HEEM vs. AVEM

Last updated Jun 24, 2026

HEEM (iShares Currency Hedged MSCI Emerging Markets ETF) and AVEM (Avantis Emerging Markets Equity ETF) are both exchange-traded funds - HEEM is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets 100% USD Hedged Index, while AVEM is a Emerging Markets Equities fund actively managed by Avantis. HEEM is passively managed, while AVEM is actively managed. Over the past 5 years, HEEM returned 9.77%/yr vs 9.50%/yr for AVEM. Their correlation of 0.94 suggests significant overlap in exposure. HEEM charges 0.72%/yr vs 0.33%/yr for AVEM.

Performance

HEEM vs. AVEM - 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 Equity ETF (AVEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, HEEM achieves a 26.06% return, which is significantly higher than AVEM's 23.75% return.

HEEM

• 1D: -5.40%
• 1M: 3.12%
• YTD: 26.06%
• 6M: 26.50%
• 1Y: 55.61%
• 3Y*: 25.80%
• 5Y*: 9.77%
• 10Y*: 11.34%

AVEM

• 1D: -5.47%
• 1M: 2.36%
• YTD: 23.75%
• 6M: 24.18%
• 1Y: 46.12%
• 3Y*: 24.70%
• 5Y*: 9.50%
• 10Y*: —

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

HEEM vs. AVEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	26.06%	34.02%	12.59%	10.14%	-16.85%	-1.82%	17.94%	8.09%
AVEM Avantis Emerging Markets Equity ETF	23.75%	34.48%	7.49%	15.30%	-18.15%	5.16%	14.39%	10.40%

Correlation

The correlation between HEEM and AVEM is 0.93, 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	0.93
Correlation (3Y) Calculated over the trailing 3-year period	0.92
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (All Time) Calculated using the full available price history since Sep 19, 2019	0.94

The correlation between HEEM and AVEM has been stable across timeframes, ranging from 0.92 to 0.94 - a consistent structural relationship.

HEEM vs. AVEM - Sectors Allocation Comparison

Sectors	HEEM	AVEM
Technology	43.9%	39.5%
Financial Services	18.2%	18.6%
Consumer Cyclical	7.7%	8.2%
Communication Services	6.0%	4.9%
Industrials	5.9%	8.1%
Basic Materials	5.8%	7.3%
Energy	3.3%	4.3%
Consumer Defensive	2.6%	2.8%
Healthcare	2.4%	2.5%
Utilities	1.9%	2.3%
Real Estate	0.9%	1.5%

Return for Risk

HEEM vs. AVEM — Risk / Return Rank

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

HEEM

HEEM Risk / Return Rank: 88
HEEM Sharpe Ratio Rank: 88
HEEM Sortino Ratio Rank: 82
HEEM Omega Ratio Rank: 89
HEEM Calmar Ratio Rank: 90
HEEM Martin Ratio Rank: 90

AVEM

AVEM Risk / Return Rank: 68
AVEM Sharpe Ratio Rank: 66
AVEM Sortino Ratio Rank: 58
AVEM Omega Ratio Rank: 70
AVEM Calmar Ratio Rank: 72
AVEM 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.

HEEM vs. AVEM - 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 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.

	HEEM	AVEM	Difference
Sharpe ratio: Return per unit of total volatility	2.72	2.09	+0.63
Sortino ratio: Return per unit of downside risk	3.41	2.66	+0.74
Omega ratio: Gain probability vs. loss probability	1.52	1.40	+0.13
Calmar ratio: Return relative to maximum drawdown	5.16	3.53	+1.63
Martin ratio: Return relative to average drawdown	19.26	13.36	+5.90

HEEM vs. AVEM - Sharpe Ratio Comparison

The current HEEM Sharpe Ratio is 2.72, which is higher than the AVEM Sharpe Ratio of 2.09. The chart below compares the historical Sharpe Ratios of HEEM 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

HEEM vs. AVEM - Drawdown Comparison

The maximum HEEM drawdown since its inception was -33.53%, smaller than the maximum AVEM drawdown of -36.05%. Use the drawdown chart below to compare losses from any high point for HEEM and AVEM.

Drawdown Indicators

	HEEM	AVEM	Difference
Max Drawdown Largest peak-to-trough decline	-33.53%	-36.05%	+2.52%
Max Drawdown (1Y) Largest decline over 1 year	-10.83%	-13.13%	+2.30%
Max Drawdown (3Y) Largest decline over 3 years	-14.82%	-18.02%	+3.20%
Max Drawdown (5Y) Largest decline over 5 years	-30.60%	-33.88%	+3.28%
Max Drawdown (10Y) Largest decline over 10 years	-33.53%	—	—
Current Drawdown Current decline from peak	-5.40%	-5.47%	+0.07%
Average Drawdown Average peak-to-trough decline	-11.10%	-10.04%	-1.06%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.90%	3.46%	-0.56%

Volatility

HEEM vs. AVEM - Volatility Comparison

The current volatility for iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) is 11.87%, while Avantis Emerging Markets Equity ETF (AVEM) has a volatility of 12.55%. This indicates that HEEM 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

	HEEM	AVEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	11.87%	12.55%	-0.68%
Volatility (6M) Calculated over the trailing 6-month period	18.67%	20.07%	-1.40%
Volatility (1Y) Calculated over the trailing 1-year period	20.56%	22.23%	-1.67%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.64%	18.99%	-1.35%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.20%	20.91%	-2.71%

HEEM vs. AVEM - Expense Ratio Comparison

HEEM has a 0.72% expense ratio, which is higher than AVEM's 0.33% expense ratio.

Dividends

HEEM vs. AVEM - Dividend Comparison

HEEM's dividend yield for the trailing twelve months is around 3.16%, more than AVEM's 2.62% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVEM Avantis Emerging Markets Equity ETF	2.62%	2.45%	3.17%	3.06%	2.77%	2.61%	1.60%	0.35%	0.00%	0.00%	0.00%	0.00%
HEEM iShares Currency Hedged MSCI Emerging Markets ETF	3.16%	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 AVEM in my portfolio?

With a correlation of 0.93, HEEM and AVEM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, HEEM or AVEM?

AVEM has higher volatility (12.55%) compared to HEEM (11.87%). In terms of maximum drawdown, HEEM dropped -33.53% vs AVEM's -36.05%.

Which ETF is better, HEEM or AVEM?

On 5-year performance, HEEM leads with 9.77% vs 9.50% for AVEM. On fees, AVEM is cheaper at 0.33% per year. On volatility, HEEM has been the lower-risk option at 11.87%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, HEEM or AVEM?

Over the 5-year period, HEEM has performed better with a 9.77% return vs 9.50%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, HEEM or AVEM?

AVEM is cheaper with a 0.33% expense ratio, compared with 0.72% for HEEM.

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

HEEM has the higher dividend yield at 3.16%, compared with 2.62% for AVEM.

What is the main difference between HEEM and AVEM?

HEEM is categorized as Emerging Markets Diversified, while AVEM is Emerging Markets Equities. They also come from different issuers: iShares and Avantis. Their fees differ too: 0.72% for HEEM and 0.33% for AVEM.

Which has better risk-adjusted returns?

HEEM currently has the higher Sharpe Ratio (2.72 vs 2.09), 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.