CAF vs IVV
Morgan Stanley China A Share Fund vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. CAF delivered stronger 1-year returns. IVV offers more diversification with 508 holdings.
Side-by-Side Comparison
| Metric | CAF | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 1.75% | 0.03% | |
| AUM | - | $907.0B | |
| Dividend Yield | 1.17% | 1.10% | |
| Holdings | 69 | 508 | |
| YTD Return | +8.11% | +13.22% | |
| 1Y Return | +34.38% | +21.62% | |
| 3Y Return (annualized) | +17.63% | +22.17% | |
| 5Y Return (annualized) | +0.38% | +13.42% | |
| Volatility (annualized) | 30.2% | 15.1% | |
| Max Drawdown | -65.9% | -56.5% | |
| Fund Family | Morgan Stanley Investment Management | iShares by BlackRock (US) | |
| Category | Equity | Equity | |
| Inception | Sep 28, 2006 | May 15, 2000 |
CAF vs IVV Performance
Morgan Stanley China A Share Fund (CAF) is a ETF from Morgan Stanley Investment Management and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year CAF returned +34.38% while IVV returned +21.62%. Year to date, CAF is up 8.11% versus a gain of 13.22% for IVV.
Over three years, CAF compounded at +17.63% per year against +22.17% for IVV; over five years the annualized figures are +0.38% and +13.42% respectively. Across the full 20-year window we track, CAF has the edge at +10.01% annualized vs +7.02%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
CAF has been the more volatile fund, with annualized monthly volatility of 30.2% compared with 15.1% for IVV. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -65.9% for CAF and -56.5% for IVV. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.39. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CAF charges 1.75% per year while IVV charges 0.03%. On a $10,000 position that is $175 vs $3 annually, a gap of $172 per year that compounds over a long holding period. On income, CAF currently yields 1.17% against 1.10% for IVV.
Holdings Overlap
CAF and IVV share 0 holdings out of 574 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CAF or IVV?
CAF has an expense ratio of 1.75% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $172 per year of difference.
Which performed better, CAF or IVV?
Over the past year CAF returned +34.38% vs +21.62% for IVV, so CAF leads on 1-year performance. Over the longest common window we track (20 years), CAF annualized +10.01% vs +7.02% for IVV. Past performance does not guarantee future results.
Which is riskier, CAF or IVV?
CAF has been the more volatile fund at 30.2% annualized versus 15.1% for IVV. Worst drawdown: CAF -65.9% vs IVV -56.5%.
Should I hold both CAF and IVV?
CAF and IVV have a monthly-return correlation of 0.39, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CAF and IVV?
CAF and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 574 unique securities.
Which pays a higher dividend, CAF or IVV?
CAF yields 1.17% while IVV yields 1.10%, so CAF currently pays the higher dividend yield.
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