CAF vs VWO: Correlation
How closely do Morgan Stanley China A Share Fund Inc. (CAF) and Vanguard FTSE Emerging Markets ETF (VWO) trade together? Their weekly returns over three years give a correlation of 0.58, which is moderate.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are CAF and VWO?
Across a 3-year window, the weekly returns of CAF and VWO correlate at 0.58, moderate. Little has changed lately, as the 1-year reading of 0.50 lands near the 3-year figure. Stretching to 5 years gives 0.63, with an annualized covariance of 181.0 %².
Within CAF's tracked universe of 14 assets, VWO comes in at #4 by 3-year correlation. Over the last 12 months CAF came out ahead by 8.1 percentage points (+29.7% against +21.6%).
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
CAF vs VWO: side by side
| CAF (Morgan Stanley China A Share Fund Inc.) | VWO (Vanguard FTSE Emerging Markets ETF) | |
|---|---|---|
| 1-year return | +29.7% | +21.6% |
| 5-year return | +4.1% | +38.2% |
| Volatility (ann.) | 20.4% | 15.2% |
| Beta vs S&P 500 | 0.48 | 0.75 |
| Max drawdown (3Y) | -26.3% | -17.4% |
| Market cap | $0.3B | – |
| P/E (trailing) | 4.6 | – |
| Dividend yield | 0.00% | 2.36% |
| Expense ratio | – | 0.06% |
| Assets under management | – | $162.0B |
| Sector / category | US Listed | ETF · International |
On the fund side, VWO sits in the Diversified Emerging Mkts category at Vanguard, with $162.0B under management, 4113 holdings, a 0.06% expense ratio, a 2.36% trailing dividend yield.
Year-by-year returns
| Year | CAF | VWO |
|---|---|---|
| 2022 | -30.4% | -18.0% |
| 2023 | -9.4% | +9.3% |
| 2024 | +0.3% | +10.6% |
| 2025 | +41.5% | +25.6% |
| 2026 | +9.7% | +13.6% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are CAF and VWO good diversifiers for each other?
Only partially. A correlation of 0.58 means CAF and VWO share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between CAF and VWO?
The CAF/VWO correlation stands at 0.58 on a 3-year window (1 year: 0.50, 5 years: 0.63), computed from weekly returns as of 2026-08-27.
Is VWO a good diversifier for CAF?
Only partially. A correlation of 0.58 means CAF and VWO share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
What does a correlation of 0.58 mean?
On the −1 to +1 scale, 0.58 describes how much the two returns move together: +1 is lockstep, 0 is independence, negative values mean opposite directions. It says nothing about which performed better.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/caf-vs-vwo.json
Drop this badge in a README or notebook; it updates with the data:
[](https://www.pairbook.io/pair/caf-vs-vwo/)
Free with attribution; caching and terms are described in the API documentation.
Related comparisons
Hubs: CAF correlations · VWO correlations
