The benchmark is not the index.

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Quick illustration of benchmarks and indexes not being the same.

The MCHI passive ETF tracks a different index that is supposedly also the Chinese index and it is interesting to see that there is quite a big difference in performance.

YTD we have -9.84% for the classic index VS -15.58% for the index that your BlackRock ETF is tracking (the MSCI China Index).

To me this YTD difference is huge. 🤯

This is a good lesson for people new to investing, pay attention to the benchmark the ETF you bought is following because in markets like these the performance mind be very different compared to the index that is usually shown on the news.


As Bogle used to say Caveat Emptor.

Penafian

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