ETF Versus

EEM vs MCHI

iShares MSCI Emerging Markets ETF vs iShares MSCI China ETF

Last updated: 2026-04-02

EEM iShares

iShares MSCI Emerging Markets ETF (EEM) is an exchange-traded fund issued by iShares that provides exposure to stocks in emerging market economies with higher growth potential. It charges a high expense ratio of 0.72%. The fund offers a moderate dividend yield of 2.12%. Launched in 2003, the fund has a 23-year track record.

AUM: $24.5B ER: 0.72% Yield: 2.12% Since: Apr 7, 2003

iShares MSCI China ETF (MCHI) is an exchange-traded fund that provides exposure to china equity securities. It charges a high expense ratio of 0.59%. The fund offers a moderate dividend yield of 2.27%. Launched in 2011, the fund has a 15-year track record.

AUM: $6.5B ER: 0.59% Yield: 2.27% Since: Mar 29, 2011

Quick Verdict

MCHI is significantly cheaper at 0.59% vs 0.72% expense ratio, saving you approximately $246 per $10,000 invested over 10 years. Over the past year, EEM has significantly outperformed with a 30.5% return vs 2.7%.

Key Metrics

Metric EEM MCHI
Expense Ratio 0.72% 0.59%
Dividend Yield 2.1% 2.3%
Fund Family iShares N/A
Category Emerging Markets China Equity

Performance Chart

Indexed to 100 at start (5-year comparison)

40 56 72 88 104 120 2021-04 2022-06 2023-09 2024-12 2026-04
EEM +5.8%
MCHI -32.6%

Performance Comparison

Period EEM MCHI Difference
1 Month -6.94% -4.29% -2.65%
3 Months +1.76% -10.03% +11.79%
6 Months +5.53% -15.85% +21.38%
YTD +1.76% -10.03% +11.79%
1 Year +30.54% +2.66% +27.88%
3 Years +44.74% +12.27% +32.47%
5 Years +5.84% -32.61% +38.45%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period EEM Fees MCHI Fees You Save
$10.000 10 years $1.397 $1.151 $246
$10.000 20 years $5.836 $4.837 $1.000
$10.000 30 years $18.296 $15.249 $3.046
$50.000 10 years $6.984 $5.754 $1.230
$50.000 30 years $91.478 $76.247 $15.231
$100.000 30 years $182.957 $152.494 $30.462

Risk Metrics

Based on 5 years of daily returns

Metric EEM MCHI
Annualized Volatility 18.6% 30.8%
Max Drawdown -39.5% -57.7%
Sharpe Ratio -0.09 -0.25

Dividend Comparison

Metric EEM MCHI
Annual Dividend (per share) $1.22 $1.27
Dividend Yield 2.12% 2.27%
Distribution Frequency Semi-Annual or Annual Semi-Annual or Annual

Top Holdings

3 of top 10 holdings overlap (30% overlap in top holdings)

EEM Top Holdings

NameWeight
Taiwan Semiconductor Manufacturing Company Limited!tpe/233013.38%
Samsung Electronics Co., Ltd.!krx/0059305.37%
Tencent Holdings Limited!hkg/07003.82%
SK hynix Inc.!krx/0006603.17%
Alibaba Group Holding Limited!hkg/99882.55%
China Construction Bank Corporation!hkg/09390.95%
Delta Electronics, Inc.!tpe/23080.88%
HDFC Bank Limited!nse/HDFCBANK0.87%
Reliance Industries Limited!nse/RELIANCE0.82%
Hon Hai Precision Industry Co., Ltd.!tpe/23170.75%

MCHI Top Holdings

NameWeight
Tencent Holdings Limited!hkg/070015.25%
Alibaba Group Holding Limited!hkg/998810.18%
China Construction Bank Corporation!hkg/09393.75%
Xiaomi Corporation!hkg/18102.74%
PDD Holdings Inc.PDD2.68%
Industrial and Commercial Bank of China Limited!hkg/13982.08%
Meituan!hkg/36902.06%
Ping An Insurance (Group) Company of China, Ltd.!hkg/23181.92%
BYD Company Limited!hkg/12111.90%
Bank of China Limited!hkg/39881.67%

Which One Should You Choose?

Choose MCHI if...

you want the lowest fees and plan to buy and hold long-term. Over decades, the expense ratio difference compounds significantly.

Choose EEM if...

recent performance momentum matters to your strategy. Note that past performance doesn't guarantee future results.

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