KDEF vs. IDEF

Last updated Jul 17, 2026

KDEF (PLUS Korea Defense Industry Index ETF) and IDEF (iShares Defense Industrials Active ETF) are both Aerospace & Defense funds. KDEF is passively managed, while IDEF is actively managed. Over the past year, KDEF returned -1.81% vs 8.87% for IDEF. A 0.56 correlation means they provide meaningful diversification when combined. KDEF charges 0.65%/yr vs 0.55%/yr for IDEF.

Performance

KDEF vs. IDEF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PLUS Korea Defense Industry Index ETF (KDEF) and iShares Defense Industrials Active ETF (IDEF). 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 IDEF's 1.15% return.

KDEF

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

IDEF

• 1D: -1.39%
• 1M: -5.21%
• 6M: -12.66%
• YTD: 1.15%
• 1Y: 8.87%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

KDEF vs. IDEF - Yearly Performance Comparison

	2026 (YTD)	2025
KDEF PLUS Korea Defense Industry Index ETF	-12.28%	45.05%
IDEF iShares Defense Industrials Active ETF	1.15%	21.50%

Correlation

The correlation between KDEF and IDEF is 0.60, 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	0.60
Correlation (All Time) Calculated using the full available price history since May 21, 2025	0.56

The correlation between KDEF and IDEF has been stable across timeframes, ranging from 0.56 to 0.60 - a consistent structural relationship.

KDEF vs. IDEF - Sectors Allocation Comparison

Sectors	KDEF	IDEF
Industrials	87.8%	84.8%
Consumer Cyclical	6.6%	-
Healthcare	2.9%	-
Technology	2.7%	11.4%
Basic Materials	-	1.6%
Communication Services	-	0.2%
Consumer Defensive	-	-
Energy	-	1.5%
Financial Services	-	0.1%
Real Estate	-	-
Utilities	-	0.5%

Return for Risk

KDEF vs. IDEF — 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

IDEF

IDEF Risk / Return Rank: 16
IDEF Sharpe Ratio Rank: 16
IDEF Sortino Ratio Rank: 17
IDEF Omega Ratio Rank: 15
IDEF Calmar Ratio Rank: 17
IDEF Martin Ratio Rank: 16

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. IDEF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PLUS Korea Defense Industry Index ETF (KDEF) and iShares Defense Industrials Active ETF (IDEF). 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	IDEF	Difference
Sharpe ratio: Return per unit of total volatility	-0.04	0.40	-0.43
Sortino ratio: Return per unit of downside risk	0.29	0.73	-0.44
Omega ratio: Gain probability vs. loss probability	1.03	1.08	-0.05
Calmar ratio: Return relative to maximum drawdown	-0.04	0.57	-0.61
Martin ratio: Return relative to average drawdown	-0.12	1.24	-1.36

KDEF vs. IDEF - Sharpe Ratio Comparison

The current KDEF Sharpe Ratio is -0.04, which is lower than the IDEF Sharpe Ratio of 0.40. The chart below compares the historical Sharpe Ratios of KDEF and IDEF, 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. IDEF - Drawdown Comparison

The maximum KDEF drawdown since its inception was -42.23%, which is greater than IDEF's maximum drawdown of -15.69%. Use the drawdown chart below to compare losses from any high point for KDEF and IDEF.

Drawdown Indicators

	KDEF	IDEF	Difference
Max Drawdown Largest peak-to-trough decline	-42.23%	-15.69%	-26.54%
Max Drawdown (1Y) Largest decline over 1 year	-42.23%	-15.69%	-26.54%
Current Drawdown Current decline from peak	-41.65%	-15.32%	-26.33%
Average Drawdown Average peak-to-trough decline	-8.65%	-4.80%	-3.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.13%	7.14%	+7.99%

Volatility

KDEF vs. IDEF - Volatility Comparison

PLUS Korea Defense Industry Index ETF (KDEF) has a higher volatility of 16.56% compared to iShares Defense Industrials Active ETF (IDEF) at 6.25%. This indicates that KDEF's price experiences larger fluctuations and is considered to be riskier than IDEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KDEF	IDEF	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.56%	6.25%	+10.31%
Volatility (6M) Calculated over the trailing 6-month period	39.99%	18.56%	+21.43%
Volatility (1Y) Calculated over the trailing 1-year period	48.14%	22.47%	+25.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	48.43%	21.61%	+26.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	48.43%	21.61%	+26.82%

KDEF vs. IDEF - Expense Ratio Comparison

KDEF has a 0.65% expense ratio, which is higher than IDEF's 0.55% expense ratio.

Dividends

KDEF vs. IDEF - Dividend Comparison

KDEF's dividend yield for the trailing twelve months is around 7.83%, more than IDEF's 0.34% yield.

Position	TTM	2025
IDEF iShares Defense Industrials Active ETF	0.34%	0.17%
KDEF PLUS Korea Defense Industry Index ETF	7.83%	5.06%

Frequently Asked Questions

Can I hold both KDEF and IDEF in my portfolio?

KDEF and IDEF have a correlation of 0.60, 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 IDEF?

KDEF has higher volatility (16.56%) compared to IDEF (6.25%). In terms of maximum drawdown, KDEF dropped -42.23% vs IDEF's -15.69%.

Which ETF is better, KDEF or IDEF?

On 1-year performance, IDEF leads with 8.87% vs -1.81% for KDEF. On fees, IDEF is cheaper at 0.55% per year. On volatility, IDEF has been the lower-risk option at 6.25%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KDEF or IDEF?

Over the 1-year period, IDEF has performed better with a 8.87% 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 IDEF?

IDEF is cheaper with a 0.55% expense ratio, compared with 0.65% for KDEF.

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

KDEF has the higher dividend yield at 7.83%, compared with 0.34% for IDEF.

What is the main difference between KDEF and IDEF?

They also come from different issuers: PLUS and iShares. Their fees differ too: 0.65% for KDEF and 0.55% for IDEF.

Which has better risk-adjusted returns?

IDEF currently has the higher Sharpe Ratio (0.40 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.