MSMLX vs. AVEE

Last updated Jun 24, 2026

MSMLX (Matthews Emerging Markets Small Companies Fund) and AVEE (Avantis Emerging Markets Small Cap Equity ETF) are both Emerging Markets Diversified funds. Over the past year, MSMLX returned 36.04% vs 21.47% for AVEE. Their correlation of 0.80 suggests significant overlap in exposure. MSMLX charges 1.37%/yr vs 0.42%/yr for AVEE.

Performance

MSMLX vs. AVEE - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Matthews Emerging Markets Small Companies Fund (MSMLX) 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, MSMLX achieves a 28.37% return, which is significantly higher than AVEE's 11.09% return.

MSMLX

• 1D: 0.42%
• 1M: 4.25%
• YTD: 28.37%
• 6M: 28.47%
• 1Y: 36.04%
• 3Y*: 13.57%
• 5Y*: 8.43%
• 10Y*: 12.36%

AVEE

• 1D: -3.91%
• 1M: -1.72%
• YTD: 11.09%
• 6M: 10.95%
• 1Y: 21.47%
• 3Y*: —
• 5Y*: —
• 10Y*: —

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

MSMLX vs. AVEE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023
MSMLX Matthews Emerging Markets Small Companies Fund	28.37%	13.50%	-6.10%	5.94%
AVEE Avantis Emerging Markets Small Cap Equity ETF	11.09%	19.80%	2.91%	6.15%

Correlation

The correlation between MSMLX and AVEE is 0.78, 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	0.78
Correlation (All Time) Calculated using the full available price history since Nov 9, 2023	0.80

The correlation between MSMLX and AVEE has been stable across timeframes, ranging from 0.78 to 0.80 - a consistent structural relationship.

Return for Risk

MSMLX vs. AVEE — Risk / Return Rank

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

MSMLX

MSMLX Risk / Return Rank: 50
MSMLX Sharpe Ratio Rank: 49
MSMLX Sortino Ratio Rank: 46
MSMLX Omega Ratio Rank: 47
MSMLX Calmar Ratio Rank: 62
MSMLX Martin Ratio Rank: 48

AVEE

AVEE Risk / Return Rank: 37
AVEE Sharpe Ratio Rank: 34
AVEE Sortino Ratio Rank: 33
AVEE Omega Ratio Rank: 35
AVEE Calmar Ratio Rank: 42
AVEE Martin Ratio Rank: 41

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.

MSMLX vs. AVEE - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Matthews Emerging Markets Small Companies Fund (MSMLX) 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.

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.

	MSMLX	AVEE	Difference
Sharpe ratio: Return per unit of total volatility	1.91	1.18	+0.73
Sortino ratio: Return per unit of downside risk	2.64	1.66	+0.98
Omega ratio: Gain probability vs. loss probability	1.35	1.23	+0.12
Calmar ratio: Return relative to maximum drawdown	2.88	2.03	+0.86
Martin ratio: Return relative to average drawdown	9.34	6.29	+3.06

MSMLX vs. AVEE - Sharpe Ratio Comparison

The current MSMLX Sharpe Ratio is 1.91, which is higher than the AVEE Sharpe Ratio of 1.18. The chart below compares the historical Sharpe Ratios of MSMLX 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.

Drawdowns

MSMLX vs. AVEE - Drawdown Comparison

The maximum MSMLX drawdown since its inception was -36.40%, which is greater than AVEE's maximum drawdown of -20.21%. Use the drawdown chart below to compare losses from any high point for MSMLX and AVEE.

Drawdown Indicators

	MSMLX	AVEE	Difference
Max Drawdown Largest peak-to-trough decline	-36.40%	-20.21%	-16.19%
Max Drawdown (1Y) Largest decline over 1 year	-12.89%	-10.65%	-2.24%
Max Drawdown (3Y) Largest decline over 3 years	-22.62%	—	—
Max Drawdown (5Y) Largest decline over 5 years	-28.00%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-34.33%	—	—
Current Drawdown Current decline from peak	0.00%	-4.90%	+4.90%
Average Drawdown Average peak-to-trough decline	-9.22%	-3.67%	-5.55%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.94%	3.42%	+0.52%

Volatility

MSMLX vs. AVEE - Volatility Comparison

The current volatility for Matthews Emerging Markets Small Companies Fund (MSMLX) is 7.48%, while Avantis Emerging Markets Small Cap Equity ETF (AVEE) has a volatility of 9.24%. This indicates that MSMLX experiences smaller price fluctuations and is considered to be less risky than AVEE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	MSMLX	AVEE	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.48%	9.24%	-1.76%
Volatility (6M) Calculated over the trailing 6-month period	16.95%	16.10%	+0.85%
Volatility (1Y) Calculated over the trailing 1-year period	19.53%	18.30%	+1.23%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.91%	17.21%	+0.70%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.30%	17.21%	+0.09%

MSMLX vs. AVEE - Expense Ratio Comparison

MSMLX has a 1.37% expense ratio, which is higher than AVEE's 0.42% expense ratio.

Dividends

MSMLX vs. AVEE - Dividend Comparison

MSMLX's dividend yield for the trailing twelve months is around 1.17%, less than AVEE's 2.77% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVEE Avantis Emerging Markets Small Cap Equity ETF	2.77%	2.25%	3.26%	0.39%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MSMLX Matthews Emerging Markets Small Companies Fund	1.17%	1.50%	3.95%	8.36%	8.04%	9.18%	0.28%	0.51%	21.31%	8.12%	0.43%	0.13%

Frequently Asked Questions

Can I hold both MSMLX and AVEE in my portfolio?

MSMLX and AVEE have a correlation of 0.78, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, MSMLX or AVEE?

AVEE has higher volatility (9.24%) compared to MSMLX (7.48%). In terms of maximum drawdown, MSMLX dropped -36.40% vs AVEE's -20.21%.

Which has better risk-adjusted returns?

MSMLX currently has the higher Sharpe Ratio (1.91 vs 1.18), 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.