KEMX vs. IEMG

Last updated Aug 4, 2026

KEMX (KraneShares MSCI Emerging Markets ex China Index ETF) and IEMG (iShares Core MSCI Emerging Markets ETF) are both Emerging Markets Equities funds - KEMX tracks the MSCI Emerging Markets ex China Index while IEMG tracks the MSCI Emerging Markets Investable Market Index (USD) (Net). Both are passively managed. Over the past 5 years, KEMX returned 12.08%/yr vs 7.08%/yr for IEMG. Their correlation of 0.90 means they have usually moved in the same direction. KEMX charges 0.25%/yr vs 0.09%/yr for IEMG.

Performance

KEMX vs. IEMG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) and iShares Core MSCI Emerging Markets ETF (IEMG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KEMX achieves a 30.22% return, which is significantly higher than IEMG's 17.13% return.

KEMX

• 1D: 0.80%
• 1M: -4.08%
• 6M: 16.35%
• YTD: 30.22%
• 1Y: 56.00%
• 3Y*: 25.12%
• 5Y*: 12.08%
• 10Y*: —
• ALL TIME*: 12.50%

IEMG

• 1D: 0.64%
• 1M: -2.17%
• 6M: 8.11%
• YTD: 17.13%
• 1Y: 33.73%
• 3Y*: 19.02%
• 5Y*: 7.08%
• 10Y*: 8.70%
• ALL TIME*: 6.15%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
IEMG iShares Core MSCI Emerging Markets ETF	$832.99M	$964.62M	$1.10B
KEMX KraneShares MSCI Emerging Markets ex China Index ETF	$527.87K	$528.96K	$586.53K

KEMX vs. IEMG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
KEMX KraneShares MSCI Emerging Markets ex China Index ETF	30.22%	38.28%	0.36%	20.57%	-19.35%	10.55%	12.84%	7.93%
IEMG iShares Core MSCI Emerging Markets ETF	17.13%	32.56%	6.50%	11.52%	-19.98%	-0.64%	17.87%	4.73%

Correlation

The correlation between KEMX and IEMG is 0.95, meaning they have usually moved in the same direction, including during past declines.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.95
Correlation (3Y) Balances recent behavior with more history.	0.91
Correlation (5Y) Shows whether the relationship held over a longer period.	0.90
Correlation (All Time) Calculated using the full available price history since Apr 12, 2019	0.90

The correlation between KEMX and IEMG has been stable across timeframes, ranging from 0.90 to 0.95 - a consistent structural relationship.

KEMX vs. IEMG - Sectors Allocation Comparison

Sectors	KEMX	IEMG
Technology	46.4%	43.6%
Financial Services	20.3%	17.3%
Industrials	7.5%	7.7%
Basic Materials	7.3%	5.8%
Consumer Cyclical	4.9%	7.7%
Energy	3.6%	3.0%
Communication Services	3.0%	5.6%
Consumer Defensive	2.7%	2.8%
Utilities	1.6%	1.9%
Healthcare	1.5%	3.2%
Real Estate	1.1%	1.5%

Return for Risk

KEMX vs. IEMG — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

KEMX

KEMX Risk / Return Rank: 83
KEMX Sharpe Ratio Rank: 85
KEMX Sortino Ratio Rank: 78
KEMX Omega Ratio Rank: 83
KEMX Calmar Ratio Rank: 86
KEMX Martin Ratio Rank: 80

IEMG

IEMG Risk / Return Rank: 62
IEMG Sharpe Ratio Rank: 60
IEMG Sortino Ratio Rank: 55
IEMG Omega Ratio Rank: 63
IEMG Calmar Ratio Rank: 70
IEMG Martin Ratio Rank: 61

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

KEMX vs. IEMG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) and iShares Core MSCI Emerging Markets ETF (IEMG). 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.

