AVEM vs. XSOE

Last updated Jun 4, 2026

AVEM (Avantis Emerging Markets Equity ETF) and XSOE (WisdomTree Emerging Markets ex-State-Owned Enterprises Fund) are both exchange-traded funds - AVEM is a Foreign Large Cap Equities fund tracking the MSCI Emerging Markets Index, while XSOE is a Emerging Markets Equities fund tracking the WisdomTree Emerging Markets ex-State-Owned Enterprises Index. Both are passively managed. Over the past 5 years, AVEM returned 9.92%/yr vs 5.06%/yr for XSOE. With a 0.97 correlation, they move nearly in lockstep. AVEM charges 0.33%/yr vs 0.32%/yr for XSOE.

Performance

AVEM vs. XSOE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Avantis Emerging Markets Equity ETF (AVEM) and WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with AVEM having a 27.59% return and XSOE slightly higher at 27.99%.

AVEM

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

XSOE

• 1D: -1.31%
• 1M: 9.84%
• YTD: 27.99%
• 6M: 30.83%
• 1Y: 54.87%
• 3Y*: 23.36%
• 5Y*: 5.06%
• 10Y*: 10.77%

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

AVEM vs. XSOE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
AVEM Avantis Emerging Markets Equity ETF	27.59%	34.48%	7.49%	15.30%	-18.15%	5.16%	14.39%	11.13%
XSOE WisdomTree Emerging Markets ex-State-Owned Enterprises Fund	27.99%	30.05%	7.02%	10.28%	-25.83%	-5.92%	28.61%	11.61%

Correlation

The correlation between AVEM and XSOE is 0.97 - 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	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (All Time) Calculated using the full available price history since Sep 20, 2019	0.97

The correlation between AVEM and XSOE has been stable across timeframes, ranging from 0.97 to 0.97 - a consistent structural relationship.

AVEM vs. XSOE - Sectors Allocation Comparison

Sectors	AVEM	XSOE
Technology	32.3%	37.3%
Financial Services	20.7%	15.5%
Consumer Cyclical	9.2%	12.6%
Industrials	9.2%	9.6%
Basic Materials	8.1%	5.3%
Communication Services	5.4%	7.0%
Energy	5.1%	2.0%
Consumer Defensive	3.1%	3.8%
Healthcare	2.8%	4.4%
Utilities	2.6%	1.4%
Real Estate	1.6%	1.0%

Return for Risk

AVEM vs. XSOE — 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

XSOE

XSOE Risk / Return Rank: 82
XSOE Sharpe Ratio Rank: 84
XSOE Sortino Ratio Rank: 81
XSOE Omega Ratio Rank: 84
XSOE Calmar Ratio Rank: 80
XSOE Martin Ratio Rank: 80

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. XSOE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis Emerging Markets Equity ETF (AVEM) and WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE). 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	XSOE	Difference
Sharpe ratio: Return per unit of total volatility	2.84	2.79	+0.05
Sortino ratio: Return per unit of downside risk	3.65	3.65	0.00
Omega ratio: Gain probability vs. loss probability	1.51	1.51	0.00
Calmar ratio: Return relative to maximum drawdown	4.21	4.14	+0.07
Martin ratio: Return relative to average drawdown	16.70	15.84	+0.85
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. XSOE - Sharpe Ratio Comparison

The current AVEM Sharpe Ratio is 2.84, which is comparable to the XSOE Sharpe Ratio of 2.79. The chart below compares the historical Sharpe Ratios of AVEM and XSOE, 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	XSOE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.84	2.79	+0.05
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.54	0.26	+0.28
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.52	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.66	0.40	+0.25

Drawdowns

AVEM vs. XSOE - Drawdown Comparison

The maximum AVEM drawdown since its inception was -36.05%, smaller than the maximum XSOE drawdown of -45.23%. Use the drawdown chart below to compare losses from any high point for AVEM and XSOE.

Drawdown Indicators

	AVEM	XSOE	Difference
Max Drawdown Largest peak-to-trough decline	-36.05%	-45.23%	+9.18%
Max Drawdown (1Y) Largest decline over 1 year	-13.13%	-13.31%	+0.18%
Max Drawdown (3Y) Largest decline over 3 years	-18.02%	-19.96%	+1.94%
Max Drawdown (5Y) Largest decline over 5 years	-34.00%	-42.05%	+8.05%
Max Drawdown (10Y) Largest decline over 10 years	—	-45.23%	—
Current Drawdown Current decline from peak	-1.39%	-1.31%	-0.08%
Average Drawdown Average peak-to-trough decline	-10.09%	-17.28%	+7.19%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.30%	3.47%	-0.17%

Volatility

AVEM vs. XSOE - Volatility Comparison

Avantis Emerging Markets Equity ETF (AVEM) and WisdomTree Emerging Markets ex-State-Owned Enterprises Fund (XSOE) have volatilities of 8.33% and 8.57%, 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	XSOE	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.33%	8.57%	-0.24%
Volatility (6M) Calculated over the trailing 6-month period	16.72%	17.24%	-0.52%
Volatility (1Y) Calculated over the trailing 1-year period	19.45%	19.77%	-0.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.34%	19.43%	-1.09%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.55%	20.59%	-0.04%

AVEM vs. XSOE - Expense Ratio Comparison

AVEM has a 0.33% expense ratio, which is higher than XSOE's 0.32% expense ratio.

Dividends

AVEM vs. XSOE - Dividend Comparison

AVEM's dividend yield for the trailing twelve months is around 1.98%, more than XSOE's 1.28% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVEM Avantis Emerging Markets Equity ETF	1.98%	2.45%	3.17%	3.06%	2.77%	2.61%	1.60%	0.35%	0.00%	0.00%	0.00%	0.00%
XSOE WisdomTree Emerging Markets ex-State-Owned Enterprises Fund	1.28%	1.50%	1.44%	1.78%	2.53%	1.36%	1.02%	2.01%	1.56%	0.65%	1.43%	3.93%

Frequently Asked Questions

Can I hold both AVEM and XSOE in my portfolio?

With a correlation of 0.97, AVEM and XSOE 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 XSOE?

XSOE has higher volatility (8.57%) compared to AVEM (8.33%). In terms of maximum drawdown, AVEM dropped -36.05% vs XSOE's -45.23%.

Which ETF is better, AVEM or XSOE?

On 5-year performance, AVEM leads with 9.92% vs 5.06% for XSOE. On fees, XSOE is cheaper at 0.32% per year. On volatility, AVEM has been the lower-risk option at 8.33%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVEM or XSOE?

Over the 5-year period, AVEM has performed better with a 9.92% return vs 5.06%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVEM or XSOE?

XSOE is cheaper with a 0.32% expense ratio, compared with 0.33% for AVEM.

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

AVEM has the higher dividend yield at 1.98%, compared with 1.28% for XSOE.

What is the main difference between AVEM and XSOE?

AVEM is categorized as Foreign Large Cap Equities, while XSOE is Emerging Markets Equities. AVEM tracks MSCI Emerging Markets Index, while XSOE tracks WisdomTree Emerging Markets ex-State-Owned Enterprises Index. They also come from different issuers: American Century and WisdomTree. Their fees differ too: 0.33% for AVEM and 0.32% for XSOE.

Which has better risk-adjusted returns?

AVEM currently has the higher Sharpe Ratio (2.84 vs 2.79), 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.