KEM vs SCHD
KraneShares Dynamic Emerging Markets Strategy ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. SCHD offers more diversification with 104 holdings.
Side-by-Side Comparison
| Metric | KEM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.06% | |
| AUM | $1M | $108.7B | |
| Dividend Yield | 2.56% | 3.13% | |
| Holdings | 3 | 104 | |
| YTD Return | +6.57% | +27.67% | |
| 1Y Return | +2.35% | +31.26% | |
| 3Y Return (annualized) | - | +16.66% | |
| 5Y Return (annualized) | - | +10.18% | |
| Volatility (annualized) | 13.5% | 13.6% | |
| Max Drawdown | -25.7% | -33.4% | |
| Fund Family | KraneShares | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Aug 25, 2023 | Oct 20, 2011 |
KEM vs SCHD Performance
KraneShares Dynamic Emerging Markets Strategy ETF (KEM) is a ETF from KraneShares and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year KEM returned +2.35% while SCHD returned +31.26%. Year to date, KEM is up 6.57% versus a gain of 27.67% for SCHD.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 13.5% for KEM. 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 -25.7% for KEM and -33.4% for SCHD. 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 0.31. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KEM charges 0.47% per year while SCHD charges 0.06%. On a $10,000 position that is $47 vs $6 annually, a gap of $41 per year that compounds over a long holding period. On income, KEM currently yields 2.56% against 3.13% for SCHD.
Frequently Asked Questions
Which is cheaper, KEM or SCHD?
KEM has an expense ratio of 0.47% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $41 per year of difference.
Which performed better, KEM or SCHD?
Over the past year KEM returned +2.35% vs +31.26% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (2 years), KEM annualized +5.73% vs +11.57% for SCHD. Past performance does not guarantee future results.
Which is riskier, KEM or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 13.5% for KEM. Worst drawdown: KEM -25.7% vs SCHD -33.4%.
Should I hold both KEM and SCHD?
KEM and SCHD have a monthly-return correlation of 0.31, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, KEM or SCHD?
KEM yields 2.56% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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