MCHI vs FXI: Two Very Different Bets on China
MCHI owns the broad China market, around 600 stocks including tech. FXI owns about 50 large caps, heavy in state banks and energy. Same country, very different portfolios.
MCHI and FXI both invest in Chinese equities through iShares, but they are far from interchangeable. MCHI (iShares MSCI China) holds around 600 companies spanning large, mid, and the major internet and technology names like Tencent, Alibaba, and Meituan, giving broad exposure to the actual Chinese market. FXI (iShares China Large-Cap) holds only about 50 of the largest names and skews heavily toward state-owned banks, insurers, and energy companies, the old-economy core of China's market. That makes FXI a narrower, more value-and-financials-tilted bet, while MCHI carries more technology and consumer growth exposure. For an investor who wants to own China as it actually is, MCHI is the more representative and more diversified choice, and it is slightly cheaper at 0.59% versus FXI's 0.74%. FXI tends to attract traders making a specific call on large-cap Chinese banks and state enterprises, or those who want to avoid the volatility of the internet names, and it carries deep liquidity for that purpose. But as a single, long-term China holding, MCHI's breadth makes it the stronger default. Either way, China is a concentrated single-country bet that belongs in a small, deliberate slice of a diversified portfolio.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
📋 MCHI vs FXI — Key Facts Side by Side
| Metric | MCHI | FXI |
|---|---|---|
| Fund Name | iShares MSCI China ETF | iShares China Large-Cap ETF |
| Issuer | iShares | iShares |
| Tracks Index | MSCI China | FTSE China 50 |
| Expense Ratio | 0.59% ✓ | 0.74% |
| Cost per $10K/yr | $59.00 | $74.00 |
| AUM | $6.7B | $6.1B |
| Holdings | 600 | 50 |
| Inception | 2011 | 2004 |
| 1-Year Return | +3.64% | +1.23% |
| 3-Year Return | +10.30% | +12.38% |
| 5-Year Return | -4.90% | -2.47% |
| Dividend Yield | 2.21% | 2.52% |
| Holdings Overlap | Partial. Both hold Chinese equities from iShares, but MCHI covers the broad China market (~600 stocks) while FXI holds only ~50 large caps, heavy in banks and state-owned firms. — see full overlap → | |
| Avg Bid-Ask Spread | 0.03% | 0.02% |
Expense ratio, AUM, and returns updated May 25, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 MCHI vs FXI — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy MCHI or FXI?
- You want the lowest fees — saves ~$15/yr per $10K vs FXI
- You want broader diversification (600 holdings vs 50)
- You already use iShares and prefer staying within their fund family
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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❓ MCHI vs FXI — Frequently Asked Questions
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