DFSE vs. AVEM

Last updated Aug 2, 2026

DFSE (Dimensional Emerging Markets Sustainability Core 1 ETF) and AVEM (Avantis Emerging Markets Equity ETF) are both Emerging Markets Equities funds. Both are actively managed. Over the past 3 years, DFSE returned 15.49%/yr vs 19.94%/yr for AVEM. Their 0.96 correlation means they have historically moved very closely together. DFSE charges 0.41%/yr vs 0.33%/yr for AVEM.

Performance

DFSE vs. AVEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) and Avantis Emerging Markets Equity ETF (AVEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DFSE achieves a 11.87% return, which is significantly lower than AVEM's 16.96% return.

DFSE

• 1D: 0.32%
• 1M: -2.79%
• 6M: 4.60%
• YTD: 11.87%
• 1Y: 24.07%
• 3Y*: 15.49%
• 5Y*: —
• 10Y*: —
• ALL TIME*: 19.47%

AVEM

• 1D: 0.10%
• 1M: -3.17%
• 6M: 8.33%
• YTD: 16.96%
• 1Y: 33.47%
• 3Y*: 19.94%
• 5Y*: 9.32%
• 10Y*: —
• ALL TIME*: 11.56%

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

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
AVEM Avantis Emerging Markets Equity ETF	$186.43M	$193.15M	$184.15M
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF	$1.30M	$1.32M	$1.25M

DFSE vs. AVEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF	11.87%	28.22%	6.90%	14.66%	10.68%
AVEM Avantis Emerging Markets Equity ETF	16.96%	34.48%	7.49%	15.30%	11.28%

Correlation

The correlation between DFSE and AVEM is 0.97 - they have historically moved very closely together. At this level, their price movements offset little of one another.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.97
Correlation (3Y) Balances recent behavior with more history.	0.96
Correlation (All Time) Calculated using the full available price history since Nov 2, 2022	0.96

The correlation between DFSE and AVEM has been stable across timeframes, ranging from 0.96 to 0.97 - a consistent structural relationship.

DFSE vs. AVEM - Sectors Allocation Comparison

Sectors	DFSE	AVEM
Technology	39.3%	41.9%
Financial Services	17.0%	18.9%
Industrials	11.5%	7.9%
Consumer Cyclical	9.1%	7.3%
Communication Services	5.9%	4.9%
Basic Materials	4.8%	6.4%
Healthcare	4.3%	2.6%
Consumer Defensive	3.2%	2.7%
Real Estate	2.2%	1.4%
Utilities	1.7%	2.2%
Energy	1.1%	3.9%

Return for Risk

DFSE vs. AVEM — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

DFSE

DFSE Risk / Return Rank: 45
DFSE Sharpe Ratio Rank: 43
DFSE Sortino Ratio Rank: 41
DFSE Omega Ratio Rank: 45
DFSE Calmar Ratio Rank: 51
DFSE Martin Ratio Rank: 48

AVEM

AVEM Risk / Return Rank: 60
AVEM Sharpe Ratio Rank: 57
AVEM Sortino Ratio Rank: 54
AVEM Omega Ratio Rank: 61
AVEM Calmar Ratio Rank: 66
AVEM Martin Ratio Rank: 61

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

DFSE vs. AVEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) 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.

	DFSE	AVEM	Difference
Sharpe ratio: Return per unit of total volatility	1.06	1.36	-0.29
Sortino ratio: Return per unit of downside risk	1.53	1.86	-0.33
Omega ratio: Gain probability vs. loss probability	1.21	1.26	-0.05
Calmar ratio: Return relative to maximum drawdown	1.83	2.27	-0.44
Martin ratio: Return relative to average drawdown	5.45	7.27	-1.82

DFSE vs. AVEM - Sharpe Ratio Comparison

The current DFSE Sharpe Ratio is 1.06, which is comparable to the AVEM Sharpe Ratio of 1.36. The chart below compares the historical Sharpe Ratios of DFSE and AVEM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

DFSE vs. AVEM - Drawdown Comparison

The maximum DFSE drawdown since its inception was -19.77%, smaller than the maximum AVEM drawdown of -36.05%. Use the drawdown chart below to compare losses from any high point for DFSE and AVEM.

Drawdown Indicators

	DFSE	AVEM	Difference
Max Drawdown Largest peak-to-trough decline	-19.77%	-36.05%	+16.28%
Max Drawdown (1Y) Largest decline over 1 year	-12.88%	-14.28%	+1.40%
Max Drawdown (3Y) Largest decline over 3 years	-19.77%	-18.02%	-1.75%
Max Drawdown (5Y) Largest decline over 5 years	—	-31.81%	—
Current Drawdown Current decline from peak	-9.10%	-10.65%	+1.55%
Average Drawdown Average peak-to-trough decline	-4.08%	-10.02%	+5.94%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.32%	4.45%	-0.13%

Volatility

DFSE vs. AVEM - Volatility Comparison

The current volatility for Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) is 8.15%, while Avantis Emerging Markets Equity ETF (AVEM) has a volatility of 8.84%. This indicates that DFSE experiences smaller price fluctuations and is considered to be less risky than AVEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFSE	AVEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.15%	8.84%	-0.69%
Volatility (6M) Calculated over the trailing 6-month period	20.16%	21.85%	-1.69%
Volatility (1Y) Calculated over the trailing 1-year period	22.15%	23.91%	-1.76%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.47%	19.33%	-0.86%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.47%	21.07%	-2.60%

DFSE vs. AVEM - Expense Ratio Comparison

DFSE has a 0.41% expense ratio, which is higher than AVEM's 0.33% expense ratio.

Dividends

DFSE vs. AVEM - Dividend Comparison

DFSE's dividend yield for the trailing twelve months is around 1.98%, more than AVEM's 1.96% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019
AVEM Avantis Emerging Markets Equity ETF	1.96%	2.45%	3.17%	3.06%	2.77%	2.61%	1.60%	0.35%
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF	1.98%	2.26%	2.06%	2.06%	0.36%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DFSE and AVEM in my portfolio?

With a correlation of 0.97, DFSE 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.

Which is riskier, DFSE or AVEM?

AVEM has higher volatility (8.84%) compared to DFSE (8.15%). In terms of maximum drawdown, DFSE dropped -19.77% vs AVEM's -36.05%.

Which ETF is better, DFSE or AVEM?

On 3-year performance, AVEM leads with 19.94% vs 15.49% for DFSE. On fees, AVEM is cheaper at 0.33% per year. On volatility, DFSE has been the lower-risk option at 8.15%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFSE or AVEM?

Over the 3-year period, AVEM has performed better with a 19.94% return vs 15.49%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFSE or AVEM?

AVEM is cheaper with a 0.33% expense ratio, compared with 0.41% for DFSE.

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

DFSE has the higher dividend yield at 1.98%, compared with 1.96% for AVEM.

What is the main difference between DFSE and AVEM?

They also come from different issuers: Dimensional and Avantis. Their fees differ too: 0.41% for DFSE and 0.33% for AVEM.

Which has better risk-adjusted returns?

AVEM currently has the higher Sharpe Ratio (1.36 vs 1.06), 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.