DFEM vs. AVEM
DFEM (Dimensional Emerging Markets Core Equity 2 ETF) and AVEM (Avantis Emerging Markets Equity ETF) are both exchange-traded funds - DFEM is a Emerging Markets Diversified fund actively managed by Dimensional, while AVEM is a Emerging Markets Equities fund actively managed by Avantis. Both are actively managed. Over the past 3 years, DFEM returned 21.68%/yr vs 24.70%/yr for AVEM. With a 0.98 correlation, they move nearly in lockstep. DFEM charges 0.39%/yr vs 0.33%/yr for AVEM.
Performance
DFEM vs. AVEM - Performance Comparison
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Returns By Period
In the year-to-date period, DFEM achieves a 20.81% return, which is significantly lower than AVEM's 23.75% return.
DFEM
- 1D
- -5.74%
- 1M
- 0.43%
- YTD
- 20.81%
- 6M
- 21.36%
- 1Y
- 41.37%
- 3Y*
- 21.68%
- 5Y*
- —
- 10Y*
- —
AVEM
- 1D
- -5.47%
- 1M
- 2.36%
- YTD
- 23.75%
- 6M
- 24.18%
- 1Y
- 46.12%
- 3Y*
- 24.70%
- 5Y*
- 9.50%
- 10Y*
- —
DFEM vs. AVEM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
DFEM Dimensional Emerging Markets Core Equity 2 ETF | 20.81% | 29.51% | 7.53% | 13.91% | -9.60% |
AVEM Avantis Emerging Markets Equity ETF | 23.75% | 34.48% | 7.49% | 15.30% | -5.25% |
Correlation
The correlation between DFEM and AVEM is 0.99 - 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 | 0.99 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.99 |
Correlation (All Time) Calculated using the full available price history since Apr 27, 2022 | 0.98 |
The correlation between DFEM and AVEM has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.
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Return for Risk
DFEM vs. AVEM — Risk / Return Rank
DFEM
AVEM
DFEM vs. AVEM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Markets Core Equity 2 ETF (DFEM) and Avantis Emerging Markets Equity ETF (AVEM). 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.
| DFEM | AVEM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.12 | ||
| Sortino ratioReturn per unit of downside risk | -0.15 | ||
| Omega ratioGain probability vs. loss probability | 1.38 | 1.40 | -0.02 |
| Calmar ratioReturn relative to maximum drawdown | 3.43 | 3.53 | -0.10 |
| Martin ratioReturn relative to average drawdown | 12.74 | 13.36 | -0.62 |
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Drawdowns
DFEM vs. AVEM - Drawdown Comparison
The maximum DFEM drawdown since its inception was -20.82%, smaller than the maximum AVEM drawdown of -36.05%. Use the drawdown chart below to compare losses from any high point for DFEM and AVEM.
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Drawdown Indicators
| DFEM | AVEM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -20.82% | -36.05% | +15.23% |
Max Drawdown (1Y)Largest decline over 1 year | -12.12% | -13.13% | +1.01% |
Max Drawdown (3Y)Largest decline over 3 years | -18.09% | -18.02% | -0.07% |
Max Drawdown (5Y)Largest decline over 5 years | — | -33.88% | — |
Current DrawdownCurrent decline from peak | -5.74% | -5.47% | -0.27% |
Average DrawdownAverage peak-to-trough decline | -5.01% | -10.04% | +5.03% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.26% | 3.46% | -0.20% |
Volatility
DFEM vs. AVEM - Volatility Comparison
Dimensional Emerging Markets Core Equity 2 ETF (DFEM) and Avantis Emerging Markets Equity ETF (AVEM) have volatilities of 12.01% and 12.55%, 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
| DFEM | AVEM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.01% | 12.55% | -0.54% |
Volatility (6M)Calculated over the trailing 6-month period | 19.31% | 20.07% | -0.76% |
Volatility (1Y)Calculated over the trailing 1-year period | 21.16% | 22.23% | -1.07% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.94% | 18.99% | -1.05% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.94% | 20.91% | -2.97% |
DFEM vs. AVEM - Expense Ratio Comparison
DFEM has a 0.39% expense ratio, which is higher than AVEM's 0.33% expense ratio.
Dividends
DFEM vs. AVEM - Dividend Comparison
DFEM's dividend yield for the trailing twelve months is around 1.89%, less than AVEM's 2.62% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 |
|---|---|---|---|---|---|---|---|---|
AVEM Avantis Emerging Markets Equity ETF | 2.62% | 2.45% | 3.17% | 3.06% | 2.77% | 2.61% | 1.60% | 0.35% |
DFEM Dimensional Emerging Markets Core Equity 2 ETF | 1.89% | 2.32% | 2.50% | 2.38% | 1.99% | 0.00% | 0.00% | 0.00% |
Frequently Asked Questions
With a correlation of 0.99, DFEM and AVEM 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.
AVEM has higher volatility (12.55%) compared to DFEM (12.01%). In terms of maximum drawdown, DFEM dropped -20.82% vs AVEM's -36.05%.
On 3-year performance, AVEM leads with 24.70% vs 21.68% for DFEM. On fees, AVEM is cheaper at 0.33% per year. On volatility, DFEM has been the lower-risk option at 12.01%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, AVEM has performed better with a 24.70% return vs 21.68%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
AVEM is cheaper with a 0.33% expense ratio, compared with 0.39% for DFEM.
AVEM has the higher dividend yield at 2.62%, compared with 1.89% for DFEM.
DFEM is categorized as Emerging Markets Diversified, while AVEM is Emerging Markets Equities. They also come from different issuers: Dimensional and Avantis. Their fees differ too: 0.39% for DFEM and 0.33% for AVEM.
AVEM currently has the higher Sharpe Ratio (2.09 vs 1.97), 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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