IEMG vs. AVEM

Last updated Jun 4, 2026

IEMG (iShares Core MSCI Emerging Markets ETF) and AVEM (Avantis Emerging Markets Equity ETF) are both exchange-traded funds - IEMG is a Emerging Markets Diversified fund tracking the MSCI Emerging Markets Investable Market Index, while AVEM is a Foreign Large Cap Equities fund tracking the MSCI Emerging Markets Index. Both are passively managed. Over the past 5 years, IEMG returned 7.58%/yr vs 9.92%/yr for AVEM. With a 0.98 correlation, they move nearly in lockstep. IEMG charges 0.09%/yr vs 0.33%/yr for AVEM.

Performance

IEMG vs. AVEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares Core MSCI Emerging Markets ETF (IEMG) 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, IEMG achieves a 26.21% return, which is significantly lower than AVEM's 27.59% return.

IEMG

• 1D: -1.34%
• 1M: 7.97%
• YTD: 26.21%
• 6M: 28.63%
• 1Y: 52.58%
• 3Y*: 23.55%
• 5Y*: 7.58%
• 10Y*: 10.41%

AVEM

• 1D: -1.39%
• 1M: 8.65%
• YTD: 27.59%
• 6M: 29.75%
• 1Y: 55.00%
• 3Y*: 26.07%
• 5Y*: 9.92%
• 10Y*: —

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

IEMG vs. AVEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
IEMG iShares Core MSCI Emerging Markets ETF	26.21%	32.56%	6.50%	11.52%	-19.98%	-0.64%	17.87%	10.33%
AVEM Avantis Emerging Markets Equity ETF	27.59%	34.48%	7.49%	15.30%	-18.15%	5.16%	14.39%	11.13%

Correlation

The correlation between IEMG and AVEM is 0.99 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.99
Correlation (3Y) Calculated over the trailing 3-year period	0.99
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (All Time) Calculated using the full available price history since Sep 20, 2019	0.98

The correlation between IEMG and AVEM has been stable across timeframes, ranging from 0.98 to 0.99 - a consistent structural relationship.

IEMG vs. AVEM - Sectors Allocation Comparison

Sectors	IEMG	AVEM
Technology	35.0%	32.3%
Financial Services	18.4%	20.7%
Consumer Cyclical	9.5%	9.2%
Industrials	9.0%	9.2%
Basic Materials	6.9%	8.1%
Communication Services	6.4%	5.4%
Energy	3.8%	5.1%
Healthcare	3.7%	2.8%
Consumer Defensive	3.3%	3.1%
Utilities	2.2%	2.6%
Real Estate	1.7%	1.6%

Return for Risk

IEMG vs. AVEM — Risk / Return Rank

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

IEMG

IEMG Risk / Return Rank: 79
IEMG Sharpe Ratio Rank: 82
IEMG Sortino Ratio Rank: 77
IEMG Omega Ratio Rank: 81
IEMG Calmar Ratio Rank: 77
IEMG Martin Ratio Rank: 78

AVEM

AVEM Risk / Return Rank: 82
AVEM Sharpe Ratio Rank: 85
AVEM Sortino Ratio Rank: 80
AVEM Omega Ratio Rank: 83
AVEM Calmar Ratio Rank: 80
AVEM Martin Ratio Rank: 82

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.

IEMG vs. AVEM - Risk-Adjusted Trends Comparison

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

	IEMG	AVEM	Difference
Sharpe ratio Return per unit of total volatility	2.72	2.84	-0.12
Sortino ratio Return per unit of downside risk	3.53	3.65	-0.12
Omega ratio Gain probability vs. loss probability	1.50	1.51	-0.01
Calmar ratio Return relative to maximum drawdown	4.00	4.21	-0.21
Martin ratio Return relative to average drawdown	15.38	16.70	-1.31
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IEMG vs. AVEM - Sharpe Ratio Comparison

The current IEMG Sharpe Ratio is 2.72, which is comparable to the AVEM Sharpe Ratio of 2.84. The chart below compares the historical Sharpe Ratios of IEMG 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.

