AVSE vs. IEMG

Last updated Jun 4, 2026

AVSE (Avantis Responsible Emerging Markets Equity ETF) and IEMG (iShares Core MSCI Emerging Markets ETF) are both Emerging Markets Diversified funds - AVSE tracks the MSCI Emerging Markets Index while IEMG tracks the MSCI Emerging Markets Investable Market Index (USD) (Net). Both are passively managed. Over the past 3 years, AVSE returned 25.55%/yr vs 23.55%/yr for IEMG. With a 0.98 correlation, they move nearly in lockstep. AVSE charges 0.33%/yr vs 0.09%/yr for IEMG.

Performance

AVSE vs. IEMG - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Avantis Responsible Emerging Markets Equity ETF (AVSE) and iShares Core MSCI Emerging Markets ETF (IEMG). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both stocks are quite close, with AVSE having a 26.92% return and IEMG slightly lower at 26.21%.

AVSE

• 1D: -1.45%
• 1M: 9.75%
• YTD: 26.92%
• 6M: 28.98%
• 1Y: 52.22%
• 3Y*: 25.55%
• 5Y*: —
• 10Y*: —

IEMG

• 1D: -1.34%
• 1M: 7.97%
• YTD: 26.21%
• 6M: 28.63%
• 1Y: 52.58%
• 3Y*: 23.55%
• 5Y*: 7.58%
• 10Y*: 10.41%

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

AVSE vs. IEMG - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
AVSE Avantis Responsible Emerging Markets Equity ETF	26.92%	32.54%	8.29%	16.01%	-13.85%
IEMG iShares Core MSCI Emerging Markets ETF	26.21%	32.56%	6.50%	11.52%	-15.07%

Correlation

The correlation between AVSE and IEMG is 0.98 - 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	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (All Time) Calculated using the full available price history since Mar 31, 2022	0.98

The correlation between AVSE and IEMG has been stable across timeframes, ranging from 0.98 to 0.98 - a consistent structural relationship.

AVSE vs. IEMG - Sectors Allocation Comparison

Sectors	AVSE	IEMG
Technology	34.8%	35.0%
Financial Services	24.2%	18.4%
Consumer Cyclical	12.3%	9.5%
Industrials	8.2%	9.0%
Communication Services	6.5%	6.4%
Healthcare	3.9%	3.7%
Basic Materials	3.3%	6.9%
Consumer Defensive	2.7%	3.3%
Real Estate	2.6%	1.7%
Utilities	1.3%	2.2%
Energy	0.1%	3.8%

Return for Risk

AVSE vs. IEMG — Risk / Return Rank

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

AVSE

AVSE Risk / Return Rank: 78
AVSE Sharpe Ratio Rank: 82
AVSE Sortino Ratio Rank: 78
AVSE Omega Ratio Rank: 80
AVSE Calmar Ratio Rank: 74
AVSE Martin Ratio Rank: 77

IEMG

IEMG Risk / Return Rank: 79
IEMG Sharpe Ratio Rank: 82
IEMG Sortino Ratio Rank: 77
IEMG Omega Ratio Rank: 81
IEMG Calmar Ratio Rank: 77
IEMG Martin Ratio Rank: 78

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.

AVSE vs. IEMG - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis Responsible Emerging Markets Equity ETF (AVSE) and iShares Core MSCI Emerging Markets ETF (IEMG). 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.

	AVSE	IEMG	Difference
Sharpe ratio: Return per unit of total volatility	2.69	2.72	-0.03
Sortino ratio: Return per unit of downside risk	3.53	3.53	0.00
Omega ratio: Gain probability vs. loss probability	1.48	1.50	-0.01
Calmar ratio: Return relative to maximum drawdown	3.70	4.00	-0.29
Martin ratio: Return relative to average drawdown	14.74	15.38	-0.65
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

AVSE vs. IEMG - Sharpe Ratio Comparison

The current AVSE Sharpe Ratio is 2.69, which is comparable to the IEMG Sharpe Ratio of 2.72. The chart below compares the historical Sharpe Ratios of AVSE and IEMG, 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

	AVSE	IEMG	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.69	2.72	-0.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.41	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.52	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.86	0.35	+0.51

Drawdowns

AVSE vs. IEMG - Drawdown Comparison

The maximum AVSE drawdown since its inception was -26.28%, smaller than the maximum IEMG drawdown of -38.71%. Use the drawdown chart below to compare losses from any high point for AVSE and IEMG.

Drawdown Indicators

	AVSE	IEMG	Difference
Max Drawdown Largest peak-to-trough decline	-26.28%	-38.71%	+12.43%
Max Drawdown (1Y) Largest decline over 1 year	-14.17%	-13.21%	-0.96%
Max Drawdown (3Y) Largest decline over 3 years	-17.68%	-17.21%	-0.47%
Max Drawdown (5Y) Largest decline over 5 years	—	-35.83%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-38.71%	—
Current Drawdown Current decline from peak	-1.45%	-1.34%	-0.11%
Average Drawdown Average peak-to-trough decline	-6.82%	-12.97%	+6.15%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.55%	3.43%	+0.12%

Volatility

AVSE vs. IEMG - Volatility Comparison

Avantis Responsible Emerging Markets Equity ETF (AVSE) and iShares Core MSCI Emerging Markets ETF (IEMG) have volatilities of 8.65% and 8.31%, 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

	AVSE	IEMG	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.65%	8.31%	+0.34%
Volatility (6M) Calculated over the trailing 6-month period	16.79%	16.93%	-0.14%
Volatility (1Y) Calculated over the trailing 1-year period	19.53%	19.43%	+0.10%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.03%	18.38%	-0.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.03%	20.03%	-2.00%

AVSE vs. IEMG - Expense Ratio Comparison

AVSE has a 0.33% expense ratio, which is higher than IEMG's 0.09% expense ratio.

Dividends

AVSE vs. IEMG - Dividend Comparison

AVSE's dividend yield for the trailing twelve months is around 2.18%, which matches IEMG's 2.18% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVSE Avantis Responsible Emerging Markets Equity ETF	2.18%	2.68%	3.03%	3.20%	1.27%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
IEMG iShares Core MSCI Emerging Markets ETF	2.18%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%

Frequently Asked Questions

Can I hold both AVSE and IEMG in my portfolio?

With a correlation of 0.98, AVSE and IEMG 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, AVSE or IEMG?

AVSE has higher volatility (8.65%) compared to IEMG (8.31%). In terms of maximum drawdown, AVSE dropped -26.28% vs IEMG's -38.71%.

Which ETF is better, AVSE or IEMG?

On 3-year performance, AVSE leads with 25.55% vs 23.55% for IEMG. On fees, IEMG is cheaper at 0.09% per year. On volatility, IEMG has been the lower-risk option at 8.31%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVSE or IEMG?

Over the 3-year period, AVSE has performed better with a 25.55% return vs 23.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVSE or IEMG?

IEMG is cheaper with a 0.09% expense ratio, compared with 0.33% for AVSE.

Which ETF pays a higher dividend yield, AVSE or IEMG?

AVSE and IEMG have nearly identical dividend yields, around 2.18%.

What is the main difference between AVSE and IEMG?

AVSE tracks MSCI Emerging Markets Index, while IEMG tracks MSCI Emerging Markets Investable Market Index (USD) (Net). They also come from different issuers: Avantis and iShares. Their fees differ too: 0.33% for AVSE and 0.09% for IEMG.

Which has better risk-adjusted returns?

IEMG currently has the higher Sharpe Ratio (2.72 vs 2.69), 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.