AVEM vs. DFAE

Last updated Jun 23, 2026

AVEM (Avantis Emerging Markets Equity ETF) and DFAE (Dimensional Emerging Core Equity Market ETF) are both Emerging Markets Equities funds. Both are actively managed. Over the past 5 years, AVEM returned 10.91%/yr vs 9.93%/yr for DFAE. With a 0.99 correlation, they move nearly in lockstep. AVEM charges 0.33%/yr vs 0.35%/yr for DFAE.

Performance

AVEM vs. DFAE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Avantis Emerging Markets Equity ETF (AVEM) and Dimensional Emerging Core Equity Market ETF (DFAE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AVEM achieves a 30.91% return, which is significantly higher than DFAE's 29.00% return.

AVEM

• 1D: 0.47%
• 1M: 8.28%
• YTD: 30.91%
• 6M: 32.11%
• 1Y: 55.80%
• 3Y*: 27.06%
• 5Y*: 10.91%
• 10Y*: —

DFAE

• 1D: 0.53%
• 1M: 7.40%
• YTD: 29.00%
• 6M: 30.44%
• 1Y: 53.34%
• 3Y*: 24.55%
• 5Y*: 9.93%
• 10Y*: —

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

AVEM vs. DFAE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020
AVEM Avantis Emerging Markets Equity ETF	30.91%	34.48%	7.49%	15.30%	-18.15%	5.16%	5.64%
DFAE Dimensional Emerging Core Equity Market ETF	29.00%	31.48%	7.68%	12.63%	-17.52%	3.53%	5.93%

Correlation

The correlation between AVEM and DFAE is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (All Time) Calculated using the full available price history since Dec 2, 2020	0.99

The correlation between AVEM and DFAE has been stable across timeframes, ranging from 0.99 to 0.99 - a consistent structural relationship.

AVEM vs. DFAE - Sectors Allocation Comparison

Sectors	AVEM	DFAE
Technology	39.5%	41.6%
Financial Services	18.6%	15.8%
Consumer Cyclical	8.2%	8.1%
Industrials	8.1%	9.1%
Basic Materials	7.3%	7.0%
Communication Services	4.9%	5.4%
Energy	4.3%	3.5%
Consumer Defensive	2.8%	2.9%
Healthcare	2.5%	3.1%
Utilities	2.3%	2.1%
Real Estate	1.5%	1.4%

Return for Risk

AVEM vs. DFAE — Risk / Return Rank

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

AVEM

AVEM Risk / Return Rank: 82
AVEM Sharpe Ratio Rank: 84
AVEM Sortino Ratio Rank: 78
AVEM Omega Ratio Rank: 84
AVEM Calmar Ratio Rank: 83
AVEM Martin Ratio Rank: 83

DFAE

DFAE Risk / Return Rank: 81
DFAE Sharpe Ratio Rank: 83
DFAE Sortino Ratio Rank: 76
DFAE Omega Ratio Rank: 84
DFAE Calmar Ratio Rank: 82
DFAE Martin Ratio Rank: 81

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.

AVEM vs. DFAE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis Emerging Markets Equity ETF (AVEM) and Dimensional Emerging Core Equity Market ETF (DFAE). 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.

	AVEM	DFAE	Difference
Sharpe ratio: Return per unit of total volatility	2.61	2.56	+0.05
Sortino ratio: Return per unit of downside risk	3.30	3.25	+0.05
Omega ratio: Gain probability vs. loss probability	1.48	1.48	0.00
Calmar ratio: Return relative to maximum drawdown	4.27	4.19	+0.08
Martin ratio: Return relative to average drawdown	16.25	15.52	+0.73

AVEM vs. DFAE - Sharpe Ratio Comparison

The current AVEM Sharpe Ratio is 2.61, which is comparable to the DFAE Sharpe Ratio of 2.56. The chart below compares the historical Sharpe Ratios of AVEM and DFAE, 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

AVEM vs. DFAE - Drawdown Comparison

The maximum AVEM drawdown since its inception was -36.05%, which is greater than DFAE's maximum drawdown of -32.21%. Use the drawdown chart below to compare losses from any high point for AVEM and DFAE.

Drawdown Indicators

	AVEM	DFAE	Difference
Max Drawdown Largest peak-to-trough decline	-36.05%	-32.21%	-3.84%
Max Drawdown (1Y) Largest decline over 1 year	-13.13%	-12.80%	-0.33%
Max Drawdown (3Y) Largest decline over 3 years	-18.02%	-18.12%	+0.10%
Max Drawdown (5Y) Largest decline over 5 years	-33.88%	-31.73%	-2.15%
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-10.05%	-10.26%	+0.21%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.44%	3.45%	-0.01%

Volatility

AVEM vs. DFAE - Volatility Comparison

Avantis Emerging Markets Equity ETF (AVEM) has a higher volatility of 11.02% compared to Dimensional Emerging Core Equity Market ETF (DFAE) at 10.49%. This indicates that AVEM's price experiences larger fluctuations and is considered to be riskier than DFAE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVEM	DFAE	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.02%	10.49%	+0.53%
Volatility (6M) Calculated over the trailing 6-month period	19.22%	18.89%	+0.33%
Volatility (1Y) Calculated over the trailing 1-year period	21.54%	20.97%	+0.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.82%	18.27%	+0.55%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.81%	18.20%	+2.61%

AVEM vs. DFAE - Expense Ratio Comparison

AVEM has a 0.33% expense ratio, which is lower than DFAE's 0.35% expense ratio.

Dividends

AVEM vs. DFAE - Dividend Comparison

AVEM's dividend yield for the trailing twelve months is around 2.47%, more than DFAE's 1.70% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
AVEM Avantis Emerging Markets Equity ETF	2.47%	2.45%	3.17%	3.06%	2.77%	2.61%	1.60%	0.35%
DFAE Dimensional Emerging Core Equity Market ETF	1.70%	2.20%	2.35%	2.43%	2.85%	1.63%	0.01%	0.00%

Frequently Asked Questions

Can I hold both AVEM and DFAE in my portfolio?

With a correlation of 0.99, AVEM and DFAE move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, AVEM or DFAE?

AVEM has higher volatility (11.02%) compared to DFAE (10.49%). In terms of maximum drawdown, AVEM dropped -36.05% vs DFAE's -32.21%.

Which ETF is better, AVEM or DFAE?

On 5-year performance, AVEM leads with 10.91% vs 9.93% for DFAE. On fees, AVEM is cheaper at 0.33% per year. On volatility, DFAE has been the lower-risk option at 10.49%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVEM or DFAE?

Over the 5-year period, AVEM has performed better with a 10.91% return vs 9.93%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVEM or DFAE?

AVEM is cheaper with a 0.33% expense ratio, compared with 0.35% for DFAE.

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

AVEM has the higher dividend yield at 2.47%, compared with 1.70% for DFAE.

What is the main difference between AVEM and DFAE?

They also come from different issuers: Avantis and Dimensional. Their fees differ too: 0.33% for AVEM and 0.35% for DFAE.

Which has better risk-adjusted returns?

AVEM currently has the higher Sharpe Ratio (2.61 vs 2.56), 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.