KDEF vs. SHLD

Last updated Jul 17, 2026

KDEF (PLUS Korea Defense Industry Index ETF) and SHLD (Global X Defense Tech ETF) are both Aerospace & Defense funds - KDEF tracks the The Korea Defence Industry Index while SHLD tracks the Global X Defense Tech Index. Both are passively managed. Over the past year, KDEF returned -1.81% vs -0.87% for SHLD. A 0.52 correlation means they provide meaningful diversification when combined. KDEF charges 0.65%/yr vs 0.50%/yr for SHLD.

Performance

KDEF vs. SHLD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in PLUS Korea Defense Industry Index ETF (KDEF) and Global X Defense Tech ETF (SHLD). 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 SHLD's -7.27% return.

KDEF

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

SHLD

• 1D: -0.61%
• 1M: -5.92%
• 6M: -22.32%
• YTD: -7.27%
• 1Y: -0.87%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

KDEF vs. SHLD - Yearly Performance Comparison

	2026 (YTD)	2025
KDEF PLUS Korea Defense Industry Index ETF	-12.28%	116.28%
SHLD Global X Defense Tech ETF	-7.27%	60.20%

Correlation

The correlation between KDEF and SHLD is 0.57, 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	0.57
Correlation (All Time) Calculated using the full available price history since Feb 5, 2025	0.52

The correlation between KDEF and SHLD has been stable across timeframes, ranging from 0.52 to 0.57 - a consistent structural relationship.

KDEF vs. SHLD - Sectors Allocation Comparison

Sectors	KDEF	SHLD
Industrials	87.8%	87.8%
Consumer Cyclical	6.6%	-
Healthcare	2.9%	-
Technology	2.7%	12.2%
Basic Materials	-	-
Communication Services	-	-
Consumer Defensive	-	-
Energy	-	-
Financial Services	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

KDEF vs. SHLD — 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

SHLD

SHLD Risk / Return Rank: 9
SHLD Sharpe Ratio Rank: 9
SHLD Sortino Ratio Rank: 9
SHLD Omega Ratio Rank: 9
SHLD Calmar Ratio Rank: 9
SHLD Martin Ratio Rank: 9

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. SHLD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for PLUS Korea Defense Industry Index ETF (KDEF) and Global X Defense Tech ETF (SHLD). 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	SHLD	Difference
Sharpe ratio: Return per unit of total volatility	-0.04	-0.03	0.00
Sortino ratio: Return per unit of downside risk	0.29	0.13	+0.15
Omega ratio: Gain probability vs. loss probability	1.03	1.01	+0.02
Calmar ratio: Return relative to maximum drawdown	-0.04	-0.03	-0.01
Martin ratio: Return relative to average drawdown	-0.12	-0.08	-0.04

KDEF vs. SHLD - Sharpe Ratio Comparison

The current KDEF Sharpe Ratio is -0.04, which is comparable to the SHLD Sharpe Ratio of -0.03. The chart below compares the historical Sharpe Ratios of KDEF and SHLD, 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. SHLD - Drawdown Comparison

The maximum KDEF drawdown since its inception was -42.23%, which is greater than SHLD's maximum drawdown of -25.40%. Use the drawdown chart below to compare losses from any high point for KDEF and SHLD.

Drawdown Indicators

	KDEF	SHLD	Difference
Max Drawdown Largest peak-to-trough decline	-42.23%	-25.40%	-16.83%
Max Drawdown (1Y) Largest decline over 1 year	-42.23%	-25.40%	-16.83%
Current Drawdown Current decline from peak	-41.65%	-22.99%	-18.66%
Average Drawdown Average peak-to-trough decline	-8.65%	-3.90%	-4.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.13%	10.30%	+4.83%

Volatility

KDEF vs. SHLD - Volatility Comparison

PLUS Korea Defense Industry Index ETF (KDEF) has a higher volatility of 16.56% compared to Global X Defense Tech ETF (SHLD) at 8.28%. This indicates that KDEF's price experiences larger fluctuations and is considered to be riskier than SHLD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KDEF	SHLD	Difference
Volatility (1M) Calculated over the trailing 1-month period	16.56%	8.28%	+8.28%
Volatility (6M) Calculated over the trailing 6-month period	39.99%	19.79%	+20.20%
Volatility (1Y) Calculated over the trailing 1-year period	48.14%	25.12%	+23.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	48.43%	21.54%	+26.89%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	48.43%	21.54%	+26.89%

KDEF vs. SHLD - Expense Ratio Comparison

KDEF has a 0.65% expense ratio, which is higher than SHLD's 0.50% expense ratio.

Dividends

KDEF vs. SHLD - Dividend Comparison

KDEF's dividend yield for the trailing twelve months is around 7.83%, more than SHLD's 0.71% yield.

Position	TTM	2025	2024	2023
KDEF PLUS Korea Defense Industry Index ETF	7.83%	5.06%	0.00%	0.00%
SHLD Global X Defense Tech ETF	0.71%	0.55%	0.53%	0.26%

Frequently Asked Questions

Can I hold both KDEF and SHLD in my portfolio?

KDEF and SHLD have a correlation of 0.57, 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 SHLD?

KDEF has higher volatility (16.56%) compared to SHLD (8.28%). In terms of maximum drawdown, KDEF dropped -42.23% vs SHLD's -25.40%.

Which ETF is better, KDEF or SHLD?

On 1-year performance, SHLD leads with -0.87% vs -1.81% for KDEF. On fees, SHLD is cheaper at 0.50% per year. On volatility, SHLD has been the lower-risk option at 8.28%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KDEF or SHLD?

Over the 1-year period, SHLD has performed better with a -0.87% 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 SHLD?

SHLD is cheaper with a 0.50% expense ratio, compared with 0.65% for KDEF.

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

KDEF has the higher dividend yield at 7.83%, compared with 0.71% for SHLD.

What is the main difference between KDEF and SHLD?

KDEF tracks The Korea Defence Industry Index, while SHLD tracks Global X Defense Tech Index. They also come from different issuers: PLUS and Global X. Their fees differ too: 0.65% for KDEF and 0.50% for SHLD.

Which has better risk-adjusted returns?

SHLD currently has the higher Sharpe Ratio (-0.03 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.