MCHI - ETF AI Analysis

Top Page

iShares MSCI China ETF (MCHI)

Rating:60Neutral

Price Target:―

The iShares MSCI China ETF (MCHI) has a balanced overall rating, reflecting both strong performers and some challenges among its top holdings. Tencent Holdings, the largest holding, contributes positively with its strong financial performance and strategic investments in AI and technology, though bearish technical momentum tempers its impact. Similarly, China Construction Bank adds strength with its robust balance sheet, attractive valuation, and moderate bullish momentum. However, weaker contributors like BYD Co, with bearish technical indicators and limited standout factors, slightly weigh on the fund's overall rating. A key risk for this ETF is its heavy concentration in a single region, making it sensitive to economic and regulatory developments in China.

Positive Factors

Strong Top Holdings

Several major holdings, including Tencent and Alibaba, have delivered strong year-to-date performance, supporting the ETF's overall returns.

Sector Diversification

The ETF is spread across multiple sectors like Consumer Cyclical, Communication Services, and Financials, reducing reliance on any single industry.

High Assets Under Management

The fund has significant investor interest, as shown by its large asset base, which can provide stability and liquidity.

Negative Factors

Geographic Concentration

Over 80% of the ETF's exposure is tied to Hong Kong, making it highly sensitive to regional economic and political risks.

Mixed Holding Performance

While some top holdings have performed well, others like Meituan have lagged, potentially dragging down overall returns.

Above-Average Expense Ratio

The ETF's expense ratio is higher than many broad-market ETFs, which could eat into long-term investor returns.

MCHI vs. SPDR S&P 500 ETF (SPY)

AUM7.97B

RegionAsia-Pacific

Expense Ratio0.59%

Beta0.67

IssueriShares

Inception DateMar 29, 2011

Dividend Yield2.04%

Asset ClassEquity

Index TrackedMSCI China

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume2,198,972

30 Day Avg. Volume2,540,239

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

75.50

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering173

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

MCHI Summary

The iShares MSCI China ETF (MCHI) is an investment fund that focuses on the Chinese stock market, tracking the MSCI China Index. It includes large and mid-sized companies across various sectors, such as consumer goods, technology, and finance. Some well-known companies in this ETF are Tencent Holdings and Alibaba Group. Investors might consider MCHI if they want to tap into China's economic growth or diversify their portfolio with international exposure. However, it’s important to know that the ETF’s performance can be heavily influenced by the Chinese economy and market conditions, which may experience volatility.

How much will it cost me?The iShares MSCI China ETF (MCHI) has an expense ratio of 0.59%, which means you’ll pay $5.90 per year for every $1,000 invested. This expense ratio is slightly higher than average for ETFs because it tracks a specific international market and requires more active management compared to broad U.S. index funds. It’s still considered reasonable for the exposure it provides to the Chinese equity market.

What would affect this ETF?The iShares MSCI China ETF (MCHI) could benefit from China's economic recovery and growth in consumer spending, particularly in sectors like consumer cyclical and communication services, which make up a significant portion of the ETF. However, potential risks include regulatory changes in China's technology and financial sectors, as well as global economic uncertainties or geopolitical tensions that could impact investor sentiment and market performance.

MCHI Top 10 Holdings

The iShares MSCI China ETF (MCHI) leans heavily on consumer cyclical and communication services giants like Tencent and Alibaba, but both have been lagging recently, with bearish momentum weighing on their performance despite solid fundamentals. Financials like China Construction Bank and Ping An Insurance provide some stability, showing steady gains and attractive valuations. Meanwhile, Xiaomi and PDD Holdings have faced mixed results, with growth potential offset by short-term pressures. The fund’s concentration in Chinese tech and consumer sectors makes it sensitive to regulatory and economic shifts in China, keeping its performance a bit of a rollercoaster ride.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
0700	Tencent Holdings	17.30%	$1.38B	HK$5.52T	68.06%	75 Outperform
9988	Alibaba Group Holding Ltd.	11.26%	$899.81M	HK$2.80T	84.04%	70 Outperform
0939	China Construction Bank	3.21%	$256.44M	HK$2.04T	35.22%	82 Outperform
PDD	PDD Holdings	2.94%	$235.16M	$169.29B	28.43%	70 Outperform
1810	Xiaomi	2.88%	$230.38M	HK$984.91B	14.55%	71 Outperform
3690	Meituan	2.21%	$176.48M	HK$602.00B	-26.58%	74 Outperform
2318	Ping An Insurance Company of China	2.07%	$165.17M	HK$1.34T	81.66%	72 Outperform
1398	Industrial and Commercial Bank of China	1.74%	$139.03M	HK$2.85T	27.42%	78 Outperform
9999	Netease Inc	1.70%	$135.74M	HK$665.64B	47.78%	80 Outperform
9961	Trip.com Group Ltd.	1.63%	$130.32M	HK$393.24B	19.78%	74 Outperform

MCHI Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

61.72

Positive

100DMA

62.17

Positive

200DMA

57.90

Positive

Market Momentum

MACD

0.19

Negative

RSI

56.47

Neutral

STOCH

72.45

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For MCHI, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 60.95, equal to the 50-day MA of 61.72, and equal to the 200-day MA of 57.90, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 56.47 is Neutral, neither overbought nor oversold. The STOCH value of 72.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MCHI.

MCHI Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
MCHI	―	―	$7.97B	0.59%	―
FXI	―	―	$6.57B	0.74%	―
PGJ	―	―	$136.83M	0.70%	―
ECNS	―	―	$92.28M	0.59%	―
FCA	―	―	$64.79M	0.80%	―
CGRO	―	―	$2.07M	0.75%	―

Performance Comparison

MCHI

iShares MSCI China ETF

62.28

19.36

45.11%

FXI

iShares China Large-Cap ETF

―

PGJ

Invesco Golden Dragon China Etf

―

ECNS

iShares MSCI China Small-Cap ETF

―

FCA

First Trust China AlphaDEX Fund

―

CGRO

CoreValues Alpha Greater China Growth ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

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.Date of analysis: ―

Table of Contents