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 3 of 5 key metrics in this comparison. MCHI has delivered stronger 1-year price return (-16.49% vs -37.22% 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 scorei | 13.0 | 25.0 |
| Latest closei | $24.83 | $53.07 |
| 1M returni | -8.78% | -4.19% |
| 6M returni | -12.04% | -3.24% |
| 1Y returni | -37.22% | -16.49% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
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 | $6.66K (-33.4%) started 2025-09-18 | $8.51K (-14.9%) started 2025-09-18 |
| 5Y ago | $7.79K (-22.1%) started 2021-09-20 | $10.13K (+1.3%) started 2021-09-20 |
| 10Y ago | $9.96K (-0.4%) started 2016-09-19 | $16.19K (+61.9%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | KWEB | MCHI |
|---|---|---|
| Expense ratioi | 0.69% | 0.59% |
| Total assets (AUM)i | $5.1B | $6.33B |
| Dividend yieldi | 8.01% | 2.00% |
| Trailing P/Ei | 12.53 | 11.50 |
| Betai | 0.32 | 0.33 |
| 52-week change | -37.22% | -16.49% |
| Metric | KWEB | MCHI |
|---|---|---|
| 1Y returni | -37.22% | -16.49% |
| 6M returni | -12.04% | -3.24% |
| 1M returni | -8.78% | -4.19% |
| 1Y Sharpe ratio | -1.74 | -1.05 |
| Betai | 0.32 | 0.33 |
| Dividend yieldi | 8.01% | 2.00% |
| 5Y CAGR | -8.50% | -2.12% |
Over the past year, KWEB and MCHI have moved strongly in the same direction (correlation of 0.93), based on daily returns.
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 | Growthi | -37.22% | -16.49% |
| CAGRi | -37.24% | -16.50% | |
| Volatilityi | 27.28% | 19.59% | |
| Sharpe ratioi | -1.74 | -1.05 | |
| Sortino ratioi | -2.32 | -1.41 | |
| Max drawdowni | 41.62% | 23.22% | |
| Current drawdowni | 38.65% | 19.28% | |
| Avg drawdowni | 22.60% | 11.42% | |
| Ulcer Indexi | 25.44% | 12.85% | |
| Max daily dropi | 7.06% | 5.73% | |
| Max wkly dropi | 9.92% | 7.75% | |
| 5Y | Growthi | -35.82% | -10.16% |
| CAGRi | -8.50% | -2.12% | |
| Volatilityi | 46.36% | 30.11% | |
| Sharpe ratioi | -0.06 | -0.07 | |
| Sortino ratioi | -0.10 | -0.11 | |
| Max drawdowni | 63.05% | 50.44% | |
| Current drawdowni | 44.37% | 19.28% | |
| Avg drawdowni | 35.74% | 25.23% | |
| Ulcer Indexi | 37.59% | 28.16% | |
| Max daily dropi | 14.17% | 10.81% | |
| Max wkly dropi | 24.83% | 17.10% | |
| 10Y | Growthi | -23.21% | +32.53% |
| CAGRi | -2.61% | +2.86% | |
| Volatilityi | 40.05% | 27.31% | |
| Sharpe ratioi | 0.02 | 0.07 | |
| Sortino ratioi | 0.03 | 0.11 | |
| Max drawdowni | 80.92% | 62.84% | |
| Current drawdowni | 71.28% | 38.71% | |
| Avg drawdowni | 42.58% | 28.13% | |
| Ulcer Indexi | 50.32% | 33.58% | |
| Max daily dropi | 14.17% | 10.81% | |
| Max wkly dropi | 24.83% | 17.10% |
| Category | KWEB | MCHI |
|---|---|---|
| Fund name | KraneShares CSI China Internet ETF | iShares MSCI China ETF |
| Type | ETF | ETF |
| Expense ratioi | 0.69% | 0.59% |
| Total assets (AUM)i | $5.1B | $6.33B |
| Dividend yieldi | 8.01% | 2.00% |
- 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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