What Is MCHI? iShares MSCI China ETF
Short answer
MCHI gives broad exposure to Chinese equities, with large weights in internet and consumer-technology names like Tencent, Alibaba, PDD, and Meituan, plus state-owned banks. It carries elevated risk from Chinese government policy, US-China geopolitical tension, and the ADR and variable-interest-entity (VIE) structures used by many of its US-listed holdings. Compared with FXI, which tracks only the 50 largest Chinese companies (more bank- and state-heavy), MCHI is far broader and more tech-tilted; compared with KWEB, which is concentrated purely in China internet and e-commerce names, MCHI is more diversified across sectors. The 0.59% expense ratio is higher than typical US broad-market funds, reflecting the single-country emerging-market mandate.
MCHI is issued by iShares (BlackRock) and tracks MSCI China Index. It charges a 0.59% expense ratio, holds approximately ~$6 billion in assets under management, yields about ~2.3%, and launched in March 29, 2011.
What is MCHI?
MCHI gives broad exposure to Chinese equities, with large weights in internet and consumer-technology names like Tencent, Alibaba, PDD, and Meituan, plus state-owned banks. It carries elevated risk from Chinese government policy, US-China geopolitical tension, and the ADR and variable-interest-entity (VIE) structures used by many of its US-listed holdings. Compared with FXI, which tracks only the 50 largest Chinese companies (more bank- and state-heavy), MCHI is far broader and more tech-tilted; compared with KWEB, which is concentrated purely in China internet and e-commerce names, MCHI is more diversified across sectors. The 0.59% expense ratio is higher than typical US broad-market funds, reflecting the single-country emerging-market mandate.
MCHI is issued by iShares (BlackRock) and tracks MSCI China Index, so a single ticker gives you the whole basket of underlying holdings weighted by the index's methodology rather than by any active stock-picking.
MCHI holdings: what's actually inside
MCHI is weighted toward its largest constituents. As of early 2026, the top holdings are:
| Rank | Ticker | Company | % of MCHI | |
|---|---|---|---|---|
| 1 | 0700.HK | Tencent Holdings | ~15.1% | |
| 2 | BABA | Alibaba Group Holding | ~10.0% | |
| 3 | 0939.HK | China Construction Bank | ~3.9% | |
| 4 | PDD | PDD Holdings | ~2.8% | |
| 5 | 1810.HK | Xiaomi | ~2.7% | |
| 6 | 1398.HK | Industrial and Commercial Bank of China | ~2.2% | |
| 7 | 3690.HK | Meituan | ~2.0% | |
| 8 | 2318.HK | Ping An Insurance | ~2.0% | |
| 9 | 1211.HK | BYD | ~1.9% | |
| 10 | NTES | NetEase | ~1.7% |
The remaining holdings make up the balance of the fund, with weights tapering off below the top names. Because the index reconstitutes on a rolling basis, the roster stays current without active management. Each ticker above links to its individual stock guide in Walnut.
The bottom line on MCHI
MCHI is an established, diversified way to own a basket of Chinese equities in one ticker, but it is far more volatile than broad US or global funds and is exposed to Chinese regulatory, geopolitical, and ADR/VIE structural risks. It suits investors who specifically want China exposure and can tolerate large swings, rather than those seeking a core, low-volatility holding.
More on MCHI
Whether MCHI is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is MCHI a buy?
MCHI yields ~2.3% as of early 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see MCHI dividend: yield and schedule.
Build a portfolio around MCHI with Walnut
Use MCHI as your core holding, then let Walnut's AI propose thematic satellites: AI infrastructure, dividend growth, clean energy, whatever you believe in. Connect your broker, build the basket in conversation, track it as one unit.
FAQ
What is MCHI?
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MCHI is the iShares MSCI China ETF, a fund from iShares (BlackRock) that tracks the MSCI China Index. It holds several hundred large- and mid-cap Chinese companies across H-shares, US-listed ADRs, and select onshore A-shares, giving broad single-ticket exposure to Chinese equities. Walnut is informational, not investment advice.
What is MCHI's expense ratio?
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MCHI has an expense ratio of about 0.59% per year, meaning roughly $5.90 in annual fees per $1,000 invested. That is higher than typical broad US index funds but in line with single-country emerging-market ETFs. Walnut is informational, not investment advice.
MCHI vs FXI vs KWEB: what is the difference?
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MCHI is broad, holding several hundred Chinese companies across sectors with a tilt toward internet and consumer technology. FXI tracks only the 50 largest Chinese names and is more concentrated in banks and state-owned enterprises. KWEB focuses purely on China internet and e-commerce stocks. MCHI sits between them as the most diversified of the three. Walnut is informational, not investment advice.
What does MCHI hold?
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Top holdings include Tencent and Alibaba (its two largest positions), followed by China Construction Bank, PDD Holdings, Xiaomi, ICBC, Meituan, Ping An Insurance, and BYD. The fund is heavily concentrated at the top, with the two largest names making up roughly a quarter of assets. Walnut is informational, not investment advice.
Does MCHI pay a dividend?
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Yes. MCHI pays distributions, typically on a semiannual basis, with a recent yield of roughly 2.3%. The exact amount varies with the dividends paid by its underlying Chinese holdings. Walnut is informational, not investment advice.
What are the main risks of investing in MCHI?
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MCHI carries concentrated China-specific risks: abrupt Chinese government policy and regulatory shifts, US-China geopolitical and trade tension, the risk of US delisting for ADR holdings, and the variable-interest-entity (VIE) structures many US-listed Chinese companies use, which give investors contractual rather than direct ownership. It also has currency exposure and has historically been very volatile. Walnut is informational, not investment advice.
Is MCHI a good investment?
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That depends on your goals and risk tolerance. MCHI offers diversified, low-cost access to Chinese equities in one ticker, but it is far more volatile than broad US or global funds and concentrates regulatory, geopolitical, and structural risks. It may fit investors who specifically want China exposure and can stomach large swings, but it is not a low-risk core holding. Walnut is informational, not investment advice.
How does MCHI gain exposure to Chinese stocks?
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MCHI invests across the share classes available to international investors: Hong Kong-listed H-shares, US-listed ADRs of companies like Alibaba and PDD, and select mainland-listed A-shares. This mix means part of the fund is subject to ADR and VIE structural risk, while another part trades on Hong Kong and mainland exchanges with their own settlement and currency considerations. Walnut is informational, not investment advice.
How do I compare MCHI to similar ETFs?
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Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. MCHI's figures are above; the full method is in Walnut's guide on how to compare ETFs.
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Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to early 2026; verify current figures against iShares (BlackRock)'s fund page or your broker before investing.