CAF vs QQQ
Morgan Stanley China A Share Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. CAF delivered stronger 1-year returns. QQQ offers more diversification with 108 holdings.
Side-by-Side Comparison
| Metric | CAF | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.75% | 0.18% | |
| AUM | - | $496.3B | |
| Dividend Yield | 1.17% | 0.44% | |
| Holdings | 69 | 108 | |
| YTD Return | +8.11% | +17.07% | |
| 1Y Return | +34.38% | +26.39% | |
| 3Y Return (annualized) | +17.63% | +26.08% | |
| 5Y Return (annualized) | +0.38% | +15.18% | |
| Volatility (annualized) | 30.2% | 30.6% | |
| Max Drawdown | -65.9% | -83.0% | |
| Fund Family | Morgan Stanley Investment Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Sep 28, 2006 | Mar 10, 1999 |
CAF vs QQQ Performance
Morgan Stanley China A Share Fund (CAF) is a ETF from Morgan Stanley Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year CAF returned +34.38% while QQQ returned +26.39%. Year to date, CAF is up 8.11% versus a gain of 17.07% for QQQ.
Over three years, CAF compounded at +17.63% per year against +26.08% for QQQ; over five years the annualized figures are +0.38% and +15.18% respectively. Across the full 20-year window we track, QQQ has the edge at +13.05% annualized vs +10.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 30.2% for CAF. 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 -83.0% for QQQ. 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 0.41. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CAF charges 1.75% per year while QQQ charges 0.18%. On a $10,000 position that is $175 vs $18 annually, a gap of $157 per year that compounds over a long holding period. On income, CAF currently yields 1.17% against 0.44% for QQQ.
Holdings Overlap
CAF and QQQ share 0 holdings out of 171 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 QQQ?
CAF has an expense ratio of 1.75% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $157 per year of difference.
Which performed better, CAF or QQQ?
Over the past year CAF returned +34.38% vs +26.39% for QQQ, so CAF leads on 1-year performance. Over the longest common window we track (20 years), CAF annualized +10.01% vs +13.05% for QQQ. Past performance does not guarantee future results.
Which is riskier, CAF or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 30.2% for CAF. Worst drawdown: CAF -65.9% vs QQQ -83.0%.
Should I hold both CAF and QQQ?
CAF and QQQ have a monthly-return correlation of 0.41, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CAF and QQQ?
CAF and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 171 unique securities.
Which pays a higher dividend, CAF or QQQ?
CAF yields 1.17% while QQQ yields 0.44%, so CAF currently pays the higher dividend yield.
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