KEMX vs. SMST

Last updated Jun 26, 2026

KEMX (KraneShares MSCI Emerging Markets ex China Index ETF) and SMST (Defiance Daily Target 2X Short MSTR ETF) are both exchange-traded funds - KEMX is a Foreign Large Cap Equities fund tracking the MSCI Emerging Markets ex China Index, while SMST is a Inverse Equities fund actively managed by Defiance. KEMX is passively managed, while SMST is actively managed. Over the past year, KEMX returned 68.58% vs 236.89% for SMST. At a correlation of -0.38, they often move in opposite directions. KEMX charges 0.25%/yr vs 1.29%/yr for SMST.

Performance

KEMX vs. SMST - 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 Defiance Daily Target 2X Short MSTR ETF (SMST). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KEMX achieves a 40.15% return, which is significantly higher than SMST's -5.14% return.

KEMX

• 1D: 1.31%
• 1M: 2.22%
• YTD: 40.15%
• 6M: 41.62%
• 1Y: 68.58%
• 3Y*: 28.53%
• 5Y*: 13.57%
• 10Y*: —

SMST

• 1D: 18.45%
• 1M: 181.70%
• YTD: -5.14%
• 6M: 2.86%
• 1Y: 236.89%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

KEMX vs. SMST - Yearly Performance Comparison

	2026 (YTD)	2025	2024
KEMX KraneShares MSCI Emerging Markets ex China Index ETF	40.15%	38.28%	-8.08%
SMST Defiance Daily Target 2X Short MSTR ETF	-5.14%	-44.36%	-91.71%

Correlation

The correlation between KEMX and SMST is -0.40, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.40
Correlation (All Time) Calculated using the full available price history since Aug 21, 2024	-0.38

Return for Risk

KEMX vs. SMST — Risk / Return Rank

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

KEMX

KEMX Risk / Return Rank: 88
KEMX Sharpe Ratio Rank: 91
KEMX Sortino Ratio Rank: 84
KEMX Omega Ratio Rank: 89
KEMX Calmar Ratio Rank: 88
KEMX Martin Ratio Rank: 89

SMST

SMST Risk / Return Rank: 53
SMST Sharpe Ratio Rank: 54
SMST Sortino Ratio Rank: 55
SMST Omega Ratio Rank: 54
SMST Calmar Ratio Rank: 64
SMST Martin Ratio Rank: 38

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.

KEMX vs. SMST - 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 Defiance Daily Target 2X Short MSTR ETF (SMST). 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	SMST	Difference
Sharpe ratio: Return per unit of total volatility	2.74	1.63	+1.11
Sortino ratio: Return per unit of downside risk	3.28	2.35	+0.93
Omega ratio: Gain probability vs. loss probability	1.49	1.30	+0.19
Calmar ratio: Return relative to maximum drawdown	4.49	2.79	+1.70
Martin ratio: Return relative to average drawdown	16.95	5.52	+11.43

KEMX vs. SMST - Sharpe Ratio Comparison

The current KEMX Sharpe Ratio is 2.74, which is higher than the SMST Sharpe Ratio of 1.63. The chart below compares the historical Sharpe Ratios of KEMX and SMST, 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. SMST - Drawdown Comparison

The maximum KEMX drawdown since its inception was -38.80%, smaller than the maximum SMST drawdown of -99.25%. Use the drawdown chart below to compare losses from any high point for KEMX and SMST.

Drawdown Indicators

	KEMX	SMST	Difference
Max Drawdown Largest peak-to-trough decline	-38.80%	-99.25%	+60.45%
Max Drawdown (1Y) Largest decline over 1 year	-15.36%	-85.39%	+70.03%
Max Drawdown (3Y) Largest decline over 3 years	-19.62%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-30.85%	—	—
Current Drawdown Current decline from peak	-4.61%	-96.27%	+91.66%
Average Drawdown Average peak-to-trough decline	-8.82%	-90.74%	+81.92%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.06%	43.15%	-39.09%

Volatility

KEMX vs. SMST - Volatility Comparison

The current volatility for KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) is 12.89%, while Defiance Daily Target 2X Short MSTR ETF (SMST) has a volatility of 46.13%. This indicates that KEMX experiences smaller price fluctuations and is considered to be less risky than SMST based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KEMX	SMST	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.89%	46.13%	-33.24%
Volatility (6M) Calculated over the trailing 6-month period	23.20%	130.40%	-107.20%
Volatility (1Y) Calculated over the trailing 1-year period	25.17%	146.32%	-121.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.97%	167.25%	-148.28%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.33%	167.25%	-145.92%

KEMX vs. SMST - Expense Ratio Comparison

KEMX has a 0.25% expense ratio, which is lower than SMST's 1.29% expense ratio.

Dividends

KEMX vs. SMST - Dividend Comparison

KEMX's dividend yield for the trailing twelve months is around 2.34%, while SMST has not paid dividends to shareholders.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
KEMX KraneShares MSCI Emerging Markets ex China Index ETF	2.34%	3.28%	3.39%	2.00%	4.10%	4.79%	1.69%	2.77%
SMST Defiance Daily Target 2X Short MSTR ETF	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both KEMX and SMST in my portfolio?

KEMX and SMST have a correlation of -0.40, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KEMX or SMST?

SMST has higher volatility (46.13%) compared to KEMX (12.89%). In terms of maximum drawdown, KEMX dropped -38.80% vs SMST's -99.25%.

Which ETF is better, KEMX or SMST?

On 1-year performance, SMST leads with 236.89% vs 68.58% for KEMX. On fees, KEMX is cheaper at 0.25% per year. On volatility, KEMX has been the lower-risk option at 12.89%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KEMX or SMST?

Over the 1-year period, SMST has performed better with a 236.89% return vs 68.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KEMX or SMST?

KEMX is cheaper with a 0.25% expense ratio, compared with 1.29% for SMST.

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

KEMX has the higher dividend yield at 2.34%, compared with 0.00% for SMST.

What is the main difference between KEMX and SMST?

KEMX is categorized as Foreign Large Cap Equities, while SMST is Inverse Equities. They also come from different issuers: CICC and Defiance. Their fees differ too: 0.25% for KEMX and 1.29% for SMST.

Which has better risk-adjusted returns?

KEMX currently has the higher Sharpe Ratio (2.74 vs 1.63), 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.