CAF vs VTI
Morgan Stanley China A Share Fund vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. CAF delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | CAF | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 1.75% | 0.03% | |
| AUM | - | $666.9B | |
| Dividend Yield | 1.17% | 1.07% | |
| Holdings | 69 | 3,543 | |
| YTD Return | +8.89% | +14.82% | |
| 1Y Return | +37.90% | +22.43% | |
| 3Y Return (annualized) | +17.52% | +21.93% | |
| 5Y Return (annualized) | +0.13% | +12.34% | |
| Volatility (annualized) | 30.2% | 15.4% | |
| Max Drawdown | -65.9% | -56.6% | |
| Fund Family | Morgan Stanley Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 28, 2006 | May 24, 2001 |
CAF vs VTI Performance
Morgan Stanley China A Share Fund (CAF) is a ETF from Morgan Stanley Investment Management and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year CAF returned +37.90% while VTI returned +22.43%. Year to date, CAF is up 8.89% versus a gain of 14.82% for VTI.
Over three years, CAF compounded at +17.52% per year against +21.93% for VTI; over five years the annualized figures are +0.13% and +12.34% respectively. Across the full 20-year window we track, CAF has the edge at +10.06% annualized vs +8.16%. 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 15.4% for VTI. 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 -56.6% for VTI. 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 VTI 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 1.07% for VTI.
Holdings Overlap
CAF and VTI share 0 holdings out of 2856 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 VTI?
CAF has an expense ratio of 1.75% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $172 per year of difference.
Which performed better, CAF or VTI?
Over the past year CAF returned +37.90% vs +22.43% for VTI, so CAF leads on 1-year performance. Over the longest common window we track (20 years), CAF annualized +10.06% vs +8.16% for VTI. Past performance does not guarantee future results.
Which is riskier, CAF or VTI?
CAF has been the more volatile fund at 30.2% annualized versus 15.4% for VTI. Worst drawdown: CAF -65.9% vs VTI -56.6%.
Should I hold both CAF and VTI?
CAF and VTI 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 VTI?
CAF and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2856 unique securities.
Which pays a higher dividend, CAF or VTI?
CAF yields 1.17% while VTI yields 1.07%, so CAF currently pays the higher dividend yield.
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