CAF vs VOO
Morgan Stanley China A Share Fund vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. CAF delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | CAF | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 1.75% | 0.03% | |
| AUM | - | $997.4B | |
| Dividend Yield | 1.17% | 1.08% | |
| Holdings | 69 | 509 | |
| YTD Return | +8.89% | +14.27% | |
| 1Y Return | +37.90% | +21.79% | |
| 3Y Return (annualized) | +17.52% | +22.19% | |
| 5Y Return (annualized) | +0.13% | +13.28% | |
| Volatility (annualized) | 30.2% | 14.2% | |
| Max Drawdown | -65.9% | -34.3% | |
| Fund Family | Morgan Stanley Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 28, 2006 | Sep 7, 2010 |
CAF vs VOO Performance
Morgan Stanley China A Share Fund (CAF) is a ETF from Morgan Stanley Investment Management and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year CAF returned +37.90% while VOO returned +21.79%. Year to date, CAF is up 8.89% versus a gain of 14.27% for VOO.
Over three years, CAF compounded at +17.52% per year against +22.19% for VOO; over five years the annualized figures are +0.13% and +13.28% respectively. Across the full 16-year window we track, VOO has the edge at +13.59% 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 14.2% for VOO. 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 -34.3% for VOO. 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 0.36. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CAF charges 1.75% per year while VOO 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 1.08% for VOO.
Holdings Overlap
CAF and VOO 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 VOO?
CAF has an expense ratio of 1.75% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $172 per year of difference.
Which performed better, CAF or VOO?
Over the past year CAF returned +37.90% vs +21.79% for VOO, so CAF leads on 1-year performance. Over the longest common window we track (16 years), CAF annualized +10.06% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, CAF or VOO?
CAF has been the more volatile fund at 30.2% annualized versus 14.2% for VOO. Worst drawdown: CAF -65.9% vs VOO -34.3%.
Should I hold both CAF and VOO?
CAF and VOO have a monthly-return correlation of 0.36, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CAF and VOO?
CAF and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 574 unique securities.
Which pays a higher dividend, CAF or VOO?
CAF yields 1.17% while VOO yields 1.08%, so CAF currently pays the higher dividend yield.
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