At a glance
MCHI charges 0.59% a year, above the 0.55% average of the 7 funds most like it (the 3rd cheapest of 8). It has $6.33B in assets, the largest of that group; it paid 2.24% of its price in distributions over the past 12 months, semiannual. Over the past year it returned −23.7% with distributions reinvested (S&P 500: +11.5%), 4th of those 8 funds; over three years it returned +8.1% a year. At its worst it fell 19.8% in the 2020 crash (S&P 500: 33.7%) and 37.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 3 months and 34 months after the lows. Its ten largest positions make up 41.5% of the fund, out of 578 in all.
The short version
iShares MSCI China ETF (MCHI) is a BlackRock index fund that tracks the MSCI China Index, a market-value-weighted basket of large and mid-sized Chinese companies listed in Hong Kong, mainland China and abroad. With $6.3 billion in net assets as of August 31, 2026, it is the largest fund among eight similar China funds. Its 0.59% expense ratio is well above the 0.19% charged by Franklin FTSE China ETF (FLCH), which shares 83% of its holdings.
Price history
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MCHI -23.7% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| MCHI official prospectus, to Dec 31, 2024 | — | +18.06% | — | -4.07% | +1.28% | — |
| MSCI Emerging Markets Index Net index, same period | — | +7.50% | — | +1.70% | +3.64% | — |
| MSCI China Index Net index, same period | — | +19.42% | — | -3.44% | +1.88% | — |
| MCHI price data to Oct 27, 2026 | -17.8% | -23.7% | +8.1% | -5.0% | +2.1% | +2.2% |
- Over the year to Oct 27, 2026, MCHI returned -23.7%, 4th of 8 among similar funds.
- Its 5-year annualized return was -5.0% and its 10-year +2.1%.
- In the 2020 COVID crash it fell 19.8% and regained its old high 3 months after the low.
- Its worst full calendar year was 2022 (-23.0%); its best was 2017 (+54.7%).
- The deepest fall in its price history was 62.9% (Feb 17, 2021 to Oct 31, 2022), not yet recovered.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | -17.8% | — |
| 2025 | +31.1% | — |
| 2024 | +17.7% | +18.06% |
| 2023 | -11.9% | -11.07% |
| 2022 | -23.0% | -22.53% |
| 2021 | -21.7% | -22.38% |
| 2020 | +27.8% | +28.69% |
| 2019 | +23.7% | +22.68% |
| 2018 | -19.8% | -19.18% |
| 2017 | +54.7% | +53.03% |
| 2016 | -0.3% | +0.40% |
| 2015 | -6.7% | -8.25% |
| 2014 | +9.5% | — |
| 2013 | +5.0% | — |
| 2012 | +26.1% | — |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 19.2% over that stretch · deepest drop along the way 19.8%, back to its old high 3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 35.1% over that stretch · deepest drop along the way 37.5%, back to its old high 34 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $0.3600 | |
| 2025 | $1.2800 | +18.5% |
| 2024 | $1.0800 | 0.0% |
| 2023 | $1.0800 | +28.6% |
| 2022 | $0.8400 | +27.3% |
| 2021 | $0.6600 | -21.4% |
| 2020 | $0.8400 | -9.7% |
| 2019 | $0.9300 | +10.7% |
| 2018 | $0.8400 | -19.2% |
| 2017 | $1.0400 | +44.4% |
| 2016 | $0.7200 | -70.8% |
| 2015 | $2.4624 | +4.4% |
| 2014 | $2.3581 | +2.8% |
| 2013 | $2.2937 | +24.5% |
| 2012 | $1.8416 |
What's inside
As of Aug 31, 2026, the fund held 578 securities; the ten largest made up 41.54% of assets.
| Holding | Weight | |
|---|---|---|
| Tencent Holdings Limited | 13.93% | |
| Alibaba Group Holding Limited | 9.42% | |
| CHINA CONSTRUCTION BANK CORPORATION | 4.00% | |
| INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED | 2.47% | |
| XIAOMI CORPORATION | 2.37% | |
| MEITUAN | 1.98% | |
| BANK OF CHINA LIMITED | 1.97% | |
| PDD Holdings Inc. Other | 1.87% | |
| Ping An Insurance (Group) Company of China, Ltd. | 1.84% | |
| NETEASE, INC. | 1.68% | |
| BYD COMPANY LIMITED | 1.60% | |
| JD.COM, INC. | 1.27% | |
| China Life Insurance Company Limited | 1.13% | |
| Lenovo Group Limited | 1.12% | |
| Zijin Mining Group Company Limited | 1.10% |
By country
Cayman Islands 47.77%China 45.15%Hong Kong 4.6%Switzerland 0.86%United States 0.58%By asset type
Stocks 96.34%Other 3.57%What changed recently
- Over the three months to Aug 31, 2026, investors added a net $15.6M (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: -6.65%, +8.70%, -1.29%.
How it works
MCHI tracks the MSCI China Index. MSCI Inc. is the index provider and is independent of BlackRock. It decides which stocks are in the index and how much each one weighs. The index aims to cover the top 85% of the Chinese stock market by market value. It is weighted by free-float market capitalization, which means bigger companies get bigger weights, counting only the shares available to the public. As of August 31, 2025, 54.22% of the index was in P-Chips (companies controlled by individuals in China but incorporated abroad, often in the Cayman Islands). Another 23.60% was in H-shares (mainland companies listed in Hong Kong), 13.70% in A-shares (mainland-listed stocks priced in renminbi), 3.55% in state-controlled Red-Chips and 4.81% in foreign-listed shares.
