VEA vs. AVEM

Last updated Jun 12, 2026

VEA (Vanguard FTSE Developed Markets ETF) and AVEM (Avantis Emerging Markets Equity ETF) are both exchange-traded funds - VEA is a Foreign Large Cap Equities fund tracking the FTSE Developed All Cap ex US Index, while AVEM is a Emerging Markets Equities fund actively managed by Avantis. VEA is passively managed, while AVEM is actively managed. Over the past 5 years, VEA returned 9.43%/yr vs 9.57%/yr for AVEM. Their correlation of 0.82 suggests significant overlap in exposure. VEA charges 0.03%/yr vs 0.33%/yr for AVEM.

Performance

VEA vs. AVEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Vanguard FTSE Developed Markets ETF (VEA) 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, VEA achieves a 14.35% return, which is significantly lower than AVEM's 24.56% return.

VEA

• 1D: 3.63%
• 1M: 1.92%
• YTD: 14.35%
• 6M: 15.67%
• 1Y: 30.39%
• 3Y*: 19.28%
• 5Y*: 9.43%
• 10Y*: 10.53%

AVEM

• 1D: 4.59%
• 1M: 2.95%
• YTD: 24.56%
• 6M: 25.81%
• 1Y: 45.40%
• 3Y*: 24.22%
• 5Y*: 9.57%
• 10Y*: —

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

VEA vs. AVEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019
VEA Vanguard FTSE Developed Markets ETF	14.35%	35.16%	3.15%	17.93%	-15.34%	11.66%	9.71%	7.90%
AVEM Avantis Emerging Markets Equity ETF	24.56%	34.48%	7.49%	15.30%	-18.15%	5.16%	14.39%	10.40%

Correlation

The correlation between VEA and AVEM is 0.85, 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	0.85
Correlation (3Y) Calculated over the trailing 3-year period	0.81
Correlation (5Y) Calculated over the trailing 5-year period	0.81
Correlation (All Time) Calculated using the full available price history since Sep 19, 2019	0.82

The correlation between VEA and AVEM has been stable across timeframes, ranging from 0.81 to 0.85 - a consistent structural relationship.

VEA vs. AVEM - Sectors Allocation Comparison

Sectors	VEA	AVEM
Financial Services	23.3%	20.7%
Industrials	19.2%	9.2%
Technology	13.8%	32.3%
Healthcare	8.2%	2.8%
Basic Materials	7.5%	8.1%
Consumer Cyclical	7.5%	9.2%
Consumer Defensive	5.6%	3.1%
Energy	5.4%	5.1%
Communication Services	3.4%	5.4%
Utilities	3.3%	2.6%
Real Estate	2.7%	1.6%

Return for Risk

VEA vs. AVEM — Risk / Return Rank

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

VEA

VEA Risk / Return Rank: 67
VEA Sharpe Ratio Rank: 69
VEA Sortino Ratio Rank: 68
VEA Omega Ratio Rank: 68
VEA Calmar Ratio Rank: 64
VEA Martin Ratio Rank: 67

AVEM

AVEM Risk / Return Rank: 80
AVEM Sharpe Ratio Rank: 81
AVEM Sortino Ratio Rank: 76
AVEM Omega Ratio Rank: 82
AVEM Calmar Ratio Rank: 80
AVEM Martin Ratio Rank: 81

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.

VEA vs. AVEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Vanguard FTSE Developed Markets ETF (VEA) 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.

	VEA	AVEM	Difference
Sharpe ratio: Return per unit of total volatility	1.84	2.15	-0.31
Sortino ratio: Return per unit of downside risk	2.54	2.79	-0.25
Omega ratio: Gain probability vs. loss probability	1.34	1.40	-0.07
Calmar ratio: Return relative to maximum drawdown	2.63	3.47	-0.85
Martin ratio: Return relative to average drawdown	10.08	13.23	-3.14

VEA vs. AVEM - Sharpe Ratio Comparison

The current VEA Sharpe Ratio is 1.84, which is comparable to the AVEM Sharpe Ratio of 2.15. The chart below compares the historical Sharpe Ratios of VEA 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

VEA vs. AVEM - Drawdown Comparison

The maximum VEA drawdown since its inception was -60.68%, which is greater than AVEM's maximum drawdown of -36.05%. Use the drawdown chart below to compare losses from any high point for VEA and AVEM.

Drawdown Indicators

	VEA	AVEM	Difference
Max Drawdown Largest peak-to-trough decline	-60.68%	-36.05%	-24.63%
Max Drawdown (1Y) Largest decline over 1 year	-11.63%	-13.13%	+1.50%
Max Drawdown (3Y) Largest decline over 3 years	-13.45%	-18.02%	+4.57%
Max Drawdown (5Y) Largest decline over 5 years	-29.71%	-33.88%	+4.17%
Max Drawdown (10Y) Largest decline over 10 years	-35.73%	—	—
Current Drawdown Current decline from peak	-1.40%	-3.73%	+2.33%
Average Drawdown Average peak-to-trough decline	-13.28%	-10.08%	-3.20%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.02%	3.44%	-0.42%

Volatility

VEA vs. AVEM - Volatility Comparison

The current volatility for Vanguard FTSE Developed Markets ETF (VEA) is 6.89%, while Avantis Emerging Markets Equity ETF (AVEM) has a volatility of 11.06%. This indicates that VEA 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

	VEA	AVEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.89%	11.06%	-4.17%
Volatility (6M) Calculated over the trailing 6-month period	14.42%	18.80%	-4.38%
Volatility (1Y) Calculated over the trailing 1-year period	16.58%	21.17%	-4.59%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.72%	18.71%	-1.99%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.41%	20.77%	-3.36%

VEA vs. AVEM - Expense Ratio Comparison

VEA has a 0.03% expense ratio, which is lower than AVEM's 0.33% expense ratio.

Dividends

VEA vs. AVEM - Dividend Comparison

VEA's dividend yield for the trailing twelve months is around 2.63%, more than AVEM's 2.60% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AVEM Avantis Emerging Markets Equity ETF	2.60%	2.45%	3.17%	3.06%	2.77%	2.61%	1.60%	0.35%	0.00%	0.00%	0.00%	0.00%
VEA Vanguard FTSE Developed Markets ETF	2.63%	3.22%	3.35%	3.15%	2.91%	3.16%	2.04%	3.04%	3.35%	2.77%	3.05%	2.92%

Frequently Asked Questions

Can I hold both VEA and AVEM in my portfolio?

VEA and AVEM have a correlation of 0.85, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, VEA or AVEM?

AVEM has higher volatility (11.06%) compared to VEA (6.89%). In terms of maximum drawdown, VEA dropped -60.68% vs AVEM's -36.05%.

Which ETF is better, VEA or AVEM?

On 5-year performance, AVEM leads with 9.57% vs 9.43% for VEA. On fees, VEA is cheaper at 0.03% per year. On volatility, VEA has been the lower-risk option at 6.89%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, VEA or AVEM?

Over the 5-year period, AVEM has performed better with a 9.57% return vs 9.43%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, VEA or AVEM?

VEA is cheaper with a 0.03% expense ratio, compared with 0.33% for AVEM.

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

VEA has the higher dividend yield at 2.63%, compared with 2.60% for AVEM.

What is the main difference between VEA and AVEM?

VEA is categorized as Foreign Large Cap Equities, while AVEM is Emerging Markets Equities. They also come from different issuers: Vanguard and Avantis. Their fees differ too: 0.03% for VEA and 0.33% for AVEM.

Which has better risk-adjusted returns?

AVEM currently has the higher Sharpe Ratio (2.15 vs 1.84), 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.