KDEF vs. EWY

Last updated Jun 23, 2026

KDEF (PLUS Korea Defense Industry Index ETF) and EWY (iShares MSCI South Korea ETF) are both exchange-traded funds - KDEF is a Aerospace & Defense fund tracking the The Korea Defence Industry Index, while EWY is a Asia Pacific Equities fund tracking the MSCI Korea Index. Both are passively managed. Over the past year, KDEF returned 14.44% vs 226.78% for EWY. At a 0.50 correlation, their price movements are largely independent. KDEF charges 0.65%/yr vs 0.59%/yr for EWY.

Performance

KDEF vs. EWY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PLUS Korea Defense Industry Index ETF (KDEF) and iShares MSCI South Korea ETF (EWY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KDEF achieves a 4.98% return, which is significantly lower than EWY's 125.28% return.

KDEF

• 1D: -5.86%
• 1M: -14.33%
• YTD: 4.98%
• 6M: 7.11%
• 1Y: 14.44%
• 3Y*: —
• 5Y*: —
• 10Y*: —

EWY

• 1D: -0.08%
• 1M: 20.32%
• YTD: 125.28%
• 6M: 138.71%
• 1Y: 226.78%
• 3Y*: 54.89%
• 5Y*: 21.37%
• 10Y*: 18.13%

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

KDEF vs. EWY - Yearly Performance Comparison

	2026 (YTD)	2025
KDEF PLUS Korea Defense Industry Index ETF	4.98%	116.28%
EWY iShares MSCI South Korea ETF	125.28%	82.90%

Correlation

The correlation between KDEF and EWY is 0.51, 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	0.51
Correlation (All Time) Calculated using the full available price history since Feb 5, 2025	0.50

The correlation between KDEF and EWY has been stable across timeframes, ranging from 0.50 to 0.51 - a consistent structural relationship.

KDEF vs. EWY - Sectors Allocation Comparison

Sectors	KDEF	EWY
Industrials	87.8%	13.8%
Consumer Cyclical	6.6%	5.1%
Healthcare	2.9%	2.9%
Technology	2.7%	61.4%
Basic Materials	-	2.2%
Communication Services	-	2.3%
Consumer Defensive	-	1.6%
Energy	-	0.6%
Financial Services	-	8.9%
Real Estate	-	-
Utilities	-	0.3%

Return for Risk

KDEF vs. EWY — Risk / Return Rank

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

KDEF

KDEF Risk / Return Rank: 14
KDEF Sharpe Ratio Rank: 13
KDEF Sortino Ratio Rank: 14
KDEF Omega Ratio Rank: 14
KDEF Calmar Ratio Rank: 13
KDEF Martin Ratio Rank: 14

EWY

EWY Risk / Return Rank: 95
EWY Sharpe Ratio Rank: 98
EWY Sortino Ratio Rank: 93
EWY Omega Ratio Rank: 94
EWY Calmar Ratio Rank: 97
EWY Martin Ratio Rank: 96

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.

KDEF vs. EWY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PLUS Korea Defense Industry Index ETF (KDEF) and iShares MSCI South Korea ETF (EWY). 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.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	KDEF	EWY	Difference
Sharpe ratio: Return per unit of total volatility	0.31	4.83	-4.52
Sortino ratio: Return per unit of downside risk	0.75	4.40	-3.65
Omega ratio: Gain probability vs. loss probability	1.09	1.64	-0.55
Calmar ratio: Return relative to maximum drawdown	0.41	9.89	-9.48
Martin ratio: Return relative to average drawdown	1.24	34.51	-33.27

KDEF vs. EWY - Sharpe Ratio Comparison

The current KDEF Sharpe Ratio is 0.31, which is lower than the EWY Sharpe Ratio of 4.83. The chart below compares the historical Sharpe Ratios of KDEF and EWY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

KDEF vs. EWY - Drawdown Comparison

The maximum KDEF drawdown since its inception was -35.55%, smaller than the maximum EWY drawdown of -74.14%. Use the drawdown chart below to compare losses from any high point for KDEF and EWY.

Drawdown Indicators

	KDEF	EWY	Difference
Max Drawdown Largest peak-to-trough decline	-35.55%	-74.14%	+38.59%
Max Drawdown (1Y) Largest decline over 1 year	-35.55%	-23.08%	-12.47%
Max Drawdown (3Y) Largest decline over 3 years	—	-27.36%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-48.55%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-49.73%	—
Current Drawdown Current decline from peak	-30.17%	-0.08%	-30.09%
Average Drawdown Average peak-to-trough decline	-7.22%	-20.10%	+12.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	11.63%	6.60%	+5.03%

Volatility

KDEF vs. EWY - Volatility Comparison

The current volatility for PLUS Korea Defense Industry Index ETF (KDEF) is 20.06%, while iShares MSCI South Korea ETF (EWY) has a volatility of 26.14%. This indicates that KDEF experiences smaller price fluctuations and is considered to be less risky than EWY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KDEF	EWY	Difference
Volatility (1M) Calculated over the trailing 1-month period	20.06%	26.14%	-6.08%
Volatility (6M) Calculated over the trailing 6-month period	39.43%	43.40%	-3.97%
Volatility (1Y) Calculated over the trailing 1-year period	46.97%	47.40%	-0.43%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	47.94%	30.51%	+17.43%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	47.94%	28.24%	+19.70%

KDEF vs. EWY - Expense Ratio Comparison

KDEF has a 0.65% expense ratio, which is higher than EWY's 0.59% expense ratio.

Dividends

KDEF vs. EWY - Dividend Comparison

KDEF's dividend yield for the trailing twelve months is around 6.55%, more than EWY's 0.93% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
EWY iShares MSCI South Korea ETF	0.93%	2.10%	2.55%	2.52%	1.23%	2.16%	0.73%	2.10%	1.34%	2.90%	1.21%	2.42%
KDEF PLUS Korea Defense Industry Index ETF	6.55%	5.06%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both KDEF and EWY in my portfolio?

KDEF and EWY have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KDEF or EWY?

EWY has higher volatility (26.14%) compared to KDEF (20.06%). In terms of maximum drawdown, KDEF dropped -35.55% vs EWY's -74.14%.

Which ETF is better, KDEF or EWY?

On 1-year performance, EWY leads with 226.78% vs 14.44% for KDEF. On fees, EWY is cheaper at 0.59% per year. On volatility, KDEF has been the lower-risk option at 20.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KDEF or EWY?

Over the 1-year period, EWY has performed better with a 226.78% return vs 14.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KDEF or EWY?

EWY is cheaper with a 0.59% expense ratio, compared with 0.65% for KDEF.

Which ETF pays a higher dividend yield, KDEF or EWY?

KDEF has the higher dividend yield at 6.55%, compared with 0.93% for EWY.

What is the main difference between KDEF and EWY?

KDEF is categorized as Aerospace & Defense, while EWY is Asia Pacific Equities. KDEF tracks The Korea Defence Industry Index, while EWY tracks MSCI Korea Index. They also come from different issuers: PLUS and iShares. Their fees differ too: 0.65% for KDEF and 0.59% for EWY.

Which has better risk-adjusted returns?

EWY currently has the higher Sharpe Ratio (4.83 vs 0.31), 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.