RAYJ vs. RWEM

Last updated Jun 23, 2026

RAYJ (Rayliant SMDAM Japan Equity ETF) and RWEM (Rayliant Wilshire NxtGen Emerging Markets Equity ETF) are both exchange-traded funds - RAYJ is a Japan Equities fund actively managed by Rayliant, while RWEM is a Emerging Markets Equities fund tracking the FT Wilshire Emerging Large NxtGen Index. RAYJ is actively managed, while RWEM is passively managed. Over the past year, RAYJ returned 44.44% vs 52.26% for RWEM. At a 0.40 correlation, their price movements are largely independent. RAYJ charges 0.72%/yr vs 0.52%/yr for RWEM.

Performance

RAYJ vs. RWEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Rayliant SMDAM Japan Equity ETF (RAYJ) and Rayliant Wilshire NxtGen Emerging Markets Equity ETF (RWEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, RAYJ achieves a 32.28% return, which is significantly higher than RWEM's 27.68% return.

RAYJ

• 1D: 2.06%
• 1M: 8.38%
• YTD: 32.28%
• 6M: 30.75%
• 1Y: 44.44%
• 3Y*: —
• 5Y*: —
• 10Y*: —

RWEM

• 1D: -1.40%
• 1M: 6.68%
• YTD: 27.68%
• 6M: 30.93%
• 1Y: 52.26%
• 3Y*: 24.58%
• 5Y*: —
• 10Y*: —

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

RAYJ vs. RWEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024
RAYJ Rayliant SMDAM Japan Equity ETF	32.28%	20.16%	10.53%
RWEM Rayliant Wilshire NxtGen Emerging Markets Equity ETF	27.68%	28.17%	0.50%

Correlation

The correlation between RAYJ and RWEM is 0.31, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.31
Correlation (All Time) Calculated using the full available price history since Apr 4, 2024	0.40

RAYJ vs. RWEM - Sectors Allocation Comparison

Sectors	RAYJ	RWEM
Industrials	29.6%	6.5%
Consumer Cyclical	23.8%	6.3%
Technology	23.2%	36.8%
Basic Materials	7.5%	7.9%
Financial Services	6.6%	23.6%
Healthcare	3.5%	1.4%
Real Estate	2.8%	1.8%
Consumer Defensive	1.5%	4.5%
Communication Services	1.5%	4.5%
Energy	-	4.3%
Utilities	-	2.5%

Return for Risk

RAYJ vs. RWEM — Risk / Return Rank

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

RAYJ

RAYJ Risk / Return Rank: 58
RAYJ Sharpe Ratio Rank: 57
RAYJ Sortino Ratio Rank: 57
RAYJ Omega Ratio Rank: 52
RAYJ Calmar Ratio Rank: 66
RAYJ Martin Ratio Rank: 58

RWEM

RWEM Risk / Return Rank: 53
RWEM Sharpe Ratio Rank: 44
RWEM Sortino Ratio Rank: 42
RWEM Omega Ratio Rank: 47
RWEM Calmar Ratio Rank: 70
RWEM Martin Ratio Rank: 62

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.

RAYJ vs. RWEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Rayliant SMDAM Japan Equity ETF (RAYJ) and Rayliant Wilshire NxtGen Emerging Markets Equity ETF (RWEM). 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.

	RAYJ	RWEM	Difference
Sharpe ratio: Return per unit of total volatility	1.86	1.51	+0.35
Sortino ratio: Return per unit of downside risk	2.64	2.07	+0.57
Omega ratio: Gain probability vs. loss probability	1.32	1.30	+0.02
Calmar ratio: Return relative to maximum drawdown	3.19	3.41	-0.22
Martin ratio: Return relative to average drawdown	10.06	10.75	-0.69

RAYJ vs. RWEM - Sharpe Ratio Comparison

The current RAYJ Sharpe Ratio is 1.86, which is comparable to the RWEM Sharpe Ratio of 1.51. The chart below compares the historical Sharpe Ratios of RAYJ and RWEM, 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

RAYJ vs. RWEM - Drawdown Comparison

The maximum RAYJ drawdown since its inception was -15.96%, smaller than the maximum RWEM drawdown of -26.92%. Use the drawdown chart below to compare losses from any high point for RAYJ and RWEM.

Drawdown Indicators

	RAYJ	RWEM	Difference
Max Drawdown Largest peak-to-trough decline	-15.96%	-26.92%	+10.96%
Max Drawdown (1Y) Largest decline over 1 year	-14.00%	-15.39%	+1.39%
Max Drawdown (3Y) Largest decline over 3 years	—	-22.56%	—
Current Drawdown Current decline from peak	0.00%	-1.40%	+1.40%
Average Drawdown Average peak-to-trough decline	-3.52%	-9.57%	+6.05%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.43%	4.87%	-0.44%

Volatility

RAYJ vs. RWEM - Volatility Comparison

The current volatility for Rayliant SMDAM Japan Equity ETF (RAYJ) is 7.35%, while Rayliant Wilshire NxtGen Emerging Markets Equity ETF (RWEM) has a volatility of 15.58%. This indicates that RAYJ experiences smaller price fluctuations and is considered to be less risky than RWEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RAYJ	RWEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.35%	15.58%	-8.23%
Volatility (6M) Calculated over the trailing 6-month period	18.15%	29.40%	-11.25%
Volatility (1Y) Calculated over the trailing 1-year period	24.08%	34.92%	-10.84%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	22.95%	22.29%	+0.66%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	22.95%	22.29%	+0.66%

RAYJ vs. RWEM - Expense Ratio Comparison

RAYJ has a 0.72% expense ratio, which is higher than RWEM's 0.52% expense ratio.

Dividends

RAYJ vs. RWEM - Dividend Comparison

RAYJ's dividend yield for the trailing twelve months is around 4.26%, more than RWEM's 1.69% yield.

Position	TTM	2025	2024	2023	2022	2021
RAYJ Rayliant SMDAM Japan Equity ETF	4.26%	1.72%	0.78%	0.00%	0.00%	0.00%
RWEM Rayliant Wilshire NxtGen Emerging Markets Equity ETF	1.69%	2.15%	3.59%	1.60%	5.59%	0.39%

Frequently Asked Questions

Can I hold both RAYJ and RWEM in my portfolio?

RAYJ and RWEM have a correlation of 0.31, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RAYJ or RWEM?

RWEM has higher volatility (15.58%) compared to RAYJ (7.35%). In terms of maximum drawdown, RAYJ dropped -15.96% vs RWEM's -26.92%.

Which ETF is better, RAYJ or RWEM?

On 1-year performance, RWEM leads with 52.26% vs 44.44% for RAYJ. On fees, RWEM is cheaper at 0.52% per year. On volatility, RAYJ has been the lower-risk option at 7.35%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, RAYJ or RWEM?

Over the 1-year period, RWEM has performed better with a 52.26% return vs 44.44%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, RAYJ or RWEM?

RWEM is cheaper with a 0.52% expense ratio, compared with 0.72% for RAYJ.

Which ETF pays a higher dividend yield, RAYJ or RWEM?

RAYJ has the higher dividend yield at 4.26%, compared with 1.69% for RWEM.

What is the main difference between RAYJ and RWEM?

RAYJ is categorized as Japan Equities, while RWEM is Emerging Markets Equities. Their fees differ too: 0.72% for RAYJ and 0.52% for RWEM.

Which has better risk-adjusted returns?

RAYJ currently has the higher Sharpe Ratio (1.86 vs 1.51), 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.