AAXJ vs. BKEM

Last updated Jun 4, 2026

AAXJ (iShares MSCI All Country Asia ex-Japan ETF) and BKEM (BNY Mellon Emerging Markets Equity ETF) are both Asia Pacific Equities funds - AAXJ tracks the MSCI All Country Asia ex Japan Index while BKEM tracks the Morningstar Emerging Markets Large Cap Index. Both are passively managed. Over the past 5 years, AAXJ returned 7.04%/yr vs 7.37%/yr for BKEM. With a 0.97 correlation, they move nearly in lockstep. AAXJ charges 0.68%/yr vs 0.11%/yr for BKEM.

Performance

AAXJ vs. BKEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI All Country Asia ex-Japan ETF (AAXJ) and BNY Mellon Emerging Markets Equity ETF (BKEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with AAXJ having a 31.17% return and BKEM slightly lower at 30.24%.

AAXJ

• 1D: -1.06%
• 1M: 10.65%
• YTD: 31.17%
• 6M: 33.71%
• 1Y: 59.00%
• 3Y*: 24.49%
• 5Y*: 7.04%
• 10Y*: 10.50%

BKEM

• 1D: -0.95%
• 1M: 8.75%
• YTD: 30.24%
• 6M: 32.64%
• 1Y: 57.21%
• 3Y*: 24.11%
• 5Y*: 7.37%
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

AAXJ vs. BKEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
AAXJ iShares MSCI All Country Asia ex-Japan ETF	31.17%	31.53%	10.41%	4.79%	-20.35%	-5.73%	44.49%
BKEM BNY Mellon Emerging Markets Equity ETF	30.24%	30.55%	7.53%	8.68%	-19.43%	-3.91%	47.53%

Correlation

The correlation between AAXJ and BKEM is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (All Time) Calculated using the full available price history since Apr 27, 2020	0.97

The correlation between AAXJ and BKEM has been stable across timeframes, ranging from 0.96 to 0.97 - a consistent structural relationship.

AAXJ vs. BKEM - Sectors Allocation Comparison

Sectors	AAXJ	BKEM
Technology	41.6%	35.9%
Financial Services	17.7%	18.9%
Consumer Cyclical	10.3%	9.7%
Industrials	8.3%	9.0%
Communication Services	6.9%	6.6%
Basic Materials	3.5%	6.4%
Healthcare	3.0%	3.2%
Energy	2.7%	4.0%
Consumer Defensive	2.4%	2.9%
Utilities	1.8%	2.3%
Real Estate	1.7%	1.2%

Return for Risk

AAXJ vs. BKEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AAXJ

AAXJ Risk / Return Rank: 84
AAXJ Sharpe Ratio Rank: 87
AAXJ Sortino Ratio Rank: 83
AAXJ Omega Ratio Rank: 85
AAXJ Calmar Ratio Rank: 82
AAXJ Martin Ratio Rank: 82

BKEM

BKEM Risk / Return Rank: 84
BKEM Sharpe Ratio Rank: 87
BKEM Sortino Ratio Rank: 84
BKEM Omega Ratio Rank: 84
BKEM Calmar Ratio Rank: 83
BKEM Martin Ratio Rank: 83

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AAXJ vs. BKEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI All Country Asia ex-Japan ETF (AAXJ) and BNY Mellon Emerging Markets Equity ETF (BKEM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	AAXJ	BKEM	Difference
Sharpe ratio: Return per unit of total volatility	2.93	2.95	-0.03
Sortino ratio: Return per unit of downside risk	3.77	3.83	-0.05
Omega ratio: Gain probability vs. loss probability	1.53	1.52	+0.01
Calmar ratio: Return relative to maximum drawdown	4.34	4.39	-0.05
Martin ratio: Return relative to average drawdown	16.76	16.85	-0.08
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AAXJ vs. BKEM - Sharpe Ratio Comparison

The current AAXJ Sharpe Ratio is 2.93, which is comparable to the BKEM Sharpe Ratio of 2.95. The chart below compares the historical Sharpe Ratios of AAXJ and BKEM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	AAXJ	BKEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.93	2.95	-0.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.35	0.40	-0.04
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.28	0.75	-0.47

Drawdowns

AAXJ vs. BKEM - Drawdown Comparison

The maximum AAXJ drawdown since its inception was -49.37%, which is greater than BKEM's maximum drawdown of -39.48%. Use the drawdown chart below to compare losses from any high point for AAXJ and BKEM.

