MCHI

iShares MSCI China ETF (MCHI) is an exchange-traded fund that seeks to track the performance of an index composed of large- and mid-cap Chinese companies, reflecting the behavior of the Chinese equity market. The ETF is managed by BlackRock and trades under the ticker MCHI on NYSE Arca.

Classified as an equity ETF focused on the Chinese equity market, which is classified as an emerging market, MCHI aims to reflect, before fees and expenses, the combined price and income return of the stocks included in its benchmark index.

To achieve this objective, the fund employs a passive management strategy, maintaining a portfolio that seeks to replicate the composition and weighting of the MSCI China Index.

MCHI’s benchmark is based on the MSCI China Index, which includes large- and mid-sized Chinese equities, weighted by float-adjusted market capitalization, with periodic rebalancing to reflect changes in the Chinese equity universe.

Diversification and sector exposure

• Information technology.

• Consumer discretionary.

• Communication services.

• Health care.

• Consumer staples.

• Industrials.

• Financials.

Structure and costs

Shares of MCHI are traded on the secondary market, while creation and redemption of shares are carried out by authorized participants, a mechanism that helps keep the ETF’s market price close to its net asset value (NAV).

The fund carries a competitive expense ratio, typical of emerging markets ETFs, and does not charge a performance fee. MCHI may make periodic income distributions, derived from dividends paid by the underlying companies in its portfolio. The ETF has a single share class and trades exclusively under the ticker MCHI.

History and evolution of the ETF

The iShares MSCI China ETF was launched in 2011, amid growing investor interest in exposure to emerging equity markets, particularly China, which was solidifying its position as one of the world’s largest economies.

Since its inception, MCHI has been used by institutional and individual investors seeking efficient access to the Chinese equity market, complementing international diversification strategies.

Between 2020 and 2024, the ETF reflected growth and volatility cycles in the Chinese market, influenced by macroeconomic factors, government policy, specific regulatory developments, and shifts in the global economy, while maintaining liquidity and broad adoption as a vehicle for emerging market diversification.