BlackRock uses "representative sampling." Instead of buying every index stock, it holds a sample built to behave like the index. At least 80% of assets go into index stocks or their depositary receipts. Up to 20% can go into futures, swaps, cash or other securities. As of August 31, 2026, the fund held 578 stocks, 1.6% cash and a tiny MSCI China futures position. Portfolio turnover was 12%. The fund may also lend out securities worth up to one-third of its assets.
Because of the weighting, a few giants dominate. As of August 31, 2026, Tencent made up 13.9% of the fund and Alibaba 9.4%, and the top 10 holdings came to 41.5%.
What it really costs
- MCHI charges 0.59% a year, versus an average of 0.55% for the similar funds below (3rd of 8, cheapest first).
- Using the prospectus's standard example, $10,000 invested would cost about $60 in the first year and $738 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| MCHI | $60 | $189 | $329 | $738 |
In a retirement portfolio
It is a single-country fund that has had deep, long-lasting losses, so it fits better as a small add-on than as a foundation.
MCHI adds Chinese companies, such as Tencent, Alibaba and the big state banks, that most US stock funds barely hold. It also brings steep swings. The fund launched in 2011, so it missed the 2008 crisis. In the 2020 COVID crash it fell 19.8% and regained its old high by June 2020, about 3 months later. In 2022 it fell 37.5% and needed 34 months, until August 2025, to recover. Its deepest drop was 62.9%, from February 2021 to October 2022, and it had still not regained that peak as of October 27, 2026. Its worst calendar year was 2022, at -22.5%. Anyone forced to sell in years like those would have locked in large losses.
The yield was 2.24% as of October 27, 2026, paid twice a year. The SEC's standard example puts costs at $738 over 10 years on $10,000. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want one broad fund covering 578 Chinese large- and mid-cap stocks across Hong Kong, mainland A-shares and US listings.
- Investors keeping a small China slice who can live with drops like the 62.9% fall from February 2021 to October 2022.
- Investors who prefer a large, long-running fund: launched in 2011, it held $6.3 billion as of August 31, 2026, the most among eight peers.
Look elsewhere if
- Cost-focused investors: Franklin FTSE China ETF (FLCH) charges 0.19% versus MCHI's 0.59%, with 83% of holdings in common.
- Retirees who may need to sell during downturns: after its 2022 drop, the fund took 34 months to recover.
- Investors uneasy about concentration and Chinese government risk: Tencent and Alibaba alone were about 23% of the fund as of August 31, 2026.
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| MCHI this fund | — | 0.59% | $6.33B | -23.7% | +8.1% |
| FLCH Franklin FTSE China ETF | 83% | 0.19% | $248.7M | -22.9% | +8.8% |
| GXC SPDR S&P China ETF | 72% | 0.59% | $434.9M | -20.8% | +8.5% |
| FXI iShares China Large-Cap ETF | 55% | 0.74% | $4.34B | -19.4% | +11.0% |
| CXSE WisdomTree China ex-State-Owned Enterprises… | 44% | 0.32% | $498.9M | -25.4% | +5.6% |
| KWEB KraneShares CSI China Internet ETF | 30% | 0.7% | $4.91B | -40.7% | -0.9% |
| CHIQ Global X MSCI China Consumer Discretionary … | 22% | 0.65% | $129.7M | -33.7% | -2.6% |
| CQQQ Invesco China Technology ETF | 22% | 0.65% | $3.05B | -30.4% | +5.7% |
Questions investors ask
Is MCHI good for retirement?
MCHI is a high-risk fund that may fit only as a small part of a retirement portfolio. It fell 62.9% from February 2021 to October 2022 and had not regained that peak as of October 27, 2026. Over the 10 years ended December 31, 2024, it returned 1.28% a year on average. The broader MSCI Emerging Markets Index returned 3.64% a year over the same period. Its 2.24% yield as of October 27, 2026, provides some income.
What's the difference between MCHI and FLCH?
The biggest differences are cost and size. MCHI charges 0.59% a year and FLCH charges 0.19%, and the two share 83% of their holdings. MCHI tracks the MSCI China Index. Franklin FTSE China ETF, as its name suggests, follows a FTSE China index. MCHI is far larger, with $6.3 billion in net assets as of August 31, 2026, versus about $249 million for FLCH as of June 30, 2026. Their one-year price returns through October 27, 2026, were close: -23.7% for MCHI and -22.9% for FLCH.
Does MCHI pay dividends?
Yes. MCHI pays dividends twice a year. Over the 12 months to October 27, 2026, it paid $1.10 per share, a yield of 2.24%. The payouts come from dividends paid by the Chinese companies it owns, so they can change from year to year. Because the fund's value is figured in US dollars, a weaker Chinese or Hong Kong currency can also shrink the value of those payouts.
What are MCHI's top holdings?
Tencent Holdings is the largest holding, at 13.9% of the fund as of August 31, 2026. Next come Alibaba Group at 9.4%, China Construction Bank at 4.0%, Industrial and Commercial Bank of China at 2.5% and Xiaomi at 2.4%. Meituan, Bank of China, PDD Holdings, Ping An Insurance and NetEase round out the top 10. Together, those 10 make up 41.5% of a portfolio of 578 stocks.
Does MCHI hold China A-shares?
Yes. A-shares are stocks of mainland Chinese companies, priced in renminbi and listed in Shanghai or Shenzhen. They made up 13.70% of the MSCI China Index as of August 31, 2025. Most of the index is in companies listed in Hong Kong: P-Chips were 54.22% and H-shares 23.60%. The rest was Red-Chips, B-shares and companies listed outside China, such as in the US.