CAF vs. TDF
CAF (Morgan Stanley China A Share Fund) and TDF (Templeton Dragon Fund Inc.) are both China Equities funds. Over the past 10 years, CAF returned 5.97%/yr vs 5.09%/yr for TDF. A 0.64 correlation means they provide meaningful diversification when combined.
Performance
CAF vs. TDF - Performance Comparison
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Returns By Period
In the year-to-date period, CAF achieves a 15.09% return, which is significantly higher than TDF's 0.50% return. Over the past 10 years, CAF has outperformed TDF with an annualized return of 5.97%, while TDF has yielded a comparatively lower 5.09% annualized return.
CAF
- 1D
- -0.75%
- 1M
- 4.77%
- YTD
- 15.09%
- 6M
- 27.15%
- 1Y
- 52.69%
- 3Y*
- 17.00%
- 5Y*
- -1.17%
- 10Y*
- 5.97%
TDF
- 1D
- -2.01%
- 1M
- -0.09%
- YTD
- 0.50%
- 6M
- 1.49%
- 1Y
- 19.80%
- 3Y*
- 8.21%
- 5Y*
- -8.66%
- 10Y*
- 5.09%
CAF vs. TDF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
CAF Morgan Stanley China A Share Fund | 15.09% | 41.51% | 0.34% | -9.39% | -30.41% | -1.77% | 12.74% | 23.50% | -14.26% | 44.94% |
TDF Templeton Dragon Fund Inc. | 0.50% | 37.70% | 5.44% | -20.06% | -32.93% | -18.02% | 52.98% | 27.97% | -11.80% | 42.09% |
Correlation
The correlation between CAF and TDF is 0.64, 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 | 0.64 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.71 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.72 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.67 |
Correlation (All Time) Calculated using the full available price history since Sep 29, 2006 | 0.64 |
The correlation between CAF and TDF has been stable across timeframes, ranging from 0.64 to 0.72 - a consistent structural relationship.
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Return for Risk
CAF vs. TDF — Risk / Return Rank
CAF
TDF
CAF vs. TDF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Morgan Stanley China A Share Fund (CAF) and Templeton Dragon Fund Inc. (TDF). 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.
| CAF | TDF | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.78 | ||
| Sortino ratioReturn per unit of downside risk | +2.20 | ||
| Omega ratioGain probability vs. loss probability | 1.51 | 1.20 | +0.30 |
| Calmar ratioReturn relative to maximum drawdown | 4.82 | 1.43 | +3.40 |
| Martin ratioReturn relative to average drawdown | 15.07 | 3.99 | +11.08 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| CAF | TDF | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 2.86 | 1.08 | +1.78 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.05 | -0.32 | +0.27 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.27 | 0.21 | +0.06 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.28 | 0.29 | -0.01 |
Drawdowns
CAF vs. TDF - Drawdown Comparison
The maximum CAF drawdown since its inception was -65.88%, roughly equal to the maximum TDF drawdown of -68.15%. Use the drawdown chart below to compare losses from any high point for CAF and TDF.
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Drawdown Indicators
| CAF | TDF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -65.88% | -68.15% | +2.27% |
Max Drawdown (1Y)Largest decline over 1 year | -10.98% | -13.95% | +2.97% |
Max Drawdown (3Y)Largest decline over 3 years | -26.27% | -28.25% | +1.98% |
Max Drawdown (5Y)Largest decline over 5 years | -49.01% | -61.85% | +12.84% |
Max Drawdown (10Y)Largest decline over 10 years | -49.01% | -66.87% | +17.86% |
Current DrawdownCurrent decline from peak | -5.72% | -45.44% | +39.72% |
Average DrawdownAverage peak-to-trough decline | -25.92% | -22.57% | -3.35% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.51% | 4.97% | -1.46% |
Volatility
CAF vs. TDF - Volatility Comparison
The current volatility for Morgan Stanley China A Share Fund (CAF) is 6.11%, while Templeton Dragon Fund Inc. (TDF) has a volatility of 6.56%. This indicates that CAF experiences smaller price fluctuations and is considered to be less risky than TDF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| CAF | TDF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.11% | 6.56% | -0.45% |
Volatility (6M)Calculated over the trailing 6-month period | 13.72% | 12.67% | +1.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.54% | 18.42% | +0.12% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.46% | 27.19% | -5.73% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 21.88% | 23.95% | -2.07% |
Dividends
CAF vs. TDF - Dividend Comparison
CAF's dividend yield for the trailing twelve months is around 1.32%, less than TDF's 3.57% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
CAF Morgan Stanley China A Share Fund | 1.32% | 1.51% | 2.63% | 0.96% | 0.02% | 6.57% | 10.40% | 3.78% | 9.48% | 5.20% | 4.69% | 67.03% |
TDF Templeton Dragon Fund Inc. | 3.57% | 3.55% | 1.36% | 0.00% | 12.73% | 14.13% | 24.72% | 10.75% | 12.43% | 7.95% | 10.34% | 22.49% |
Frequently Asked Questions
CAF and TDF have a correlation of 0.64, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
TDF has higher volatility (6.56%) compared to CAF (6.11%). In terms of maximum drawdown, CAF dropped -65.88% vs TDF's -68.15%.
CAF currently has the higher Sharpe Ratio (2.86 vs 1.08), 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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