Drawdown Indicators

	AAXJ	BKEM	Difference
Max Drawdown Largest peak-to-trough decline	-49.37%	-39.48%	-9.89%
Max Drawdown (1Y) Largest decline over 1 year	-13.66%	-13.11%	-0.55%
Max Drawdown (3Y) Largest decline over 3 years	-19.74%	-18.38%	-1.36%
Max Drawdown (5Y) Largest decline over 5 years	-40.74%	-36.53%	-4.21%
Max Drawdown (10Y) Largest decline over 10 years	-44.52%	—	—
Current Drawdown Current decline from peak	-1.06%	-0.95%	-0.11%
Average Drawdown Average peak-to-trough decline	-14.03%	-16.00%	+1.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.53%	3.41%	+0.12%

Volatility

AAXJ vs. BKEM - Volatility Comparison

iShares MSCI All Country Asia ex-Japan ETF (AAXJ) has a higher volatility of 8.93% compared to BNY Mellon Emerging Markets Equity ETF (BKEM) at 8.10%. This indicates that AAXJ's price experiences larger fluctuations and is considered to be riskier than BKEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAXJ	BKEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.93%	8.10%	+0.83%
Volatility (6M) Calculated over the trailing 6-month period	17.46%	16.75%	+0.71%
Volatility (1Y) Calculated over the trailing 1-year period	20.25%	19.46%	+0.79%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.94%	18.73%	+1.21%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.25%	19.12%	+1.13%

AAXJ vs. BKEM - Expense Ratio Comparison

AAXJ has a 0.68% expense ratio, which is higher than BKEM's 0.11% expense ratio.

Dividends

AAXJ vs. BKEM - Dividend Comparison

AAXJ's dividend yield for the trailing twelve months is around 1.38%, less than BKEM's 1.45% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAXJ iShares MSCI All Country Asia ex-Japan ETF	1.38%	1.81%	1.86%	1.95%	1.74%	2.21%	1.06%	1.83%	2.10%	1.99%	1.77%	2.44%
BKEM BNY Mellon Emerging Markets Equity ETF	1.45%	2.25%	2.76%	3.02%	3.15%	2.22%	1.78%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both AAXJ and BKEM in my portfolio?

With a correlation of 0.96, AAXJ and BKEM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, AAXJ or BKEM?

AAXJ has higher volatility (8.93%) compared to BKEM (8.10%). In terms of maximum drawdown, AAXJ dropped -49.37% vs BKEM's -39.48%.

Which ETF is better, AAXJ or BKEM?

On 5-year performance, BKEM leads with 7.37% vs 7.04% for AAXJ. On fees, BKEM is cheaper at 0.11% per year. On volatility, BKEM has been the lower-risk option at 8.10%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AAXJ or BKEM?

Over the 5-year period, BKEM has performed better with a 7.37% return vs 7.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AAXJ or BKEM?

BKEM is cheaper with a 0.11% expense ratio, compared with 0.68% for AAXJ.

Which ETF pays a higher dividend yield, AAXJ or BKEM?

BKEM has the higher dividend yield at 1.45%, compared with 1.38% for AAXJ.

What is the main difference between AAXJ and BKEM?

AAXJ tracks MSCI All Country Asia ex Japan Index, while BKEM tracks Morningstar Emerging Markets Large Cap Index. They also come from different issuers: iShares and BNY Mellon. Their fees differ too: 0.68% for AAXJ and 0.11% for BKEM.

Which has better risk-adjusted returns?

BKEM currently has the higher Sharpe Ratio (2.95 vs 2.93), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.