AVEE vs. FRDM

Last updated Jul 18, 2026

AVEE (Avantis Emerging Markets Small Cap Equity ETF) and FRDM (Freedom 100 Emerging Markets ETF) are both Emerging Markets Diversified funds - AVEE tracks the MSCI Emerging Markets Small Cap Index while FRDM tracks the Life + Liberty Freedom 100 Emerging Markets Index. Both are passively managed. Over the past year, AVEE returned 8.82% vs 62.87% for FRDM. A 0.78 correlation means they provide meaningful diversification when combined. AVEE charges 0.42%/yr vs 0.49%/yr for FRDM.

Performance

AVEE vs. FRDM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Avantis Emerging Markets Small Cap Equity ETF (AVEE) and Freedom 100 Emerging Markets ETF (FRDM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AVEE achieves a 5.89% return, which is significantly lower than FRDM's 27.47% return.

AVEE

• 1D: -1.80%
• 1M: -7.17%
• 6M: 3.02%
• YTD: 5.89%
• 1Y: 8.82%
• 3Y*: —
• 5Y*: —
• 10Y*: —

FRDM

• 1D: -0.81%
• 1M: -11.17%
• 6M: 17.29%
• YTD: 27.47%
• 1Y: 62.87%
• 3Y*: 28.37%
• 5Y*: 17.03%
• 10Y*: —

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

AVEE vs. FRDM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
AVEE Avantis Emerging Markets Small Cap Equity ETF	5.89%	19.80%	2.91%	6.15%
FRDM Freedom 100 Emerging Markets ETF	27.47%	61.27%	1.70%	12.29%

Correlation

The correlation between AVEE and FRDM is 0.82, 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	0.82
Correlation (All Time) Calculated using the full available price history since Nov 9, 2023	0.78

The correlation between AVEE and FRDM has been stable across timeframes, ranging from 0.78 to 0.82 - a consistent structural relationship.

AVEE vs. FRDM - Sectors Allocation Comparison

Sectors	AVEE	FRDM
Technology	24.9%	48.9%
Industrials	18.9%	7.6%
Consumer Cyclical	11.4%	7.1%
Basic Materials	9.9%	6.4%
Financial Services	9.7%	19.4%
Healthcare	6.8%	1.5%
Consumer Defensive	5.3%	1.9%
Real Estate	4.5%	2.0%
Communication Services	3.7%	3.2%
Utilities	3.0%	2.1%
Energy	2.0%	0.0%

Return for Risk

AVEE vs. FRDM — Risk / Return Rank

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

AVEE

AVEE Risk / Return Rank: 20
AVEE Sharpe Ratio Rank: 19
AVEE Sortino Ratio Rank: 18
AVEE Omega Ratio Rank: 18
AVEE Calmar Ratio Rank: 23
AVEE Martin Ratio Rank: 24

FRDM

FRDM Risk / Return Rank: 81
FRDM Sharpe Ratio Rank: 83
FRDM Sortino Ratio Rank: 72
FRDM Omega Ratio Rank: 80
FRDM Calmar Ratio Rank: 85
FRDM Martin Ratio Rank: 83

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. FRDM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis Emerging Markets Small Cap Equity ETF (AVEE) and Freedom 100 Emerging Markets ETF (FRDM). 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	FRDM	Difference
Sharpe ratio: Return per unit of total volatility	0.47	2.13	-1.66
Sortino ratio: Return per unit of downside risk	0.77	2.61	-1.85
Omega ratio: Gain probability vs. loss probability	1.10	1.38	-0.28
Calmar ratio: Return relative to maximum drawdown	0.83	3.75	-2.91
Martin ratio: Return relative to average drawdown	2.34	12.68	-10.34

AVEE vs. FRDM - Sharpe Ratio Comparison

The current AVEE Sharpe Ratio is 0.47, which is lower than the FRDM Sharpe Ratio of 2.13. The chart below compares the historical Sharpe Ratios of AVEE and FRDM, 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. FRDM - Drawdown Comparison

The maximum AVEE drawdown since its inception was -20.21%, smaller than the maximum FRDM drawdown of -40.49%. Use the drawdown chart below to compare losses from any high point for AVEE and FRDM.

Drawdown Indicators

	AVEE	FRDM	Difference
Max Drawdown Largest peak-to-trough decline	-20.21%	-40.49%	+20.28%
Max Drawdown (1Y) Largest decline over 1 year	-10.65%	-16.87%	+6.22%
Max Drawdown (3Y) Largest decline over 3 years	—	-16.87%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-29.25%	—
Current Drawdown Current decline from peak	-9.35%	-14.58%	+5.23%
Average Drawdown Average peak-to-trough decline	-3.73%	-7.09%	+3.36%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.78%	4.97%	-1.19%

Volatility

AVEE vs. FRDM - Volatility Comparison

The current volatility for Avantis Emerging Markets Small Cap Equity ETF (AVEE) is 6.53%, while Freedom 100 Emerging Markets ETF (FRDM) has a volatility of 13.03%. This indicates that AVEE experiences smaller price fluctuations and is considered to be less risky than FRDM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVEE	FRDM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.53%	13.03%	-6.50%
Volatility (6M) Calculated over the trailing 6-month period	16.74%	27.60%	-10.86%
Volatility (1Y) Calculated over the trailing 1-year period	18.68%	29.64%	-10.96%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.27%	22.11%	-4.84%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.27%	23.49%	-6.22%

AVEE vs. FRDM - Expense Ratio Comparison

AVEE has a 0.42% expense ratio, which is lower than FRDM's 0.49% expense ratio.

Dividends

AVEE vs. FRDM - Dividend Comparison

AVEE's dividend yield for the trailing twelve months is around 2.34%, more than FRDM's 1.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
AVEE Avantis Emerging Markets Small Cap Equity ETF	2.34%	2.25%	3.26%	0.39%	0.00%	0.00%	0.00%	0.00%
FRDM Freedom 100 Emerging Markets ETF	1.70%	2.26%	2.53%	2.66%	2.72%	2.17%	1.11%	1.07%

Frequently Asked Questions

Can I hold both AVEE and FRDM in my portfolio?

AVEE and FRDM have a correlation of 0.82, 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 FRDM?

FRDM has higher volatility (13.03%) compared to AVEE (6.53%). In terms of maximum drawdown, AVEE dropped -20.21% vs FRDM's -40.49%.

Which ETF is better, AVEE or FRDM?

On 1-year performance, FRDM leads with 62.87% vs 8.82% for AVEE. On fees, AVEE is cheaper at 0.42% per year. On volatility, AVEE has been the lower-risk option at 6.53%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVEE or FRDM?

Over the 1-year period, FRDM has performed better with a 62.87% return vs 8.82%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVEE or FRDM?

AVEE is cheaper with a 0.42% expense ratio, compared with 0.49% for FRDM.

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

AVEE has the higher dividend yield at 2.34%, compared with 1.70% for FRDM.

What is the main difference between AVEE and FRDM?

AVEE tracks MSCI Emerging Markets Small Cap Index, while FRDM tracks Life + Liberty Freedom 100 Emerging Markets Index. They also come from different issuers: Avantis and Freedom Funds. Their fees differ too: 0.42% for AVEE and 0.49% for FRDM.

Which has better risk-adjusted returns?

FRDM currently has the higher Sharpe Ratio (2.13 vs 0.47), 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.