KARS vs VYM

Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricKARSVYMWinner
Expense Ratio0.72%0.04%
AUM$76M$79.0B
Dividend Yield0.18%2.86%
Holdings87568
YTD Return-1.37%+15.80%
1Y Return+25.77%+26.12%
3Y Return (annualized)-0.50%+18.25%
5Y Return (annualized)-7.14%+12.51%
Volatility (annualized)28.6%14.6%
Max Drawdown-64.8%-58.8%
Fund FamilyKraneSharesVanguard (US)
CategoryEquityEquity
InceptionJan 18, 2018Nov 10, 2006

KARS vs VYM Performance

KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) is a ETF from KraneShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year KARS returned +25.77% while VYM returned +26.12%. Year to date, KARS is down 1.37% versus a gain of 15.80% for VYM.

Over three years, KARS compounded at -0.50% per year against +18.25% for VYM; over five years the annualized figures are -7.14% and +12.51% respectively. Across the full 9-year window we track, VYM has the edge at +7.07% annualized vs +3.94%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

KARS has been the more volatile fund, with annualized monthly volatility of 28.6% compared with 14.6% for VYM. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.

The deepest peak-to-trough decline in our data was -64.8% for KARS and -58.8% for VYM. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.

The two funds' monthly returns correlate at 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

KARS charges 0.72% per year while VYM charges 0.04%. On a $10,000 position that is $72 vs $4 annually, a gap of $68 per year that compounds over a long holding period. On income, KARS currently yields 0.18% against 2.86% for VYM.

Holdings Overlap

0.1%overlap

KARS and VYM share 1 holdings out of 636 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in KARSWeight in VYMDifference
ALB2.10%0.09%2.01%

Frequently Asked Questions

Which is cheaper, KARS or VYM?

KARS has an expense ratio of 0.72% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $68 per year of difference.

Which performed better, KARS or VYM?

Over the past year KARS returned +25.77% vs +26.12% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), KARS annualized +3.94% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, KARS or VYM?

KARS has been the more volatile fund at 28.6% annualized versus 14.6% for VYM. Worst drawdown: KARS -64.8% vs VYM -58.8%.

Should I hold both KARS and VYM?

KARS and VYM have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between KARS and VYM?

KARS and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 636 unique securities.

Which pays a higher dividend, KARS or VYM?

KARS yields 0.18% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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