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. As such, this fund can be a useful tool for investors looking to overweight China in a long-term portfolio or as a means of implementing a shorter-term tactical tilt towards the BRIC member. Competition among China ETFs is intense, with a number of different offerings. Though MCHI is not nearly as popular as FXI, it offers much more diversified exposure to the Chinese market by holding significantly more individual stocks--making it potentially more attractive to those with a long time horizon. It's important to note that MCHI, like many China ETFs, has a big allocation to financials and consists almost entirely of large cap stocks; those looking to establish a position in smaller Chinese firms may prefer HAO or ECNS. This ETF is a fine option, but there are a number of other solid choices in the China Equities ETFdb Category; investors in the market for China exposure should consider balance of exposure across sectors and market capitalizations, as well as expenses. GXC is another China ETF that might be worth a closer look.