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.
MCHI holds the edge across 3 of 5 key metrics in this comparison. EEM has delivered stronger 1-year price return (+28.63% vs -16.49% 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 | 25.0 | 71.0 |
| Latest closei | $53.07 | $67.03 |
| 1M returni | -4.19% | +1.39% |
| 6M returni | -3.24% | +21.10% |
| 1Y returni | -16.49% | +28.63% |
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 | $8.51K (-14.9%) started 2025-09-18 | $13.12K (+31.2%) started 2025-09-18 |
| 5Y ago | $10.13K (+1.3%) started 2021-09-20 | $17.08K (+70.8%) started 2021-09-20 |
| 10Y ago | $16.19K (+61.9%) started 2016-09-19 | $28.94K (+189.4%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | MCHI | EEM |
|---|---|---|
| Expense ratioi | 0.59% | 0.72% |
| Total assets (AUM)i | $6.33B | $31.21B |
| Dividend yieldi | 2.00% | 1.66% |
| Trailing P/Ei | 11.50 | 14.26 |
| Betai | 0.33 | 0.77 |
| 52-week change | -16.49% | 28.63% |
| Metric | MCHI | EEM |
|---|---|---|
| 1Y returni | -16.49% | +28.63% |
| 6M returni | -3.24% | +21.10% |
| 1M returni | -4.19% | +1.39% |
| 1Y Sharpe ratio | -1.05 | 0.95 |
| Betai | 0.33 | 0.77 |
| Dividend yieldi | 2.00% | 1.66% |
| 5Y CAGR | -2.12% | +8.58% |
Over the past year, MCHI and EEM have moved moderately in the same direction (correlation of 0.63), 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 | -16.49% | +28.63% |
| CAGRi | -16.50% | +28.66% | |
| Volatilityi | 19.59% | 25.13% | |
| Sharpe ratioi | -1.05 | 0.95 | |
| Sortino ratioi | -1.41 | 1.35 | |
| Max drawdowni | 23.22% | 14.24% | |
| Current drawdowni | 19.28% | 5.87% | |
| Avg drawdowni | 11.42% | 3.78% | |
| Ulcer Indexi | 12.85% | 5.21% | |
| Max daily dropi | 5.73% | 6.53% | |
| Max wkly dropi | 7.75% | 8.41% | |
| 5Y | Growthi | -10.16% | +50.81% |
| CAGRi | -2.12% | +8.58% | |
| Volatilityi | 30.11% | 19.91% | |
| Sharpe ratioi | -0.07 | 0.29 | |
| Sortino ratioi | -0.11 | 0.42 | |
| Max drawdowni | 50.44% | 33.85% | |
| Current drawdowni | 19.28% | 5.87% | |
| Avg drawdowni | 25.23% | 12.80% | |
| Ulcer Indexi | 28.16% | 15.58% | |
| Max daily dropi | 10.81% | 6.53% | |
| Max wkly dropi | 17.10% | 12.14% | |
| 10Y | Growthi | +32.53% | +126.78% |
| CAGRi | +2.86% | +8.54% | |
| Volatilityi | 27.31% | 20.82% | |
| Sharpe ratioi | 0.07 | 0.28 | |
| Sortino ratioi | 0.11 | 0.39 | |
| Max drawdowni | 62.84% | 39.82% | |
| Current drawdowni | 38.71% | 5.87% | |
| Avg drawdowni | 28.13% | 14.52% | |
| Ulcer Indexi | 33.58% | 17.81% | |
| 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 | $6.33B | $31.21B |
| Dividend yieldi | 2.00% | 1.66% |
- 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
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.