TLTE vs. AVES

Last updated Jun 4, 2026

TLTE (FlexShares Morningstar Emerging Markets Factor Tilt Index) and AVES (Avantis Emerging Markets Value ETF) are both exchange-traded funds - TLTE is a Foreign Large Cap Equities fund tracking the Morningstar Emerging Markets Factor Tilt Index, while AVES is a Emerging Markets Equities fund actively managed by American Century. TLTE is passively managed, while AVES is actively managed. Over the past 3 years, TLTE returned 22.34%/yr vs 20.73%/yr for AVES. Their correlation of 0.95 suggests significant overlap in exposure. TLTE charges 0.59%/yr vs 0.36%/yr for AVES.

Performance

TLTE vs. AVES - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) and Avantis Emerging Markets Value ETF (AVES). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, TLTE achieves a 24.39% return, which is significantly higher than AVES's 16.79% return.

TLTE

• 1D: -1.31%
• 1M: 6.58%
• YTD: 24.39%
• 6M: 26.90%
• 1Y: 48.02%
• 3Y*: 22.34%
• 5Y*: 7.58%
• 10Y*: 9.66%

AVES

• 1D: -1.23%
• 1M: 4.98%
• YTD: 16.79%
• 6M: 19.15%
• 1Y: 37.50%
• 3Y*: 20.73%
• 5Y*: —
• 10Y*: —

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

TLTE vs. AVES - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	24.39%	30.21%	3.53%	13.62%	-17.31%	-1.03%
AVES Avantis Emerging Markets Value ETF	16.79%	30.49%	4.50%	16.79%	-16.04%	1.32%

Correlation

The correlation between TLTE and AVES is 0.92, 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	0.92
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (All Time) Calculated using the full available price history since Oct 1, 2021	0.95

The correlation between TLTE and AVES has been stable across timeframes, ranging from 0.92 to 0.95 - a consistent structural relationship.

TLTE vs. AVES - Sectors Allocation Comparison

Sectors	TLTE	AVES
Technology	27.3%	21.4%
Financial Services	18.9%	25.3%
Industrials	11.7%	13.3%
Consumer Cyclical	10.5%	9.6%
Basic Materials	7.7%	9.8%
Communication Services	4.6%	5.3%
Energy	4.4%	4.0%
Real Estate	4.3%	2.4%
Consumer Defensive	4.2%	3.2%
Utilities	3.1%	1.7%
Healthcare	3.1%	2.1%

Return for Risk

TLTE vs. AVES — Risk / Return Rank

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

TLTE

TLTE Risk / Return Rank: 77
TLTE Sharpe Ratio Rank: 80
TLTE Sortino Ratio Rank: 76
TLTE Omega Ratio Rank: 80
TLTE Calmar Ratio Rank: 74
TLTE Martin Ratio Rank: 76

AVES

AVES Risk / Return Rank: 61
AVES Sharpe Ratio Rank: 64
AVES Sortino Ratio Rank: 60
AVES Omega Ratio Rank: 65
AVES Calmar Ratio Rank: 58
AVES Martin Ratio Rank: 60

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.

TLTE vs. AVES - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) and Avantis Emerging Markets Value ETF (AVES). 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.

	TLTE	AVES	Difference
Sharpe ratio: Return per unit of total volatility	2.62	2.19	+0.43
Sortino ratio: Return per unit of downside risk	3.43	2.90	+0.53
Omega ratio: Gain probability vs. loss probability	1.48	1.40	+0.08
Calmar ratio: Return relative to maximum drawdown	3.70	2.92	+0.78
Martin ratio: Return relative to average drawdown	14.53	10.84	+3.69
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

TLTE vs. AVES - Sharpe Ratio Comparison

The current TLTE Sharpe Ratio is 2.62, which is comparable to the AVES Sharpe Ratio of 2.19. The chart below compares the historical Sharpe Ratios of TLTE and AVES, 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

	TLTE	AVES	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.62	2.19	+0.43
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.45	—	—
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.53	—	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.34	0.61	-0.27

Drawdowns

TLTE vs. AVES - Drawdown Comparison

The maximum TLTE drawdown since its inception was -44.21%, which is greater than AVES's maximum drawdown of -27.40%. Use the drawdown chart below to compare losses from any high point for TLTE and AVES.

Drawdown Indicators

	TLTE	AVES	Difference
Max Drawdown Largest peak-to-trough decline	-44.21%	-27.40%	-16.81%
Max Drawdown (1Y) Largest decline over 1 year	-13.04%	-12.90%	-0.14%
Max Drawdown (3Y) Largest decline over 3 years	-17.43%	-18.50%	+1.07%
Max Drawdown (5Y) Largest decline over 5 years	-33.51%	—	—
Max Drawdown (10Y) Largest decline over 10 years	-44.21%	—	—
Current Drawdown Current decline from peak	-1.31%	-1.36%	+0.05%
Average Drawdown Average peak-to-trough decline	-12.15%	-7.73%	-4.42%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.31%	3.47%	-0.16%

Volatility

TLTE vs. AVES - Volatility Comparison

FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE) has a higher volatility of 8.05% compared to Avantis Emerging Markets Value ETF (AVES) at 6.93%. This indicates that TLTE's price experiences larger fluctuations and is considered to be riskier than AVES based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	TLTE	AVES	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.05%	6.93%	+1.12%
Volatility (6M) Calculated over the trailing 6-month period	16.10%	14.44%	+1.66%
Volatility (1Y) Calculated over the trailing 1-year period	18.41%	17.19%	+1.22%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.83%	16.98%	-0.15%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.40%	16.98%	+1.42%

TLTE vs. AVES - Expense Ratio Comparison

TLTE has a 0.59% expense ratio, which is higher than AVES's 0.36% expense ratio.

Dividends

TLTE vs. AVES - Dividend Comparison

TLTE's dividend yield for the trailing twelve months is around 3.02%, more than AVES's 2.81% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVES Avantis Emerging Markets Value ETF	2.81%	3.17%	4.09%	3.96%	3.70%	0.62%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TLTE FlexShares Morningstar Emerging Markets Factor Tilt Index	3.02%	3.76%	3.73%	4.03%	4.42%	3.21%	1.95%	3.23%	3.02%	2.12%	2.30%	2.00%

Frequently Asked Questions

Can I hold both TLTE and AVES in my portfolio?

With a correlation of 0.92, TLTE and AVES 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, TLTE or AVES?

TLTE has higher volatility (8.05%) compared to AVES (6.93%). In terms of maximum drawdown, TLTE dropped -44.21% vs AVES's -27.40%.

Which ETF is better, TLTE or AVES?

On 3-year performance, TLTE leads with 22.34% vs 20.73% for AVES. On fees, AVES is cheaper at 0.36% per year. On volatility, AVES has been the lower-risk option at 6.93%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, TLTE or AVES?

Over the 3-year period, TLTE has performed better with a 22.34% return vs 20.73%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, TLTE or AVES?

AVES is cheaper with a 0.36% expense ratio, compared with 0.59% for TLTE.

Which ETF pays a higher dividend yield, TLTE or AVES?

TLTE has the higher dividend yield at 3.02%, compared with 2.81% for AVES.

What is the main difference between TLTE and AVES?

TLTE is categorized as Foreign Large Cap Equities, while AVES is Emerging Markets Equities. They also come from different issuers: Northern Trust and American Century. Their fees differ too: 0.59% for TLTE and 0.36% for AVES.

Which has better risk-adjusted returns?

TLTE currently has the higher Sharpe Ratio (2.62 vs 2.19), 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.