FEMS vs. AVDV

Last updated Jun 26, 2026

FEMS (First Trust Emerging Markets Small Cap AlphaDEX Fund) and AVDV (Avantis International Small Cap Value ETF) are both exchange-traded funds - FEMS is a Emerging Markets Equities fund tracking the NASDAQ AlphaDEX EM Small Cap Index, while AVDV is a Foreign Small & Mid Cap Equities fund actively managed by Avantis. FEMS is passively managed, while AVDV is actively managed. Over the past 5 years, FEMS returned 4.09%/yr vs 13.59%/yr for AVDV. A 0.66 correlation means they provide meaningful diversification when combined. FEMS charges 0.80%/yr vs 0.36%/yr for AVDV.

Performance

FEMS vs. AVDV - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) and Avantis International Small Cap Value ETF (AVDV). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FEMS achieves a 8.92% return, which is significantly lower than AVDV's 12.51% return.

FEMS

• 1D: -0.48%
• 1M: -3.69%
• YTD: 8.92%
• 6M: 8.47%
• 1Y: 19.24%
• 3Y*: 12.32%
• 5Y*: 4.09%
• 10Y*: 9.42%

AVDV

• 1D: 0.12%
• 1M: -4.35%
• YTD: 12.51%
• 6M: 11.83%
• 1Y: 39.31%
• 3Y*: 27.10%
• 5Y*: 13.59%
• 10Y*: —

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

FEMS vs. AVDV - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
FEMS First Trust Emerging Markets Small Cap AlphaDEX Fund	8.92%	16.48%	1.88%	3.55%	1.85%	3.76%	7.85%	16.86%
AVDV Avantis International Small Cap Value ETF	12.51%	49.37%	8.67%	16.85%	-11.47%	15.80%	5.01%	11.78%

Correlation

The correlation between FEMS and AVDV is 0.66, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.66
Correlation (3Y) Calculated over the trailing 3-year period	0.63
Correlation (5Y) Calculated over the trailing 5-year period	0.65
Correlation (All Time) Calculated using the full available price history since Sep 26, 2019	0.66

The correlation between FEMS and AVDV has been stable across timeframes, ranging from 0.63 to 0.66 - a consistent structural relationship.

FEMS vs. AVDV - Sectors Allocation Comparison

Sectors	FEMS	AVDV
Technology	16.4%	6.6%
Industrials	16.2%	22.8%
Consumer Cyclical	14.9%	15.4%
Basic Materials	11.7%	21.0%
Real Estate	7.6%	1.3%
Energy	7.4%	9.6%
Consumer Defensive	6.8%	3.4%
Utilities	6.3%	1.7%
Financial Services	5.3%	13.6%
Communication Services	4.4%	2.4%
Healthcare	3.0%	2.3%

Return for Risk

FEMS vs. AVDV — Risk / Return Rank

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

FEMS

FEMS Risk / Return Rank: 38
FEMS Sharpe Ratio Rank: 35
FEMS Sortino Ratio Rank: 33
FEMS Omega Ratio Rank: 35
FEMS Calmar Ratio Rank: 49
FEMS Martin Ratio Rank: 37

AVDV

AVDV Risk / Return Rank: 79
AVDV Sharpe Ratio Rank: 86
AVDV Sortino Ratio Rank: 83
AVDV Omega Ratio Rank: 83
AVDV Calmar Ratio Rank: 69
AVDV Martin Ratio Rank: 73

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.

FEMS vs. AVDV - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) and Avantis International Small Cap Value ETF (AVDV). 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.

	FEMS	AVDV	Difference
Sharpe ratio: Return per unit of total volatility	1.16	2.40	-1.24
Sortino ratio: Return per unit of downside risk	1.63	3.18	-1.55
Omega ratio: Gain probability vs. loss probability	1.22	1.43	-0.21
Calmar ratio: Return relative to maximum drawdown	2.15	2.99	-0.84
Martin ratio: Return relative to average drawdown	5.32	11.82	-6.51

FEMS vs. AVDV - Sharpe Ratio Comparison

The current FEMS Sharpe Ratio is 1.16, which is lower than the AVDV Sharpe Ratio of 2.40. The chart below compares the historical Sharpe Ratios of FEMS and AVDV, 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

FEMS vs. AVDV - Drawdown Comparison

The maximum FEMS drawdown since its inception was -47.85%, which is greater than AVDV's maximum drawdown of -43.01%. Use the drawdown chart below to compare losses from any high point for FEMS and AVDV.

