AAVM vs. MFEM

Last updated Aug 2, 2026

AAVM (Alpha Architect Global Factor Equity ETF) and MFEM (PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF) are both exchange-traded funds - AAVM is a Multi-factor fund actively managed by Alpha Architect, while MFEM is a Emerging Markets Equities fund tracking the RAFI Dynamic Multi-Factor Emerging Market Index. AAVM is actively managed, while MFEM is passively managed. Over the past 5 years, AAVM returned 6.37%/yr vs 7.21%/yr for MFEM. Their 0.61 correlation means they have sometimes moved together and sometimes differently. AAVM charges 0.45%/yr vs 0.49%/yr for MFEM.

Performance

AAVM vs. MFEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alpha Architect Global Factor Equity ETF (AAVM) and PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AAVM achieves a 13.65% return, which is significantly lower than MFEM's 16.47% return.

AAVM

• 1D: -0.50%
• 1M: -0.23%
• 6M: 6.63%
• YTD: 13.65%
• 1Y: 28.67%
• 3Y*: 16.05%
• 5Y*: 6.37%
• 10Y*: —
• ALL TIME*: 4.78%

MFEM

• 1D: -0.21%
• 1M: -2.90%
• 6M: 6.30%
• YTD: 16.47%
• 1Y: 30.01%
• 3Y*: 15.79%
• 5Y*: 7.21%
• 10Y*: —
• ALL TIME*: 6.85%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
AAVM Alpha Architect Global Factor Equity ETF	$67.44K	$51.51K	$70.29K
MFEM PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF	$581.34K	$458.22K	$623.99K

AAVM vs. MFEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
AAVM Alpha Architect Global Factor Equity ETF	13.65%	18.54%	12.07%	-0.74%	-7.00%	3.52%	4.69%	4.59%	-15.64%	11.41%
MFEM PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF	16.47%	25.33%	4.73%	15.14%	-19.50%	10.77%	11.33%	15.26%	-14.64%	4.86%

Correlation

The correlation between AAVM and MFEM is 0.76, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.76
Correlation (3Y) Balances recent behavior with more history.	0.65
Correlation (5Y) Shows whether the relationship held over a longer period.	0.59
Correlation (All Time) Calculated using the full available price history since Sep 6, 2017	0.61

The correlation between AAVM and MFEM shifts across timeframes, from 0.59 (5 years) to 0.76 (1 year), reflecting how their relationship changes across market environments.

AAVM vs. MFEM - Sectors Allocation Comparison

Sectors	AAVM	MFEM
Industrials	24.3%	10.1%
Technology	15.4%	34.0%
Energy	13.9%	7.7%
Basic Materials	12.5%	13.1%
Consumer Cyclical	11.6%	7.0%
Healthcare	8.7%	1.4%
Communication Services	4.6%	4.4%
Consumer Defensive	4.0%	3.4%
Utilities	2.8%	3.3%
Financial Services	1.8%	14.4%
Real Estate	0.6%	1.0%

Return for Risk

AAVM vs. MFEM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

AAVM

AAVM Risk / Return Rank: 77
AAVM Sharpe Ratio Rank: 77
AAVM Sortino Ratio Rank: 78
AAVM Omega Ratio Rank: 77
AAVM Calmar Ratio Rank: 75
AAVM Martin Ratio Rank: 77

MFEM

MFEM Risk / Return Rank: 53
MFEM Sharpe Ratio Rank: 54
MFEM Sortino Ratio Rank: 51
MFEM Omega Ratio Rank: 56
MFEM Calmar Ratio Rank: 55
MFEM Martin Ratio Rank: 50

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

AAVM vs. MFEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alpha Architect Global Factor Equity ETF (AAVM) and PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM). 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.

