 per year of difference.
Which performed better, MCHS or VYM?
Over the past year MCHS returned +37.93% vs +25.03% for VYM, so MCHS leads on 1-year performance. Over the longest common window we track (3 years), MCHS annualized +28.47% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, MCHS or VYM?
MCHS has been the more volatile fund at 29.8% annualized versus 14.6% for VYM. Worst drawdown: MCHS -24.8% vs VYM -58.8%.
Should I hold both MCHS and VYM?
MCHS and VYM have a monthly-return correlation of 0.22, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between MCHS and VYM?
MCHS and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 609 unique securities.
Which pays a higher dividend, MCHS or VYM?
MCHS yields 1.56% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.
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