MCHI vs EEM Stock Comparison: AI Score, Valuation, Performance and Upside
MCHI and EEM both provide emerging market equity exposure, but at very different levels of geographic concentration. MCHI is 100% China; EEM is 24+ country diversification with China as the largest weight at 25–30%. Investors choose MCHI for China conviction; they choose EEM (or lower-cost alternatives like IEMG or VWO) for broad EM diversification. EEM's higher expense ratio makes it less preferred vs equivalent lower-cost EM ETFs.
MCHI vs EEM is pure-play China market concentration (MCHI) versus broad 24-country emerging market diversification with China as the largest weight (EEM) — MCHI for China conviction; EEM (or lower-cost alternatives) for EM breadth reducing single-country regulatory and geopolitical risk.
EEM holds the edge across 3 of 5 key metrics in this comparison. EEM has delivered stronger 1-year price return (+15.00% vs -16.25% for MCHI).
- prefer concentrated China equity exposure as a deliberate bet on China's $18T+ economy and large consumer market
- value China-specific exposure without dilution from India, Korea, Brazil, or other EM countries' very different growth drivers
- want low-cost China ETF access to Alibaba, Tencent, CATL, and other Chinese technology and consumer companies
- are comfortable with Chinese government regulatory risk, VIE structure legal uncertainty, and US-China geopolitical decoupling risk
- prefer broad emerging market diversification across 24+ countries reducing China-specific regulatory and political concentration risk
- value the MSCI EM index as the institutional standard for emerging market benchmarking against peers and funds
- want India, Brazil, Taiwan, Korea, and other EM exposure alongside China in a single emerging market allocation
- are comfortable with EEM's 0.68% expense ratio — though lower-cost alternatives like IEMG (0.09%) or VWO (0.08%) provide nearly identical exposure at lower cost
| Metric | MCHI | EEM |
|---|---|---|
| ETF scorei | 24.3 | 24.9 |
| Latest closei | $51.56 | $61.62 |
| 1M returni | -1.38% | -10.34% |
| 3M returni | -7.95% | -6.24% |
| 6M returni | -11.60% | -8.22% |
| 1Y returni | -16.25% | +15.00% |
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 | MCHI | EEM |
|---|---|---|
| 1Y ago | $8.53K (-14.7%) started 2025-11-04 | $11.73K (+17.3%) started 2025-11-04 |
| 5Y ago | $9.62K (-3.8%) started 2021-11-05 | $15.41K (+54.1%) started 2021-11-05 |
| 10Y ago | $15.98K (+59.8%) started 2016-11-07 | $26.3K (+163.0%) started 2016-11-07 |
Hypothetical — past performance does not guarantee future results.
| Metric | MCHI | EEM |
|---|---|---|
| Expense ratioi | 0.59% | 0.72% |
| Total assets (AUM)i | $5.49B | $28.25B |
| Dividend yieldi | 2.24% | 1.83% |
| Trailing P/Ei | 11.65 | 14.47 |
| Betai | 0.35 | 0.79 |
| 52-week change | -16.25% | 15.00% |
| Metric | MCHI | EEM |
|---|---|---|
| 1Y returni | -16.25% | +15.00% |
| 6M returni | -11.60% | -8.22% |
| 3M returni | -7.95% | -6.24% |
| 1M returni | -1.38% | -10.34% |
| 1Y Sharpe ratio | -1.08 | 0.50 |
| Betai | 0.35 | 0.79 |
| Dividend yieldi | 2.24% | 1.83% |
| 5Y CAGR | -3.12% | +6.36% |
Over the past year, MCHI and EEM have moved moderately in the same direction (correlation of 0.59), 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 | MCHI | EEM |
|---|---|---|---|
| 1Y | Growthi | -16.25% | +15.00% |
| CAGRi | -16.26% | +15.02% | |
| Volatilityi | 19.04% | 25.49% | |
| Sharpe ratioi | -1.08 | 0.50 | |
| Sortino ratioi | -1.50 | 0.70 | |
| Max drawdowni | 23.30% | 14.28% | |
| Current drawdowni | 19.23% | 13.47% | |
| Avg drawdowni | 11.25% | 4.70% | |
| Ulcer Indexi | 12.80% | 6.17% | |
| Max daily dropi | 2.85% | 6.53% | |
| Max wkly dropi | 6.43% | 8.41% | |
| 5Y | Growthi | -14.64% | +36.11% |
| CAGRi | -3.12% | +6.36% | |
| Volatilityi | 30.05% | 20.09% | |
| Sharpe ratioi | -0.11 | 0.19 | |
| Sortino ratioi | -0.16 | 0.26 | |
| Max drawdowni | 49.23% | 33.22% | |
| Current drawdowni | 21.58% | 13.47% | |
