OVF vs. KEMX

Last updated Jun 4, 2026

OVF (Overlay Shares Foreign Equity ETF) and KEMX (KraneShares MSCI Emerging Markets ex China Index ETF) are both Foreign Large Cap Equities funds. OVF is actively managed, while KEMX is passively managed. Over the past 5 years, OVF returned 9.56%/yr vs 13.52%/yr for KEMX. A 0.79 correlation means they provide meaningful diversification when combined. OVF charges 0.95%/yr vs 0.25%/yr for KEMX.

Performance

OVF vs. KEMX - Performance Comparison

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

Returns By Period

In the year-to-date period, OVF achieves a 14.61% return, which is significantly lower than KEMX's 42.26% return.

OVF

• 1D: -0.99%
• 1M: 4.77%
• YTD: 14.61%
• 6M: 17.49%
• 1Y: 33.00%
• 3Y*: 19.98%
• 5Y*: 9.56%
• 10Y*: —

KEMX

• 1D: -1.31%
• 1M: 13.02%
• YTD: 42.26%
• 6M: 47.92%
• 1Y: 79.97%
• 3Y*: 29.66%
• 5Y*: 13.52%
• 10Y*: —

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

OVF vs. KEMX - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
OVF Overlay Shares Foreign Equity ETF	14.61%	33.03%	6.40%	15.25%	-17.64%	9.56%	2.65%	5.81%
KEMX KraneShares MSCI Emerging Markets ex China Index ETF	42.26%	38.28%	0.36%	20.57%	-19.35%	10.55%	12.84%	12.00%

Correlation

The correlation between OVF and KEMX is 0.83, 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	0.83
Correlation (3Y) Calculated over the trailing 3-year period	0.81
Correlation (5Y) Calculated over the trailing 5-year period	0.80
Correlation (All Time) Calculated using the full available price history since Oct 2, 2019	0.79

The correlation between OVF and KEMX has been stable across timeframes, ranging from 0.79 to 0.83 - a consistent structural relationship.

OVF vs. KEMX - Sectors Allocation Comparison

Sectors	OVF	KEMX
Financial Services	21.6%	20.7%
Technology	17.5%	41.2%
Industrials	17.2%	8.6%
Consumer Cyclical	8.5%	5.4%
Healthcare	8.2%	1.7%
Basic Materials	6.6%	8.2%
Consumer Defensive	5.6%	3.0%
Communication Services	5.1%	3.2%
Energy	3.8%	4.8%
Utilities	3.2%	2.0%
Real Estate	2.7%	1.2%

Return for Risk

OVF vs. KEMX — Risk / Return Rank

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

OVF

OVF Risk / Return Rank: 58
OVF Sharpe Ratio Rank: 58
OVF Sortino Ratio Rank: 56
OVF Omega Ratio Rank: 57
OVF Calmar Ratio Rank: 57
OVF Martin Ratio Rank: 61

KEMX

KEMX Risk / Return Rank: 91
KEMX Sharpe Ratio Rank: 93
KEMX Sortino Ratio Rank: 91
KEMX Omega Ratio Rank: 92
KEMX Calmar Ratio Rank: 88
KEMX Martin Ratio Rank: 90

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.

OVF vs. KEMX - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Overlay Shares Foreign Equity ETF (OVF) and KraneShares MSCI Emerging Markets ex China Index ETF (KEMX). 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.

	OVF	KEMX	Difference
Sharpe ratio: Return per unit of total volatility	1.98	3.59	-1.61
Sortino ratio: Return per unit of downside risk	2.71	4.31	-1.60
Omega ratio: Gain probability vs. loss probability	1.35	1.62	-0.27
Calmar ratio: Return relative to maximum drawdown	2.85	5.24	-2.39
Martin ratio: Return relative to average drawdown	10.99	20.86	-9.87
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

OVF vs. KEMX - Sharpe Ratio Comparison

The current OVF Sharpe Ratio is 1.98, which is lower than the KEMX Sharpe Ratio of 3.59. The chart below compares the historical Sharpe Ratios of OVF and KEMX, 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

	OVF	KEMX	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.98	3.59	-1.61
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.61	0.75	-0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.56	0.68	-0.12

Drawdowns

OVF vs. KEMX - Drawdown Comparison

The maximum OVF drawdown since its inception was -30.07%, smaller than the maximum KEMX drawdown of -38.80%. Use the drawdown chart below to compare losses from any high point for OVF and KEMX.

Drawdown Indicators

	OVF	KEMX	Difference
Max Drawdown Largest peak-to-trough decline	-30.07%	-38.80%	+8.73%
Max Drawdown (1Y) Largest decline over 1 year	-11.64%	-15.36%	+3.72%
Max Drawdown (3Y) Largest decline over 3 years	-15.89%	-19.62%	+3.73%
Max Drawdown (5Y) Largest decline over 5 years	-30.07%	-30.85%	+0.78%
Current Drawdown Current decline from peak	-0.99%	-1.31%	+0.32%
Average Drawdown Average peak-to-trough decline	-7.44%	-8.86%	+1.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.01%	3.85%	-0.84%

Volatility

OVF vs. KEMX - Volatility Comparison

The current volatility for Overlay Shares Foreign Equity ETF (OVF) is 5.44%, while KraneShares MSCI Emerging Markets ex China Index ETF (KEMX) has a volatility of 9.86%. This indicates that OVF experiences smaller price fluctuations and is considered to be less risky than KEMX based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	OVF	KEMX	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.44%	9.86%	-4.42%
Volatility (6M) Calculated over the trailing 6-month period	14.08%	19.90%	-5.82%
Volatility (1Y) Calculated over the trailing 1-year period	16.75%	22.40%	-5.65%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.77%	18.21%	-2.44%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.12%	20.94%	-3.82%

OVF vs. KEMX - Expense Ratio Comparison

OVF has a 0.95% expense ratio, which is higher than KEMX's 0.25% expense ratio.

Dividends

OVF vs. KEMX - Dividend Comparison

OVF's dividend yield for the trailing twelve months is around 9.57%, more than KEMX's 2.31% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
KEMX KraneShares MSCI Emerging Markets ex China Index ETF	2.31%	3.28%	3.39%	2.00%	4.10%	4.79%	1.69%	2.77%
OVF Overlay Shares Foreign Equity ETF	9.57%	6.32%	5.13%	5.17%	4.50%	4.88%	2.55%	2.12%

Frequently Asked Questions

Can I hold both OVF and KEMX in my portfolio?

OVF and KEMX have a correlation of 0.83, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, OVF or KEMX?

KEMX has higher volatility (9.86%) compared to OVF (5.44%). In terms of maximum drawdown, OVF dropped -30.07% vs KEMX's -38.80%.

Which ETF is better, OVF or KEMX?

On 5-year performance, KEMX leads with 13.52% vs 9.56% for OVF. On fees, KEMX is cheaper at 0.25% per year. On volatility, OVF has been the lower-risk option at 5.44%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, OVF or KEMX?

Over the 5-year period, KEMX has performed better with a 13.52% return vs 9.56%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, OVF or KEMX?

KEMX is cheaper with a 0.25% expense ratio, compared with 0.95% for OVF.

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

OVF has the higher dividend yield at 9.57%, compared with 2.31% for KEMX.

What is the main difference between OVF and KEMX?

They also come from different issuers: Liquid Strategies and CICC. Their fees differ too: 0.95% for OVF and 0.25% for KEMX.

Which has better risk-adjusted returns?

KEMX currently has the higher Sharpe Ratio (3.59 vs 1.98), 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.