CAF vs SPY
Morgan Stanley China A Share Fund vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. CAF delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | CAF | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 1.75% | 0.09% | |
| AUM | - | $821.1B | |
| Dividend Yield | 1.17% | 1.01% | |
| Holdings | 69 | 505 | |
| YTD Return | +9.76% | +13.70% | |
| 1Y Return | +36.24% | +21.44% | |
| 3Y Return (annualized) | +18.11% | +22.50% | |
| 5Y Return (annualized) | +0.64% | +13.24% | |
| Volatility (annualized) | 30.2% | 15.3% | |
| Max Drawdown | -65.9% | -56.5% | |
| Fund Family | Morgan Stanley Investment Management | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 28, 2006 | Jan 22, 1993 |
CAF vs SPY Performance
Morgan Stanley China A Share Fund (CAF) is a ETF from Morgan Stanley Investment Management and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year CAF returned +36.24% while SPY returned +21.44%. Year to date, CAF is up 9.76% versus a gain of 13.70% for SPY.
Over three years, CAF compounded at +18.11% per year against +22.50% for SPY; over five years the annualized figures are +0.64% and +13.24% respectively. Across the full 20-year window we track, CAF has the edge at +10.10% annualized vs +8.84%. 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 15.3% for SPY. 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 SPY. 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 SPY charges 0.09%. On a $10,000 position that is $175 vs $9 annually, a gap of $166 per year that compounds over a long holding period. On income, CAF currently yields 1.17% against 1.01% for SPY.
Holdings Overlap
CAF and SPY share 0 holdings out of 573 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 SPY?
CAF has an expense ratio of 1.75% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $166 per year of difference.
Which performed better, CAF or SPY?
Over the past year CAF returned +36.24% vs +21.44% for SPY, so CAF leads on 1-year performance. Over the longest common window we track (20 years), CAF annualized +10.10% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, CAF or SPY?
CAF has been the more volatile fund at 30.2% annualized versus 15.3% for SPY. Worst drawdown: CAF -65.9% vs SPY -56.5%.
Should I hold both CAF and SPY?
CAF and SPY 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 SPY?
CAF and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 573 unique securities.
Which pays a higher dividend, CAF or SPY?
CAF yields 1.17% while SPY yields 1.01%, so CAF currently pays the higher dividend yield.
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