AVEM vs. IEMG

Last updated Jun 24, 2026

AVEM (Avantis Emerging Markets Equity ETF) and IEMG (iShares Core MSCI Emerging Markets ETF) are both exchange-traded funds - AVEM is a Emerging Markets Equities fund actively managed by Avantis, while IEMG is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Investable Market Index (USD) (Net). AVEM is actively managed, while IEMG is passively managed. Over the past 5 years, AVEM returned 9.50%/yr vs 7.05%/yr for IEMG. With a 0.98 correlation, they move nearly in lockstep. AVEM charges 0.33%/yr vs 0.09%/yr for IEMG.

Performance

AVEM vs. IEMG - Performance Comparison

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

Returns By Period

In the year-to-date period, AVEM achieves a 23.75% return, which is significantly higher than IEMG's 21.95% return.

AVEM

• 1D: -5.47%
• 1M: 2.36%
• YTD: 23.75%
• 6M: 24.18%
• 1Y: 46.12%
• 3Y*: 24.70%
• 5Y*: 9.50%
• 10Y*: —

IEMG

• 1D: -5.44%
• 1M: 1.74%
• YTD: 21.95%
• 6M: 22.64%
• 1Y: 43.66%
• 3Y*: 22.14%
• 5Y*: 7.05%
• 10Y*: 10.38%

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

AVEM vs. IEMG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
AVEM Avantis Emerging Markets Equity ETF	23.75%	34.48%	7.49%	15.30%	-18.15%	5.16%	14.39%	10.40%
IEMG iShares Core MSCI Emerging Markets ETF	21.95%	32.56%	6.50%	11.52%	-19.98%	-0.64%	17.87%	9.84%

Correlation

The correlation between AVEM and IEMG 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 Sep 19, 2019	0.98

The correlation between AVEM and IEMG has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

AVEM vs. IEMG - Sectors Allocation Comparison

Sectors	AVEM	IEMG
Technology	39.5%	42.1%
Financial Services	18.6%	16.7%
Consumer Cyclical	8.2%	8.5%
Industrials	8.1%	8.0%
Basic Materials	7.3%	6.3%
Communication Services	4.9%	5.6%
Energy	4.3%	3.3%
Consumer Defensive	2.8%	2.8%
Healthcare	2.5%	3.2%
Utilities	2.3%	1.9%
Real Estate	1.5%	1.6%

Return for Risk

AVEM vs. IEMG — Risk / Return Rank

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

AVEM

AVEM Risk / Return Rank: 68
AVEM Sharpe Ratio Rank: 66
AVEM Sortino Ratio Rank: 58
AVEM Omega Ratio Rank: 70
AVEM Calmar Ratio Rank: 72
AVEM Martin Ratio Rank: 73

IEMG

IEMG Risk / Return Rank: 64
IEMG Sharpe Ratio Rank: 62
IEMG Sortino Ratio Rank: 55
IEMG Omega Ratio Rank: 66
IEMG Calmar Ratio Rank: 69
IEMG Martin Ratio Rank: 68

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. IEMG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis Emerging Markets Equity ETF (AVEM) and iShares Core MSCI Emerging Markets ETF (IEMG). 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	IEMG	Difference
Sharpe ratio: Return per unit of total volatility	2.09	1.98	+0.10
Sortino ratio: Return per unit of downside risk	2.66	2.56	+0.11
Omega ratio: Gain probability vs. loss probability	1.40	1.38	+0.01
Calmar ratio: Return relative to maximum drawdown	3.53	3.32	+0.21
Martin ratio: Return relative to average drawdown	13.36	12.15	+1.21

AVEM vs. IEMG - Sharpe Ratio Comparison

The current AVEM Sharpe Ratio is 2.09, which is comparable to the IEMG Sharpe Ratio of 1.98. The chart below compares the historical Sharpe Ratios of AVEM and IEMG, 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. IEMG - Drawdown Comparison

The maximum AVEM drawdown since its inception was -36.05%, smaller than the maximum IEMG drawdown of -38.71%. Use the drawdown chart below to compare losses from any high point for AVEM and IEMG.

Drawdown Indicators

	AVEM	IEMG	Difference
Max Drawdown Largest peak-to-trough decline	-36.05%	-38.71%	+2.66%
Max Drawdown (1Y) Largest decline over 1 year	-13.13%	-13.21%	+0.08%
Max Drawdown (3Y) Largest decline over 3 years	-18.02%	-17.21%	-0.81%
Max Drawdown (5Y) Largest decline over 5 years	-33.88%	-35.75%	+1.87%
Max Drawdown (10Y) Largest decline over 10 years	—	-38.71%	—
Current Drawdown Current decline from peak	-5.47%	-5.44%	-0.03%
Average Drawdown Average peak-to-trough decline	-10.04%	-12.93%	+2.89%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.46%	3.61%	-0.15%

Volatility

AVEM vs. IEMG - Volatility Comparison

Avantis Emerging Markets Equity ETF (AVEM) and iShares Core MSCI Emerging Markets ETF (IEMG) have volatilities of 12.55% and 12.22%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVEM	IEMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.55%	12.22%	+0.33%
Volatility (6M) Calculated over the trailing 6-month period	20.07%	20.14%	-0.07%
Volatility (1Y) Calculated over the trailing 1-year period	22.23%	22.12%	+0.11%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.99%	18.99%	0.00%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.91%	20.20%	+0.71%

AVEM vs. IEMG - Expense Ratio Comparison

AVEM has a 0.33% expense ratio, which is higher than IEMG's 0.09% expense ratio.

Dividends

AVEM vs. IEMG - Dividend Comparison

AVEM's dividend yield for the trailing twelve months is around 2.62%, more than IEMG's 2.21% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVEM Avantis Emerging Markets Equity ETF	2.62%	2.45%	3.17%	3.06%	2.77%	2.61%	1.60%	0.35%	0.00%	0.00%	0.00%	0.00%
IEMG iShares Core MSCI Emerging Markets ETF	2.21%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%

Frequently Asked Questions

Can I hold both AVEM and IEMG in my portfolio?

With a correlation of 0.99, AVEM and IEMG 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 IEMG?

AVEM has higher volatility (12.55%) compared to IEMG (12.22%). In terms of maximum drawdown, AVEM dropped -36.05% vs IEMG's -38.71%.

Which ETF is better, AVEM or IEMG?

On 5-year performance, AVEM leads with 9.50% vs 7.05% for IEMG. On fees, IEMG is cheaper at 0.09% per year. On volatility, IEMG has been the lower-risk option at 12.22%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVEM or IEMG?

Over the 5-year period, AVEM has performed better with a 9.50% return vs 7.05%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVEM or IEMG?

IEMG is cheaper with a 0.09% expense ratio, compared with 0.33% for AVEM.

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

AVEM has the higher dividend yield at 2.62%, compared with 2.21% for IEMG.

What is the main difference between AVEM and IEMG?

AVEM is categorized as Emerging Markets Equities, while IEMG is Emerging Markets Diversified. They also come from different issuers: Avantis and iShares. Their fees differ too: 0.33% for AVEM and 0.09% for IEMG.

Which has better risk-adjusted returns?

AVEM currently has the higher Sharpe Ratio (2.09 vs 1.98), 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.