CAF vs SCHD
Morgan Stanley China A Share Fund vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. CAF delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | CAF | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 1.75% | 0.06% | |
| AUM | - | $108.7B | |
| Dividend Yield | 1.17% | 3.13% | |
| Holdings | 69 | 104 | |
| YTD Return | +8.89% | +26.54% | |
| 1Y Return | +37.90% | +30.90% | |
| 3Y Return (annualized) | +17.52% | +16.29% | |
| 5Y Return (annualized) | +0.13% | +9.65% | |
| Volatility (annualized) | 30.2% | 13.6% | |
| Max Drawdown | -65.9% | -33.4% | |
| Fund Family | Morgan Stanley Investment Management | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Sep 28, 2006 | Oct 20, 2011 |
CAF vs SCHD Performance
Morgan Stanley China A Share Fund (CAF) is a ETF from Morgan Stanley Investment Management and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year CAF returned +37.90% while SCHD returned +30.90%. Year to date, CAF is up 8.89% versus a gain of 26.54% for SCHD.
Over three years, CAF compounded at +17.52% per year against +16.29% for SCHD; over five years the annualized figures are +0.13% and +9.65% respectively. Across the full 15-year window we track, SCHD has the edge at +11.51% annualized vs +10.06%. 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 13.6% for SCHD. 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 -33.4% for SCHD. 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 0.28. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CAF charges 1.75% per year while SCHD charges 0.06%. On a $10,000 position that is $175 vs $6 annually, a gap of $169 per year that compounds over a long holding period. On income, CAF currently yields 1.17% against 3.13% for SCHD.
Holdings Overlap
CAF and SCHD share 0 holdings out of 169 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 SCHD?
CAF has an expense ratio of 1.75% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $169 per year of difference.
Which performed better, CAF or SCHD?
Over the past year CAF returned +37.90% vs +30.90% for SCHD, so CAF leads on 1-year performance. Over the longest common window we track (15 years), CAF annualized +10.06% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, CAF or SCHD?
CAF has been the more volatile fund at 30.2% annualized versus 13.6% for SCHD. Worst drawdown: CAF -65.9% vs SCHD -33.4%.
Should I hold both CAF and SCHD?
CAF and SCHD have a monthly-return correlation of 0.28, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CAF and SCHD?
CAF and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 169 unique securities.
Which pays a higher dividend, CAF or SCHD?
CAF yields 1.17% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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