FEM vs. AVEM

Last updated Jun 23, 2026

FEM (First Trust Emerging Markets AlphaDEX Fund) and AVEM (Avantis Emerging Markets Equity ETF) are both Emerging Markets Equities funds. FEM is passively managed, while AVEM is actively managed. Over the past 5 years, FEM returned 7.94%/yr vs 10.91%/yr for AVEM. Their correlation of 0.86 suggests significant overlap in exposure. FEM charges 0.80%/yr vs 0.33%/yr for AVEM.

Performance

FEM vs. AVEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Emerging Markets AlphaDEX Fund (FEM) 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, FEM achieves a 20.65% return, which is significantly lower than AVEM's 30.91% return.

FEM

• 1D: 1.04%
• 1M: 1.06%
• YTD: 20.65%
• 6M: 20.82%
• 1Y: 42.19%
• 3Y*: 20.56%
• 5Y*: 7.94%
• 10Y*: 10.00%

AVEM

• 1D: 0.47%
• 1M: 8.28%
• YTD: 30.91%
• 6M: 32.11%
• 1Y: 55.80%
• 3Y*: 27.06%
• 5Y*: 10.91%
• 10Y*: —

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

FEM vs. AVEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
FEM First Trust Emerging Markets AlphaDEX Fund	20.65%	28.36%	3.01%	10.84%	-14.24%	7.40%	-1.68%	10.16%
AVEM Avantis Emerging Markets Equity ETF	30.91%	34.48%	7.49%	15.30%	-18.15%	5.16%	14.39%	10.40%

Correlation

The correlation between FEM and AVEM is 0.85, 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	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.85
Correlation (5Y) Calculated over the trailing 5-year period	0.85
Correlation (All Time) Calculated using the full available price history since Sep 19, 2019	0.86

The correlation between FEM and AVEM has been stable across timeframes, ranging from 0.85 to 0.86 - a consistent structural relationship.

FEM vs. AVEM - Sectors Allocation Comparison

Sectors	FEM	AVEM
Technology	28.4%	39.5%
Industrials	19.8%	8.1%
Energy	12.9%	4.3%
Basic Materials	7.8%	7.3%
Financial Services	6.4%	18.6%
Utilities	6.1%	2.3%
Consumer Cyclical	5.7%	8.2%
Communication Services	4.6%	4.9%
Consumer Defensive	2.9%	2.8%
Healthcare	2.8%	2.5%
Real Estate	2.6%	1.5%

Return for Risk

FEM vs. AVEM — Risk / Return Rank

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

FEM

FEM Risk / Return Rank: 76
FEM Sharpe Ratio Rank: 74
FEM Sortino Ratio Rank: 64
FEM Omega Ratio Rank: 72
FEM Calmar Ratio Rank: 85
FEM Martin Ratio Rank: 82

AVEM

AVEM Risk / Return Rank: 82
AVEM Sharpe Ratio Rank: 84
AVEM Sortino Ratio Rank: 78
AVEM Omega Ratio Rank: 84
AVEM Calmar Ratio Rank: 83
AVEM Martin Ratio Rank: 83

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.

FEM vs. AVEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Emerging Markets AlphaDEX Fund (FEM) 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.

	FEM	AVEM	Difference
Sharpe ratio: Return per unit of total volatility	2.29	2.61	-0.32
Sortino ratio: Return per unit of downside risk	2.87	3.30	-0.43
Omega ratio: Gain probability vs. loss probability	1.41	1.48	-0.08
Calmar ratio: Return relative to maximum drawdown	4.56	4.27	+0.28
Martin ratio: Return relative to average drawdown	15.81	16.25	-0.44

FEM vs. AVEM - Sharpe Ratio Comparison

The current FEM Sharpe Ratio is 2.29, which is comparable to the AVEM Sharpe Ratio of 2.61. The chart below compares the historical Sharpe Ratios of FEM 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

FEM vs. AVEM - Drawdown Comparison

The maximum FEM drawdown since its inception was -46.23%, which is greater than AVEM's maximum drawdown of -36.05%. Use the drawdown chart below to compare losses from any high point for FEM and AVEM.

Drawdown Indicators

	FEM	AVEM	Difference
Max Drawdown Largest peak-to-trough decline	-46.23%	-36.05%	-10.18%
Max Drawdown (1Y) Largest decline over 1 year	-9.31%	-13.13%	+3.82%
Max Drawdown (3Y) Largest decline over 3 years	-18.79%	-18.02%	-0.77%
Max Drawdown (5Y) Largest decline over 5 years	-31.72%	-33.88%	+2.16%
Max Drawdown (10Y) Largest decline over 10 years	-46.23%	—	—
Current Drawdown Current decline from peak	-2.28%	0.00%	-2.28%
Average Drawdown Average peak-to-trough decline	-15.01%	-10.05%	-4.96%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.68%	3.44%	-0.76%

Volatility

FEM vs. AVEM - Volatility Comparison

The current volatility for First Trust Emerging Markets AlphaDEX Fund (FEM) is 7.89%, while Avantis Emerging Markets Equity ETF (AVEM) has a volatility of 11.02%. This indicates that FEM 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

	FEM	AVEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.89%	11.02%	-3.13%
Volatility (6M) Calculated over the trailing 6-month period	15.85%	19.22%	-3.37%
Volatility (1Y) Calculated over the trailing 1-year period	18.54%	21.54%	-3.00%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.60%	18.82%	-0.22%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	21.01%	20.81%	+0.20%

FEM vs. AVEM - Expense Ratio Comparison

FEM has a 0.80% expense ratio, which is higher than AVEM's 0.33% expense ratio.

Dividends

FEM vs. AVEM - Dividend Comparison

FEM's dividend yield for the trailing twelve months is around 2.58%, more than AVEM's 2.47% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVEM Avantis Emerging Markets Equity ETF	2.47%	2.45%	3.17%	3.06%	2.77%	2.61%	1.60%	0.35%	0.00%	0.00%	0.00%	0.00%
FEM First Trust Emerging Markets AlphaDEX Fund	2.58%	3.13%	3.66%	4.96%	6.15%	4.15%	2.68%	3.31%	3.52%	2.45%	2.25%	3.61%

Frequently Asked Questions

Can I hold both FEM and AVEM in my portfolio?

FEM and AVEM have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FEM or AVEM?

AVEM has higher volatility (11.02%) compared to FEM (7.89%). In terms of maximum drawdown, FEM dropped -46.23% vs AVEM's -36.05%.

Which ETF is better, FEM or AVEM?

On 5-year performance, AVEM leads with 10.91% vs 7.94% for FEM. On fees, AVEM is cheaper at 0.33% per year. On volatility, FEM has been the lower-risk option at 7.89%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FEM or AVEM?

Over the 5-year period, AVEM has performed better with a 10.91% return vs 7.94%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FEM or AVEM?

AVEM is cheaper with a 0.33% expense ratio, compared with 0.80% for FEM.

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

FEM has the higher dividend yield at 2.58%, compared with 2.47% for AVEM.

What is the main difference between FEM and AVEM?

They also come from different issuers: First Trust and Avantis. Their fees differ too: 0.80% for FEM and 0.33% for AVEM.

Which has better risk-adjusted returns?

AVEM currently has the higher Sharpe Ratio (2.61 vs 2.29), 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.