AVEE vs. HEEM

Last updated Jun 5, 2026

AVEE (Avantis Emerging Markets Small Cap Equity ETF) and HEEM (iShares Currency Hedged MSCI Emerging Markets ETF) are both Emerging Markets Diversified funds. AVEE is actively managed, while HEEM is passively managed. Over the past year, AVEE returned 25.84% vs 59.73% for HEEM. Their correlation of 0.81 suggests significant overlap in exposure. AVEE charges 0.42%/yr vs 0.72%/yr for HEEM.

Performance

AVEE vs. HEEM - Performance Comparison

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

Returns By Period

In the year-to-date period, AVEE achieves a 14.52% return, which is significantly lower than HEEM's 28.24% return.

AVEE

• 1D: 0.61%
• 1M: -0.58%
• YTD: 14.52%
• 6M: 15.13%
• 1Y: 25.84%
• 3Y*: —
• 5Y*: —
• 10Y*: —

HEEM

• 1D: -1.54%
• 1M: 6.59%
• YTD: 28.24%
• 6M: 30.05%
• 1Y: 59.73%
• 3Y*: 26.46%
• 5Y*: 10.08%
• 10Y*: 11.13%

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

AVEE vs. HEEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
AVEE Avantis Emerging Markets Small Cap Equity ETF	14.52%	19.80%	2.91%	7.28%
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	28.24%	34.02%	12.59%	6.04%

Correlation

The correlation between AVEE and HEEM is 0.81, 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	0.81
Correlation (All Time) Calculated using the full available price history since Nov 10, 2023	0.81

The correlation between AVEE and HEEM has been stable across timeframes, ranging from 0.81 to 0.81 - a consistent structural relationship.

AVEE vs. HEEM - Sectors Allocation Comparison

Sectors	AVEE	HEEM
Technology	22.5%	37.0%
Industrials	18.2%	7.5%
Consumer Cyclical	11.3%	9.6%
Basic Materials	9.5%	6.5%
Financial Services	9.3%	19.4%
Healthcare	6.9%	2.9%
Consumer Defensive	5.4%	3.0%
Real Estate	4.2%	1.1%
Utilities	2.9%	2.1%
Communication Services	2.8%	6.9%
Energy	2.2%	4.0%

Return for Risk

AVEE vs. HEEM — Risk / Return Rank

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

AVEE

AVEE Risk / Return Rank: 46
AVEE Sharpe Ratio Rank: 46
AVEE Sortino Ratio Rank: 44
AVEE Omega Ratio Rank: 45
AVEE Calmar Ratio Rank: 50
AVEE Martin Ratio Rank: 48

HEEM

HEEM Risk / Return Rank: 92
HEEM Sharpe Ratio Rank: 93
HEEM Sortino Ratio Rank: 92
HEEM Omega Ratio Rank: 93
HEEM Calmar Ratio Rank: 90
HEEM Martin Ratio Rank: 91

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. HEEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis Emerging Markets Small Cap Equity ETF (AVEE) and iShares Currency Hedged MSCI Emerging Markets ETF (HEEM). 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.

	AVEE	HEEM	Difference
Sharpe ratio: Return per unit of total volatility	1.55	3.39	-1.83
Sortino ratio: Return per unit of downside risk	2.16	4.42	-2.27
Omega ratio: Gain probability vs. loss probability	1.28	1.63	-0.35
Calmar ratio: Return relative to maximum drawdown	2.44	5.54	-3.11
Martin ratio: Return relative to average drawdown	7.81	22.18	-14.37
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AVEE vs. HEEM - Sharpe Ratio Comparison

The current AVEE Sharpe Ratio is 1.55, which is lower than the HEEM Sharpe Ratio of 3.39. The chart below compares the historical Sharpe Ratios of AVEE and HEEM, 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

	AVEE	HEEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.55	3.39	-1.83
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.60	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.62	—
Sharpe Ratio (All Time) Calculated using the full available price history	1.07	0.49	+0.58

Drawdowns

AVEE vs. HEEM - Drawdown Comparison

The maximum AVEE drawdown since its inception was -20.21%, smaller than the maximum HEEM drawdown of -33.53%. Use the drawdown chart below to compare losses from any high point for AVEE and HEEM.

Drawdown Indicators

	AVEE	HEEM	Difference
Max Drawdown Largest peak-to-trough decline	-20.21%	-33.53%	+13.32%
Max Drawdown (1Y) Largest decline over 1 year	-10.65%	-10.83%	+0.18%
Max Drawdown (3Y) Largest decline over 3 years	—	-14.82%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-30.60%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-33.53%	—
Current Drawdown Current decline from peak	-1.97%	-2.16%	+0.19%
Average Drawdown Average peak-to-trough decline	-3.67%	-11.13%	+7.46%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.32%	2.70%	+0.62%

Volatility

AVEE vs. HEEM - Volatility Comparison

The current volatility for Avantis Emerging Markets Small Cap Equity ETF (AVEE) is 6.43%, while iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) has a volatility of 7.72%. This indicates that AVEE experiences smaller price fluctuations and is considered to be less risky than HEEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVEE	HEEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.43%	7.72%	-1.29%
Volatility (6M) Calculated over the trailing 6-month period	13.99%	15.39%	-1.40%
Volatility (1Y) Calculated over the trailing 1-year period	16.75%	17.75%	-1.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.61%	17.02%	-0.41%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.61%	17.97%	-1.36%

AVEE vs. HEEM - Expense Ratio Comparison

AVEE has a 0.42% expense ratio, which is lower than HEEM's 0.72% expense ratio.

Dividends

AVEE vs. HEEM - Dividend Comparison

AVEE's dividend yield for the trailing twelve months is around 2.02%, less than HEEM's 3.10% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVEE Avantis Emerging Markets Small Cap Equity ETF	2.02%	2.25%	3.26%	0.39%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	3.10%	3.98%	2.38%	2.75%	7.49%	1.93%	1.49%	3.04%	2.37%	2.05%	1.84%	6.28%

Frequently Asked Questions

Can I hold both AVEE and HEEM in my portfolio?

AVEE and HEEM have a correlation of 0.81, 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 HEEM?

HEEM has higher volatility (7.72%) compared to AVEE (6.43%). In terms of maximum drawdown, AVEE dropped -20.21% vs HEEM's -33.53%.

Which ETF is better, AVEE or HEEM?

On 1-year performance, HEEM leads with 59.73% vs 25.84% for AVEE. On fees, AVEE is cheaper at 0.42% per year. On volatility, AVEE has been the lower-risk option at 6.43%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVEE or HEEM?

Over the 1-year period, HEEM has performed better with a 59.73% return vs 25.84%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVEE or HEEM?

AVEE is cheaper with a 0.42% expense ratio, compared with 0.72% for HEEM.

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

HEEM has the higher dividend yield at 3.10%, compared with 2.02% for AVEE.

What is the main difference between AVEE and HEEM?

They also come from different issuers: Avantis and iShares. Their fees differ too: 0.42% for AVEE and 0.72% for HEEM.

Which has better risk-adjusted returns?

HEEM currently has the higher Sharpe Ratio (3.39 vs 1.55), 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.