KPDD vs. CAOS

Last updated Jul 14, 2026

KPDD (KraneShares 2x Long PDD Daily ETF) and CAOS (Alpha Architect Tail Risk ETF) are both exchange-traded funds - KPDD is a Leveraged Equities fund tracking the PDD Holdings Inc. ADR (PDD), while CAOS is a Options Trading fund actively managed by Alpha Architect. KPDD is passively managed, while CAOS is actively managed. Over the past year, KPDD returned -48.40% vs 1.84% for CAOS. At a correlation of -0.27, they often move in opposite directions. KPDD charges 1.27%/yr vs 0.63%/yr for CAOS.

Performance

KPDD vs. CAOS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KraneShares 2x Long PDD Daily ETF (KPDD) and Alpha Architect Tail Risk ETF (CAOS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KPDD achieves a -51.43% return, which is significantly lower than CAOS's 0.73% return.

KPDD

• 1D: -1.41%
• 1M: 5.28%
• 6M: -55.43%
• YTD: -51.43%
• 1Y: -48.40%
• 3Y*: —
• 5Y*: —
• 10Y*: —

CAOS

• 1D: 0.03%
• 1M: -0.01%
• 6M: 0.27%
• YTD: 0.73%
• 1Y: 1.84%
• 3Y*: 3.59%
• 5Y*: —
• 10Y*: —

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

KPDD vs. CAOS - Yearly Performance Comparison

	2026 (YTD)	2025
KPDD KraneShares 2x Long PDD Daily ETF	-51.43%	-26.34%
CAOS Alpha Architect Tail Risk ETF	0.73%	2.05%

Correlation

The correlation between KPDD and CAOS is -0.23, 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	-0.23
Correlation (All Time) Calculated using the full available price history since Mar 12, 2025	-0.27

Return for Risk

KPDD vs. CAOS — Risk / Return Rank

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

KPDD

KPDD Risk / Return Rank: 4
KPDD Sharpe Ratio Rank: 3
KPDD Sortino Ratio Rank: 4
KPDD Omega Ratio Rank: 4
KPDD Calmar Ratio Rank: 4
KPDD Martin Ratio Rank: 3

CAOS

CAOS Risk / Return Rank: 48
CAOS Sharpe Ratio Rank: 42
CAOS Sortino Ratio Rank: 46
CAOS Omega Ratio Rank: 47
CAOS Calmar Ratio Rank: 61
CAOS Martin Ratio Rank: 43

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.

KPDD vs. CAOS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for KraneShares 2x Long PDD Daily ETF (KPDD) and Alpha Architect Tail Risk ETF (CAOS). 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.

	KPDD	CAOS	Difference
Sharpe ratio: Return per unit of total volatility	-0.72	1.18	-1.90
Sortino ratio: Return per unit of downside risk	-0.86	1.88	-2.74
Omega ratio: Gain probability vs. loss probability	0.89	1.24	-0.35
Calmar ratio: Return relative to maximum drawdown	-0.64	2.43	-3.07
Martin ratio: Return relative to average drawdown	-1.17	5.52	-6.70

KPDD vs. CAOS - Sharpe Ratio Comparison

The current KPDD Sharpe Ratio is -0.72, which is lower than the CAOS Sharpe Ratio of 1.18. The chart below compares the historical Sharpe Ratios of KPDD and CAOS, 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

KPDD vs. CAOS - Drawdown Comparison

The maximum KPDD drawdown since its inception was -77.47%, which is greater than CAOS's maximum drawdown of -3.89%. Use the drawdown chart below to compare losses from any high point for KPDD and CAOS.

Drawdown Indicators

	KPDD	CAOS	Difference
Max Drawdown Largest peak-to-trough decline	-77.47%	-3.89%	-73.58%
Max Drawdown (1Y) Largest decline over 1 year	-75.88%	-0.76%	-75.12%
Max Drawdown (3Y) Largest decline over 3 years	—	-3.60%	—
Current Drawdown Current decline from peak	-70.47%	-1.16%	-69.31%
Average Drawdown Average peak-to-trough decline	-39.81%	-0.92%	-38.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	41.32%	0.33%	+40.99%

Volatility

KPDD vs. CAOS - Volatility Comparison

KraneShares 2x Long PDD Daily ETF (KPDD) has a higher volatility of 22.97% compared to Alpha Architect Tail Risk ETF (CAOS) at 0.49%. This indicates that KPDD's price experiences larger fluctuations and is considered to be riskier than CAOS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KPDD	CAOS	Difference
Volatility (1M) Calculated over the trailing 1-month period	22.97%	0.49%	+22.48%
Volatility (6M) Calculated over the trailing 6-month period	53.60%	1.12%	+52.48%
Volatility (1Y) Calculated over the trailing 1-year period	67.58%	1.56%	+66.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	74.67%	4.21%	+70.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	74.67%	4.21%	+70.46%

KPDD vs. CAOS - Expense Ratio Comparison

KPDD has a 1.27% expense ratio, which is higher than CAOS's 0.63% expense ratio.

Dividends

KPDD vs. CAOS - Dividend Comparison

KPDD's dividend yield for the trailing twelve months is around 119.16%, while CAOS has not paid dividends to shareholders.

Position	TTM	2025
CAOS Alpha Architect Tail Risk ETF	0.00%	0.00%
KPDD KraneShares 2x Long PDD Daily ETF	119.16%	57.87%

Frequently Asked Questions

Can I hold both KPDD and CAOS in my portfolio?

KPDD and CAOS have a correlation of -0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KPDD or CAOS?

KPDD has higher volatility (22.97%) compared to CAOS (0.49%). In terms of maximum drawdown, KPDD dropped -77.47% vs CAOS's -3.89%.

Which ETF is better, KPDD or CAOS?

On 1-year performance, CAOS leads with 1.84% vs -48.40% for KPDD. On fees, CAOS is cheaper at 0.63% per year. On volatility, CAOS has been the lower-risk option at 0.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KPDD or CAOS?

Over the 1-year period, CAOS has performed better with a 1.84% return vs -48.40%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KPDD or CAOS?

CAOS is cheaper with a 0.63% expense ratio, compared with 1.27% for KPDD.

Which ETF pays a higher dividend yield, KPDD or CAOS?

KPDD has the higher dividend yield at 119.16%, compared with 0.00% for CAOS.

What is the main difference between KPDD and CAOS?

KPDD is categorized as Leveraged Equities, while CAOS is Options Trading. They also come from different issuers: KraneShares and Alpha Architect. Their fees differ too: 1.27% for KPDD and 0.63% for CAOS.

Which has better risk-adjusted returns?

CAOS currently has the higher Sharpe Ratio (1.18 vs -0.72), 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.