ACWX vs. AVEM

Last updated Jun 3, 2026

ACWX (iShares MSCI ACWI ex U.S. ETF) and AVEM (Avantis Emerging Markets Equity ETF) are both Foreign Large Cap Equities funds - ACWX tracks the MSCI All Country World ex-U.S. Index while AVEM tracks the MSCI Emerging Markets Index. Both are passively managed. Over the past 5 years, ACWX returned 8.79%/yr vs 10.44%/yr for AVEM. Their correlation of 0.90 suggests significant overlap in exposure. ACWX charges 0.32%/yr vs 0.33%/yr for AVEM.

Performance

ACWX vs. AVEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares MSCI ACWI ex U.S. ETF (ACWX) and Avantis Emerging Markets Equity ETF (AVEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ACWX achieves a 15.52% return, which is significantly lower than AVEM's 29.38% return.

ACWX

• 1D: 0.79%
• 1M: 5.30%
• YTD: 15.52%
• 6M: 18.73%
• 1Y: 32.87%
• 3Y*: 19.77%
• 5Y*: 8.79%
• 10Y*: 9.68%

AVEM

• 1D: 0.71%
• 1M: 10.00%
• YTD: 29.38%
• 6M: 31.57%
• 1Y: 57.57%
• 3Y*: 26.65%
• 5Y*: 10.44%
• 10Y*: —

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

ACWX vs. AVEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
ACWX iShares MSCI ACWI ex U.S. ETF	15.52%	32.59%	5.17%	15.63%	-16.07%	7.67%	10.29%	7.30%
AVEM Avantis Emerging Markets Equity ETF	29.38%	34.48%	7.49%	15.30%	-18.15%	5.16%	14.39%	11.13%

Correlation

The correlation between ACWX and AVEM is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.89
Correlation (5Y) Calculated over the trailing 5-year period	0.89
Correlation (All Time) Calculated using the full available price history since Sep 20, 2019	0.90

The correlation between ACWX and AVEM has been stable across timeframes, ranging from 0.89 to 0.90 - a consistent structural relationship.

ACWX vs. AVEM - Sectors Allocation Comparison

Sectors	ACWX	AVEM
Financial Services	23.3%	20.7%
Technology	22.4%	32.3%
Industrials	14.0%	9.2%
Consumer Cyclical	7.3%	9.2%
Healthcare	6.7%	2.8%
Basic Materials	6.7%	8.1%
Consumer Defensive	5.0%	3.1%
Energy	4.8%	5.1%
Communication Services	4.7%	5.4%
Utilities	2.8%	2.6%
Real Estate	1.2%	1.6%

Return for Risk

ACWX vs. AVEM — Risk / Return Rank

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

ACWX

ACWX Risk / Return Rank: 62
ACWX Sharpe Ratio Rank: 63
ACWX Sortino Ratio Rank: 62
ACWX Omega Ratio Rank: 63
ACWX Calmar Ratio Rank: 60
ACWX Martin Ratio Rank: 64

AVEM

AVEM Risk / Return Rank: 85
AVEM Sharpe Ratio Rank: 88
AVEM Sortino Ratio Rank: 84
AVEM Omega Ratio Rank: 86
AVEM Calmar Ratio Rank: 83
AVEM Martin Ratio Rank: 85

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.

ACWX vs. AVEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI ACWI ex U.S. ETF (ACWX) and Avantis Emerging Markets Equity ETF (AVEM). 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.