Sharpe Ratios by Period

	IEMG	AVEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.72	2.84	-0.12
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.41	0.54	-0.13
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.52	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.35	0.66	-0.30

Drawdowns

IEMG vs. AVEM - Drawdown Comparison

The maximum IEMG drawdown since its inception was -38.71%, which is greater than AVEM's maximum drawdown of -36.05%. Use the drawdown chart below to compare losses from any high point for IEMG and AVEM.

Drawdown Indicators

	IEMG	AVEM	Difference
Max Drawdown Largest peak-to-trough decline	-38.71%	-36.05%	-2.66%
Max Drawdown (1Y) Largest decline over 1 year	-13.21%	-13.13%	-0.08%
Max Drawdown (3Y) Largest decline over 3 years	-17.21%	-18.02%	+0.81%
Max Drawdown (5Y) Largest decline over 5 years	-35.83%	-34.00%	-1.83%
Max Drawdown (10Y) Largest decline over 10 years	-38.71%	—	—
Current Drawdown Current decline from peak	-1.34%	-1.39%	+0.05%
Average Drawdown Average peak-to-trough decline	-12.97%	-10.09%	-2.88%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.43%	3.30%	+0.13%

Volatility

IEMG vs. AVEM - Volatility Comparison

iShares Core MSCI Emerging Markets ETF (IEMG) and Avantis Emerging Markets Equity ETF (AVEM) have volatilities of 8.31% and 8.33%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEMG	AVEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.31%	8.33%	-0.02%
Volatility (6M) Calculated over the trailing 6-month period	16.93%	16.72%	+0.21%
Volatility (1Y) Calculated over the trailing 1-year period	19.43%	19.45%	-0.02%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.38%	18.34%	+0.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.03%	20.55%	-0.52%

IEMG vs. AVEM - Expense Ratio Comparison

IEMG has a 0.09% expense ratio, which is lower than AVEM's 0.33% expense ratio.

Dividends

IEMG vs. AVEM - Dividend Comparison

IEMG's dividend yield for the trailing twelve months is around 2.18%, more than AVEM's 1.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVEM Avantis Emerging Markets Equity ETF	1.98%	2.45%	3.17%	3.06%	2.77%	2.61%	1.60%	0.35%	0.00%	0.00%	0.00%	0.00%
IEMG iShares Core MSCI Emerging Markets ETF	2.18%	2.75%	3.20%	2.89%	2.71%	3.06%	1.87%	3.15%	2.76%	2.35%	2.28%	2.53%

Frequently Asked Questions

Can I hold both IEMG and AVEM in my portfolio?

With a correlation of 0.99, IEMG 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, IEMG or AVEM?

AVEM has higher volatility (8.33%) compared to IEMG (8.31%). In terms of maximum drawdown, IEMG dropped -38.71% vs AVEM's -36.05%.

Which ETF is better, IEMG or AVEM?

On 5-year performance, AVEM leads with 9.92% vs 7.58% for IEMG. On fees, IEMG is cheaper at 0.09% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEMG or AVEM?

Over the 5-year period, AVEM has performed better with a 9.92% return vs 7.58%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEMG or AVEM?

IEMG is cheaper with a 0.09% expense ratio, compared with 0.33% for AVEM.

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

IEMG has the higher dividend yield at 2.18%, compared with 1.98% for AVEM.

What is the main difference between IEMG and AVEM?

IEMG is categorized as Emerging Markets Diversified, while AVEM is Foreign Large Cap Equities. IEMG tracks MSCI Emerging Markets Investable Market Index, while AVEM tracks MSCI Emerging Markets Index. They also come from different issuers: iShares and American Century. Their fees differ too: 0.09% for IEMG and 0.33% for AVEM.

Which has better risk-adjusted returns?

AVEM currently has the higher Sharpe Ratio (2.84 vs 2.72), 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.