AVEE vs. FEMS

Last updated Jul 14, 2026

AVEE (Avantis Emerging Markets Small Cap Equity ETF) and FEMS (First Trust Emerging Markets Small Cap AlphaDEX Fund) are both exchange-traded funds - AVEE is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Small Cap Index, while FEMS is a Emerging Markets Equities fund tracking the NASDAQ AlphaDEX EM Small Cap Index. Both are passively managed. Over the past year, AVEE returned 13.66% vs 15.26% for FEMS. A 0.80 correlation means they provide meaningful diversification when combined. AVEE charges 0.42%/yr vs 0.80%/yr for FEMS.

Performance

AVEE vs. FEMS - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Avantis Emerging Markets Small Cap Equity ETF (AVEE) and First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AVEE achieves a 8.49% return, which is significantly lower than FEMS's 9.20% return.

AVEE

• 1D: -2.38%
• 1M: -4.92%
• 6M: 5.50%
• YTD: 8.49%
• 1Y: 13.66%
• 3Y*: —
• 5Y*: —
• 10Y*: —

FEMS

• 1D: -2.73%
• 1M: -1.27%
• 6M: 3.35%
• YTD: 9.20%
• 1Y: 15.26%
• 3Y*: 10.43%
• 5Y*: 4.38%
• 10Y*: 8.32%

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

AVEE vs. FEMS - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
AVEE Avantis Emerging Markets Small Cap Equity ETF	8.49%	19.80%	2.91%	6.15%
FEMS First Trust Emerging Markets Small Cap AlphaDEX Fund	9.20%	16.48%	1.88%	4.30%

Correlation

The correlation between AVEE and FEMS is 0.85, 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	0.85
Correlation (All Time) Calculated using the full available price history since Nov 9, 2023	0.80

The correlation between AVEE and FEMS has been stable across timeframes, ranging from 0.80 to 0.85 - a consistent structural relationship.

AVEE vs. FEMS - Sectors Allocation Comparison

Sectors	AVEE	FEMS
Technology	24.9%	16.4%
Industrials	18.9%	16.2%
Consumer Cyclical	11.4%	14.9%
Basic Materials	9.9%	11.7%
Financial Services	9.7%	5.3%
Healthcare	6.8%	3.0%
Consumer Defensive	5.3%	6.8%
Real Estate	4.5%	7.6%
Communication Services	3.7%	4.4%
Utilities	3.0%	6.3%
Energy	2.0%	7.4%

Return for Risk

AVEE vs. FEMS — Risk / Return Rank

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

AVEE

AVEE Risk / Return Rank: 28
AVEE Sharpe Ratio Rank: 25
AVEE Sortino Ratio Rank: 24
AVEE Omega Ratio Rank: 25
AVEE Calmar Ratio Rank: 32
AVEE Martin Ratio Rank: 32

FEMS

FEMS Risk / Return Rank: 33
FEMS Sharpe Ratio Rank: 30
FEMS Sortino Ratio Rank: 29
FEMS Omega Ratio Rank: 30
FEMS Calmar Ratio Rank: 42
FEMS Martin Ratio Rank: 33

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.

AVEE vs. FEMS - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis Emerging Markets Small Cap Equity ETF (AVEE) and First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS). 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.

	AVEE	FEMS	Difference
Sharpe ratio: Return per unit of total volatility	0.74	0.89	-0.15
Sortino ratio: Return per unit of downside risk	1.11	1.29	-0.19
Omega ratio: Gain probability vs. loss probability	1.15	1.17	-0.02
Calmar ratio: Return relative to maximum drawdown	1.29	1.71	-0.42
Martin ratio: Return relative to average drawdown	3.75	3.92	-0.17

AVEE vs. FEMS - Sharpe Ratio Comparison

The current AVEE Sharpe Ratio is 0.74, which is comparable to the FEMS Sharpe Ratio of 0.89. The chart below compares the historical Sharpe Ratios of AVEE and FEMS, 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

AVEE vs. FEMS - Drawdown Comparison

The maximum AVEE drawdown since its inception was -20.21%, smaller than the maximum FEMS drawdown of -47.85%. Use the drawdown chart below to compare losses from any high point for AVEE and FEMS.

Drawdown Indicators

	AVEE	FEMS	Difference
Max Drawdown Largest peak-to-trough decline	-20.21%	-47.85%	+27.64%
Max Drawdown (1Y) Largest decline over 1 year	-10.65%	-8.98%	-1.67%
Max Drawdown (3Y) Largest decline over 3 years	—	-21.09%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-25.55%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-47.85%	—
Current Drawdown Current decline from peak	-7.12%	-7.38%	+0.26%
Average Drawdown Average peak-to-trough decline	-3.71%	-17.32%	+13.61%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.65%	3.90%	-0.25%

Volatility

AVEE vs. FEMS - Volatility Comparison

Avantis Emerging Markets Small Cap Equity ETF (AVEE) has a higher volatility of 8.06% compared to First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) at 6.84%. This indicates that AVEE's price experiences larger fluctuations and is considered to be riskier than FEMS based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVEE	FEMS	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.06%	6.84%	+1.22%
Volatility (6M) Calculated over the trailing 6-month period	16.65%	14.99%	+1.66%
Volatility (1Y) Calculated over the trailing 1-year period	18.61%	17.20%	+1.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.27%	17.97%	-0.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.27%	19.97%	-2.70%

AVEE vs. FEMS - Expense Ratio Comparison

AVEE has a 0.42% expense ratio, which is lower than FEMS's 0.80% expense ratio.

Dividends

AVEE vs. FEMS - Dividend Comparison

AVEE's dividend yield for the trailing twelve months is around 2.29%, less than FEMS's 4.27% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVEE Avantis Emerging Markets Small Cap Equity ETF	2.29%	2.25%	3.26%	0.39%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
FEMS First Trust Emerging Markets Small Cap AlphaDEX Fund	4.27%	4.27%	3.97%	4.65%	4.55%	6.25%	2.90%	4.37%	4.68%	3.39%	2.42%	3.28%

Frequently Asked Questions

Can I hold both AVEE and FEMS in my portfolio?

AVEE and FEMS have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AVEE or FEMS?

AVEE has higher volatility (8.06%) compared to FEMS (6.84%). In terms of maximum drawdown, AVEE dropped -20.21% vs FEMS's -47.85%.

Which ETF is better, AVEE or FEMS?

On 1-year performance, FEMS leads with 15.26% vs 13.66% for AVEE. On fees, AVEE is cheaper at 0.42% per year. On volatility, FEMS has been the lower-risk option at 6.84%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVEE or FEMS?

Over the 1-year period, FEMS has performed better with a 15.26% return vs 13.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVEE or FEMS?

AVEE is cheaper with a 0.42% expense ratio, compared with 0.80% for FEMS.

Which ETF pays a higher dividend yield, AVEE or FEMS?

FEMS has the higher dividend yield at 4.27%, compared with 2.29% for AVEE.

What is the main difference between AVEE and FEMS?

AVEE is categorized as Emerging Markets Diversified, while FEMS is Emerging Markets Equities. AVEE tracks MSCI Emerging Markets Small Cap Index, while FEMS tracks NASDAQ AlphaDEX EM Small Cap Index. They also come from different issuers: Avantis and First Trust. Their fees differ too: 0.42% for AVEE and 0.80% for FEMS.

Which has better risk-adjusted returns?

FEMS currently has the higher Sharpe Ratio (0.89 vs 0.74), 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.