RWEM vs. RAYJ

Last updated Jun 4, 2026

RWEM (Rayliant Wilshire NxtGen Emerging Markets Equity ETF) and RAYJ (Rayliant SMDAM Japan Equity ETF) are both exchange-traded funds - RWEM is a Emerging Markets Equities fund tracking the FT Wilshire Emerging Large NxtGen Index, while RAYJ is a Japan Equities fund actively managed by Rayliant. RWEM is passively managed, while RAYJ is actively managed. Over the past year, RWEM returned 56.82% vs 36.01% for RAYJ. At a 0.41 correlation, their price movements are largely independent. RWEM charges 0.52%/yr vs 0.72%/yr for RAYJ.

Performance

RWEM vs. RAYJ - Performance Comparison

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

Returns By Period

In the year-to-date period, RWEM achieves a 26.61% return, which is significantly higher than RAYJ's 24.58% return.

RWEM

• 1D: 1.08%
• 1M: 12.70%
• YTD: 26.61%
• 6M: 37.26%
• 1Y: 56.82%
• 3Y*: 25.41%
• 5Y*: —
• 10Y*: —

RAYJ

• 1D: -0.14%
• 1M: 6.24%
• YTD: 24.58%
• 6M: 24.81%
• 1Y: 36.01%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

RWEM vs. RAYJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024
RWEM Rayliant Wilshire NxtGen Emerging Markets Equity ETF	26.61%	28.17%	0.54%
RAYJ Rayliant SMDAM Japan Equity ETF	24.58%	20.16%	10.10%

Correlation

The correlation between RWEM and RAYJ is 0.32, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.32
Correlation (All Time) Calculated using the full available price history since Apr 5, 2024	0.41

RWEM vs. RAYJ - Sectors Allocation Comparison

Sectors	RWEM	RAYJ
Technology	36.8%	18.5%
Financial Services	23.6%	7.2%
Basic Materials	7.9%	7.5%
Industrials	6.5%	32.6%
Consumer Cyclical	6.3%	24.1%
Communication Services	4.5%	1.4%
Consumer Defensive	4.5%	1.7%
Energy	4.3%	-
Utilities	2.5%	-
Real Estate	1.8%	3.1%
Healthcare	1.4%	3.9%

Return for Risk

RWEM vs. RAYJ — Risk / Return Rank

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

RWEM

RWEM Risk / Return Rank: 60
RWEM Sharpe Ratio Rank: 54
RWEM Sortino Ratio Rank: 50
RWEM Omega Ratio Rank: 57
RWEM Calmar Ratio Rank: 75
RWEM Martin Ratio Rank: 66

RAYJ

RAYJ Risk / Return Rank: 48
RAYJ Sharpe Ratio Rank: 46
RAYJ Sortino Ratio Rank: 47
RAYJ Omega Ratio Rank: 45
RAYJ Calmar Ratio Rank: 53
RAYJ Martin Ratio Rank: 50

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.

RWEM vs. RAYJ - Risk-Adjusted Trends Comparison

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

	RWEM	RAYJ	Difference
Sharpe ratio: Return per unit of total volatility	1.79	1.56	+0.24
Sortino ratio: Return per unit of downside risk	2.42	2.29	+0.13
Omega ratio: Gain probability vs. loss probability	1.34	1.28	+0.07
Calmar ratio: Return relative to maximum drawdown	3.71	2.58	+1.13
Martin ratio: Return relative to average drawdown	11.99	8.33	+3.66
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

RWEM vs. RAYJ - Sharpe Ratio Comparison

The current RWEM Sharpe Ratio is 1.79, which is comparable to the RAYJ Sharpe Ratio of 1.56. The chart below compares the historical Sharpe Ratios of RWEM and RAYJ, 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

	RWEM	RAYJ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.79	1.56	+0.24
Sharpe Ratio (All Time) Calculated using the full available price history	0.59	1.15	-0.56

Drawdowns

RWEM vs. RAYJ - Drawdown Comparison

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

Drawdown Indicators

	RWEM	RAYJ	Difference
Max Drawdown Largest peak-to-trough decline	-26.92%	-15.96%	-10.96%
Max Drawdown (1Y) Largest decline over 1 year	-15.39%	-14.00%	-1.39%
Max Drawdown (3Y) Largest decline over 3 years	-22.56%	—	—
Current Drawdown Current decline from peak	0.00%	-2.25%	+2.25%
Average Drawdown Average peak-to-trough decline	-9.64%	-3.53%	-6.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.75%	4.34%	+0.41%

Volatility

RWEM vs. RAYJ - Volatility Comparison

Rayliant Wilshire NxtGen Emerging Markets Equity ETF (RWEM) has a higher volatility of 8.57% compared to Rayliant SMDAM Japan Equity ETF (RAYJ) at 7.28%. This indicates that RWEM's price experiences larger fluctuations and is considered to be riskier than RAYJ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	RWEM	RAYJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.57%	7.28%	+1.29%
Volatility (6M) Calculated over the trailing 6-month period	29.47%	18.41%	+11.06%
Volatility (1Y) Calculated over the trailing 1-year period	31.82%	23.24%	+8.58%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.36%	22.77%	-1.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.36%	22.77%	-1.41%

RWEM vs. RAYJ - Expense Ratio Comparison

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

Dividends

RWEM vs. RAYJ - Dividend Comparison

RWEM's dividend yield for the trailing twelve months is around 1.70%, more than RAYJ's 1.38% yield.

Position	TTM	2025	2024	2023	2022	2021
RAYJ Rayliant SMDAM Japan Equity ETF	1.38%	1.72%	0.78%	0.00%	0.00%	0.00%
RWEM Rayliant Wilshire NxtGen Emerging Markets Equity ETF	1.70%	2.15%	3.59%	1.60%	5.59%	0.39%

Frequently Asked Questions

Can I hold both RWEM and RAYJ in my portfolio?

RWEM and RAYJ have a correlation of 0.32, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, RWEM or RAYJ?

RWEM has higher volatility (8.57%) compared to RAYJ (7.28%). In terms of maximum drawdown, RWEM dropped -26.92% vs RAYJ's -15.96%.

Which ETF is better, RWEM or RAYJ?

On 1-year performance, RWEM leads with 56.82% vs 36.01% for RAYJ. On fees, RWEM is cheaper at 0.52% per year. On volatility, RAYJ has been the lower-risk option at 7.28%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, RWEM or RAYJ?

Over the 1-year period, RWEM has performed better with a 56.82% return vs 36.01%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, RWEM or RAYJ?

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

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

RWEM has the higher dividend yield at 1.70%, compared with 1.38% for RAYJ.

What is the main difference between RWEM and RAYJ?

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

Which has better risk-adjusted returns?

RWEM currently has the higher Sharpe Ratio (1.79 vs 1.56), 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.