Drawdown Indicators

	FEMS	AVDV	Difference
Max Drawdown Largest peak-to-trough decline	-47.85%	-43.01%	-4.84%
Max Drawdown (1Y) Largest decline over 1 year	-8.98%	-13.19%	+4.21%
Max Drawdown (3Y) Largest decline over 3 years	-21.09%	-14.17%	-6.92%
Max Drawdown (5Y) Largest decline over 5 years	-26.43%	-28.08%	+1.65%
Max Drawdown (10Y) Largest decline over 10 years	-47.85%	—	—
Current Drawdown Current decline from peak	-7.63%	-4.35%	-3.28%
Average Drawdown Average peak-to-trough decline	-17.36%	-6.74%	-10.62%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.63%	3.33%	+0.30%

Volatility

FEMS vs. AVDV - Volatility Comparison

First Trust Emerging Markets Small Cap AlphaDEX Fund (FEMS) has a higher volatility of 7.14% compared to Avantis International Small Cap Value ETF (AVDV) at 5.88%. This indicates that FEMS's price experiences larger fluctuations and is considered to be riskier than AVDV based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FEMS	AVDV	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.14%	5.88%	+1.26%
Volatility (6M) Calculated over the trailing 6-month period	14.40%	14.12%	+0.28%
Volatility (1Y) Calculated over the trailing 1-year period	16.67%	16.44%	+0.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.87%	17.41%	+0.46%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.98%	19.75%	+0.23%

FEMS vs. AVDV - Expense Ratio Comparison

FEMS has a 0.80% expense ratio, which is higher than AVDV's 0.36% expense ratio.

Dividends

FEMS vs. AVDV - Dividend Comparison

FEMS's dividend yield for the trailing twelve months is around 5.44%, more than AVDV's 2.81% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVDV Avantis International Small Cap Value ETF	2.81%	3.05%	4.31%	3.29%	3.17%	2.39%	1.67%	0.36%	0.00%	0.00%	0.00%	0.00%
FEMS First Trust Emerging Markets Small Cap AlphaDEX Fund	5.44%	4.27%	3.97%	4.65%	4.55%	6.25%	2.90%	4.37%	4.68%	3.39%	2.42%	3.28%

Frequently Asked Questions

Can I hold both FEMS and AVDV in my portfolio?

FEMS and AVDV have a correlation of 0.66, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FEMS or AVDV?

FEMS has higher volatility (7.14%) compared to AVDV (5.88%). In terms of maximum drawdown, FEMS dropped -47.85% vs AVDV's -43.01%.

Which ETF is better, FEMS or AVDV?

On 5-year performance, AVDV leads with 13.59% vs 4.09% for FEMS. On fees, AVDV is cheaper at 0.36% per year. On volatility, AVDV has been the lower-risk option at 5.88%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FEMS or AVDV?

Over the 5-year period, AVDV has performed better with a 13.59% return vs 4.09%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FEMS or AVDV?

AVDV is cheaper with a 0.36% expense ratio, compared with 0.80% for FEMS.

Which ETF pays a higher dividend yield, FEMS or AVDV?

FEMS has the higher dividend yield at 5.44%, compared with 2.81% for AVDV.

What is the main difference between FEMS and AVDV?

FEMS is categorized as Emerging Markets Equities, while AVDV is Foreign Small & Mid Cap Equities. They also come from different issuers: First Trust and Avantis. Their fees differ too: 0.80% for FEMS and 0.36% for AVDV.

Which has better risk-adjusted returns?

AVDV currently has the higher Sharpe Ratio (2.40 vs 1.16), 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.