AVEM vs. VNQ
AVEM (Avantis Emerging Markets Equity ETF) and VNQ (Vanguard Real Estate ETF) are both exchange-traded funds - AVEM is a Emerging Markets Equities fund actively managed by Avantis, while VNQ is a REIT fund tracking the MSCI US Investable Market Real Estate 25/50 Index. AVEM is actively managed, while VNQ is passively managed. Over the past 5 years, AVEM returned 10.32%/yr vs 2.59%/yr for VNQ. At a 0.44 correlation, their price movements are largely independent. AVEM charges 0.33%/yr vs 0.13%/yr for VNQ.
Performance
AVEM vs. VNQ - Performance Comparison
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Returns By Period
In the year-to-date period, AVEM achieves a 26.29% return, which is significantly higher than VNQ's 9.20% return.
AVEM
- 1D
- -0.27%
- 1M
- 6.27%
- YTD
- 26.29%
- 6M
- 31.17%
- 1Y
- 48.95%
- 3Y*
- 23.94%
- 5Y*
- 10.32%
- 10Y*
- —
VNQ
- 1D
- -2.50%
- 1M
- 0.63%
- YTD
- 9.20%
- 6M
- 9.07%
- 1Y
- 10.97%
- 3Y*
- 8.75%
- 5Y*
- 2.59%
- 10Y*
- 5.20%
AVEM vs. VNQ - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | |
|---|---|---|---|---|---|---|---|---|
AVEM Avantis Emerging Markets Equity ETF | 26.29% | 34.48% | 7.49% | 15.30% | -18.15% | 5.16% | 14.39% | 10.40% |
VNQ Vanguard Real Estate ETF | 9.20% | 3.24% | 4.81% | 11.85% | -26.25% | 40.54% | -4.61% | 1.52% |
Correlation
The correlation between AVEM and VNQ is 0.23, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.23 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.37 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.42 |
Correlation (All Time) Calculated using the full available price history since Sep 19, 2019 | 0.44 |
Over the past year, the correlation between AVEM and VNQ has dropped to 0.23 - well below their long-term average of 0.44, suggesting their price drivers have been diverging.
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Return for Risk
AVEM vs. VNQ — Risk / Return Rank
AVEM
VNQ
AVEM vs. VNQ - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Avantis Emerging Markets Equity ETF (AVEM) and Vanguard Real Estate ETF (VNQ). 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 | VNQ | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +1.51 | ||
| Sortino ratioReturn per unit of downside risk | +1.80 | ||
| Omega ratioGain probability vs. loss probability | 1.43 | 1.15 | +0.29 |
| Calmar ratioReturn relative to maximum drawdown | 3.75 | 1.32 | +2.42 |
| Martin ratioReturn relative to average drawdown | 14.25 | 4.15 | +10.10 |
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Drawdowns
AVEM vs. VNQ - Drawdown Comparison
The maximum AVEM drawdown since its inception was -36.05%, smaller than the maximum VNQ drawdown of -73.07%. Use the drawdown chart below to compare losses from any high point for AVEM and VNQ.
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Drawdown Indicators
| AVEM | VNQ | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -36.05% | -73.07% | +37.02% |
Max Drawdown (1Y)Largest decline over 1 year | -13.13% | -8.34% | -4.79% |
Max Drawdown (3Y)Largest decline over 3 years | -18.02% | -17.46% | -0.56% |
Max Drawdown (5Y)Largest decline over 5 years | -33.88% | -34.48% | +0.60% |
Max Drawdown (10Y)Largest decline over 10 years | — | -42.40% | — |
Current DrawdownCurrent decline from peak | -2.39% | -2.94% | +0.55% |
Average DrawdownAverage peak-to-trough decline | -10.06% | -13.60% | +3.54% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.44% | 2.65% | +0.79% |
Volatility
AVEM vs. VNQ - Volatility Comparison
Avantis Emerging Markets Equity ETF (AVEM) has a higher volatility of 10.87% compared to Vanguard Real Estate ETF (VNQ) at 5.08%. This indicates that AVEM's price experiences larger fluctuations and is considered to be riskier than VNQ based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| AVEM | VNQ | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.87% | 5.08% | +5.79% |
Volatility (6M)Calculated over the trailing 6-month period | 19.05% | 10.13% | +8.92% |
Volatility (1Y)Calculated over the trailing 1-year period | 21.38% | 13.75% | +7.63% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.77% | 18.88% | -0.11% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.79% | 20.74% | +0.05% |
AVEM vs. VNQ - Expense Ratio Comparison
AVEM has a 0.33% expense ratio, which is higher than VNQ's 0.13% expense ratio.
Dividends
AVEM vs. VNQ - Dividend Comparison
AVEM's dividend yield for the trailing twelve months is around 2.56%, less than VNQ's 3.65% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AVEM Avantis Emerging Markets Equity ETF | 2.56% | 2.45% | 3.17% | 3.06% | 2.77% | 2.61% | 1.60% | 0.35% | 0.00% | 0.00% | 0.00% | 0.00% |
VNQ Vanguard Real Estate ETF | 3.65% | 3.92% | 3.85% | 3.95% | 3.91% | 2.56% | 3.93% | 3.39% | 4.74% | 4.23% | 4.82% | 3.92% |
Frequently Asked Questions
AVEM and VNQ have a correlation of 0.23, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
AVEM has higher volatility (10.87%) compared to VNQ (5.08%). In terms of maximum drawdown, AVEM dropped -36.05% vs VNQ's -73.07%.
On 5-year performance, AVEM leads with 10.32% vs 2.59% for VNQ. On fees, VNQ is cheaper at 0.13% per year. On volatility, VNQ has been the lower-risk option at 5.08%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 5-year period, AVEM has performed better with a 10.32% return vs 2.59%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VNQ is cheaper with a 0.13% expense ratio, compared with 0.33% for AVEM.
VNQ has the higher dividend yield at 3.65%, compared with 2.56% for AVEM.
AVEM is categorized as Emerging Markets Equities, while VNQ is REIT. They also come from different issuers: Avantis and Vanguard. Their fees differ too: 0.33% for AVEM and 0.13% for VNQ.
AVEM currently has the higher Sharpe Ratio (2.31 vs 0.80), 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.
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