KDEF vs. FOWF

Last updated Jul 17, 2026

KDEF (PLUS Korea Defense Industry Index ETF) and FOWF (Pacer Solactive Whitney Future of Warfare ETF) are both exchange-traded funds - KDEF is a Aerospace & Defense fund tracking the The Korea Defence Industry Index, while FOWF is a Industrials Equities fund tracking the Solactive Whitney Future of Warfare Index. Both are passively managed. Over the past year, KDEF returned -1.81% vs 14.79% for FOWF. At a 0.43 correlation, their price movements are largely independent. KDEF charges 0.65%/yr vs 0.49%/yr for FOWF.

Performance

KDEF vs. FOWF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PLUS Korea Defense Industry Index ETF (KDEF) and Pacer Solactive Whitney Future of Warfare ETF (FOWF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KDEF achieves a -12.28% return, which is significantly lower than FOWF's 8.60% return.

KDEF

• 1D: 1.01%
• 1M: -26.57%
• 6M: -32.11%
• YTD: -12.28%
• 1Y: -1.81%
• 3Y*: —
• 5Y*: —
• 10Y*: —

FOWF

• 1D: -0.29%
• 1M: -1.76%
• 6M: 0.54%
• YTD: 8.60%
• 1Y: 14.79%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

KDEF vs. FOWF - Yearly Performance Comparison

	2026 (YTD)	2025
KDEF PLUS Korea Defense Industry Index ETF	-12.28%	116.28%
FOWF Pacer Solactive Whitney Future of Warfare ETF	8.60%	24.87%

Correlation

The correlation between KDEF and FOWF 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	0.43

The correlation between KDEF and FOWF has been stable across timeframes, ranging from 0.43 to 0.51 - a consistent structural relationship.

KDEF vs. FOWF - Sectors Allocation Comparison

Sectors	KDEF	FOWF
Industrials	87.8%	60.1%
Consumer Cyclical	6.6%	1.3%
Healthcare	2.9%	-
Technology	2.7%	31.2%
Basic Materials	-	1.9%
Communication Services	-	5.5%
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

KDEF vs. FOWF — Risk / Return Rank

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

KDEF

KDEF Risk / Return Rank: 10
KDEF Sharpe Ratio Rank: 9
KDEF Sortino Ratio Rank: 11
KDEF Omega Ratio Rank: 10
KDEF Calmar Ratio Rank: 9
KDEF Martin Ratio Rank: 9

FOWF

FOWF Risk / Return Rank: 34
FOWF Sharpe Ratio Rank: 34
FOWF Sortino Ratio Rank: 36
FOWF Omega Ratio Rank: 31
FOWF Calmar Ratio Rank: 35
FOWF Martin Ratio Rank: 36

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. FOWF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PLUS Korea Defense Industry Index ETF (KDEF) and Pacer Solactive Whitney Future of Warfare ETF (FOWF). 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	FOWF	Difference
Sharpe ratio: Return per unit of total volatility	-0.04	1.02	-1.06
Sortino ratio: Return per unit of downside risk	0.29	1.59	-1.31
Omega ratio: Gain probability vs. loss probability	1.03	1.18	-0.15
Calmar ratio: Return relative to maximum drawdown	-0.04	1.47	-1.52
Martin ratio: Return relative to average drawdown	-0.12	4.42	-4.54

KDEF vs. FOWF - Sharpe Ratio Comparison

The current KDEF Sharpe Ratio is -0.04, which is lower than the FOWF Sharpe Ratio of 1.02. The chart below compares the historical Sharpe Ratios of KDEF and FOWF, 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. FOWF - Drawdown Comparison

The maximum KDEF drawdown since its inception was -42.23%, which is greater than FOWF's maximum drawdown of -12.29%. Use the drawdown chart below to compare losses from any high point for KDEF and FOWF.

Drawdown Indicators

	KDEF	FOWF	Difference
Max Drawdown Largest peak-to-trough decline	-42.23%	-12.29%	-29.94%
Max Drawdown (1Y) Largest decline over 1 year	-42.23%	-10.08%	-32.15%
Current Drawdown Current decline from peak	-41.65%	-3.56%	-38.09%
Average Drawdown Average peak-to-trough decline	-8.65%	-2.16%	-6.49%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.13%	3.36%	+11.77%

Volatility

KDEF vs. FOWF - Volatility Comparison

PLUS Korea Defense Industry Index ETF (KDEF) has a higher volatility of 16.56% compared to Pacer Solactive Whitney Future of Warfare ETF (FOWF) at 3.70%. This indicates that KDEF's price experiences larger fluctuations and is considered to be riskier than FOWF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KDEF	FOWF	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.56%	3.70%	+12.86%
Volatility (6M) Calculated over the trailing 6-month period	39.99%	11.83%	+28.16%
Volatility (1Y) Calculated over the trailing 1-year period	48.14%	14.60%	+33.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	48.43%	16.86%	+31.57%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	48.43%	16.86%	+31.57%

KDEF vs. FOWF - Expense Ratio Comparison

KDEF has a 0.65% expense ratio, which is higher than FOWF's 0.49% expense ratio.

Dividends

KDEF vs. FOWF - Dividend Comparison

KDEF's dividend yield for the trailing twelve months is around 7.83%, more than FOWF's 0.76% yield.

Position	TTM	2025
FOWF Pacer Solactive Whitney Future of Warfare ETF	0.76%	0.79%
KDEF PLUS Korea Defense Industry Index ETF	7.83%	5.06%

Frequently Asked Questions

Can I hold both KDEF and FOWF in my portfolio?

KDEF and FOWF 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 FOWF?

KDEF has higher volatility (16.56%) compared to FOWF (3.70%). In terms of maximum drawdown, KDEF dropped -42.23% vs FOWF's -12.29%.

Which ETF is better, KDEF or FOWF?

On 1-year performance, FOWF leads with 14.79% vs -1.81% for KDEF. On fees, FOWF is cheaper at 0.49% per year. On volatility, FOWF has been the lower-risk option at 3.70%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KDEF or FOWF?

Over the 1-year period, FOWF has performed better with a 14.79% return vs -1.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KDEF or FOWF?

FOWF is cheaper with a 0.49% expense ratio, compared with 0.65% for KDEF.

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

KDEF has the higher dividend yield at 7.83%, compared with 0.76% for FOWF.

What is the main difference between KDEF and FOWF?

KDEF is categorized as Aerospace & Defense, while FOWF is Industrials Equities. KDEF tracks The Korea Defence Industry Index, while FOWF tracks Solactive Whitney Future of Warfare Index. They also come from different issuers: PLUS and Pacer. Their fees differ too: 0.65% for KDEF and 0.49% for FOWF.

Which has better risk-adjusted returns?

FOWF currently has the higher Sharpe Ratio (1.02 vs -0.04), 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.