MKOR vs. KDEF

Last updated Jul 17, 2026

MKOR (Matthews Korea Active ETF) and KDEF (PLUS Korea Defense Industry Index ETF) are both exchange-traded funds - MKOR is a South Korea Equities fund actively managed by Matthews, while KDEF is a Aerospace & Defense fund tracking the The Korea Defence Industry Index. MKOR is actively managed, while KDEF is passively managed. Over the past year, MKOR returned 106.40% vs -1.81% for KDEF. At a 0.49 correlation, their price movements are largely independent. MKOR charges 0.79%/yr vs 0.65%/yr for KDEF.

Performance

MKOR vs. KDEF - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Matthews Korea Active ETF (MKOR) and PLUS Korea Defense Industry Index ETF (KDEF). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, MKOR achieves a 64.92% return, which is significantly higher than KDEF's -12.28% return.

MKOR

• 1D: -3.80%
• 1M: -17.01%
• 6M: 46.60%
• YTD: 64.92%
• 1Y: 106.40%
• 3Y*: 32.29%
• 5Y*: —
• 10Y*: —

KDEF

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

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

MKOR vs. KDEF - Yearly Performance Comparison

	2026 (YTD)	2025
MKOR Matthews Korea Active ETF	64.92%	61.55%
KDEF PLUS Korea Defense Industry Index ETF	-12.28%	116.28%

Correlation

The correlation between MKOR and KDEF is 0.52, 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	0.52
Correlation (All Time) Calculated using the full available price history since Feb 5, 2025	0.49

The correlation between MKOR and KDEF has been stable across timeframes, ranging from 0.49 to 0.52 - a consistent structural relationship.

MKOR vs. KDEF - Sectors Allocation Comparison

Sectors	MKOR	KDEF
Technology	52.6%	2.7%
Industrials	24.4%	87.8%
Financial Services	9.0%	-
Consumer Cyclical	7.2%	6.6%
Communication Services	2.2%	-
Consumer Defensive	1.8%	-
Healthcare	1.5%	2.9%
Basic Materials	1.4%	-
Energy	0.7%	-
Utilities	0.6%	-
Real Estate	-	-

Return for Risk

MKOR vs. KDEF — Risk / Return Rank

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

MKOR

MKOR Risk / Return Rank: 87
MKOR Sharpe Ratio Rank: 91
MKOR Sortino Ratio Rank: 79
MKOR Omega Ratio Rank: 84
MKOR Calmar Ratio Rank: 93
MKOR Martin Ratio Rank: 90

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

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.

MKOR vs. KDEF - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Matthews Korea Active ETF (MKOR) and PLUS Korea Defense Industry Index ETF (KDEF). 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.

	MKOR	KDEF	Difference
Sharpe ratio: Return per unit of total volatility	2.46	-0.04	+2.50
Sortino ratio: Return per unit of downside risk	2.81	0.29	+2.52
Omega ratio: Gain probability vs. loss probability	1.40	1.03	+0.36
Calmar ratio: Return relative to maximum drawdown	5.19	-0.04	+5.23
Martin ratio: Return relative to average drawdown	16.22	-0.12	+16.34

MKOR vs. KDEF - Sharpe Ratio Comparison

The current MKOR Sharpe Ratio is 2.46, which is higher than the KDEF Sharpe Ratio of -0.04. The chart below compares the historical Sharpe Ratios of MKOR and KDEF, 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

MKOR vs. KDEF - Drawdown Comparison

The maximum MKOR drawdown since its inception was -22.09%, smaller than the maximum KDEF drawdown of -42.23%. Use the drawdown chart below to compare losses from any high point for MKOR and KDEF.

Drawdown Indicators

	MKOR	KDEF	Difference
Max Drawdown Largest peak-to-trough decline	-22.09%	-42.23%	+20.14%
Max Drawdown (1Y) Largest decline over 1 year	-20.62%	-42.23%	+21.61%
Max Drawdown (3Y) Largest decline over 3 years	-22.09%	—	—
Current Drawdown Current decline from peak	-19.99%	-41.65%	+21.66%
Average Drawdown Average peak-to-trough decline	-6.42%	-8.65%	+2.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.59%	15.13%	-8.54%

Volatility

MKOR vs. KDEF - Volatility Comparison

Matthews Korea Active ETF (MKOR) has a higher volatility of 17.43% compared to PLUS Korea Defense Industry Index ETF (KDEF) at 16.56%. This indicates that MKOR's price experiences larger fluctuations and is considered to be riskier than KDEF based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MKOR	KDEF	Difference
Volatility (1M) Calculated over the trailing 1-month period	17.43%	16.56%	+0.87%
Volatility (6M) Calculated over the trailing 6-month period	40.71%	39.99%	+0.72%
Volatility (1Y) Calculated over the trailing 1-year period	43.45%	48.14%	-4.69%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.89%	48.43%	-18.54%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.89%	48.43%	-18.54%

MKOR vs. KDEF - Expense Ratio Comparison

MKOR has a 0.79% expense ratio, which is higher than KDEF's 0.65% expense ratio.

Dividends

MKOR vs. KDEF - Dividend Comparison

MKOR's dividend yield for the trailing twelve months is around 1.59%, less than KDEF's 7.83% yield.

Position	TTM	2025	2024
KDEF PLUS Korea Defense Industry Index ETF	7.83%	5.06%	0.00%
MKOR Matthews Korea Active ETF	1.59%	2.62%	5.28%

Frequently Asked Questions

Can I hold both MKOR and KDEF in my portfolio?

MKOR and KDEF have a correlation of 0.52, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MKOR or KDEF?

MKOR has higher volatility (17.43%) compared to KDEF (16.56%). In terms of maximum drawdown, MKOR dropped -22.09% vs KDEF's -42.23%.

Which ETF is better, MKOR or KDEF?

On 1-year performance, MKOR leads with 106.40% vs -1.81% for KDEF. On fees, KDEF is cheaper at 0.65% per year. On volatility, KDEF has been the lower-risk option at 16.56%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, MKOR or KDEF?

Over the 1-year period, MKOR has performed better with a 106.40% return vs -1.81%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, MKOR or KDEF?

KDEF is cheaper with a 0.65% expense ratio, compared with 0.79% for MKOR.

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

KDEF has the higher dividend yield at 7.83%, compared with 1.59% for MKOR.

What is the main difference between MKOR and KDEF?

MKOR is categorized as South Korea Equities, while KDEF is Aerospace & Defense. They also come from different issuers: Matthews and PLUS. Their fees differ too: 0.79% for MKOR and 0.65% for KDEF.

Which has better risk-adjusted returns?

MKOR currently has the higher Sharpe Ratio (2.46 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.