TDF vs. CAF
TDF (Templeton Dragon Fund Inc.) and CAF (Morgan Stanley China A Share Fund) are both China Equities funds. Over the past 10 years, TDF returned 5.09%/yr vs 5.97%/yr for CAF. A 0.64 correlation means they provide meaningful diversification when combined.
Performance
TDF vs. CAF - Performance Comparison
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Returns By Period
In the year-to-date period, TDF achieves a 0.50% return, which is significantly lower than CAF's 15.09% return. Over the past 10 years, TDF has underperformed CAF with an annualized return of 5.09%, while CAF has yielded a comparatively higher 5.97% annualized return.
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
- 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 vs. CAF - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
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% |
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% |
Correlation
The correlation between TDF and CAF 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 TDF and CAF has been stable across timeframes, ranging from 0.64 to 0.72 - a consistent structural relationship.
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Return for Risk
TDF vs. CAF — Risk / Return Rank
TDF
CAF
TDF vs. CAF - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Templeton Dragon Fund Inc. (TDF) 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.
| TDF | CAF | 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 | 1.20 | 1.51 | -0.30 |
| Calmar ratioReturn relative to maximum drawdown | 1.43 | 4.82 | -3.40 |
| Martin ratioReturn relative to average drawdown | 3.99 | 15.07 | -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
| TDF | CAF | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 1.08 | 2.86 | -1.78 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.32 | -0.05 | -0.27 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.21 | 0.27 | -0.06 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.29 | 0.28 | +0.01 |
Drawdowns
TDF vs. CAF - Drawdown Comparison
The maximum TDF drawdown since its inception was -68.15%, roughly equal to the maximum CAF drawdown of -65.88%. Use the drawdown chart below to compare losses from any high point for TDF and CAF.
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Drawdown Indicators
| TDF | CAF | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -68.15% | -65.88% | -2.27% |
Max Drawdown (1Y)Largest decline over 1 year | -13.95% | -10.98% | -2.97% |
Max Drawdown (3Y)Largest decline over 3 years | -28.25% | -26.27% | -1.98% |
Max Drawdown (5Y)Largest decline over 5 years | -61.85% | -49.01% | -12.84% |
Max Drawdown (10Y)Largest decline over 10 years | -66.87% | -49.01% | -17.86% |
Current DrawdownCurrent decline from peak | -45.44% | -5.72% | -39.72% |
Average DrawdownAverage peak-to-trough decline | -22.57% | -25.92% | +3.35% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.97% | 3.51% | +1.46% |
Volatility
TDF vs. CAF - Volatility Comparison
Templeton Dragon Fund Inc. (TDF) has a higher volatility of 6.56% compared to Morgan Stanley China A Share Fund (CAF) at 6.11%. This indicates that TDF'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.
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Volatility by Period
| TDF | CAF | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.56% | 6.11% | +0.45% |
Volatility (6M)Calculated over the trailing 6-month period | 12.67% | 13.72% | -1.05% |
Volatility (1Y)Calculated over the trailing 1-year period | 18.42% | 18.54% | -0.12% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 27.19% | 21.46% | +5.73% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.95% | 21.88% | +2.07% |
Dividends
TDF vs. CAF - Dividend Comparison
TDF's dividend yield for the trailing twelve months is around 3.57%, more than CAF's 1.32% 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
TDF and CAF 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, TDF dropped -68.15% vs CAF's -65.88%.
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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