About MCHI ETF
The iShares by BlackRock China ETF (MCHI) provides broad, cap-weighted exposure to a wide array of investable Chinese shares excluding mainland-listed A shares and is managed by BlackRock that has a total AUM of $6.28T.
MCHI is an exchange-traded fund incorporated in the USA in March 2011. It has fewer holdings than the "all-share" benchmark and tilts more towards large cap companies.
About the Fund Manager:
Founded in 1988, Blackrock is the largest asset manager in the world managing $6.28T. BlackRock operates globally with 70 offices in 30 countries and clients in 100 countries. Due to its power and the sheer size and scope of its financial assets and activities, BlackRock has been called the world's largest shadow bank.
The ETF seeks to track the investment results of an index composed of a broad range of companies in China.
MCHI has invested in Technology (36%), Financials (22%), Consumer Cyclical (8%), Energy (6%), and Real Estate (5%).
MCHI invests 94% of its assets in China, 3% in Hong Kong, 2% in United Kingdom and 1% in United States.
MCHI provides a broad, cap-weighted exposure to investable Chinese shares excluding mainland-listed A-shares.
According to ETFdb.com, "This ETF offers exposure to the Chinese equity market, making it one of many options for investors looking to gain access to one of the world's largest and most important economies."
Tips For China ETF Selection
FXI: The Largest China ETF, But Not the Best
How did we identify this ETF:
A complete pool of 2100+ ETFs are screened on various qualitative and quantitative parameters to evaluate efficiency, tradability and fit. The metrics used were alpha, beta and R - squared with respect to the segment benchmark and ETF specific metrics such as expense ratio, drawdown, volatility and the overall rating. We evaluate all ETFs and assign a composite score based on our analysis and then select the top ones in a category based on that comprehensive score by the inhouse research / quant analysts team. MCHI is a highly liquid choice within the segment, trading briskly each day with narrow spreads, and offers good block liquidity. It is also one of the cheaper options in its segment, which helps explain the fund's strong popularity. The strategy is rebalanced on a quarterly basis with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far.