KARS vs. EEM

Last updated Jun 4, 2026

KARS (KraneShares Electric Vehicles and Future Mobility Index ETF) and EEM (iShares MSCI Emerging Markets ETF) are both exchange-traded funds - KARS is a Industrials Equities fund tracking the Bloomberg Electric Vehicles Index, while EEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 5 years, KARS returned -2.35%/yr vs 7.01%/yr for EEM. A 0.74 correlation means they provide meaningful diversification when combined. Both charge a 0.72% expense ratio.

Performance

KARS vs. EEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) and iShares MSCI Emerging Markets ETF (EEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KARS achieves a 16.24% return, which is significantly lower than EEM's 27.80% return.

KARS

• 1D: -3.32%
• 1M: -3.27%
• YTD: 16.24%
• 6M: 17.45%
• 1Y: 69.84%
• 3Y*: 6.58%
• 5Y*: -2.35%
• 10Y*: —

EEM

• 1D: -1.24%
• 1M: 9.08%
• YTD: 27.80%
• 6M: 30.51%
• 1Y: 55.80%
• 3Y*: 23.95%
• 5Y*: 7.01%
• 10Y*: 9.93%

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

KARS vs. EEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
KARS KraneShares Electric Vehicles and Future Mobility Index ETF	16.24%	46.04%	-17.88%	-7.85%	-39.20%	24.11%	71.17%	34.66%	-28.33%
EEM iShares MSCI Emerging Markets ETF	27.80%	33.98%	6.49%	8.95%	-20.56%	-3.63%	17.02%	18.22%	-20.89%

Correlation

The correlation between KARS and EEM is 0.69, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.69
Correlation (3Y) Calculated over the trailing 3-year period	0.71
Correlation (5Y) Calculated over the trailing 5-year period	0.74
Correlation (All Time) Calculated using the full available price history since Jan 22, 2018	0.74

The correlation between KARS and EEM has been stable across timeframes, ranging from 0.69 to 0.74 - a consistent structural relationship.

KARS vs. EEM - Sectors Allocation Comparison

Sectors	KARS	EEM
Consumer Cyclical	34.3%	8.1%
Basic Materials	26.6%	6.1%
Industrials	21.9%	6.2%
Technology	17.2%	43.6%
Communication Services	-	5.7%
Consumer Defensive	-	2.7%
Energy	-	3.3%
Financial Services	-	17.5%
Healthcare	-	2.5%
Real Estate	-	0.9%
Utilities	-	2.0%

Return for Risk

KARS vs. EEM — Risk / Return Rank

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

KARS

KARS Risk / Return Rank: 82
KARS Sharpe Ratio Rank: 82
KARS Sortino Ratio Rank: 73
KARS Omega Ratio Rank: 72
KARS Calmar Ratio Rank: 93
KARS Martin Ratio Rank: 88

EEM

EEM Risk / Return Rank: 81
EEM Sharpe Ratio Rank: 84
EEM Sortino Ratio Rank: 79
EEM Omega Ratio Rank: 83
EEM Calmar Ratio Rank: 79
EEM Martin Ratio Rank: 80

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.

KARS vs. EEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) and iShares MSCI Emerging Markets ETF (EEM). 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.

	KARS	EEM	Difference
Sharpe ratio: Return per unit of total volatility	2.71	2.81	-0.10
Sortino ratio: Return per unit of downside risk	3.33	3.62	-0.29
Omega ratio: Gain probability vs. loss probability	1.43	1.51	-0.08
Calmar ratio: Return relative to maximum drawdown	6.97	4.15	+2.82
Martin ratio: Return relative to average drawdown	19.68	15.99	+3.70
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KARS vs. EEM - Sharpe Ratio Comparison

The current KARS Sharpe Ratio is 2.71, which is comparable to the EEM Sharpe Ratio of 2.81. The chart below compares the historical Sharpe Ratios of KARS and EEM, 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

	KARS	EEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.71	2.81	-0.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.08	0.37	-0.45
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.49	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.20	0.38	-0.18

Drawdowns

KARS vs. EEM - Drawdown Comparison

The maximum KARS drawdown since its inception was -64.85%, roughly equal to the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for KARS and EEM.

Drawdown Indicators

	KARS	EEM	Difference
Max Drawdown Largest peak-to-trough decline	-64.85%	-66.43%	+1.58%
Max Drawdown (1Y) Largest decline over 1 year	-10.08%	-13.52%	+3.44%
Max Drawdown (3Y) Largest decline over 3 years	-47.79%	-17.29%	-30.50%
Max Drawdown (5Y) Largest decline over 5 years	-64.85%	-37.71%	-27.14%
Max Drawdown (10Y) Largest decline over 10 years	—	-39.82%	—
Current Drawdown Current decline from peak	-29.15%	-1.24%	-27.91%
Average Drawdown Average peak-to-trough decline	-28.32%	-16.02%	-12.30%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.56%	3.50%	+0.06%

Volatility

KARS vs. EEM - Volatility Comparison

KraneShares Electric Vehicles and Future Mobility Index ETF (KARS) has a higher volatility of 9.00% compared to iShares MSCI Emerging Markets ETF (EEM) at 8.52%. This indicates that KARS's price experiences larger fluctuations and is considered to be riskier than EEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KARS	EEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.00%	8.52%	+0.48%
Volatility (6M) Calculated over the trailing 6-month period	18.66%	17.42%	+1.24%
Volatility (1Y) Calculated over the trailing 1-year period	25.97%	19.97%	+6.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.78%	18.91%	+10.87%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.29%	20.50%	+8.79%

KARS vs. EEM - Expense Ratio Comparison

Both KARS and EEM have an expense ratio of 0.72%.

Dividends

KARS vs. EEM - Dividend Comparison

KARS's dividend yield for the trailing twelve months is around 0.16%, less than EEM's 1.74% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EEM iShares MSCI Emerging Markets ETF	1.74%	2.22%	2.43%	2.63%	2.50%	1.99%	1.45%	2.76%	2.24%	1.89%	1.89%	2.49%
KARS KraneShares Electric Vehicles and Future Mobility Index ETF	0.16%	0.18%	0.78%	0.88%	1.13%	6.73%	0.14%	1.85%	1.38%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both KARS and EEM in my portfolio?

KARS and EEM have a correlation of 0.69, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KARS or EEM?

KARS has higher volatility (9.00%) compared to EEM (8.52%). In terms of maximum drawdown, KARS dropped -64.85% vs EEM's -66.43%.

Which ETF is better, KARS or EEM?

On 5-year performance, EEM leads with 7.01% vs -2.35% for KARS. Both ETFs have the same 0.72% expense ratio. On volatility, EEM has been the lower-risk option at 8.52%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KARS or EEM?

Over the 5-year period, EEM has performed better with a 7.01% return vs -2.35%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KARS or EEM?

KARS and EEM have the same expense ratio: 0.72% per year.

Which ETF pays a higher dividend yield, KARS or EEM?

EEM has the higher dividend yield at 1.74%, compared with 0.16% for KARS.

What is the main difference between KARS and EEM?

KARS is categorized as Industrials Equities, while EEM is Emerging Markets Diversified. KARS tracks Bloomberg Electric Vehicles Index, while EEM tracks MSCI Emerging Markets Index (Net). They also come from different issuers: KraneShares and iShares.

Which has better risk-adjusted returns?

EEM currently has the higher Sharpe Ratio (2.81 vs 2.71), 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.