ETF Versus

EEM vs MCHI

iShares MSCI Emerging Markets ETF vs iShares MSCI China ETF

Last updated: 2026-04-10

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 2.01%. Launched in 2003, the fund has a 23-year track record.

AUM: $26.8B ER: 0.72% Yield: 2.01% Since: Apr 7, 2003
MCHI iShares

iShares MSCI China ETF (MCHI) is an exchange-traded fund issued by iShares that provides exposure to china equity securities. It charges a high expense ratio of 0.59%. The fund offers a moderate dividend yield of 2.22%. Launched in 2011, the fund has a 15-year track record.

AUM: $6.8B ER: 0.59% Yield: 2.22% 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 49.5% return vs 19.3%.

Key Metrics

Metric EEM MCHI
Expense Ratio 0.72% 0.59%
Dividend Yield 2.0% 2.2%
Fund Family iShares iShares
Category Emerging Markets China Equity

Performance Chart

Indexed to 100 at start (5-year comparison)

40 56 72 88 104 120 2021-04 2022-07 2023-10 2025-01 2026-04
EEM +13.7%
MCHI -29.8%

Performance Comparison

Period EEM MCHI Difference
1 Month +2.86% -1.84% +4.70%
3 Months +4.44% -10.92% +15.36%
6 Months +13.22% -9.57% +22.79%
YTD +7.60% -8.03% +15.63%
1 Year +49.49% +19.30% +30.19%
3 Years +52.55% +15.50% +37.05%
5 Years +13.69% -29.77% +43.46%

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 18.7% 30.7%
Max Drawdown -39.5% -57.7%
Sharpe Ratio -0.01 -0.23

Dividend Comparison

Metric EEM MCHI
Annual Dividend (per share) $1.22 $1.27
Dividend Yield 2.01% 2.22%
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/233013.43%
Samsung Electronics Co., Ltd.!krx/0059306.01%
Tencent Holdings Limited!hkg/07003.67%
SK hynix Inc.!krx/0006603.40%
Alibaba Group Holding Limited!hkg/99882.46%
China Construction Bank Corporation!hkg/09390.93%
Delta Electronics, Inc.!tpe/23080.91%
HDFC Bank Limited!nse/HDFCBANK0.89%
Reliance Industries Limited!nse/RELIANCE0.79%
Hon Hai Precision Industry Co., Ltd.!tpe/23170.71%

MCHI Top Holdings

NameWeight
Tencent Holdings Limited!hkg/070015.16%
Alibaba Group Holding Limited!hkg/998810.15%
China Construction Bank Corporation!hkg/09393.81%
PDD Holdings Inc.PDD2.69%
Xiaomi Corporation!hkg/18102.63%
Industrial and Commercial Bank of China Limited!hkg/13982.08%
Meituan!hkg/36902.05%
Ping An Insurance (Group) Company of China, Ltd.!hkg/23181.95%
BYD Company Limited!hkg/12111.84%
Bank of China Limited!hkg/39881.66%

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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