iShares MSCI China ETF (MCHI): Complete Beginner's Guide

What is iShares MSCI China ETF?

MCHI provides broad exposure to Chinese stocks across all sectors, including technology, financials, consumer goods, and healthcare. It tracks the MSCI China Index which covers large- and mid-cap companies listed in Hong Kong, mainland China, and the US. This fund is the most detailed single-fund option for investors wanting diversified Chinese equity exposure.

MCHI is managed by BlackRock and has been available since 2011. With $5.0B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.59%, which means for every $10,000 you invest, you pay approximately $59 per year in management fees.

MCHI at a Glance — Key Metrics

Top 10 Holdings in MCHI

MCHI holds 600 different securities. Here are the largest positions that make up the core of this fund:

MCHI Performance History

Here's how MCHI has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:

Beginner Suitability Score: 9.5/10

Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.

MCHI scores 9.5/10 because it has very low fees, shows lower-than-average volatility, offers broad diversification across 600 holdings, and has been available since 2011, giving it a proven track record.

How to Buy MCHI — Step by Step

1. Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
2. Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
3. Search for "MCHI" — Use the search bar in your brokerage platform to find iShares MSCI China ETF.
4. Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
5. Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.

MCHI Sector Allocation

Here's how MCHI distributes its investments across different sectors of the economy:

Dollar Cost Averaging Into MCHI

Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):

*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.

Fee impact: With MCHI's expense ratio of 0.59%, a $10,000 investment would lose approximately $4,837 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.

Pros and Cons of MCHI

MCHI vs Similar ETFs

See how MCHI stacks up against similar funds:

Frequently Asked Questions