EEMS vs. AVEE

Last updated Jun 3, 2026

EEMS (iShares MSCI Emerging Markets Small-Cap ETF) and AVEE (Avantis Emerging Markets Small Cap Equity ETF) are both Emerging Markets Diversified funds. EEMS is passively managed, while AVEE is actively managed. Over the past year, EEMS returned 31.17% vs 28.09% for AVEE. Their correlation of 0.93 suggests significant overlap in exposure. EEMS charges 0.73%/yr vs 0.42%/yr for AVEE.

Performance

EEMS vs. AVEE - Performance Comparison

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

Returns By Period

In the year-to-date period, EEMS achieves a 16.21% return, which is significantly higher than AVEE's 15.27% return.

EEMS

• 1D: -0.02%
• 1M: 1.96%
• YTD: 16.21%
• 6M: 18.24%
• 1Y: 31.17%
• 3Y*: 17.34%
• 5Y*: 7.37%
• 10Y*: 9.44%

AVEE

• 1D: -0.27%
• 1M: 1.40%
• YTD: 15.27%
• 6M: 15.81%
• 1Y: 28.09%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

EEMS vs. AVEE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
EEMS iShares MSCI Emerging Markets Small-Cap ETF	16.21%	19.78%	3.13%	8.69%
AVEE Avantis Emerging Markets Small Cap Equity ETF	15.27%	19.80%	2.91%	7.28%

Correlation

The correlation between EEMS and AVEE is 0.96 - 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	0.96
Correlation (All Time) Calculated using the full available price history since Nov 10, 2023	0.93

The correlation between EEMS and AVEE has been stable across timeframes, ranging from 0.93 to 0.96 - a consistent structural relationship.

EEMS vs. AVEE - Sectors Allocation Comparison

Sectors	EEMS	AVEE
Technology	22.7%	22.5%
Industrials	18.9%	18.2%
Financial Services	11.1%	9.3%
Consumer Cyclical	9.6%	11.3%
Healthcare	9.4%	6.9%
Basic Materials	9.3%	9.5%
Real Estate	5.9%	4.2%
Consumer Defensive	5.2%	5.4%
Communication Services	2.9%	2.8%
Utilities	2.7%	2.9%
Energy	2.4%	2.2%

Return for Risk

EEMS vs. AVEE — Risk / Return Rank

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

EEMS

EEMS Risk / Return Rank: 54
EEMS Sharpe Ratio Rank: 52
EEMS Sortino Ratio Rank: 50
EEMS Omega Ratio Rank: 53
EEMS Calmar Ratio Rank: 58
EEMS Martin Ratio Rank: 59

AVEE

AVEE Risk / Return Rank: 50
AVEE Sharpe Ratio Rank: 48
AVEE Sortino Ratio Rank: 47
AVEE Omega Ratio Rank: 48
AVEE Calmar Ratio Rank: 54
AVEE Martin Ratio Rank: 51

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.

EEMS vs. AVEE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets Small-Cap ETF (EEMS) and Avantis Emerging Markets Small Cap Equity ETF (AVEE). 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.

	EEMS	AVEE	Difference
Sharpe ratio Return per unit of total volatility	1.82	1.69	+0.13
Sortino ratio Return per unit of downside risk	2.44	2.33	+0.12
Omega ratio Gain probability vs. loss probability	1.33	1.31	+0.02
Calmar ratio Return relative to maximum drawdown	2.94	2.72	+0.22
Martin ratio Return relative to average drawdown	10.37	8.75	+1.63
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

EEMS vs. AVEE - Sharpe Ratio Comparison

The current EEMS Sharpe Ratio is 1.82, which is comparable to the AVEE Sharpe Ratio of 1.69. The chart below compares the historical Sharpe Ratios of EEMS and AVEE, 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

	EEMS	AVEE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.82	1.69	+0.13
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.46	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.53	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.32	1.09	-0.76

Drawdowns

EEMS vs. AVEE - Drawdown Comparison

The maximum EEMS drawdown since its inception was -48.89%, which is greater than AVEE's maximum drawdown of -20.21%. Use the drawdown chart below to compare losses from any high point for EEMS and AVEE.

Drawdown Indicators

	EEMS	AVEE	Difference
Max Drawdown Largest peak-to-trough decline	-48.89%	-20.21%	-28.68%
Max Drawdown (1Y) Largest decline over 1 year	-10.87%	-10.65%	-0.22%
Max Drawdown (3Y) Largest decline over 3 years	-19.71%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-27.07%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-48.89%	—	—
Current Drawdown Current decline from peak	-1.06%	-1.32%	+0.26%
Average Drawdown Average peak-to-trough decline	-10.51%	-3.68%	-6.83%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.08%	3.31%	-0.23%

Volatility

EEMS vs. AVEE - Volatility Comparison

iShares MSCI Emerging Markets Small-Cap ETF (EEMS) and Avantis Emerging Markets Small Cap Equity ETF (AVEE) have volatilities of 6.98% and 6.65%, 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

	EEMS	AVEE	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.98%	6.65%	+0.33%
Volatility (6M) Calculated over the trailing 6-month period	14.83%	13.92%	+0.91%
Volatility (1Y) Calculated over the trailing 1-year period	17.24%	16.70%	+0.54%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.05%	16.61%	-0.56%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.99%	16.61%	+1.38%

EEMS vs. AVEE - Expense Ratio Comparison

EEMS has a 0.73% expense ratio, which is higher than AVEE's 0.42% expense ratio.

Dividends

EEMS vs. AVEE - Dividend Comparison

EEMS's dividend yield for the trailing twelve months is around 2.66%, more than AVEE's 2.01% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVEE Avantis Emerging Markets Small Cap Equity ETF	2.01%	2.25%	3.26%	0.39%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
EEMS iShares MSCI Emerging Markets Small-Cap ETF	2.66%	3.09%	2.60%	2.69%	0.89%	3.56%	2.14%	2.64%	3.06%	2.47%	2.51%	2.33%

Frequently Asked Questions

Can I hold both EEMS and AVEE in my portfolio?

With a correlation of 0.96, EEMS and AVEE 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, EEMS or AVEE?

EEMS has higher volatility (6.98%) compared to AVEE (6.65%). In terms of maximum drawdown, EEMS dropped -48.89% vs AVEE's -20.21%.

Which ETF is better, EEMS or AVEE?

On 1-year performance, EEMS leads with 31.17% vs 28.09% for AVEE. On fees, AVEE is cheaper at 0.42% per year. On volatility, AVEE has been the lower-risk option at 6.65%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EEMS or AVEE?

Over the 1-year period, EEMS has performed better with a 31.17% return vs 28.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EEMS or AVEE?

AVEE is cheaper with a 0.42% expense ratio, compared with 0.73% for EEMS.

Which ETF pays a higher dividend yield, EEMS or AVEE?

EEMS has the higher dividend yield at 2.66%, compared with 2.01% for AVEE.

What is the main difference between EEMS and AVEE?

They also come from different issuers: iShares and Avantis. Their fees differ too: 0.73% for EEMS and 0.42% for AVEE.

Which has better risk-adjusted returns?

EEMS currently has the higher Sharpe Ratio (1.82 vs 1.69), 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.