AVEM vs. SMH

Last updated Jun 13, 2026

AVEM (Avantis Emerging Markets Equity ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - AVEM is a Emerging Markets Equities fund actively managed by Avantis, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. AVEM is actively managed, while SMH is passively managed. Over the past 5 years, AVEM returned 9.66%/yr vs 38.42%/yr for SMH. A 0.68 correlation means they provide meaningful diversification when combined. AVEM charges 0.33%/yr vs 0.35%/yr for SMH.

Performance

AVEM vs. SMH - Performance Comparison

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

Returns By Period

In the year-to-date period, AVEM achieves a 25.08% return, which is significantly lower than SMH's 72.15% return.

AVEM

• 1D: 0.42%
• 1M: 1.30%
• YTD: 25.08%
• 6M: 27.86%
• 1Y: 47.18%
• 3Y*: 24.04%
• 5Y*: 9.66%
• 10Y*: —

SMH

• 1D: 1.72%
• 1M: 7.20%
• YTD: 72.15%
• 6M: 75.62%
• 1Y: 141.99%
• 3Y*: 60.05%
• 5Y*: 38.42%
• 10Y*: 37.49%

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

AVEM vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
AVEM Avantis Emerging Markets Equity ETF	25.08%	34.48%	7.49%	15.30%	-18.15%	5.16%	14.39%	10.40%
SMH VanEck Semiconductor ETF	72.15%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	17.93%

Correlation

The correlation between AVEM and SMH is 0.78, 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	0.78
Correlation (3Y) Calculated over the trailing 3-year period	0.66
Correlation (5Y) Calculated over the trailing 5-year period	0.67
Correlation (All Time) Calculated using the full available price history since Sep 19, 2019	0.68

The correlation between AVEM and SMH shifts across timeframes, from 0.66 (3 years) to 0.78 (1 year), reflecting how their relationship changes across market environments.

AVEM vs. SMH - Sectors Allocation Comparison

Sectors	AVEM	SMH
Technology	32.3%	100.0%
Financial Services	20.7%	-
Consumer Cyclical	9.2%	-
Industrials	9.2%	-
Basic Materials	8.1%	-
Communication Services	5.4%	-
Energy	5.1%	-
Consumer Defensive	3.1%	-
Healthcare	2.8%	-
Utilities	2.6%	-
Real Estate	1.6%	-

Return for Risk

AVEM vs. SMH — Risk / Return Rank

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

AVEM

AVEM Risk / Return Rank: 77
AVEM Sharpe Ratio Rank: 78
AVEM Sortino Ratio Rank: 72
AVEM Omega Ratio Rank: 79
AVEM Calmar Ratio Rank: 77
AVEM Martin Ratio Rank: 79

SMH

SMH Risk / Return Rank: 96
SMH Sharpe Ratio Rank: 97
SMH Sortino Ratio Rank: 94
SMH Omega Ratio Rank: 94
SMH Calmar Ratio Rank: 97
SMH Martin Ratio Rank: 96

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. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis Emerging Markets Equity ETF (AVEM) and VanEck Semiconductor ETF (SMH). 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	SMH	Difference
Sharpe ratio: Return per unit of total volatility	2.15	4.13	-1.99
Sortino ratio: Return per unit of downside risk	2.78	4.26	-1.48
Omega ratio: Gain probability vs. loss probability	1.40	1.60	-0.20
Calmar ratio: Return relative to maximum drawdown	3.46	9.18	-5.73
Martin ratio: Return relative to average drawdown	13.15	33.74	-20.59

AVEM vs. SMH - Sharpe Ratio Comparison

The current AVEM Sharpe Ratio is 2.15, which is lower than the SMH Sharpe Ratio of 4.13. The chart below compares the historical Sharpe Ratios of AVEM and SMH, 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. SMH - Drawdown Comparison

The maximum AVEM drawdown since its inception was -36.05%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for AVEM and SMH.

Drawdown Indicators

	AVEM	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-36.05%	-84.96%	+48.91%
Max Drawdown (1Y) Largest decline over 1 year	-13.13%	-14.93%	+1.80%
Max Drawdown (3Y) Largest decline over 3 years	-18.02%	-35.74%	+17.72%
Max Drawdown (5Y) Largest decline over 5 years	-33.88%	-45.30%	+11.42%
Max Drawdown (10Y) Largest decline over 10 years	—	-45.30%	—
Current Drawdown Current decline from peak	-3.33%	-2.81%	-0.52%
Average Drawdown Average peak-to-trough decline	-10.07%	-41.04%	+30.97%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.45%	4.06%	-0.61%

Volatility

AVEM vs. SMH - Volatility Comparison

The current volatility for Avantis Emerging Markets Equity ETF (AVEM) is 10.91%, while VanEck Semiconductor ETF (SMH) has a volatility of 16.25%. This indicates that AVEM experiences smaller price fluctuations and is considered to be less risky than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVEM	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.91%	16.25%	-5.34%
Volatility (6M) Calculated over the trailing 6-month period	18.79%	27.73%	-8.94%
Volatility (1Y) Calculated over the trailing 1-year period	21.17%	33.20%	-12.03%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.71%	35.47%	-16.76%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.76%	32.82%	-12.06%

AVEM vs. SMH - Expense Ratio Comparison

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

Dividends

AVEM vs. SMH - Dividend Comparison

AVEM's dividend yield for the trailing twelve months is around 2.59%, more than SMH's 0.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVEM Avantis Emerging Markets Equity ETF	2.59%	2.45%	3.17%	3.06%	2.77%	2.61%	1.60%	0.35%	0.00%	0.00%	0.00%	0.00%
SMH VanEck Semiconductor ETF	0.18%	0.31%	0.44%	0.60%	1.18%	0.51%	0.69%	1.50%	1.88%	1.43%	0.80%	2.14%

Frequently Asked Questions

Can I hold both AVEM and SMH in my portfolio?

AVEM and SMH have a correlation of 0.78, 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 SMH?

SMH has higher volatility (16.25%) compared to AVEM (10.91%). In terms of maximum drawdown, AVEM dropped -36.05% vs SMH's -84.96%.

Which ETF is better, AVEM or SMH?

On 5-year performance, SMH leads with 38.42% vs 9.66% for AVEM. On fees, AVEM is cheaper at 0.33% per year. On volatility, AVEM has been the lower-risk option at 10.91%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVEM or SMH?

Over the 5-year period, SMH has performed better with a 38.42% return vs 9.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVEM or SMH?

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

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

AVEM has the higher dividend yield at 2.59%, compared with 0.18% for SMH.

What is the main difference between AVEM and SMH?

AVEM is categorized as Emerging Markets Equities, while SMH is Semiconductors. They also come from different issuers: Avantis and VanEck. Their fees differ too: 0.33% for AVEM and 0.35% for SMH.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.13 vs 2.15), 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.