KEM vs VXUS
KraneShares Dynamic Emerging Markets Strategy ETF vs Vanguard Total International Stock ETF
Quick Verdict
VXUS has a lower expense ratio. VXUS delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.
Side-by-Side Comparison
| Metric | KEM | VXUS | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.05% | |
| AUM | $1M | $158.1B | |
| Dividend Yield | 2.56% | 2.59% | |
| Holdings | 3 | 8,747 | |
| YTD Return | +6.57% | +13.56% | |
| 1Y Return | +2.35% | +24.30% | |
| 3Y Return (annualized) | - | +20.24% | |
| 5Y Return (annualized) | - | +9.37% | |
| Volatility (annualized) | 13.5% | 15.1% | |
| Max Drawdown | -25.7% | -39.9% | |
| Fund Family | KraneShares | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 25, 2023 | Jan 26, 2011 |
KEM vs VXUS Performance
KraneShares Dynamic Emerging Markets Strategy ETF (KEM) is a ETF from KraneShares and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year KEM returned +2.35% while VXUS returned +24.30%. Year to date, KEM is up 6.57% versus a gain of 13.56% for VXUS.
Risk: Volatility and Drawdowns
VXUS has been the more volatile fund, with annualized monthly volatility of 15.1% 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 -39.9% for VXUS. 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 0.56. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KEM charges 0.47% per year while VXUS charges 0.05%. On a $10,000 position that is $47 vs $5 annually, a gap of $42 per year that compounds over a long holding period. On income, KEM currently yields 2.56% against 2.59% for VXUS.
Frequently Asked Questions
Which is cheaper, KEM or VXUS?
KEM has an expense ratio of 0.47% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $42 per year of difference.
Which performed better, KEM or VXUS?
Over the past year KEM returned +2.35% vs +24.30% for VXUS, so VXUS leads on 1-year performance. Over the longest common window we track (2 years), KEM annualized +5.73% vs +4.79% for VXUS. Past performance does not guarantee future results.
Which is riskier, KEM or VXUS?
VXUS has been the more volatile fund at 15.1% annualized versus 13.5% for KEM. Worst drawdown: KEM -25.7% vs VXUS -39.9%.
Should I hold both KEM and VXUS?
KEM and VXUS have a monthly-return correlation of 0.56, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, KEM or VXUS?
KEM yields 2.56% while VXUS yields 2.59%, so VXUS currently pays the higher dividend yield.
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