Quick Verdict

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

Lower Fees: VYMHigher Returns: KSTRMore Diversified: VYM

Side-by-Side Comparison

MetricKSTRVYMWinner
Expense Ratio0.89%0.04%
AUM$398M$79.0B
Dividend Yield0.00%2.86%
Holdings53568
YTD Return+31.34%+15.80%
1Y Return+74.66%+26.12%
3Y Return (annualized)+21.96%+18.25%
5Y Return (annualized)-1.10%+12.51%
Volatility (annualized)2736.8%14.6%
Max Drawdown-99.8%-58.8%
Fund FamilyKraneSharesVanguard (US)
CategoryEquityEquity
InceptionJan 27, 2021Nov 10, 2006

KSTR vs VYM Performance

KraneShares China Technology & Semiconductor STAR 50 Index ETF (KSTR) is a ETF from KraneShares and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year KSTR returned +74.66% while VYM returned +26.12%. Year to date, KSTR is up 31.34% versus a gain of 15.80% for VYM.

Over three years, KSTR compounded at +21.96% per year against +18.25% for VYM; over five years the annualized figures are -1.10% and +12.51% respectively. Across the full 20-year window we track, VYM has the edge at +7.07% annualized vs -8.42%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

KSTR has been the more volatile fund, with annualized monthly volatility of 2736.8% 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 -99.8% for KSTR 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 0.20. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

KSTR charges 0.89% per year while VYM charges 0.04%. On a $10,000 position that is $89 vs $4 annually, a gap of $85 per year that compounds over a long holding period. On income, KSTR currently yields 0.00% against 2.86% for VYM.

Holdings Overlap

0.0%overlap

KSTR and VYM share 0 holdings out of 607 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Frequently Asked Questions

Which is cheaper, KSTR or VYM?

KSTR has an expense ratio of 0.89% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $85 per year of difference.

Which performed better, KSTR or VYM?

Over the past year KSTR returned +74.66% vs +26.12% for VYM, so KSTR leads on 1-year performance. Over the longest common window we track (20 years), KSTR annualized -8.42% vs +7.07% for VYM. Past performance does not guarantee future results.

Which is riskier, KSTR or VYM?

KSTR has been the more volatile fund at 2736.8% annualized versus 14.6% for VYM. Worst drawdown: KSTR -99.8% vs VYM -58.8%.

Should I hold both KSTR and VYM?

KSTR and VYM have a monthly-return correlation of 0.20, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between KSTR and VYM?

KSTR and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 607 unique securities.

Which pays a higher dividend, KSTR or VYM?

KSTR yields 0.00% while VYM yields 2.86%, so VYM currently pays the higher dividend yield.

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