KEM vs VYM
KraneShares Dynamic Emerging Markets Strategy ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | KEM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.47% | 0.04% | |
| AUM | $1M | $81.6B | |
| Dividend Yield | 2.56% | 2.24% | |
| Holdings | 3 | 616 | |
| YTD Return | +6.57% | +16.42% | |
| 1Y Return | +2.35% | +24.22% | |
| 3Y Return (annualized) | - | +19.03% | |
| 5Y Return (annualized) | - | +12.21% | |
| Volatility (annualized) | 13.5% | 14.6% | |
| Max Drawdown | -25.7% | -58.8% | |
| Fund Family | KraneShares | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Aug 25, 2023 | Nov 10, 2006 |
KEM vs VYM Performance
KraneShares Dynamic Emerging Markets Strategy ETF (KEM) is a ETF from KraneShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year KEM returned +2.35% while VYM returned +24.22%. Year to date, KEM is up 6.57% versus a gain of 16.42% for VYM.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -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 0.30. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
KEM charges 0.47% per year while VYM charges 0.04%. On a $10,000 position that is $47 vs $4 annually, a gap of $43 per year that compounds over a long holding period. On income, KEM currently yields 2.56% against 2.24% for VYM.
Frequently Asked Questions
Which is cheaper, KEM or VYM?
KEM has an expense ratio of 0.47% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $43 per year of difference.
Which performed better, KEM or VYM?
Over the past year KEM returned +2.35% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (2 years), KEM annualized +5.73% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, KEM or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.5% for KEM. Worst drawdown: KEM -25.7% vs VYM -58.8%.
Should I hold both KEM and VYM?
KEM and VYM have a monthly-return correlation of 0.30, so combining them can provide real diversification depending on your allocation goals.
Which pays a higher dividend, KEM or VYM?
KEM yields 2.56% while VYM yields 2.24%, so KEM currently pays the higher dividend yield.
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