What happened
According to an SEC filing dated February 12, 2026, Nipun Capital, L.P. increased its position in iShares MSCI China ETF (MCHI 1.09%) by 116,100 shares during the fourth quarter. The estimated value of this trade was $7.3 million, calculated using the fund's average closing price for the quarter. The quarter-end value of the position rose by $13.58 million, a figure that reflects both trading activity and market price changes.
What else to know
The fund bought more MCHI, bringing the stake to 22.96% of 13F assets under management.
Top holdings after this filing:
- 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)
As of February 12, 2026, shares were priced at $60.58, up 19.4% over the past year, outperforming the S&P 500 by 6.52 percentage points. MCHI’s annualized dividend yield was 2.10%.
The position was 23.2% of the fund's AUM as of the prior quarter.
ETF overview
| Metric | Value |
|---|---|
| AUM | $7.94 billion |
| Price (as of market close 2/12/26) | $60.58 |
| Dividend yield | 2.10% |
| 1-year total return | 19.42% |
ETF snapshot
- The iShares MSCI China ETF’s investment strategy seeks to track the MSCI China Index, providing exposure to large- and mid-cap Chinese equities listed as H-shares and B-shares.
- The portfolio is composed primarily of equity securities representing the top 85% of market capitalization in Chinese equity markets, with sector and issuer weights reflecting index methodology.
- Structured as a non-diversified ETF, the fund offers a competitive annualized dividend yield and passively managed exposure to China. The expense ratio is 0.59%.
The iShares MSCI China ETF (MCHI) offers investors targeted access to the Chinese equity market through a broad, market-cap-weighted portfolio. The fund's strategy emphasizes efficient, liquid exposure to leading Chinese companies, making it a core holding for those seeking to capture China's market performance. Its scale and index-driven approach provide institutional investors with a cost-effective solution for country-specific allocation.
What this transaction means for investors
Nipun Capital’s purchase of additional stock in the iShares MSCI China ETF (MCHI) suggests a bullish outlook towards the exchange-traded fund. That said, the buy aligns with Nipun Capital’s focus as a specialized asset management firm targeting emerging markets and Asian equities.
MCHI is best for investors who want to increase exposure to the China market. The ETF’s AUM of nearly $8 billion provides good liquidity, and its beta of one indicates reasonable volatility. It also offers a solid dividend yield over 2% although its 0.59% expense ratio isn’t cheap for a passively-managed fund.
For investors seeking to add international stocks to their portfolio, other ETFs offer broader diversification at lower costs compared to MCHI. Moreover, MCHI’s focus on only the China market means heightened risk, especially given the history of political tensions between the U.S. and Chinese governments. In fact, the Trump administration threatened to delist Chinese stocks.
Therefore, only investors who are willing to accept higher risk for access to the China market should consider investing in MCHI.
