HEEM vs. AVEE

Last updated Jun 6, 2026

HEEM (iShares Currency Hedged MSCI Emerging Markets ETF) and AVEE (Avantis Emerging Markets Small Cap Equity ETF) are both Emerging Markets Diversified funds. HEEM is passively managed, while AVEE is actively managed. Over the past year, HEEM returned 50.37% vs 19.42% for AVEE. Their correlation of 0.81 suggests significant overlap in exposure. HEEM charges 0.72%/yr vs 0.42%/yr for AVEE.

Performance

HEEM vs. AVEE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) 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, HEEM achieves a 20.85% return, which is significantly higher than AVEE's 9.07% return.

HEEM

• 1D: -5.76%
• 1M: -2.36%
• YTD: 20.85%
• 6M: 21.68%
• 1Y: 50.37%
• 3Y*: 23.65%
• 5Y*: 8.78%
• 10Y*: 10.40%

AVEE

• 1D: -4.75%
• 1M: -6.57%
• YTD: 9.07%
• 6M: 9.74%
• 1Y: 19.42%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

HEEM vs. AVEE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	20.85%	34.02%	12.59%	6.04%
AVEE Avantis Emerging Markets Small Cap Equity ETF	9.07%	19.80%	2.91%	7.28%

Correlation

The correlation between HEEM and AVEE is 0.81, 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	0.81
Correlation (All Time) Calculated using the full available price history since Nov 10, 2023	0.81

The correlation between HEEM and AVEE has been stable across timeframes, ranging from 0.81 to 0.81 - a consistent structural relationship.

HEEM vs. AVEE - Sectors Allocation Comparison

Sectors	HEEM	AVEE
Technology	37.0%	22.5%
Financial Services	19.4%	9.3%
Consumer Cyclical	9.6%	11.3%
Industrials	7.5%	18.2%
Communication Services	6.9%	2.8%
Basic Materials	6.5%	9.5%
Energy	4.0%	2.2%
Consumer Defensive	3.0%	5.4%
Healthcare	2.9%	6.9%
Utilities	2.1%	2.9%
Real Estate	1.1%	4.2%

Return for Risk

HEEM vs. AVEE — Risk / Return Rank

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

HEEM

HEEM Risk / Return Rank: 86
HEEM Sharpe Ratio Rank: 86
HEEM Sortino Ratio Rank: 81
HEEM Omega Ratio Rank: 87
HEEM Calmar Ratio Rank: 86
HEEM Martin Ratio Rank: 88

AVEE

AVEE Risk / Return Rank: 34
AVEE Sharpe Ratio Rank: 32
AVEE Sortino Ratio Rank: 30
AVEE Omega Ratio Rank: 33
AVEE Calmar Ratio Rank: 38
AVEE Martin Ratio Rank: 39

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.

HEEM vs. AVEE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) 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.

	HEEM	AVEE	Difference
Sharpe ratio: Return per unit of total volatility	2.71	1.12	+1.59
Sortino ratio: Return per unit of downside risk	3.44	1.57	+1.87
Omega ratio: Gain probability vs. loss probability	1.52	1.21	+0.30
Calmar ratio: Return relative to maximum drawdown	4.67	1.83	+2.84
Martin ratio: Return relative to average drawdown	18.40	5.82	+12.58
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HEEM vs. AVEE - Sharpe Ratio Comparison

The current HEEM Sharpe Ratio is 2.71, which is higher than the AVEE Sharpe Ratio of 1.12. The chart below compares the historical Sharpe Ratios of HEEM 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

	HEEM	AVEE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.71	1.12	+1.59
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.51	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.58	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.45	0.92	-0.46

Drawdowns

HEEM vs. AVEE - Drawdown Comparison

The maximum HEEM drawdown since its inception was -33.53%, which is greater than AVEE's maximum drawdown of -20.21%. Use the drawdown chart below to compare losses from any high point for HEEM and AVEE.

Drawdown Indicators

	HEEM	AVEE	Difference
Max Drawdown Largest peak-to-trough decline	-33.53%	-20.21%	-13.32%
Max Drawdown (1Y) Largest decline over 1 year	-10.83%	-10.65%	-0.18%
Max Drawdown (3Y) Largest decline over 3 years	-14.82%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-30.60%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-33.53%	—	—
Current Drawdown Current decline from peak	-7.80%	-6.62%	-1.18%
Average Drawdown Average peak-to-trough decline	-11.13%	-3.68%	-7.45%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.75%	3.34%	-0.59%

Volatility

HEEM vs. AVEE - Volatility Comparison

iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) has a higher volatility of 9.48% compared to Avantis Emerging Markets Small Cap Equity ETF (AVEE) at 7.88%. This indicates that HEEM'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

	HEEM	AVEE	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.48%	7.88%	+1.60%
Volatility (6M) Calculated over the trailing 6-month period	16.57%	14.85%	+1.72%
Volatility (1Y) Calculated over the trailing 1-year period	18.71%	17.41%	+1.30%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.21%	16.87%	+0.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.06%	16.87%	+1.19%

HEEM vs. AVEE - Expense Ratio Comparison

HEEM has a 0.72% expense ratio, which is higher than AVEE's 0.42% expense ratio.

Dividends

HEEM vs. AVEE - Dividend Comparison

HEEM's dividend yield for the trailing twelve months is around 3.29%, more than AVEE's 2.12% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVEE Avantis Emerging Markets Small Cap Equity ETF	2.12%	2.25%	3.26%	0.39%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	3.29%	3.98%	2.38%	2.75%	7.49%	1.93%	1.49%	3.04%	2.37%	2.05%	1.84%	6.28%

Frequently Asked Questions

Can I hold both HEEM and AVEE in my portfolio?

HEEM and AVEE have a correlation of 0.81, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HEEM or AVEE?

HEEM has higher volatility (9.48%) compared to AVEE (7.88%). In terms of maximum drawdown, HEEM dropped -33.53% vs AVEE's -20.21%.

Which ETF is better, HEEM or AVEE?

On 1-year performance, HEEM leads with 50.37% vs 19.42% for AVEE. On fees, AVEE is cheaper at 0.42% per year. On volatility, AVEE has been the lower-risk option at 7.88%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEEM or AVEE?

Over the 1-year period, HEEM has performed better with a 50.37% return vs 19.42%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEEM or AVEE?

AVEE is cheaper with a 0.42% expense ratio, compared with 0.72% for HEEM.

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

HEEM has the higher dividend yield at 3.29%, compared with 2.12% for AVEE.

What is the main difference between HEEM and AVEE?

They also come from different issuers: iShares and Avantis. Their fees differ too: 0.72% for HEEM and 0.42% for AVEE.

Which has better risk-adjusted returns?

HEEM currently has the higher Sharpe Ratio (2.71 vs 1.12), 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.