AVEM vs. RNEM

Last updated Jul 14, 2026

AVEM (Avantis Emerging Markets Equity ETF) and RNEM (First Trust Emerging Markets Equity Select ETF) are both Emerging Markets Equities funds. AVEM is actively managed, while RNEM is passively managed. Over the past 5 years, AVEM returned 8.95%/yr vs 4.79%/yr for RNEM. A 0.76 correlation means they provide meaningful diversification when combined. AVEM charges 0.33%/yr vs 0.75%/yr for RNEM.

Performance

AVEM vs. RNEM - Performance Comparison

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

Returns By Period

In the year-to-date period, AVEM achieves a 18.91% return, which is significantly higher than RNEM's 0.25% return.

AVEM

• 1D: -3.34%
• 1M: -4.93%
• 6M: 13.08%
• YTD: 18.91%
• 1Y: 35.04%
• 3Y*: 21.16%
• 5Y*: 8.95%
• 10Y*: —

RNEM

• 1D: -1.44%
• 1M: -0.16%
• 6M: -1.96%
• YTD: 0.25%
• 1Y: 2.60%
• 3Y*: 6.03%
• 5Y*: 4.79%
• 10Y*: —

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

AVEM vs. RNEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
AVEM Avantis Emerging Markets Equity ETF	18.91%	34.48%	7.49%	15.30%	-18.15%	5.16%	14.39%	10.40%
RNEM First Trust Emerging Markets Equity Select ETF	0.25%	15.58%	-1.47%	23.43%	-8.75%	6.16%	-8.16%	6.69%

Correlation

The correlation between AVEM and RNEM is 0.77, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.77
Correlation (3Y) Calculated over the trailing 3-year period	0.79
Correlation (5Y) Calculated over the trailing 5-year period	0.78
Correlation (All Time) Calculated using the full available price history since Sep 19, 2019	0.76

The correlation between AVEM and RNEM has been stable across timeframes, ranging from 0.76 to 0.79 - a consistent structural relationship.

AVEM vs. RNEM - Sectors Allocation Comparison

Sectors	AVEM	RNEM
Technology	39.5%	6.4%
Financial Services	18.6%	35.0%
Consumer Cyclical	8.2%	9.9%
Industrials	8.1%	3.9%
Basic Materials	7.3%	14.2%
Communication Services	4.9%	8.7%
Energy	4.3%	7.0%
Consumer Defensive	2.8%	6.0%
Healthcare	2.5%	4.5%
Utilities	2.3%	3.5%
Real Estate	1.5%	0.8%

Return for Risk

AVEM vs. RNEM — Risk / Return Rank

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

AVEM

AVEM Risk / Return Rank: 60
AVEM Sharpe Ratio Rank: 57
AVEM Sortino Ratio Rank: 52
AVEM Omega Ratio Rank: 60
AVEM Calmar Ratio Rank: 67
AVEM Martin Ratio Rank: 66

RNEM

RNEM Risk / Return Rank: 12
RNEM Sharpe Ratio Rank: 13
RNEM Sortino Ratio Rank: 12
RNEM Omega Ratio Rank: 11
RNEM Calmar Ratio Rank: 13
RNEM Martin Ratio Rank: 13

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. RNEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis Emerging Markets Equity ETF (AVEM) and First Trust Emerging Markets Equity Select ETF (RNEM). 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	RNEM	Difference
Sharpe ratio: Return per unit of total volatility	1.53	0.21	+1.32
Sortino ratio: Return per unit of downside risk	2.03	0.39	+1.65
Omega ratio: Gain probability vs. loss probability	1.29	1.05	+0.25
Calmar ratio: Return relative to maximum drawdown	2.68	0.24	+2.44
Martin ratio: Return relative to average drawdown	9.39	0.65	+8.74

AVEM vs. RNEM - Sharpe Ratio Comparison

The current AVEM Sharpe Ratio is 1.53, which is higher than the RNEM Sharpe Ratio of 0.21. The chart below compares the historical Sharpe Ratios of AVEM and RNEM, 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. RNEM - Drawdown Comparison

The maximum AVEM drawdown since its inception was -36.05%, smaller than the maximum RNEM drawdown of -38.38%. Use the drawdown chart below to compare losses from any high point for AVEM and RNEM.

Drawdown Indicators

	AVEM	RNEM	Difference
Max Drawdown Largest peak-to-trough decline	-36.05%	-38.38%	+2.33%
Max Drawdown (1Y) Largest decline over 1 year	-13.13%	-10.71%	-2.42%
Max Drawdown (3Y) Largest decline over 3 years	-18.02%	-13.09%	-4.93%
Max Drawdown (5Y) Largest decline over 5 years	-32.41%	-21.41%	-11.00%
Current Drawdown Current decline from peak	-9.16%	-5.81%	-3.35%
Average Drawdown Average peak-to-trough decline	-10.01%	-9.26%	-0.75%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.74%	3.99%	-0.25%

Volatility

AVEM vs. RNEM - Volatility Comparison

Avantis Emerging Markets Equity ETF (AVEM) has a higher volatility of 11.26% compared to First Trust Emerging Markets Equity Select ETF (RNEM) at 3.75%. This indicates that AVEM's price experiences larger fluctuations and is considered to be riskier than RNEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVEM	RNEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.26%	3.75%	+7.51%
Volatility (6M) Calculated over the trailing 6-month period	21.04%	10.93%	+10.11%
Volatility (1Y) Calculated over the trailing 1-year period	23.10%	12.51%	+10.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.19%	14.48%	+4.71%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.00%	17.18%	+3.82%

AVEM vs. RNEM - Expense Ratio Comparison

AVEM has a 0.33% expense ratio, which is lower than RNEM's 0.75% expense ratio.

Dividends

AVEM vs. RNEM - Dividend Comparison

AVEM's dividend yield for the trailing twelve months is around 1.93%, less than RNEM's 2.37% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017
AVEM Avantis Emerging Markets Equity ETF	1.93%	2.45%	3.17%	3.06%	2.77%	2.61%	1.60%	0.35%	0.00%	0.00%
RNEM First Trust Emerging Markets Equity Select ETF	2.37%	2.75%	3.45%	1.63%	2.99%	3.20%	3.01%	2.85%	2.85%	2.28%

Frequently Asked Questions

Can I hold both AVEM and RNEM in my portfolio?

AVEM and RNEM have a correlation of 0.77, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, AVEM or RNEM?

AVEM has higher volatility (11.26%) compared to RNEM (3.75%). In terms of maximum drawdown, AVEM dropped -36.05% vs RNEM's -38.38%.

Which ETF is better, AVEM or RNEM?

On 5-year performance, AVEM leads with 8.95% vs 4.79% for RNEM. On fees, AVEM is cheaper at 0.33% per year. On volatility, RNEM has been the lower-risk option at 3.75%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVEM or RNEM?

Over the 5-year period, AVEM has performed better with a 8.95% return vs 4.79%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVEM or RNEM?

AVEM is cheaper with a 0.33% expense ratio, compared with 0.75% for RNEM.

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

RNEM has the higher dividend yield at 2.37%, compared with 1.93% for AVEM.

What is the main difference between AVEM and RNEM?

They also come from different issuers: Avantis and First Trust. Their fees differ too: 0.33% for AVEM and 0.75% for RNEM.

Which has better risk-adjusted returns?

AVEM currently has the higher Sharpe Ratio (1.53 vs 0.21), 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.