AVEE vs. VWO

Last updated Jun 24, 2026

AVEE (Avantis Emerging Markets Small Cap Equity ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - AVEE is a Emerging Markets Diversified fund actively managed by Avantis, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. AVEE is actively managed, while VWO is passively managed. Over the past year, AVEE returned 21.47% vs 27.03% for VWO. Their correlation of 0.90 suggests significant overlap in exposure. AVEE charges 0.42%/yr vs 0.08%/yr for VWO.

Performance

AVEE vs. VWO - Performance Comparison

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

Returns By Period

The year-to-date returns for both stocks are quite close, with AVEE having a 11.09% return and VWO slightly lower at 10.55%.

AVEE

• 1D: -3.91%
• 1M: -1.72%
• YTD: 11.09%
• 6M: 10.95%
• 1Y: 21.47%
• 3Y*: —
• 5Y*: —
• 10Y*: —

VWO

• 1D: -3.07%
• 1M: 0.76%
• YTD: 10.55%
• 6M: 10.67%
• 1Y: 27.03%
• 3Y*: 17.42%
• 5Y*: 5.09%
• 10Y*: 8.97%

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

AVEE vs. VWO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
AVEE Avantis Emerging Markets Small Cap Equity ETF	11.09%	19.80%	2.91%	6.15%
VWO Vanguard FTSE Emerging Markets ETF	10.55%	25.60%	10.59%	6.40%

Correlation

The correlation between AVEE and VWO is 0.88, 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	0.88
Correlation (All Time) Calculated using the full available price history since Nov 9, 2023	0.90

The correlation between AVEE and VWO has been stable across timeframes, ranging from 0.88 to 0.90 - a consistent structural relationship.

Return for Risk

AVEE vs. VWO — Risk / Return Rank

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

AVEE

AVEE Risk / Return Rank: 37
AVEE Sharpe Ratio Rank: 34
AVEE Sortino Ratio Rank: 33
AVEE Omega Ratio Rank: 35
AVEE Calmar Ratio Rank: 42
AVEE Martin Ratio Rank: 41

VWO

VWO Risk / Return Rank: 49
VWO Sharpe Ratio Rank: 48
VWO Sortino Ratio Rank: 46
VWO Omega Ratio Rank: 49
VWO Calmar Ratio Rank: 51
VWO Martin Ratio Rank: 51

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. VWO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis Emerging Markets Small Cap Equity ETF (AVEE) and Vanguard FTSE Emerging Markets ETF (VWO). 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	VWO	Difference
Sharpe ratio: Return per unit of total volatility	1.18	1.60	-0.42
Sortino ratio: Return per unit of downside risk	1.66	2.22	-0.56
Omega ratio: Gain probability vs. loss probability	1.23	1.30	-0.07
Calmar ratio: Return relative to maximum drawdown	2.03	2.43	-0.41
Martin ratio: Return relative to average drawdown	6.29	8.56	-2.27

AVEE vs. VWO - Sharpe Ratio Comparison

The current AVEE Sharpe Ratio is 1.18, which is comparable to the VWO Sharpe Ratio of 1.60. The chart below compares the historical Sharpe Ratios of AVEE and VWO, 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. VWO - Drawdown Comparison

The maximum AVEE drawdown since its inception was -20.21%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for AVEE and VWO.

Drawdown Indicators

	AVEE	VWO	Difference
Max Drawdown Largest peak-to-trough decline	-20.21%	-67.68%	+47.47%
Max Drawdown (1Y) Largest decline over 1 year	-10.65%	-11.17%	+0.52%
Max Drawdown (3Y) Largest decline over 3 years	—	-17.37%	—
Max Drawdown (5Y) Largest decline over 5 years	—	-32.60%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-36.39%	—
Current Drawdown Current decline from peak	-4.90%	-3.07%	-1.83%
Average Drawdown Average peak-to-trough decline	-3.67%	-15.79%	+12.12%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.42%	3.17%	+0.25%

Volatility

AVEE vs. VWO - Volatility Comparison

Avantis Emerging Markets Small Cap Equity ETF (AVEE) has a higher volatility of 9.24% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 7.37%. This indicates that AVEE's price experiences larger fluctuations and is considered to be riskier than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVEE	VWO	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.24%	7.37%	+1.87%
Volatility (6M) Calculated over the trailing 6-month period	16.10%	14.62%	+1.48%
Volatility (1Y) Calculated over the trailing 1-year period	18.30%	16.94%	+1.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.21%	17.58%	-0.37%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.21%	19.18%	-1.97%

AVEE vs. VWO - Expense Ratio Comparison

AVEE has a 0.42% expense ratio, which is higher than VWO's 0.08% expense ratio.

Dividends

AVEE vs. VWO - Dividend Comparison

AVEE's dividend yield for the trailing twelve months is around 2.77%, more than VWO's 2.33% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVEE Avantis Emerging Markets Small Cap Equity ETF	2.77%	2.25%	3.26%	0.39%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
VWO Vanguard FTSE Emerging Markets ETF	2.33%	2.79%	3.20%	3.52%	4.11%	2.63%	1.91%	3.23%	2.88%	2.30%	2.52%	3.26%

Frequently Asked Questions

Can I hold both AVEE and VWO in my portfolio?

AVEE and VWO have a correlation of 0.88, 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 VWO?

AVEE has higher volatility (9.24%) compared to VWO (7.37%). In terms of maximum drawdown, AVEE dropped -20.21% vs VWO's -67.68%.

Which ETF is better, AVEE or VWO?

On 1-year performance, VWO leads with 27.03% vs 21.47% for AVEE. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 7.37%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVEE or VWO?

Over the 1-year period, VWO has performed better with a 27.03% return vs 21.47%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVEE or VWO?

VWO is cheaper with a 0.08% expense ratio, compared with 0.42% for AVEE.

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

AVEE has the higher dividend yield at 2.77%, compared with 2.33% for VWO.

What is the main difference between AVEE and VWO?

AVEE is categorized as Emerging Markets Diversified, while VWO is Emerging Markets Equities. They also come from different issuers: Avantis and Vanguard. Their fees differ too: 0.42% for AVEE and 0.08% for VWO.

Which has better risk-adjusted returns?

VWO currently has the higher Sharpe Ratio (1.60 vs 1.18), 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.