AVSE vs. HEEM
AVSE (Avantis Responsible Emerging Markets Equity ETF) and HEEM (iShares Currency Hedged MSCI Emerging Markets ETF) are both Emerging Markets Diversified funds - AVSE tracks the MSCI Emerging Markets Index while HEEM tracks the MSCI Emerging Markets 100% USD Hedged Index. Both are passively managed. Over the past 3 years, AVSE returned 24.48%/yr vs 25.80%/yr for HEEM. Their correlation of 0.92 suggests significant overlap in exposure. AVSE charges 0.33%/yr vs 0.72%/yr for HEEM.
Performance
AVSE vs. HEEM - Performance Comparison
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Returns By Period
In the year-to-date period, AVSE achieves a 23.92% return, which is significantly lower than HEEM's 26.06% return.
AVSE
- 1D
- -5.42%
- 1M
- 3.43%
- YTD
- 23.92%
- 6M
- 24.59%
- 1Y
- 44.42%
- 3Y*
- 24.48%
- 5Y*
- —
- 10Y*
- —
HEEM
- 1D
- -5.40%
- 1M
- 3.12%
- YTD
- 26.06%
- 6M
- 26.50%
- 1Y
- 55.61%
- 3Y*
- 25.80%
- 5Y*
- 9.77%
- 10Y*
- 11.34%
AVSE vs. HEEM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
AVSE Avantis Responsible Emerging Markets Equity ETF | 23.92% | 32.54% | 8.29% | 16.01% | -14.43% |
HEEM iShares Currency Hedged MSCI Emerging Markets ETF | 26.06% | 34.02% | 12.59% | 10.14% | -12.16% |
Correlation
The correlation between AVSE and HEEM is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.94 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.92 |
Correlation (All Time) Calculated using the full available price history since Mar 30, 2022 | 0.92 |
The correlation between AVSE and HEEM has been stable across timeframes, ranging from 0.92 to 0.94 - a consistent structural relationship.
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Return for Risk
AVSE vs. HEEM — Risk / Return Rank
AVSE
HEEM
AVSE vs. HEEM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Avantis Responsible Emerging Markets Equity ETF (AVSE) and iShares Currency Hedged MSCI Emerging Markets ETF (HEEM). 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.
| AVSE | HEEM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.70 | ||
| Sortino ratioReturn per unit of downside risk | -0.78 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.52 | -0.14 |
| Calmar ratioReturn relative to maximum drawdown | 3.15 | 5.16 | -2.01 |
| Martin ratioReturn relative to average drawdown | 12.04 | 19.26 | -7.21 |
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Drawdowns
AVSE vs. HEEM - Drawdown Comparison
The maximum AVSE drawdown since its inception was -26.28%, smaller than the maximum HEEM drawdown of -33.53%. Use the drawdown chart below to compare losses from any high point for AVSE and HEEM.
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Drawdown Indicators
| AVSE | HEEM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -26.28% | -33.53% | +7.25% |
Max Drawdown (1Y)Largest decline over 1 year | -14.17% | -10.83% | -3.34% |
Max Drawdown (3Y)Largest decline over 3 years | -17.68% | -14.82% | -2.86% |
Max Drawdown (5Y)Largest decline over 5 years | — | -30.60% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -33.53% | — |
Current DrawdownCurrent decline from peak | -5.42% | -5.40% | -0.02% |
Average DrawdownAverage peak-to-trough decline | -6.78% | -11.10% | +4.32% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.70% | 2.90% | +0.80% |
Volatility
AVSE vs. HEEM - Volatility Comparison
Avantis Responsible Emerging Markets Equity ETF (AVSE) and iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) have volatilities of 12.30% and 11.87%, 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.
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Volatility by Period
| AVSE | HEEM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.30% | 11.87% | +0.43% |
Volatility (6M)Calculated over the trailing 6-month period | 19.98% | 18.67% | +1.31% |
Volatility (1Y)Calculated over the trailing 1-year period | 22.13% | 20.56% | +1.57% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.68% | 17.64% | +1.04% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.68% | 18.20% | +0.48% |
AVSE vs. HEEM - Expense Ratio Comparison
AVSE has a 0.33% expense ratio, which is lower than HEEM's 0.72% expense ratio.
Dividends
AVSE vs. HEEM - Dividend Comparison
AVSE's dividend yield for the trailing twelve months is around 2.81%, less than HEEM's 3.16% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
AVSE Avantis Responsible Emerging Markets Equity ETF | 2.81% | 2.68% | 3.03% | 3.20% | 1.27% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
HEEM iShares Currency Hedged MSCI Emerging Markets ETF | 3.16% | 3.98% | 2.38% | 2.75% | 7.49% | 1.93% | 1.49% | 3.04% | 2.37% | 2.05% | 1.84% | 6.28% |
Frequently Asked Questions
With a correlation of 0.94, AVSE and HEEM 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.
AVSE has higher volatility (12.30%) compared to HEEM (11.87%). In terms of maximum drawdown, AVSE dropped -26.28% vs HEEM's -33.53%.
On 3-year performance, HEEM leads with 25.80% vs 24.48% for AVSE. On fees, AVSE is cheaper at 0.33% per year. On volatility, HEEM has been the lower-risk option at 11.87%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, HEEM has performed better with a 25.80% return vs 24.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
AVSE is cheaper with a 0.33% expense ratio, compared with 0.72% for HEEM.
HEEM has the higher dividend yield at 3.16%, compared with 2.81% for AVSE.
AVSE tracks MSCI Emerging Markets Index, while HEEM tracks MSCI Emerging Markets 100% USD Hedged Index. They also come from different issuers: Avantis and iShares. Their fees differ too: 0.33% for AVSE and 0.72% for HEEM.
HEEM currently has the higher Sharpe Ratio (2.72 vs 2.02), 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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