AVEE vs AVEM

AVEEBAvantis Emerging Markets Small Cap Equity ETF

AVEMAAvantis Emerging Markets Equity ETF

In short

AVEE Avantis takes its emerging-markets playbook down to the small end: roughly 2,700 small caps, systematically tilted toward cheaper, more profitable companies, at a fee below what most active EM funds charge.

AVEM Emerging markets taken whole: roughly 3,900 stocks, large down to small, with an active tilt toward cheaper and more profitable companies. Avantis charges about half the typical active EM fee to do it.

Stated mandate

AVEE The fund seeks long-term capital appreciation through a broad emerging-markets small-cap equity portfolio.

AVEM Seeks long-term capital appreciation by investing in a broad range of companies across emerging-market countries and all market capitalizations.

Why people hold it

• AVEE 0.42% a year for active management in the hardest corner of global equities, below the typical fee in its active emerging-markets group.
• Roughly 2,700 holdings, so diversification does the work instead of a few concentrated country or company bets.
• Active, not an index clone: it uses the MSCI Emerging Markets Small Cap universe as a reference and tilts toward stocks with lower prices and higher profitability.avantisinvestors.com
• The small-cap specialist on a shelf that includes AVEM and AVXC, and one of the better-built portfolios in its active EM peer group.

• AVEM Fee is 0.33% a year against a 0.65% median for active emerging-markets funds, so the active tilt starts from a low-cost base.
• Owns roughly 3,900 names across the MSCI Emerging Markets IMI universe, including small caps, rather than a short stock-picker's list.avantisinvestors.com
• Active, but rules-driven: the portfolio leans toward lower valuations and higher profitability instead of relying on manager hunches.
• Running since 2019 and now a multi-billion-dollar, actively traded fund. One of the strongest implementations in its emerging-markets peer group.

Worth knowing

• AVEE Thinly traded next to the big emerging-markets funds, so spreads can widen, particularly when local markets overseas are closed.
• Emerging-market small caps are the volatile end of a volatile asset class: currency moves, thin local liquidity and country-level shocks all land in this portfolio.
• Launched in 2023, so its live record is short compared with the older Avantis funds sitting beside it. Distributions are paid quarterly.

• AVEM Emerging-market equity is a bumpy asset class, and returns arrive in dollars, so local currency swings add a second layer of movement.
• The value and profitability tilts are the whole point, which means the fund is built to drift from a plain market-cap EM index, sometimes for long stretches.
• No China carve-out: this one takes the full EM opportunity set. Avantis runs AVXC on the same approach for those who want it without China.

Full AVEE profile⁠

Full AVEM profile⁠