KMLM vs. AVGB

Last updated Jun 4, 2026

KMLM (KFA Mount Lucas Index Strategy ETF) and AVGB (Avantis Credit ETF) are both exchange-traded funds - KMLM is a Long-Short fund actively managed by CICC, while AVGB is a Global Bonds fund actively managed by Avantis. Both are actively managed. Over the past year, KMLM returned 13.68% vs 4.63% for AVGB. At a correlation of -0.25, they often move in opposite directions. KMLM charges 0.90%/yr vs 0.19%/yr for AVGB.

Performance

KMLM vs. AVGB - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in KFA Mount Lucas Index Strategy ETF (KMLM) and Avantis Credit ETF (AVGB). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, KMLM achieves a 10.79% return, which is significantly higher than AVGB's 0.71% return.

KMLM

• 1D: 0.17%
• 1M: -2.41%
• YTD: 10.79%
• 6M: 13.19%
• 1Y: 13.68%
• 3Y*: -0.47%
• 5Y*: 4.33%
• 10Y*: —

AVGB

• 1D: -0.16%
• 1M: 0.60%
• YTD: 0.71%
• 6M: 0.83%
• 1Y: 4.63%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

KMLM vs. AVGB - Yearly Performance Comparison

	2026 (YTD)	2025
KMLM KFA Mount Lucas Index Strategy ETF	10.79%	3.94%
AVGB Avantis Credit ETF	0.71%	4.89%

Correlation

The correlation between KMLM and AVGB is -0.26, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.26
Correlation (All Time) Calculated using the full available price history since Apr 21, 2025	-0.25

Return for Risk

KMLM vs. AVGB — Risk / Return Rank

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

KMLM

KMLM Risk / Return Rank: 36
KMLM Sharpe Ratio Rank: 33
KMLM Sortino Ratio Rank: 31
KMLM Omega Ratio Rank: 32
KMLM Calmar Ratio Rank: 43
KMLM Martin Ratio Rank: 43

AVGB

AVGB Risk / Return Rank: 53
AVGB Sharpe Ratio Rank: 56
AVGB Sortino Ratio Rank: 59
AVGB Omega Ratio Rank: 58
AVGB Calmar Ratio Rank: 45
AVGB Martin Ratio Rank: 49

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.

KMLM vs. AVGB - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for KFA Mount Lucas Index Strategy ETF (KMLM) and Avantis Credit ETF (AVGB). 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.

	KMLM	AVGB	Difference
Sharpe ratio Return per unit of total volatility	1.20	1.87	-0.67
Sortino ratio Return per unit of downside risk	1.68	2.78	-1.10
Omega ratio Gain probability vs. loss probability	1.22	1.35	-0.13
Calmar ratio Return relative to maximum drawdown	2.18	2.19	-0.01
Martin ratio Return relative to average drawdown	7.18	8.16	-0.98
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

KMLM vs. AVGB - Sharpe Ratio Comparison

The current KMLM Sharpe Ratio is 1.20, which is lower than the AVGB Sharpe Ratio of 1.87. The chart below compares the historical Sharpe Ratios of KMLM and AVGB, 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

	KMLM	AVGB	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.20	1.87	-0.67
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.30	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.49	2.02	-1.53

Drawdowns

KMLM vs. AVGB - Drawdown Comparison

The maximum KMLM drawdown since its inception was -27.47%, which is greater than AVGB's maximum drawdown of -2.12%. Use the drawdown chart below to compare losses from any high point for KMLM and AVGB.

Drawdown Indicators

	KMLM	AVGB	Difference
Max Drawdown Largest peak-to-trough decline	-27.47%	-2.12%	-25.35%
Max Drawdown (1Y) Largest decline over 1 year	-6.30%	-2.12%	-4.18%
Max Drawdown (3Y) Largest decline over 3 years	-22.28%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-27.47%	—	—
Current Drawdown Current decline from peak	-13.61%	-0.50%	-13.11%
Average Drawdown Average peak-to-trough decline	-12.74%	-0.33%	-12.41%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.91%	0.57%	+1.34%

Volatility

KMLM vs. AVGB - Volatility Comparison

KFA Mount Lucas Index Strategy ETF (KMLM) has a higher volatility of 4.46% compared to Avantis Credit ETF (AVGB) at 0.83%. This indicates that KMLM's price experiences larger fluctuations and is considered to be riskier than AVGB based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	KMLM	AVGB	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.46%	0.83%	+3.63%
Volatility (6M) Calculated over the trailing 6-month period	9.63%	1.91%	+7.72%
Volatility (1Y) Calculated over the trailing 1-year period	11.43%	2.48%	+8.95%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.62%	2.49%	+12.13%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	14.73%	2.49%	+12.24%

KMLM vs. AVGB - Expense Ratio Comparison

KMLM has a 0.90% expense ratio, which is higher than AVGB's 0.19% expense ratio.

Dividends

KMLM vs. AVGB - Dividend Comparison

KMLM's dividend yield for the trailing twelve months is around 4.53%, more than AVGB's 3.46% yield.

Position	TTM	2025	2024	2023	2022	2021
AVGB Avantis Credit ETF	3.46%	3.49%	0.00%	0.00%	0.00%	0.00%
KMLM KFA Mount Lucas Index Strategy ETF	4.53%	5.02%	0.82%	0.00%	13.22%	6.94%

Frequently Asked Questions

Can I hold both KMLM and AVGB in my portfolio?

KMLM and AVGB have a correlation of -0.26, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, KMLM or AVGB?

KMLM has higher volatility (4.46%) compared to AVGB (0.83%). In terms of maximum drawdown, KMLM dropped -27.47% vs AVGB's -2.12%.

Which ETF is better, KMLM or AVGB?

On 1-year performance, KMLM leads with 13.68% vs 4.63% for AVGB. On fees, AVGB is cheaper at 0.19% per year. On volatility, AVGB has been the lower-risk option at 0.83%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, KMLM or AVGB?

Over the 1-year period, KMLM has performed better with a 13.68% return vs 4.63%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, KMLM or AVGB?

AVGB is cheaper with a 0.19% expense ratio, compared with 0.90% for KMLM.

Which ETF pays a higher dividend yield, KMLM or AVGB?

KMLM has the higher dividend yield at 4.53%, compared with 3.46% for AVGB.

What is the main difference between KMLM and AVGB?

KMLM is categorized as Long-Short, while AVGB is Global Bonds. They also come from different issuers: CICC and Avantis. Their fees differ too: 0.90% for KMLM and 0.19% for AVGB.

Which has better risk-adjusted returns?

AVGB currently has the higher Sharpe Ratio (1.87 vs 1.20), 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.