The iShares MSCI China ETF, which tracks the MSCI China Index, continues to attract interest from institutional investors, reflecting a growing appetite for exposure to large- and mid-cap Chinese equities. A recent filing with the SEC dated February 12, 2026, revealed that Nipun Capital, L.P., a specialized asset management firm, expanded its position in the ETF by acquiring an additional 116,100 shares during the fourth quarter of 2025. This significant purchase, valued at approximately $7.3 million based on the fund’s average closing price for that quarter, has increased Nipun’s stake in the ETF to 22.96% of its 13F assets under management.
At the end of the quarter, the total value of Nipun Capital’s holdings in the iShares MSCI China ETF rose by $13.58 million, attributed to both market price fluctuations and trading activity. As of the filing date, shares of MCHI were priced at $60.58, marking a notable increase of 19.4% over the past year. This uptick has allowed the ETF to outperform the S&P 500 by 6.52 percentage points, while it also boasts a solid annualized dividend yield of 2.10%.
Post-acquisition, the top holdings in Nipun Capital’s portfolio include:
– NYSEMKT: INDA: $90.78 million (41.4% of AUM)
– NASDAQ: MCHI: $50.31 million (23.0% of AUM)
– NYSEMKT: FXI: $46.08 million (21.0% of AUM)
– NYSE: TSM: $22.29 million (10.2% of AUM)
– NYSEMKT: VWO: $4.96 million (2.3% of AUM)
The iShares MSCI China ETF, with an AUM of $7.94 billion, intends to offer investors efficient and liquid access to leading Chinese companies by encompassing the top 85% of market capitalization in Chinese equity markets. Its expense ratio stands at 0.59%, which, while not the cheapest in the realm of passively-managed funds, is considered reasonable given the liquidity and returns offered.
Nipun Capital’s bolstered investment in MCHI signals a bullish outlook on Chinese equities, consistent with the firm’s focus on emerging markets and Asian equities. For investors interested in increasing their exposure to the Chinese market, MCHI represents a compelling option. With nearly $8 billion in AUM, it promises good liquidity, accompanied by a beta value of one, indicating moderate volatility.
However, potential investors should proceed with caution. While MCHI presents an opportunity to capitalize on China’s growth, it is important to note that an investment focused solely on this market entails inherent risks, particularly in light of historical political tensions between the U.S. and China. Investors seeking broader diversification may find other ETFs offering exposure to multiple international markets at lower costs more attractive. The decision to invest in MCHI should be reserved for those willing to accept the heightened risks associated with a concentrated investment in China’s equity landscape.
