KWEB vs MCHI Stock Comparison: AI Score, Valuation, Performance and Upside
KWEB provides concentrated, high-beta exposure to Chinese internet companies, while MCHI offers broader Chinese equity market exposure across multiple sectors. Both carry significant China-specific risks including regulatory uncertainty and geopolitical tensions, but KWEB amplifies returns — and drawdowns — when the Chinese internet sector moves.
KWEB vs MCHI compares a concentrated Chinese internet sector ETF against a diversified broad China equity ETF, offering investors two different ways to gain Chinese market exposure with very different volatility and sector profiles.
MCHI holds the edge across 4 of 5 key metrics in this comparison. MCHI has delivered stronger 1-year price return (-0.30% vs -21.13% for KWEB).
- →Want concentrated exposure to China's leading internet and technology companies
- →Are comfortable with higher volatility in exchange for focused sector upside
- →Believe China's internet sector is undervalued relative to global peers and regulatory risk has peaked
- →Want broader, more diversified Chinese equity market exposure across multiple sectors
- →Prefer lower sector concentration risk compared to a China internet-only ETF
- →Want Chinese market beta without betting specifically on the internet sector's outperformance
| Metric | KWEB | MCHI |
|---|---|---|
| ETF score | 4.0 | 11.0 |
| Latest close | $25.24 | $52.77 |
| 1M return | -10.75% | -6.12% |
| 6M return | -25.31% | -10.68% |
| 1Y return | -21.13% | -0.30% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | KWEB | MCHI |
|---|---|---|
| 1Y ago | $8.36K (-16.4%) started 2025-06-18 | $10.16K (+1.6%) started 2025-06-18 |
| 5Y ago | $5.41K (-45.9%) started 2021-06-18 | $8.29K (-17.1%) started 2021-06-18 |
| 10Y ago | $12.5K (+25.0%) started 2016-06-20 | $18.97K (+89.7%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
| Metric | KWEB | MCHI |
|---|---|---|
| Expense ratio | 0.70% | 0.59% |
| Total assets (AUM) | $6.23B | $6.35B |
| Dividend yield | 7.85% | 2.30% |
| Trailing P/E | 13.05 | 12.57 |
| Beta | 0.36 | 0.35 |
| 52-week change | -21.13% | -0.30% |
| Metric | KWEB | MCHI |
|---|---|---|
| 1Y return | -21.13% | -0.30% |
| 6M return | -25.31% | -10.68% |
| 1M return | -10.75% | -6.12% |
| 1Y Sharpe ratio | -0.91 | -0.14 |
| Beta | 0.36 | 0.35 |
| Dividend yield | 7.85% | 2.30% |
| 5Y CAGR | -14.91% | -5.95% |
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | KWEB | MCHI |
|---|---|---|---|
| 1Y | Growth | -21.13% | -0.30% |
| CAGR | -21.14% | -0.30% | |
| Sharpe ratio | -0.91 | -0.14 | |
| Max drawdown | 37.64% | 19.74% | |
| Max daily drop | 7.06% | 5.73% | |
| Max wkly drop | 9.92% | 7.75% | |
| 5Y | Growth | -55.39% | -26.42% |
| CAGR | -14.91% | -5.95% | |
| Sharpe ratio | -0.20 | -0.20 | |
| Max drawdown | 72.17% | 56.84% | |
| Max daily drop | 14.17% | 10.81% | |
| Max wkly drop | 24.83% | 17.10% | |
| 10Y | Growth | -3.62% | +53.98% |
| CAGR | -0.37% | +4.41% | |
| Sharpe ratio | 0.07 | 0.13 | |
| Max drawdown | 80.92% | 62.84% | |
| Max daily drop | 14.17% | 10.81% | |
| Max wkly drop | 24.83% | 17.10% |
| Category | KWEB | MCHI |
|---|---|---|
| Fund name | KraneShares CSI China Internet ETF | iShares MSCI China ETF |
| Type | ETF | ETF |
| Expense ratio | 0.70% | 0.59% |
| Total assets (AUM) | $6.23B | $6.35B |
| Dividend yield | 7.85% | 2.30% |
- →Pure-play exposure to China's largest and highest-growth internet and technology companies
- →Higher return potential during Chinese internet sector rallies due to concentrated positioning
- →Includes both U.S.-listed ADRs and Hong Kong-listed shares of Chinese internet companies
- →Diversified across multiple Chinese equity sectors reduces single-sector regulatory or market risk
- →Includes financial, energy, consumer, and industrial companies alongside tech and internet holdings
- →Broader diversification provides somewhat less volatile exposure to Chinese economic growth than KWEB
- →Highly concentrated in the Chinese internet sector, creating significant drawdown risk during regulatory crackdowns or market selloffs
- →Significant regulatory risk from Beijing's periodic clampdowns on the internet sector
- →Delisting risk for U.S.-listed Chinese ADRs adds an additional risk layer beyond market performance
- →Still significantly concentrated in Chinese equities, carrying all the country-specific risks including geopolitics, regulation, and variable-interest-entity (VIE) structure
- →Lower internet weighting means underperformance versus KWEB during Chinese internet sector rallies
- →China-U.S. geopolitical tensions and potential sanctions create persistent country risk
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