EPEM vs. AVEE

Last updated Jul 14, 2026

EPEM (Harbor Emerging Markets Equity ETF) and AVEE (Avantis Emerging Markets Small Cap Equity ETF) are both Emerging Markets Diversified funds. EPEM is actively managed, while AVEE is passively managed. Over the past year, EPEM returned 42.06% vs 13.66% for AVEE. Their correlation of 0.87 suggests significant overlap in exposure. EPEM charges 0.84%/yr vs 0.42%/yr for AVEE.

Performance

EPEM vs. AVEE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Harbor Emerging Markets Equity ETF (EPEM) 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, EPEM achieves a 23.18% return, which is significantly higher than AVEE's 8.49% return.

EPEM

• 1D: -2.49%
• 1M: -2.93%
• 6M: 16.43%
• YTD: 23.18%
• 1Y: 42.06%
• 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)

EPEM vs. AVEE - Yearly Performance Comparison

	2026 (YTD)	2025
EPEM Harbor Emerging Markets Equity ETF	23.18%	20.73%
AVEE Avantis Emerging Markets Small Cap Equity ETF	8.49%	9.89%

Correlation

The correlation between EPEM and AVEE is 0.88, 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	0.88
Correlation (All Time) Calculated using the full available price history since Jun 5, 2025	0.87

The correlation between EPEM and AVEE has been stable across timeframes, ranging from 0.87 to 0.88 - a consistent structural relationship.

EPEM vs. AVEE - Sectors Allocation Comparison

Sectors	EPEM	AVEE
Technology	42.1%	24.9%
Financial Services	22.1%	9.7%
Consumer Cyclical	9.3%	11.4%
Consumer Defensive	6.2%	5.3%
Basic Materials	6.0%	9.9%
Communication Services	5.6%	3.7%
Energy	3.2%	2.0%
Industrials	2.5%	18.9%
Healthcare	1.8%	6.8%
Real Estate	1.2%	4.5%
Utilities	-	3.0%

Return for Risk

EPEM vs. AVEE — Risk / Return Rank

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

EPEM

EPEM Risk / Return Rank: 75
EPEM Sharpe Ratio Rank: 77
EPEM Sortino Ratio Rank: 69
EPEM Omega Ratio Rank: 77
EPEM Calmar Ratio Rank: 77
EPEM Martin Ratio Rank: 74

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.

EPEM vs. AVEE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Harbor Emerging Markets Equity ETF (EPEM) 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.

	EPEM	AVEE	Difference
Sharpe ratio: Return per unit of total volatility	1.94	0.74	+1.21
Sortino ratio: Return per unit of downside risk	2.51	1.11	+1.40
Omega ratio: Gain probability vs. loss probability	1.36	1.15	+0.21
Calmar ratio: Return relative to maximum drawdown	3.19	1.29	+1.90
Martin ratio: Return relative to average drawdown	10.86	3.75	+7.11

EPEM vs. AVEE - Sharpe Ratio Comparison

The current EPEM Sharpe Ratio is 1.94, which is higher than the AVEE Sharpe Ratio of 0.74. The chart below compares the historical Sharpe Ratios of EPEM 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

EPEM vs. AVEE - Drawdown Comparison

The maximum EPEM drawdown since its inception was -13.27%, smaller than the maximum AVEE drawdown of -20.21%. Use the drawdown chart below to compare losses from any high point for EPEM and AVEE.

Drawdown Indicators

	EPEM	AVEE	Difference
Max Drawdown Largest peak-to-trough decline	-13.27%	-20.21%	+6.94%
Max Drawdown (1Y) Largest decline over 1 year	-13.27%	-10.65%	-2.62%
Current Drawdown Current decline from peak	-6.52%	-7.12%	+0.60%
Average Drawdown Average peak-to-trough decline	-2.24%	-3.71%	+1.47%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.88%	3.65%	+0.23%

Volatility

EPEM vs. AVEE - Volatility Comparison

Harbor Emerging Markets Equity ETF (EPEM) has a higher volatility of 9.13% compared to Avantis Emerging Markets Small Cap Equity ETF (AVEE) at 8.06%. This indicates that EPEM'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

	EPEM	AVEE	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.13%	8.06%	+1.07%
Volatility (6M) Calculated over the trailing 6-month period	19.44%	16.65%	+2.79%
Volatility (1Y) Calculated over the trailing 1-year period	21.78%	18.61%	+3.17%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.09%	17.27%	+3.82%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.09%	17.27%	+3.82%

EPEM vs. AVEE - Expense Ratio Comparison

EPEM has a 0.84% expense ratio, which is higher than AVEE's 0.42% expense ratio.

Dividends

EPEM vs. AVEE - Dividend Comparison

EPEM's dividend yield for the trailing twelve months is around 2.97%, more 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%
EPEM Harbor Emerging Markets Equity ETF	2.97%	3.66%	0.00%	0.00%

Frequently Asked Questions

Can I hold both EPEM and AVEE in my portfolio?

EPEM and AVEE have a correlation of 0.88, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, EPEM or AVEE?

EPEM has higher volatility (9.13%) compared to AVEE (8.06%). In terms of maximum drawdown, EPEM dropped -13.27% vs AVEE's -20.21%.

Which ETF is better, EPEM or AVEE?

On 1-year performance, EPEM leads with 42.06% 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, EPEM or AVEE?

Over the 1-year period, EPEM has performed better with a 42.06% return vs 13.66%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, EPEM or AVEE?

AVEE is cheaper with a 0.42% expense ratio, compared with 0.84% for EPEM.

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

EPEM has the higher dividend yield at 2.97%, compared with 2.29% for AVEE.

What is the main difference between EPEM and AVEE?

They also come from different issuers: Harbor and Avantis. Their fees differ too: 0.84% for EPEM and 0.42% for AVEE.

Which has better risk-adjusted returns?

EPEM currently has the higher Sharpe Ratio (1.94 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.