MCHI - ETF AI Analysis
Top Page
iShares MSCI China ETF (MCHI)
MCHI, the iShares MSCI China ETF, has a solid but mixed overall rating, reflecting both strong core holdings and notable risks in the Chinese market. Large positions in Tencent and China Construction Bank support the fund’s quality through strong financial performance, attractive valuations, and growth in areas like gaming, AI, and banking dividends, while other major tech names such as Alibaba and Xiaomi face bearish trading trends and cash flow or valuation pressures that weigh on the score. The main risk factor is the ETF’s heavy concentration in Chinese technology and financial companies, which makes it sensitive to sector-specific challenges, competition, and regulatory developments in China.
MCHI vs. SPDR S&P 500 ETF (SPY)
- AUM
- 5.49B
- Region
- Asia-Pacific
- Expense Ratio
- 0.59%
- Beta
- 0.72
- Issuer
- iShares
- Inception Date
- Mar 29, 2011
- Dividend Yield
- 2.23%
- Asset Class
- Equity
- Index Tracked
- MSCI China
MCHI Summary
MCHI is the iShares MSCI China ETF, built to follow the MSCI China Index, which tracks major Chinese companies across many industries. It holds well-known names like Tencent and Alibaba, along with banks, tech firms, and consumer companies, giving you broad exposure to China’s economy in a single investment. Someone might invest in MCHI to tap into China’s long-term growth potential and to diversify beyond their home market. However, this ETF can be volatile and is heavily influenced by China’s economy, government policy, and overall market swings, so its value can go up and down significantly.
How much will it cost me?
This ETF has an expense ratio of 0.59%, which means you’ll pay about $5.90 per year for every $1,000 you invest. That’s higher than the average low-cost index ETF because investing in Chinese stocks is more specialized and costly to manage than broad U.S. market index funds.
What would affect this ETF?
Future performance of MCHI will be helped if China’s economy strengthens, consumer spending grows, and technology and internet platforms like Tencent and Alibaba benefit from supportive government policies and improving business confidence. On the negative side, tighter regulations on Chinese tech and financial firms, slower economic growth, or rising global tensions affecting China could hurt this ETF, especially given its heavy exposure to consumer, communication services, and major banks.
MCHI Top 10 Holdings
MCHI is heavily anchored in China’s internet giants, with Tencent and Alibaba acting as the fund’s twin engines—but both have been lagging lately, so they’re more like dead weight than growth drivers right now. In contrast, the big state-owned banks such as China Construction Bank and Bank of China have been steadily rising, quietly propping up overall returns. Xiaomi, Meituan, and PDD add a consumer-tech flavor, but their mixed and often weak performance has kept the ETF from fully capitalizing on China’s growth story. With holdings almost entirely in China, investors are making a focused bet on Chinese policy and consumer trends.
| Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
 HK:0700 | Tencent Holdings | 13.25% | $725.77M | HKD 3.46T | -41.08% | 75Outperform |
 HK:9988 | Alibaba Group Holding Ltd. | 9.08% | $497.42M | HKD 1.93T | -43.61% | 70Outperform |
 HK:0939 | China Construction Bank | 4.86% | $266.29M | HKD 2.77T | 30.53% | 82Outperform |
 HK:1398 | Industrial and Commercial Bank of China | 2.90% | $158.97M | HKD 3.47T | 30.50% | 78Outperform |
 HK:1810 | Xiaomi | 2.54% | $139.35M | HKD 676.65B | -40.04% | 71Outperform |
 HK:3988 | Bank of China | 2.31% | $126.79M | HKD 2.45T | 38.09% | 77Outperform |
 HK:3690 | Meituan | 2.03% | $111.44M | HKD 442.17B | -30.08% | 74Outperform |
 PDD | PDD Holdings | 1.79% | $97.78M | $111.89B | -42.20% | 70Outperform |
 HK:9999 | Netease Inc | 1.77% | $96.93M | HKD 562.72B | -19.68% | 80Outperform |
 HK:2318 | Ping An Insurance Company of China | 1.73% | $94.65M | HKD 1.03T | -12.89% | 72Outperform |
MCHI Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For MCHI, the sentiment is Negative. The current price of 49.07 is below the 20-day moving average (MA) of 50.69, below the 50-day MA of 52.44, and below the 200-day MA of 55.53, indicating a bearish trend. The MACD of -1.04 indicates Positive momentum. The RSI at 29.78 is Positive, neither overbought nor oversold. The STOCH value of 13.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MCHI.
MCHI Peer Comparison
Comparison Results
| Name | Price | Price Target | AUM | Expense Ratio | Overall Rating |
|---|---|---|---|---|---|
| MCHI | $49.07 | $54.00(10.05% Upside) | $5.49B | 0.59% | 58Neutral |
 DXJ | $58.39 | $72.64(24.40% Upside) | $7.11B | 0.48% | 71Outperform |
 FXI | $33.08 | $47.06(42.26% Upside) | $3.75B | 0.74% | 73Outperform |
 PGJ | $20.82 | $30.59(46.96% Upside) | $76.42M | 0.70% | 67Neutral |
 ECNS | $25.44 | $43.19(69.76% Upside) | $56.30M | 0.59% | 55Neutral |
 FCA | $23.74 | $34.61(45.80% Upside) | $27.18M | 0.80% | 68Neutral |
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| MCHI | iShares MSCI China ETF | 49.07 | -13.30 | -21.32% | |
| DXJ | WisdomTree Japan Hedged Equity Fund | 58.39 | 13.63 | 30.46% | |
| FXI | iShares China Large-Cap ETF | 33.08 | -6.03 | -15.41% | |
| PGJ | Invesco Golden Dragon China Etf | 20.82 | -10.57 | -33.68% | |
| ECNS | iShares MSCI China Small-Cap ETF | 25.44 | -8.97 | -26.07% | |
| FCA | First Trust China AlphaDEX Fund | 23.74 | -3.76 | -13.68% |
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.