	ACWX	AVEM	Difference
Sharpe ratio Return per unit of total volatility	2.14	2.98	-0.85
Sortino ratio Return per unit of downside risk	2.93	3.80	-0.88
Omega ratio Gain probability vs. loss probability	1.39	1.54	-0.15
Calmar ratio Return relative to maximum drawdown	3.00	4.50	-1.49
Martin ratio Return relative to average drawdown	11.72	17.88	-6.16
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ACWX vs. AVEM - Sharpe Ratio Comparison

The current ACWX Sharpe Ratio is 2.14, which is comparable to the AVEM Sharpe Ratio of 2.98. The chart below compares the historical Sharpe Ratios of ACWX and AVEM, 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

	ACWX	AVEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.14	2.98	-0.85
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.54	0.57	-0.03
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.56	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.24	0.67	-0.43

Drawdowns

ACWX vs. AVEM - Drawdown Comparison

The maximum ACWX drawdown since its inception was -60.40%, which is greater than AVEM's maximum drawdown of -36.05%. Use the drawdown chart below to compare losses from any high point for ACWX and AVEM.

Drawdown Indicators

	ACWX	AVEM	Difference
Max Drawdown Largest peak-to-trough decline	-60.40%	-36.05%	-24.35%
Max Drawdown (1Y) Largest decline over 1 year	-11.42%	-13.13%	+1.71%
Max Drawdown (3Y) Largest decline over 3 years	-13.84%	-18.02%	+4.18%
Max Drawdown (5Y) Largest decline over 5 years	-30.07%	-34.00%	+3.93%
Max Drawdown (10Y) Largest decline over 10 years	-35.38%	—	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-13.34%	-10.10%	-3.24%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.93%	3.30%	-0.37%

Volatility

ACWX vs. AVEM - Volatility Comparison

The current volatility for iShares MSCI ACWI ex U.S. ETF (ACWX) is 5.73%, while Avantis Emerging Markets Equity ETF (AVEM) has a volatility of 8.14%. This indicates that ACWX experiences smaller price fluctuations and is considered to be less risky than AVEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ACWX	AVEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.73%	8.14%	-2.41%
Volatility (6M) Calculated over the trailing 6-month period	13.22%	16.64%	-3.42%
Volatility (1Y) Calculated over the trailing 1-year period	15.50%	19.40%	-3.90%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.28%	18.33%	-2.05%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.38%	20.55%	-3.17%

ACWX vs. AVEM - Expense Ratio Comparison

ACWX has a 0.32% expense ratio, which is lower than AVEM's 0.33% expense ratio.

Dividends

ACWX vs. AVEM - Dividend Comparison

ACWX's dividend yield for the trailing twelve months is around 2.44%, more than AVEM's 1.95% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ACWX iShares MSCI ACWI ex U.S. ETF	2.44%	2.82%	2.97%	2.96%	2.68%	2.74%	1.88%	3.22%	2.60%	2.40%	2.77%	2.51%
AVEM Avantis Emerging Markets Equity ETF	1.95%	2.45%	3.17%	3.06%	2.77%	2.61%	1.60%	0.35%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both ACWX and AVEM in my portfolio?

ACWX and AVEM have a correlation of 0.90, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ACWX or AVEM?

AVEM has higher volatility (8.14%) compared to ACWX (5.73%). In terms of maximum drawdown, ACWX dropped -60.40% vs AVEM's -36.05%.

Which ETF is better, ACWX or AVEM?

On 5-year performance, AVEM leads with 10.44% vs 8.79% for ACWX. On fees, ACWX is cheaper at 0.32% per year. On volatility, ACWX has been the lower-risk option at 5.73%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, ACWX or AVEM?

Over the 5-year period, AVEM has performed better with a 10.44% return vs 8.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, ACWX or AVEM?

ACWX is cheaper with a 0.32% expense ratio, compared with 0.33% for AVEM.

Which ETF pays a higher dividend yield, ACWX or AVEM?

ACWX has the higher dividend yield at 2.44%, compared with 1.95% for AVEM.

What is the main difference between ACWX and AVEM?

ACWX tracks MSCI All Country World ex-U.S. Index, while AVEM tracks MSCI Emerging Markets Index. They also come from different issuers: iShares and American Century. Their fees differ too: 0.32% for ACWX and 0.33% for AVEM.

Which has better risk-adjusted returns?

AVEM currently has the higher Sharpe Ratio (2.98 vs 2.14), 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.