	AAVM	MFEM	Difference
Sharpe ratio: Return per unit of total volatility	1.76	1.31	+0.45
Sortino ratio: Return per unit of downside risk	2.51	1.82	+0.69
Omega ratio: Gain probability vs. loss probability	1.32	1.25	+0.07
Calmar ratio: Return relative to maximum drawdown	2.61	1.97	+0.65
Martin ratio: Return relative to average drawdown	9.78	5.82	+3.96

AAVM vs. MFEM - Sharpe Ratio Comparison

The current AAVM Sharpe Ratio is 1.76, which is higher than the MFEM Sharpe Ratio of 1.31. The chart below compares the historical Sharpe Ratios of AAVM and MFEM, 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

AAVM vs. MFEM - Drawdown Comparison

The maximum AAVM drawdown since its inception was -34.71%, smaller than the maximum MFEM drawdown of -43.32%. Use the drawdown chart below to compare losses from any high point for AAVM and MFEM.

Drawdown Indicators

	AAVM	MFEM	Difference
Max Drawdown Largest peak-to-trough decline	-34.71%	-43.32%	+8.61%
Max Drawdown (1Y) Largest decline over 1 year	-10.85%	-15.05%	+4.20%
Max Drawdown (3Y) Largest decline over 3 years	-20.23%	-19.22%	-1.01%
Max Drawdown (5Y) Largest decline over 5 years	-23.73%	-30.78%	+7.05%
Current Drawdown Current decline from peak	-3.64%	-12.43%	+8.79%
Average Drawdown Average peak-to-trough decline	-13.14%	-11.43%	-1.71%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.90%	5.08%	-2.18%

Volatility

AAVM vs. MFEM - Volatility Comparison

The current volatility for Alpha Architect Global Factor Equity ETF (AAVM) is 4.03%, while PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) has a volatility of 7.50%. This indicates that AAVM experiences smaller price fluctuations and is considered to be less risky than MFEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AAVM	MFEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.03%	7.50%	-3.47%
Volatility (6M) Calculated over the trailing 6-month period	13.94%	20.84%	-6.90%
Volatility (1Y) Calculated over the trailing 1-year period	16.15%	22.65%	-6.50%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	15.74%	17.42%	-1.68%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.94%	19.70%	-4.76%

AAVM vs. MFEM - Expense Ratio Comparison

AAVM has a 0.45% expense ratio, which is lower than MFEM's 0.49% expense ratio.

Dividends

AAVM vs. MFEM - Dividend Comparison

AAVM's dividend yield for the trailing twelve months is around 1.81%, less than MFEM's 2.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
AAVM Alpha Architect Global Factor Equity ETF	1.81%	2.05%	2.54%	4.13%	2.24%	0.82%	0.00%	1.76%	0.93%	0.81%
MFEM PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF	2.37%	2.77%	5.89%	4.01%	7.01%	29.96%	1.70%	2.37%	1.18%	0.21%

Frequently Asked Questions

Can I hold both AAVM and MFEM in my portfolio?

AAVM and MFEM have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AAVM or MFEM?

MFEM has higher volatility (7.50%) compared to AAVM (4.03%). In terms of maximum drawdown, AAVM dropped -34.71% vs MFEM's -43.32%.

Which ETF is better, AAVM or MFEM?

On 5-year performance, MFEM leads with 7.21% vs 6.37% for AAVM. On fees, AAVM is cheaper at 0.45% per year. On volatility, AAVM has been the lower-risk option at 4.03%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AAVM or MFEM?

Over the 5-year period, MFEM has performed better with a 7.21% return vs 6.37%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AAVM or MFEM?

AAVM is cheaper with a 0.45% expense ratio, compared with 0.49% for MFEM.

Which ETF pays a higher dividend yield, AAVM or MFEM?

MFEM has the higher dividend yield at 2.37%, compared with 1.81% for AAVM.

What is the main difference between AAVM and MFEM?

AAVM is categorized as Multi-factor, while MFEM is Emerging Markets Equities. They also come from different issuers: Alpha Architect and PIMCO. Their fees differ too: 0.45% for AAVM and 0.49% for MFEM.

Which has better risk-adjusted returns?

AAVM currently has the higher Sharpe Ratio (1.76 vs 1.31), 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.