CAF vs VYM
Morgan Stanley China A Share Fund vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. CAF delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | CAF | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 1.75% | 0.04% | |
| AUM | - | $81.6B | |
| Dividend Yield | 1.17% | 2.24% | |
| Holdings | 69 | 616 | |
| YTD Return | +8.89% | +16.42% | |
| 1Y Return | +37.90% | +24.22% | |
| 3Y Return (annualized) | +17.52% | +19.03% | |
| 5Y Return (annualized) | +0.13% | +12.21% | |
| Volatility (annualized) | 30.2% | 14.6% | |
| Max Drawdown | -65.9% | -58.8% | |
| Fund Family | Morgan Stanley Investment Management | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Sep 28, 2006 | Nov 10, 2006 |
CAF vs VYM Performance
Morgan Stanley China A Share Fund (CAF) is a ETF from Morgan Stanley Investment Management and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year CAF returned +37.90% while VYM returned +24.22%. Year to date, CAF is up 8.89% versus a gain of 16.42% for VYM.
Over three years, CAF compounded at +17.52% per year against +19.03% for VYM; over five years the annualized figures are +0.13% and +12.21% respectively. Across the full 20-year window we track, CAF has the edge at +10.06% annualized vs +7.10%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.33. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
CAF charges 1.75% per year while VYM charges 0.04%. On a $10,000 position that is $175 vs $4 annually, a gap of $171 per year that compounds over a long holding period. On income, CAF currently yields 1.17% against 2.24% for VYM.
Holdings Overlap
CAF and VYM share 0 holdings out of 672 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 VYM?
CAF has an expense ratio of 1.75% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $171 per year of difference.
Which performed better, CAF or VYM?
Over the past year CAF returned +37.90% vs +24.22% for VYM, so CAF leads on 1-year performance. Over the longest common window we track (20 years), CAF annualized +10.06% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, CAF or VYM?
CAF has been the more volatile fund at 30.2% annualized versus 14.6% for VYM. Worst drawdown: CAF -65.9% vs VYM -58.8%.
Should I hold both CAF and VYM?
CAF and VYM have a monthly-return correlation of 0.33, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between CAF and VYM?
CAF and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 672 unique securities.
Which pays a higher dividend, CAF or VYM?
CAF yields 1.17% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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