| Avg drawdowni | 24.44% | 12.42% | |
| Ulcer Indexi | 27.10% | 15.07% | |
| Max daily dropi | 10.81% | 6.53% | |
| Max wkly dropi | 17.10% | 12.14% | |
| 10Y | Growthi | +30.86% | +106.07% |
| CAGRi | +2.73% | +7.51% | |
| Volatilityi | 27.31% | 20.84% | |
| Sharpe ratioi | 0.07 | 0.24 | |
| Sortino ratioi | 0.10 | 0.33 | |
| Max drawdowni | 62.84% | 39.82% | |
| Current drawdowni | 40.46% | 13.47% | |
| Avg drawdowni | 28.53% | 14.58% | |
| Ulcer Indexi | 33.90% | 17.84% | |
| Max daily dropi | 10.81% | 12.48% | |
| Max wkly dropi | 17.10% | 17.72% |
| Category | MCHI | EEM |
|---|---|---|
| Fund name | iShares MSCI China ETF | iShares MSCI Emerging Markets ETF |
| Type | ETF | ETF |
| Expense ratioi | 0.59% | 0.72% |
| Total assets (AUM)i | $5.49B | $28.25B |
| Dividend yieldi | 2.24% | 1.83% |
- Pure-play China exposure providing full participation in Chinese economic growth, consumer market, and technology sector without EM dilution
- China is the world's second-largest economy — MCHI provides direct access to a market too large to ignore in a global portfolio
- Low 0.19% expense ratio for concentrated single-country emerging market exposure
- Geographic diversification across 24+ countries reduces single-country risk — Chinese regulatory crackdown impacts EEM less than MCHI
- India, Brazil, and Southeast Asian exposure provides access to emerging markets with different growth drivers than China
- MSCI EM index is the institutional standard for emerging market allocation — EEM tracks the most widely followed EM benchmark
- Chinese government regulatory risk is severe — 2021 tech crackdown destroyed hundreds of billions in market cap for Alibaba, Didi, and education companies within months
- VIE (Variable Interest Entity) structures used by Chinese tech companies listed in the US carry inherent legal uncertainty about foreign ownership rights
- US-China decoupling risk — potential delisting of Chinese ADRs from US exchanges would force fund restructuring and possible investor losses
- 0.68% expense ratio is one of the higher-cost ETFs among major index funds — VWO and IEMG provide similar exposure at lower cost
- China still represents 25–30% of EEM — significant Chinese regulatory and geopolitical risk exposure persists despite geographic diversification
- Currency risk across 24+ emerging market currencies adds volatility vs US dollar-denominated returns
Compare more than two at a time
This page is a fixed writeup on MCHI and EEM. Our comparison engine is the interactive version: load up to five tickers, switch timeframes, and get the correlation, drawdown, and overlap analysis that a static page can't show.
Add three more names beside MCHI and EEM, mixing stocks and ETFs in the same table — useful when the real question is which of a whole peer group to own.
AI score, forward P/E, analyst target upside, operating margin, and revenue growth are scored head-to-head, with a running tally of which ticker leads on how many metrics.
Volatility, Sharpe and Sortino ratios, maximum, current, and average drawdown, Ulcer Index, and worst single-day and single-week drops across every timeframe.
Pairwise daily-return correlation for every combination, so you can see whether two holdings actually diversify each other or just move together.
A scatter plot of forward P/E against return on equity, plus drawdown and 30-day rolling volatility charts, to separate what is cheap from what is merely beaten down.
For ETFs, a top-holdings comparison that exposes hidden overlap between funds. Every comparison exports to CSV for your own spreadsheet work.
Two comparisons a week are free without an account. A 14-day trial removes the limit and adds AI price forecasts, stock rankings, saved watchlists, and the intrinsic value calculator — no credit card required.
Want deeper AI forecasts?
This comparison page is public and free forever. Subscribers can unlock saved watchlists, full AI rankings, detailed forecasts, and interactive analysis tools.