EMSF vs. AVEE

Last updated Jul 14, 2026

EMSF (Matthews Emerging Markets Sustainable Future Active ETF) and AVEE (Avantis Emerging Markets Small Cap Equity ETF) are both Emerging Markets Diversified funds. EMSF is actively managed, while AVEE is passively managed. Over the past year, EMSF returned 45.07% vs 13.66% for AVEE. Their correlation of 0.86 suggests significant overlap in exposure. EMSF charges 0.79%/yr vs 0.42%/yr for AVEE.

Performance

EMSF vs. AVEE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Matthews Emerging Markets Sustainable Future Active ETF (EMSF) 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, EMSF achieves a 36.62% return, which is significantly higher than AVEE's 8.49% return.

EMSF

• 1D: -4.70%
• 1M: -5.78%
• 6M: 26.94%
• YTD: 36.62%
• 1Y: 45.07%
• 3Y*: —
• 5Y*: —
• 10Y*: —

AVEE

• 1D: -2.38%
• 1M: -4.92%
• 6M: 5.50%
• YTD: 8.49%
• 1Y: 13.66%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

EMSF vs. AVEE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
EMSF Matthews Emerging Markets Sustainable Future Active ETF	36.62%	19.20%	-3.09%	2.48%
AVEE Avantis Emerging Markets Small Cap Equity ETF	8.49%	19.80%	2.91%	6.15%

Correlation

The correlation between EMSF and AVEE is 0.87, 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	0.87
Correlation (All Time) Calculated using the full available price history since Nov 9, 2023	0.86

The correlation between EMSF and AVEE has been stable across timeframes, ranging from 0.86 to 0.87 - a consistent structural relationship.

Return for Risk

EMSF vs. AVEE — Risk / Return Rank

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

EMSF

EMSF Risk / Return Rank: 62
EMSF Sharpe Ratio Rank: 58
EMSF Sortino Ratio Rank: 52
EMSF Omega Ratio Rank: 58
EMSF Calmar Ratio Rank: 76
EMSF Martin Ratio Rank: 66

AVEE

AVEE Risk / Return Rank: 28
AVEE Sharpe Ratio Rank: 25
AVEE Sortino Ratio Rank: 24
AVEE Omega Ratio Rank: 25
AVEE Calmar Ratio Rank: 32
AVEE Martin Ratio Rank: 32

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.

EMSF vs. AVEE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Matthews Emerging Markets Sustainable Future Active ETF (EMSF) 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.

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.

	EMSF	AVEE	Difference
Sharpe ratio: Return per unit of total volatility	1.55	0.74	+0.82
Sortino ratio: Return per unit of downside risk	2.05	1.11	+0.95
Omega ratio: Gain probability vs. loss probability	1.29	1.15	+0.14
Calmar ratio: Return relative to maximum drawdown	3.11	1.29	+1.82
Martin ratio: Return relative to average drawdown	9.46	3.75	+5.71

EMSF vs. AVEE - Sharpe Ratio Comparison

The current EMSF Sharpe Ratio is 1.55, which is higher than the AVEE Sharpe Ratio of 0.74. The chart below compares the historical Sharpe Ratios of EMSF 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.

Drawdowns

EMSF vs. AVEE - Drawdown Comparison

The maximum EMSF drawdown since its inception was -24.75%, which is greater than AVEE's maximum drawdown of -20.21%. Use the drawdown chart below to compare losses from any high point for EMSF and AVEE.

Drawdown Indicators

	EMSF	AVEE	Difference
Max Drawdown Largest peak-to-trough decline	-24.75%	-20.21%	-4.54%
Max Drawdown (1Y) Largest decline over 1 year	-14.57%	-10.65%	-3.92%
Current Drawdown Current decline from peak	-11.82%	-7.12%	-4.70%
Average Drawdown Average peak-to-trough decline	-5.74%	-3.71%	-2.03%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.78%	3.65%	+1.13%

Volatility

EMSF vs. AVEE - Volatility Comparison

Matthews Emerging Markets Sustainable Future Active ETF (EMSF) has a higher volatility of 13.86% compared to Avantis Emerging Markets Small Cap Equity ETF (AVEE) at 8.06%. This indicates that EMSF's price experiences larger fluctuations and is considered to be riskier than AVEE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	EMSF	AVEE	Difference
Volatility (1M) Calculated over the trailing 1-month period	13.86%	8.06%	+5.80%
Volatility (6M) Calculated over the trailing 6-month period	25.56%	16.65%	+8.91%
Volatility (1Y) Calculated over the trailing 1-year period	29.18%	18.61%	+10.57%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	24.15%	17.27%	+6.88%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	24.15%	17.27%	+6.88%

EMSF vs. AVEE - Expense Ratio Comparison

EMSF has a 0.79% expense ratio, which is higher than AVEE's 0.42% expense ratio.

Dividends

EMSF vs. AVEE - Dividend Comparison

EMSF's dividend yield for the trailing twelve months is around 1.38%, less than AVEE's 2.29% yield.

Position	TTM	2025	2024	2023
AVEE Avantis Emerging Markets Small Cap Equity ETF	2.29%	2.25%	3.26%	0.39%
EMSF Matthews Emerging Markets Sustainable Future Active ETF	1.38%	1.88%	3.29%	0.02%

Frequently Asked Questions

Can I hold both EMSF and AVEE in my portfolio?

EMSF and AVEE have a correlation of 0.87, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EMSF or AVEE?

EMSF has higher volatility (13.86%) compared to AVEE (8.06%). In terms of maximum drawdown, EMSF dropped -24.75% vs AVEE's -20.21%.

Which ETF is better, EMSF or AVEE?

On 1-year performance, EMSF leads with 45.07% vs 13.66% for AVEE. On fees, AVEE is cheaper at 0.42% per year. On volatility, AVEE has been the lower-risk option at 8.06%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, EMSF or AVEE?

Over the 1-year period, EMSF has performed better with a 45.07% return vs 13.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EMSF or AVEE?

AVEE is cheaper with a 0.42% expense ratio, compared with 0.79% for EMSF.

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

AVEE has the higher dividend yield at 2.29%, compared with 1.38% for EMSF.

What is the main difference between EMSF and AVEE?

They also come from different issuers: Matthews and Avantis. Their fees differ too: 0.79% for EMSF and 0.42% for AVEE.

Which has better risk-adjusted returns?

EMSF currently has the higher Sharpe Ratio (1.55 vs 0.74), 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.