XSOE vs. BKEM

Last updated Jul 14, 2026

XSOE (WisdomTree Emerging Markets ex-State-Owned Enterprises Fund) and BKEM (BNY Mellon Emerging Markets Equity ETF) are both Emerging Markets Equities funds - XSOE tracks the WisdomTree Emerging Markets ex-State-Owned Enterprises Index while BKEM tracks the Morningstar Emerging Markets Large Cap Index. Both are passively managed. Over the past 5 years, XSOE returned 4.12%/yr vs 6.39%/yr for BKEM. With a 0.98 correlation, they move nearly in lockstep. XSOE charges 0.32%/yr vs 0.11%/yr for BKEM.

Performance

XSOE vs. BKEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) and BNY Mellon Emerging Markets Equity ETF (BKEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XSOE achieves a 19.08% return, which is significantly lower than BKEM's 20.10% return.

XSOE

• 1D: -3.45%
• 1M: -4.00%
• 6M: 12.89%
• YTD: 19.08%
• 1Y: 36.58%
• 3Y*: 18.47%
• 5Y*: 4.12%
• 10Y*: 9.52%

BKEM

• 1D: -3.63%
• 1M: -4.84%
• 6M: 13.52%
• YTD: 20.10%
• 1Y: 36.79%
• 3Y*: 18.94%
• 5Y*: 6.39%
• 10Y*: —

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

XSOE vs. BKEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
XSOE WisdomTree Emerging Markets ex-State-Owned Enterprises Fund	19.08%	30.05%	7.02%	10.28%	-25.83%	-5.92%	55.18%
BKEM BNY Mellon Emerging Markets Equity ETF	20.10%	30.55%	7.53%	8.68%	-19.43%	-3.91%	48.44%

Correlation

The correlation between XSOE and BKEM is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (All Time) Calculated using the full available price history since Apr 24, 2020	0.98

The correlation between XSOE and BKEM has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

XSOE vs. BKEM - Sectors Allocation Comparison

Sectors	XSOE	BKEM
Technology	43.9%	43.0%
Financial Services	14.1%	16.9%
Consumer Cyclical	11.3%	8.7%
Industrials	8.6%	8.1%
Communication Services	6.1%	5.8%
Basic Materials	4.8%	5.7%
Healthcare	3.9%	2.7%
Consumer Defensive	3.4%	2.6%
Energy	1.6%	3.4%
Utilities	1.3%	2.0%
Real Estate	0.9%	1.1%

Return for Risk

XSOE vs. BKEM — Risk / Return Rank

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

XSOE

XSOE Risk / Return Rank: 62
XSOE Sharpe Ratio Rank: 59
XSOE Sortino Ratio Rank: 54
XSOE Omega Ratio Rank: 63
XSOE Calmar Ratio Rank: 69
XSOE Martin Ratio Rank: 66

BKEM

BKEM Risk / Return Rank: 64
BKEM Sharpe Ratio Rank: 62
BKEM Sortino Ratio Rank: 55
BKEM Omega Ratio Rank: 63
BKEM Calmar Ratio Rank: 71
BKEM Martin Ratio Rank: 67

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.

XSOE vs. BKEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) and BNY Mellon Emerging Markets Equity ETF (BKEM). 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.

	XSOE	BKEM	Difference
Sharpe ratio: Return per unit of total volatility	1.57	1.62	-0.04
Sortino ratio: Return per unit of downside risk	2.10	2.12	-0.03
Omega ratio: Gain probability vs. loss probability	1.30	1.30	0.00
Calmar ratio: Return relative to maximum drawdown	2.76	2.82	-0.06
Martin ratio: Return relative to average drawdown	9.42	9.64	-0.21

XSOE vs. BKEM - Sharpe Ratio Comparison

The current XSOE Sharpe Ratio is 1.57, which is comparable to the BKEM Sharpe Ratio of 1.62. The chart below compares the historical Sharpe Ratios of XSOE and BKEM, 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

XSOE vs. BKEM - Drawdown Comparison

The maximum XSOE drawdown since its inception was -45.23%, which is greater than BKEM's maximum drawdown of -39.48%. Use the drawdown chart below to compare losses from any high point for XSOE and BKEM.

Drawdown Indicators

	XSOE	BKEM	Difference
Max Drawdown Largest peak-to-trough decline	-45.23%	-39.48%	-5.75%
Max Drawdown (1Y) Largest decline over 1 year	-13.31%	-13.11%	-0.20%
Max Drawdown (3Y) Largest decline over 3 years	-19.96%	-18.38%	-1.58%
Max Drawdown (5Y) Largest decline over 5 years	-40.51%	-34.52%	-5.99%
Max Drawdown (10Y) Largest decline over 10 years	-45.23%	—	—
Current Drawdown Current decline from peak	-9.09%	-9.06%	-0.03%
Average Drawdown Average peak-to-trough decline	-17.17%	-15.81%	-1.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.89%	3.83%	+0.06%

Volatility

XSOE vs. BKEM - Volatility Comparison

WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) and BNY Mellon Emerging Markets Equity ETF (BKEM) have volatilities of 11.36% and 10.87%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XSOE	BKEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.36%	10.87%	+0.49%
Volatility (6M) Calculated over the trailing 6-month period	21.46%	20.93%	+0.53%
Volatility (1Y) Calculated over the trailing 1-year period	23.43%	22.92%	+0.51%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.20%	19.50%	+0.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.86%	19.65%	+1.21%

XSOE vs. BKEM - Expense Ratio Comparison

XSOE has a 0.32% expense ratio, which is higher than BKEM's 0.11% expense ratio.

Dividends

XSOE vs. BKEM - Dividend Comparison

XSOE's dividend yield for the trailing twelve months is around 1.64%, less than BKEM's 1.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BKEM BNY Mellon Emerging Markets Equity ETF	1.95%	2.25%	2.76%	3.02%	3.15%	2.22%	1.78%	0.00%	0.00%	0.00%	0.00%	0.00%
XSOE WisdomTree Emerging Markets ex-State-Owned Enterprises Fund	1.64%	1.50%	1.44%	1.78%	2.53%	1.36%	1.02%	2.01%	1.56%	0.65%	1.43%	3.93%

Frequently Asked Questions

Can I hold both XSOE and BKEM in my portfolio?

With a correlation of 0.96, XSOE and BKEM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, XSOE or BKEM?

XSOE has higher volatility (11.36%) compared to BKEM (10.87%). In terms of maximum drawdown, XSOE dropped -45.23% vs BKEM's -39.48%.

Which ETF is better, XSOE or BKEM?

On 5-year performance, BKEM leads with 6.39% vs 4.12% for XSOE. On fees, BKEM is cheaper at 0.11% per year. On volatility, BKEM has been the lower-risk option at 10.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XSOE or BKEM?

Over the 5-year period, BKEM has performed better with a 6.39% return vs 4.12%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XSOE or BKEM?

BKEM is cheaper with a 0.11% expense ratio, compared with 0.32% for XSOE.

Which ETF pays a higher dividend yield, XSOE or BKEM?

BKEM has the higher dividend yield at 1.95%, compared with 1.64% for XSOE.

What is the main difference between XSOE and BKEM?

XSOE tracks WisdomTree Emerging Markets ex-State-Owned Enterprises Index, while BKEM tracks Morningstar Emerging Markets Large Cap Index. They also come from different issuers: WisdomTree and BNY Mellon. Their fees differ too: 0.32% for XSOE and 0.11% for BKEM.

Which has better risk-adjusted returns?

BKEM currently has the higher Sharpe Ratio (1.62 vs 1.57), 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.