AVEM vs. DFEM

Last updated Jun 4, 2026

AVEM (Avantis Emerging Markets Equity ETF) and DFEM (Dimensional Emerging Markets Core Equity 2 ETF) are both exchange-traded funds - AVEM is a Emerging Markets Equities fund actively managed by Avantis, while DFEM is a Emerging Markets Diversified fund actively managed by Dimensional. Both are actively managed. Over the past 3 years, AVEM returned 26.07%/yr vs 23.24%/yr for DFEM. With a 0.99 correlation, they move nearly in lockstep. AVEM charges 0.33%/yr vs 0.39%/yr for DFEM.

Performance

AVEM vs. DFEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Avantis Emerging Markets Equity ETF (AVEM) and Dimensional Emerging Markets Core Equity 2 ETF (DFEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AVEM achieves a 27.59% return, which is significantly higher than DFEM's 25.59% return.

AVEM

• 1D: -1.39%
• 1M: 8.65%
• YTD: 27.59%
• 6M: 29.75%
• 1Y: 55.00%
• 3Y*: 26.07%
• 5Y*: 9.92%
• 10Y*: —

DFEM

• 1D: -1.28%
• 1M: 6.85%
• YTD: 25.59%
• 6M: 27.96%
• 1Y: 50.40%
• 3Y*: 23.24%
• 5Y*: —
• 10Y*: —

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

AVEM vs. DFEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
AVEM Avantis Emerging Markets Equity ETF	27.59%	34.48%	7.49%	15.30%	-6.16%
DFEM Dimensional Emerging Markets Core Equity 2 ETF	25.59%	29.51%	7.53%	13.91%	-8.69%

Correlation

The correlation between AVEM and DFEM 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 (All Time) Calculated using the full available price history since Apr 28, 2022	0.99

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

AVEM vs. DFEM - Sectors Allocation Comparison

Sectors	AVEM	DFEM
Technology	32.3%	32.9%
Financial Services	20.7%	15.4%
Consumer Cyclical	9.2%	9.8%
Industrials	9.2%	11.9%
Basic Materials	8.1%	8.4%
Communication Services	5.4%	5.5%
Energy	5.1%	4.4%
Consumer Defensive	3.1%	3.7%
Healthcare	2.8%	3.8%
Utilities	2.6%	2.2%
Real Estate	1.6%	2.0%

Return for Risk

AVEM vs. DFEM — 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: 85
AVEM Sortino Ratio Rank: 80
AVEM Omega Ratio Rank: 83
AVEM Calmar Ratio Rank: 80
AVEM Martin Ratio Rank: 82

DFEM

DFEM Risk / Return Rank: 81
DFEM Sharpe Ratio Rank: 83
DFEM Sortino Ratio Rank: 78
DFEM Omega Ratio Rank: 82
DFEM Calmar Ratio Rank: 80
DFEM 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. DFEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis Emerging Markets Equity ETF (AVEM) and Dimensional Emerging Markets Core Equity 2 ETF (DFEM). 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.

	AVEM	DFEM	Difference
Sharpe ratio: Return per unit of total volatility	2.84	2.74	+0.10
Sortino ratio: Return per unit of downside risk	3.65	3.54	+0.11
Omega ratio: Gain probability vs. loss probability	1.51	1.50	+0.01
Calmar ratio: Return relative to maximum drawdown	4.21	4.18	+0.03
Martin ratio: Return relative to average drawdown	16.70	16.33	+0.36
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AVEM vs. DFEM - Sharpe Ratio Comparison

The current AVEM Sharpe Ratio is 2.84, which is comparable to the DFEM Sharpe Ratio of 2.74. The chart below compares the historical Sharpe Ratios of AVEM and DFEM, 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

	AVEM	DFEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.84	2.74	+0.10
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.54	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.66	0.92	-0.26

Drawdowns

AVEM vs. DFEM - Drawdown Comparison

The maximum AVEM drawdown since its inception was -36.05%, which is greater than DFEM's maximum drawdown of -20.82%. Use the drawdown chart below to compare losses from any high point for AVEM and DFEM.

Drawdown Indicators

	AVEM	DFEM	Difference
Max Drawdown Largest peak-to-trough decline	-36.05%	-20.82%	-15.23%
Max Drawdown (1Y) Largest decline over 1 year	-13.13%	-12.12%	-1.01%
Max Drawdown (3Y) Largest decline over 3 years	-18.02%	-18.09%	+0.07%
Max Drawdown (5Y) Largest decline over 5 years	-34.00%	—	—
Current Drawdown Current decline from peak	-1.39%	-1.28%	-0.11%
Average Drawdown Average peak-to-trough decline	-10.09%	-5.03%	-5.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.30%	3.09%	+0.21%

Volatility

AVEM vs. DFEM - Volatility Comparison

Avantis Emerging Markets Equity ETF (AVEM) has a higher volatility of 8.33% compared to Dimensional Emerging Markets Core Equity 2 ETF (DFEM) at 7.78%. This indicates that AVEM's price experiences larger fluctuations and is considered to be riskier than DFEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVEM	DFEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.33%	7.78%	+0.55%
Volatility (6M) Calculated over the trailing 6-month period	16.72%	16.02%	+0.70%
Volatility (1Y) Calculated over the trailing 1-year period	19.45%	18.45%	+1.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.34%	17.26%	+1.08%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.55%	17.26%	+3.29%

AVEM vs. DFEM - Expense Ratio Comparison

AVEM has a 0.33% expense ratio, which is lower than DFEM's 0.39% expense ratio.

Dividends

AVEM vs. DFEM - Dividend Comparison

AVEM's dividend yield for the trailing twelve months is around 1.98%, more than DFEM's 1.82% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
AVEM Avantis Emerging Markets Equity ETF	1.98%	2.45%	3.17%	3.06%	2.77%	2.61%	1.60%	0.35%
DFEM Dimensional Emerging Markets Core Equity 2 ETF	1.82%	2.32%	2.50%	2.38%	1.99%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both AVEM and DFEM in my portfolio?

With a correlation of 0.99, AVEM and DFEM 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 DFEM?

AVEM has higher volatility (8.33%) compared to DFEM (7.78%). In terms of maximum drawdown, AVEM dropped -36.05% vs DFEM's -20.82%.

Which ETF is better, AVEM or DFEM?

On 3-year performance, AVEM leads with 26.07% vs 23.24% for DFEM. On fees, AVEM is cheaper at 0.33% per year. On volatility, DFEM has been the lower-risk option at 7.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVEM or DFEM?

Over the 3-year period, AVEM has performed better with a 26.07% return vs 23.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVEM or DFEM?

AVEM is cheaper with a 0.33% expense ratio, compared with 0.39% for DFEM.

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

AVEM has the higher dividend yield at 1.98%, compared with 1.82% for DFEM.

What is the main difference between AVEM and DFEM?

AVEM is categorized as Emerging Markets Equities, while DFEM is Emerging Markets Diversified. They also come from different issuers: Avantis and Dimensional. Their fees differ too: 0.33% for AVEM and 0.39% for DFEM.

Which has better risk-adjusted returns?

AVEM currently has the higher Sharpe Ratio (2.84 vs 2.74), 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.