	KEMX	IEMG	Difference
Sharpe ratio: Return per unit of total volatility	2.09	1.43	+0.66
Sortino ratio: Return per unit of downside risk	2.64	1.94	+0.70
Omega ratio: Gain probability vs. loss probability	1.37	1.27	+0.10
Calmar ratio: Return relative to maximum drawdown	3.49	2.46	+1.03
Martin ratio: Return relative to average drawdown	10.97	7.50	+3.48

KEMX vs. IEMG - Sharpe Ratio Comparison

The current KEMX Sharpe Ratio is 2.09, which is higher than the IEMG Sharpe Ratio of 1.43. The chart below compares the historical Sharpe Ratios of KEMX and IEMG, 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

KEMX vs. IEMG - Drawdown Comparison

The maximum KEMX drawdown since its inception was -38.80%, roughly equal to the maximum IEMG drawdown of -38.71%. Use the drawdown chart below to compare losses from any high point for KEMX and IEMG.

Drawdown Indicators

	KEMX	IEMG	Difference
Max Drawdown Largest peak-to-trough decline	-38.80%	-38.71%	-0.09%
Max Drawdown (1Y) Largest decline over 1 year	-16.11%	-13.78%	-2.33%
Max Drawdown (3Y) Largest decline over 3 years	-19.62%	-17.21%	-2.41%
Max Drawdown (5Y) Largest decline over 5 years	-30.85%	-33.61%	+2.76%
Max Drawdown (10Y) Largest decline over 10 years	—	-38.71%	—
Current Drawdown Current decline from peak	-11.37%	-9.17%	-2.20%
Average Drawdown Average peak-to-trough decline	-8.82%	-12.89%	+4.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.12%	4.51%	+0.61%

Volatility

KEMX vs. IEMG - Volatility Comparison

KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) has a higher volatility of 9.60% compared to iShares Core MSCI Emerging Markets ETF (IEMG) at 8.73%. This indicates that KEMX's price experiences larger fluctuations and is considered to be riskier than IEMG based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KEMX	IEMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.60%	8.73%	+0.87%
Volatility (6M) Calculated over the trailing 6-month period	24.90%	21.65%	+3.25%
Volatility (1Y) Calculated over the trailing 1-year period	26.99%	23.74%	+3.25%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.41%	19.27%	+0.14%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.51%	20.32%	+1.19%

KEMX vs. IEMG - Expense Ratio Comparison

KEMX has a 0.25% expense ratio, which is higher than IEMG's 0.09% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

KEMX vs. IEMG - Dividend Comparison

KEMX's dividend yield for the trailing twelve months is around 2.52%, more than IEMG's 2.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEMG iShares Core MSCI Emerging Markets ETF	2.30%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%
KEMX KraneShares MSCI Emerging Markets ex China Index ETF	2.52%	3.28%	3.39%	2.00%	4.10%	4.79%	1.69%	2.77%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both KEMX and IEMG in my portfolio?

With a correlation of 0.95, KEMX and IEMG move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, KEMX or IEMG?

KEMX has higher volatility (9.60%) compared to IEMG (8.73%). In terms of maximum drawdown, KEMX dropped -38.80% vs IEMG's -38.71%.

Which ETF is better, KEMX or IEMG?

On 5-year performance, KEMX leads with 12.08% vs 7.08% for IEMG. On fees, IEMG is cheaper at 0.09% per year. On volatility, IEMG has been the lower-risk option at 8.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KEMX or IEMG?

Over the 5-year period, KEMX has performed better with a 12.08% return vs 7.08%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KEMX or IEMG?

IEMG is cheaper with a 0.09% expense ratio, compared with 0.25% for KEMX.

Which ETF pays a higher dividend yield, KEMX or IEMG?

KEMX has the higher dividend yield at 2.52%, compared with 2.30% for IEMG.

What is the main difference between KEMX and IEMG?

KEMX tracks MSCI Emerging Markets ex China Index, while IEMG tracks MSCI Emerging Markets Investable Market Index (USD) (Net). They also come from different issuers: CICC and iShares. Their fees differ too: 0.25% for KEMX and 0.09% for IEMG.

Which has better risk-adjusted returns?

KEMX currently has the higher Sharpe Ratio (2.09 vs 1.43), 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.