CAF vs VXUS
Morgan Stanley China A Share Fund vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. CAF delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.
Side-by-Side Comparison
| Metric | CAF | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 1.75% | 0.05% | |
| AUM | - | $158.1B | |
| Dividend Yield | 1.17% | 2.59% | |
| Holdings | 69 | 8,747 | |
| YTD Return | +8.89% | +15.22% | |
| 1Y Return | +37.90% | +26.86% | |
| 3Y Return (annualized) | +17.52% | +20.34% | |
| 5Y Return (annualized) | +0.13% | +9.38% | |
| Volatility (annualized) | 30.2% | 15.1% | |
| Max Drawdown | -65.9% | -39.9% | |
| Fund Family | Morgan Stanley Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 28, 2006 | Jan 26, 2011 |
CAF vs VXUS Performance
Morgan Stanley China A Share Fund (CAF) is a ETF from Morgan Stanley Investment Management and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year CAF returned +37.90% while VXUS returned +26.86%. Year to date, CAF is up 8.89% versus a gain of 15.22% for VXUS.
Over three years, CAF compounded at +17.52% per year against +20.34% for VXUS; over five years the annualized figures are +0.13% and +9.38% respectively. Across the full 16-year window we track, CAF has the edge at +10.06% annualized vs +4.89%. 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 15.1% for VXUS. 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 -39.9% for VXUS. 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 0.49. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CAF charges 1.75% per year while VXUS charges 0.05%. On a $10,000 position that is $175 vs $5 annually, a gap of $170 per year that compounds over a long holding period. On income, CAF currently yields 1.17% against 2.59% for VXUS.
Holdings Overlap
CAF and VXUS share 46 holdings out of 7892 unique holdings combined, representing a 0.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, CAF or VXUS?
CAF has an expense ratio of 1.75% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $170 per year of difference.
Which performed better, CAF or VXUS?
Over the past year CAF returned +37.90% vs +26.86% for VXUS, so CAF leads on 1-year performance. Over the longest common window we track (16 years), CAF annualized +10.06% vs +4.89% for VXUS. Past performance does not guarantee future results.
Which is riskier, CAF or VXUS?
CAF has been the more volatile fund at 30.2% annualized versus 15.1% for VXUS. Worst drawdown: CAF -65.9% vs VXUS -39.9%.
Should I hold both CAF and VXUS?
CAF and VXUS have a monthly-return correlation of 0.49, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CAF and VXUS?
CAF and VXUS share 46 common holdings with a 0.2% weight overlap. Combined, they hold 7892 unique securities.
Which pays a higher dividend, CAF or VXUS?
CAF yields 1.17% while VXUS yields 2.59%, so VXUS currently pays the higher dividend yield.
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