KEMX vs. VEU

Last updated Jun 3, 2026

KEMX (KraneShares MSCI Emerging Markets ex China Index ETF) and VEU (Vanguard FTSE All-World ex-US ETF) are both Foreign Large Cap Equities funds - KEMX tracks the MSCI Emerging Markets ex China Index while VEU tracks the FTSE All-World ex US Index. Both are passively managed. Over the past 5 years, KEMX returned 14.09%/yr vs 9.10%/yr for VEU. Their correlation of 0.86 suggests significant overlap in exposure. KEMX charges 0.25%/yr vs 0.04%/yr for VEU.

Performance

KEMX vs. VEU - 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 Vanguard FTSE All-World ex-US ETF (VEU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KEMX achieves a 44.15% return, which is significantly higher than VEU's 15.73% return.

KEMX

• 1D: 0.91%
• 1M: 14.75%
• YTD: 44.15%
• 6M: 50.30%
• 1Y: 82.49%
• 3Y*: 30.23%
• 5Y*: 14.09%
• 10Y*: —

VEU

• 1D: 0.73%
• 1M: 5.19%
• YTD: 15.73%
• 6M: 18.94%
• 1Y: 33.06%
• 3Y*: 20.01%
• 5Y*: 9.10%
• 10Y*: 10.05%

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

KEMX vs. VEU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
KEMX KraneShares MSCI Emerging Markets ex China Index ETF	44.15%	38.28%	0.36%	20.57%	-19.35%	10.55%	12.84%	7.93%
VEU Vanguard FTSE All-World ex-US ETF	15.73%	32.35%	5.56%	15.84%	-15.58%	8.27%	11.10%	7.42%

Correlation

The correlation between KEMX and VEU is 0.85, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.84
Correlation (5Y) Calculated over the trailing 5-year period	0.87
Correlation (All Time) Calculated using the full available price history since Apr 15, 2019	0.86

The correlation between KEMX and VEU has been stable across timeframes, ranging from 0.84 to 0.87 - a consistent structural relationship.

KEMX vs. VEU - Sectors Allocation Comparison

Sectors	KEMX	VEU
Technology	41.2%	18.5%
Financial Services	20.7%	23.3%
Industrials	8.6%	15.7%
Basic Materials	8.2%	7.1%
Consumer Cyclical	5.4%	8.2%
Energy	4.8%	5.2%
Communication Services	3.2%	4.6%
Consumer Defensive	3.0%	5.1%
Utilities	2.0%	3.2%
Healthcare	1.7%	7.1%
Real Estate	1.2%	2.0%

Return for Risk

KEMX vs. VEU — Risk / Return Rank

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

KEMX

KEMX Risk / Return Rank: 92
KEMX Sharpe Ratio Rank: 94
KEMX Sortino Ratio Rank: 91
KEMX Omega Ratio Rank: 93
KEMX Calmar Ratio Rank: 89
KEMX Martin Ratio Rank: 91

VEU

VEU Risk / Return Rank: 64
VEU Sharpe Ratio Rank: 65
VEU Sortino Ratio Rank: 64
VEU Omega Ratio Rank: 65
VEU Calmar Ratio Rank: 60
VEU Martin Ratio Rank: 64

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. VEU - 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 Vanguard FTSE All-World ex-US ETF (VEU). 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.

	KEMX	VEU	Difference
Sharpe ratio Return per unit of total volatility	3.71	2.18	+1.53
Sortino ratio Return per unit of downside risk	4.43	3.00	+1.42
Omega ratio Gain probability vs. loss probability	1.64	1.40	+0.24
Calmar ratio Return relative to maximum drawdown	5.44	3.01	+2.43
Martin ratio Return relative to average drawdown	21.72	11.72	+10.00
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KEMX vs. VEU - Sharpe Ratio Comparison

The current KEMX Sharpe Ratio is 3.71, which is higher than the VEU Sharpe Ratio of 2.18. The chart below compares the historical Sharpe Ratios of KEMX and VEU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	KEMX	VEU	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.71	2.18	+1.53
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.78	0.57	+0.21
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.59	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.69	0.26	+0.44

Drawdowns

KEMX vs. VEU - Drawdown Comparison

The maximum KEMX drawdown since its inception was -38.80%, smaller than the maximum VEU drawdown of -61.52%. Use the drawdown chart below to compare losses from any high point for KEMX and VEU.

Drawdown Indicators

	KEMX	VEU	Difference
Max Drawdown Largest peak-to-trough decline	-38.80%	-61.52%	+22.72%
Max Drawdown (1Y) Largest decline over 1 year	-15.36%	-11.43%	-3.93%
Max Drawdown (3Y) Largest decline over 3 years	-19.62%	-13.69%	-5.93%
Max Drawdown (5Y) Largest decline over 5 years	-30.85%	-29.31%	-1.54%
Max Drawdown (10Y) Largest decline over 10 years	—	-34.98%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-8.86%	-13.14%	+4.28%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.85%	2.93%	+0.92%

Volatility

KEMX vs. VEU - Volatility Comparison

KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) has a higher volatility of 9.67% compared to Vanguard FTSE All-World ex-US ETF (VEU) at 5.57%. This indicates that KEMX's price experiences larger fluctuations and is considered to be riskier than VEU based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KEMX	VEU	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.67%	5.57%	+4.10%
Volatility (6M) Calculated over the trailing 6-month period	19.84%	13.01%	+6.83%
Volatility (1Y) Calculated over the trailing 1-year period	22.34%	15.28%	+7.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.20%	16.07%	+2.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.94%	17.21%	+3.73%

KEMX vs. VEU - Expense Ratio Comparison

KEMX has a 0.25% expense ratio, which is higher than VEU's 0.04% 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. VEU - Dividend Comparison

KEMX's dividend yield for the trailing twelve months is around 2.28%, less than VEU's 2.58% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
KEMX KraneShares MSCI Emerging Markets ex China Index ETF	2.28%	3.28%	3.39%	2.00%	4.10%	4.79%	1.69%	2.77%	0.00%	0.00%	0.00%	0.00%
VEU Vanguard FTSE All-World ex-US ETF	2.58%	3.09%	3.24%	3.32%	3.12%	3.08%	2.00%	3.10%	3.27%	2.66%	2.96%	2.95%

Frequently Asked Questions

Can I hold both KEMX and VEU in my portfolio?

KEMX and VEU have a correlation of 0.85, 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 VEU?

KEMX has higher volatility (9.67%) compared to VEU (5.57%). In terms of maximum drawdown, KEMX dropped -38.80% vs VEU's -61.52%.

Which ETF is better, KEMX or VEU?

On 5-year performance, KEMX leads with 14.09% vs 9.10% for VEU. On fees, VEU is cheaper at 0.04% per year. On volatility, VEU has been the lower-risk option at 5.57%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KEMX or VEU?

Over the 5-year period, KEMX has performed better with a 14.09% return vs 9.10%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KEMX or VEU?

VEU is cheaper with a 0.04% expense ratio, compared with 0.25% for KEMX.

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

VEU has the higher dividend yield at 2.58%, compared with 2.28% for KEMX.

What is the main difference between KEMX and VEU?

KEMX tracks MSCI Emerging Markets ex China Index, while VEU tracks FTSE All-World ex US Index. They also come from different issuers: CICC and Vanguard. Their fees differ too: 0.25% for KEMX and 0.04% for VEU.

Which has better risk-adjusted returns?

KEMX currently has the higher Sharpe Ratio (3.71 vs 2.18), 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.