MCHFX vs. CAF

Last updated Jun 3, 2026

MCHFX (Matthews China Fund) and CAF (Morgan Stanley China A Share Fund) are both China Equities funds. Over the past 10 years, MCHFX returned 7.18%/yr vs 6.05%/yr for CAF. A 0.66 correlation means they provide meaningful diversification when combined. MCHFX charges 1.12%/yr vs 1.67%/yr for CAF.

Performance

MCHFX vs. CAF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Matthews China Fund (MCHFX) and Morgan Stanley China A Share Fund (CAF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MCHFX achieves a -0.58% return, which is significantly lower than CAF's 15.96% return. Over the past 10 years, MCHFX has outperformed CAF with an annualized return of 7.18%, while CAF has yielded a comparatively lower 6.05% annualized return.

MCHFX

• 1D: -0.93%
• 1M: 1.12%
• YTD: -0.58%
• 6M: -1.33%
• 1Y: 22.59%
• 3Y*: 11.42%
• 5Y*: -7.02%
• 10Y*: 7.18%

CAF

• 1D: 0.80%
• 1M: 6.45%
• YTD: 15.96%
• 6M: 27.70%
• 1Y: 54.89%
• 3Y*: 17.29%
• 5Y*: -0.88%
• 10Y*: 6.05%

*Multi-year figures are annualized to reflect compound growth (CAGR)

MCHFX vs. CAF - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
MCHFX Matthews China Fund	-0.58%	29.82%	17.84%	-19.21%	-24.38%	-19.41%	43.07%	34.57%	-21.17%	59.08%
CAF Morgan Stanley China A Share Fund	15.96%	41.51%	0.34%	-9.39%	-30.41%	-1.77%	12.74%	23.50%	-14.26%	44.94%

Correlation

The correlation between MCHFX and CAF is 0.66, 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	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.70
Correlation (5Y) Calculated over the trailing 5-year period	0.73
Correlation (10Y) Calculated over the trailing 10-year period	0.69
Correlation (All Time) Calculated using the full available price history since Sep 29, 2006	0.66

The correlation between MCHFX and CAF has been stable across timeframes, ranging from 0.66 to 0.73 - a consistent structural relationship.

Return for Risk

MCHFX vs. CAF — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

MCHFX

MCHFX Risk / Return Rank: 15
MCHFX Sharpe Ratio Rank: 17
MCHFX Sortino Ratio Rank: 18
MCHFX Omega Ratio Rank: 17
MCHFX Calmar Ratio Rank: 13
MCHFX Martin Ratio Rank: 11

CAF

CAF Risk / Return Rank: 87
CAF Sharpe Ratio Rank: 90
CAF Sortino Ratio Rank: 84
CAF Omega Ratio Rank: 80
CAF Calmar Ratio Rank: 93
CAF Martin Ratio Rank: 86

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

MCHFX vs. CAF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Matthews China Fund (MCHFX) and Morgan Stanley China A Share Fund (CAF). 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.

	MCHFX	CAF	Difference
Sharpe ratio Return per unit of total volatility	1.22	2.98	-1.76
Sortino ratio Return per unit of downside risk	1.82	3.99	-2.17
Omega ratio Gain probability vs. loss probability	1.22	1.53	-0.31
Calmar ratio Return relative to maximum drawdown	1.26	5.22	-3.96
Martin ratio Return relative to average drawdown	3.42	16.34	-12.92
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

MCHFX vs. CAF - Sharpe Ratio Comparison

The current MCHFX Sharpe Ratio is 1.22, which is lower than the CAF Sharpe Ratio of 2.98. The chart below compares the historical Sharpe Ratios of MCHFX and CAF, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	MCHFX	CAF	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.22	2.98	-1.76
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.24	-0.04	-0.20
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.27	0.28	-0.01
Sharpe Ratio (All Time) Calculated using the full available price history	0.31	0.28	+0.03

Drawdowns

MCHFX vs. CAF - Drawdown Comparison

The maximum MCHFX drawdown since its inception was -67.02%, roughly equal to the maximum CAF drawdown of -65.88%. Use the drawdown chart below to compare losses from any high point for MCHFX and CAF.

Drawdown Indicators

	MCHFX	CAF	Difference
Max Drawdown Largest peak-to-trough decline	-67.02%	-65.88%	-1.14%
Max Drawdown (1Y) Largest decline over 1 year	-15.58%	-10.98%	-4.60%
Max Drawdown (3Y) Largest decline over 3 years	-27.77%	-26.27%	-1.50%
Max Drawdown (5Y) Largest decline over 5 years	-59.96%	-49.01%	-10.95%
Max Drawdown (10Y) Largest decline over 10 years	-64.75%	-49.01%	-15.74%
Current Drawdown Current decline from peak	-38.68%	-5.01%	-33.67%
Average Drawdown Average peak-to-trough decline	-22.10%	-25.92%	+3.82%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.75%	3.51%	+2.24%

Volatility

MCHFX vs. CAF - Volatility Comparison

Matthews China Fund (MCHFX) has a higher volatility of 6.67% compared to Morgan Stanley China A Share Fund (CAF) at 6.05%. This indicates that MCHFX's price experiences larger fluctuations and is considered to be riskier than CAF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MCHFX	CAF	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.67%	6.05%	+0.62%
Volatility (6M) Calculated over the trailing 6-month period	14.83%	13.71%	+1.12%
Volatility (1Y) Calculated over the trailing 1-year period	19.73%	18.57%	+1.16%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.93%	21.46%	+8.47%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	26.62%	21.88%	+4.74%

MCHFX vs. CAF - Expense Ratio Comparison

MCHFX has a 1.12% expense ratio, which is lower than CAF's 1.67% expense ratio.

Dividends

MCHFX vs. CAF - Dividend Comparison

MCHFX's dividend yield for the trailing twelve months is around 1.36%, more than CAF's 1.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
CAF Morgan Stanley China A Share Fund	1.31%	1.51%	2.63%	0.96%	0.02%	6.57%	10.40%	3.78%	9.48%	5.20%	4.69%	67.03%
MCHFX Matthews China Fund	1.36%	1.36%	1.91%	0.78%	7.53%	6.54%	1.25%	1.12%	22.28%	10.31%	13.66%	19.24%

Frequently Asked Questions

Can I hold both MCHFX and CAF in my portfolio?

MCHFX and CAF have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MCHFX or CAF?

MCHFX has higher volatility (6.67%) compared to CAF (6.05%). In terms of maximum drawdown, MCHFX dropped -67.02% vs CAF's -65.88%.

Which has better risk-adjusted returns?

CAF currently has the higher Sharpe Ratio (2.98 vs 1.22), 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.