CAF vs. MCHI
CAF (Morgan Stanley China A Share Fund) and MCHI (iShares MSCI China ETF) are both China Equities funds. CAF is actively managed, while MCHI is passively managed. Over the past 10 years, CAF returned 5.91%/yr vs 3.59%/yr for MCHI. A 0.68 correlation means they provide meaningful diversification when combined. CAF charges 1.67%/yr vs 0.59%/yr for MCHI.
Performance
CAF vs. MCHI - Performance Comparison
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Returns By Period
In the year-to-date period, CAF achieves a 19.07% return, which is significantly higher than MCHI's -11.97% return. Over the past 10 years, CAF has outperformed MCHI with an annualized return of 5.91%, while MCHI has yielded a comparatively lower 3.59% annualized return.
CAF
- 1D
- -2.50%
- 1M
- 6.05%
- 6M
- 13.45%
- YTD
- 19.07%
- 1Y
- 49.42%
- 3Y*
- 19.27%
- 5Y*
- 0.83%
- 10Y*
- 5.91%
MCHI
- 1D
- -1.13%
- 1M
- -3.56%
- 6M
- -17.71%
- YTD
- -11.97%
- 1Y
- -2.59%
- 3Y*
- 6.72%
- 5Y*
- -5.74%
- 10Y*
- 3.59%
CAF vs. MCHI - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
CAF Morgan Stanley China A Share Fund | 19.07% | 41.51% | 0.34% | -9.39% | -30.41% | -1.77% | 12.74% | 23.50% | -14.26% | 44.94% |
MCHI iShares MSCI China ETF | -11.97% | 31.04% | 17.73% | -11.94% | -23.01% | -21.74% | 27.78% | 23.72% | -19.79% | 54.67% |
Correlation
The correlation between CAF and MCHI is 0.65, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.65 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.68 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.71 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.68 |
Correlation (All Time) Calculated using the full available price history since Mar 31, 2011 | 0.68 |
The correlation between CAF and MCHI has been stable across timeframes, ranging from 0.65 to 0.71 - a consistent structural relationship.
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Return for Risk
CAF vs. MCHI — Risk / Return Rank
CAF
MCHI
CAF vs. MCHI - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Morgan Stanley China A Share Fund (CAF) and iShares MSCI China ETF (MCHI). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.
| CAF | MCHI | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +2.62 | ||
| Sortino ratioReturn per unit of downside risk | +3.40 | ||
| Omega ratioGain probability vs. loss probability | 1.44 | 1.00 | +0.44 |
| Calmar ratioReturn relative to maximum drawdown | 4.52 | -0.11 | +4.64 |
| Martin ratioReturn relative to average drawdown | 13.60 | -0.25 | +13.85 |
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Drawdowns
CAF vs. MCHI - Drawdown Comparison
The maximum CAF drawdown since its inception was -65.88%, roughly equal to the maximum MCHI drawdown of -62.95%. Use the drawdown chart below to compare losses from any high point for CAF and MCHI.
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Drawdown Indicators
| CAF | MCHI | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -65.88% | -62.95% | -2.93% |
Max Drawdown (1Y)Largest decline over 1 year | -10.98% | -23.22% | +12.24% |
Max Drawdown (3Y)Largest decline over 3 years | -26.27% | -25.85% | -0.42% |
Max Drawdown (5Y)Largest decline over 5 years | -45.77% | -54.50% | +8.73% |
Max Drawdown (10Y)Largest decline over 10 years | -49.01% | -62.95% | +13.94% |
Current DrawdownCurrent decline from peak | -3.09% | -39.97% | +36.88% |
Average DrawdownAverage peak-to-trough decline | -25.80% | -24.62% | -1.18% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.64% | 10.47% | -6.83% |
Volatility
CAF vs. MCHI - Volatility Comparison
Morgan Stanley China A Share Fund (CAF) has a higher volatility of 7.86% compared to iShares MSCI China ETF (MCHI) at 5.47%. This indicates that CAF's price experiences larger fluctuations and is considered to be riskier than MCHI based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| CAF | MCHI | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 7.86% | 5.47% | +2.39% |
Volatility (6M)Calculated over the trailing 6-month period | 14.05% | 14.72% | -0.67% |
Volatility (1Y)Calculated over the trailing 1-year period | 19.95% | 20.46% | -0.51% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.71% | 30.69% | -8.98% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.89% | 27.33% | -5.44% |
CAF vs. MCHI - Expense Ratio Comparison
CAF has a 1.67% expense ratio, which is higher than MCHI's 0.59% expense ratio.
Dividends
CAF vs. MCHI - Dividend Comparison
CAF's dividend yield for the trailing twelve months is around 1.27%, less than MCHI's 2.09% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CAF Morgan Stanley China A Share Fund | 1.27% | 1.51% | 2.63% | 0.96% | 0.02% | 6.57% | 10.40% | 3.78% | 9.48% | 5.20% | 4.69% | 67.03% |
MCHI iShares MSCI China ETF | 2.09% | 2.12% | 2.31% | 2.66% | 1.78% | 1.04% | 1.04% | 1.45% | 1.60% | 1.56% | 1.66% | 2.76% |
Frequently Asked Questions
CAF and MCHI have a correlation of 0.65, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
CAF has higher volatility (7.86%) compared to MCHI (5.47%). In terms of maximum drawdown, CAF dropped -65.88% vs MCHI's -62.95%.
CAF currently has the higher Sharpe Ratio (2.49 vs -0.13), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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