ETF Versus

KWEB vs MCHI

KraneShares CSI China Internet ETF vs iShares MSCI China ETF

Last updated: 2026-04-02

KraneShares CSI China Internet ETF (KWEB) is an exchange-traded fund that provides exposure to china internet securities. It charges a high expense ratio of 0.70%. The fund offers a high dividend yield of 7.41%. Launched in 2013, the fund has a 13-year track record.

AUM: $6.2B ER: 0.70% Yield: 7.41% Since: Jul 31, 2013

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 0.70% expense ratio, saving you approximately $208 per $10,000 invested over 10 years. Over the past year, MCHI has significantly outperformed with a 2.7% return vs -19.2%. Income investors may prefer KWEB for its higher yield (7.4% vs 2.3%).

Key Metrics

Metric KWEB MCHI
Expense Ratio 0.70% 0.59%
Dividend Yield 7.4% 2.3%
Fund Family N/A N/A
Category China Internet China Equity

Performance Chart

Indexed to 100 at start (5-year comparison)

25 41 57 73 89 105 2021-04 2022-06 2023-09 2024-12 2026-04
KWEB -63.7%
MCHI -32.6%

Performance Comparison

Period KWEB MCHI Difference
1 Month -7.67% -4.29% -3.38%
3 Months -20.57% -10.03% -10.54%
6 Months -33.65% -15.85% -17.80%
YTD -20.57% -10.03% -10.54%
1 Year -19.19% +2.66% -21.85%
3 Years -9.03% +12.27% -21.30%
5 Years -63.71% -32.61% -31.10%

Fee Impact Over Time

Estimated fee cost difference assuming 8% annual returns

Investment Period KWEB Fees MCHI Fees You Save
$10.000 10 years $1.359 $1.151 $208
$10.000 20 years $5.684 $4.837 $847
$10.000 30 years $17.834 $15.249 $2.584
$50.000 10 years $6.796 $5.754 $1.042
$50.000 30 years $89.170 $76.247 $12.922
$100.000 30 years $178.339 $152.494 $25.845

Risk Metrics

Based on 5 years of daily returns

Metric KWEB MCHI
Annualized Volatility 47.9% 30.8%
Max Drawdown -76.9% -57.7%
Sharpe Ratio -0.29 -0.25

Dividend Comparison

Metric KWEB MCHI
Annual Dividend (per share) $2.10 $1.27
Dividend Yield 7.41% 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)

KWEB Top Holdings

NameWeight
Tencent Holdings Limited!hkg/070010.02%
Alibaba Group Holding Limited!otc/BABAF9.03%
PDD Holdings Inc.PDD8.44%
Meituan!hkg/36907.45%
NetEase, Inc.!hkg/99995.97%
JD.com, Inc.!hkg/96184.90%
KE Holdings Inc.!hkg/24234.47%
Baidu, Inc.!otc/BAIDF4.27%
JD Health International Inc.!hkg/66184.07%
Trip.com Group Limited!hkg/99613.59%

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 MCHI if...

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

Choose KWEB if...

you prioritize dividend income and want higher regular distributions from your portfolio.

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