AVEE vs AVSE

AVEEBAvantis Emerging Markets Small Cap Equity ETF

AVSEAAvantis Responsible 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.

AVSE Avantis's emerging markets workhorse with a values filter bolted on: the same profitability tilt and thousands-of-stocks build as its flagship EM fund, at the same 0.33% fee, minus the issuers its team flags on ESG grounds.

Stated mandate

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

AVSE The fund is an actively managed emerging-markets equity strategy that seeks to identify securities with higher expected returns while excluding issuers that raise concerns under the portfolio team's environmental, social, and governance evaluation.

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.

• AVSE Charges 0.33% a year, roughly half the typical fee among actively managed emerging markets funds. The cost drag stays out of the way of the strategy.
• The screen trims rather than concentrates: the portfolio still spans thousands of emerging markets stocks, not a short list of approved names.avantisinvestors.com
• Active in the Avantis sense: a systematic tilt toward more profitable companies, not a manager's hunches about which stocks pop next.
• Priced level with Avantis's mainstream EM funds (AVEM, AVXC) and JPMorgan's JEMA at 0.33%, and one of the stronger builds in the active EM 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.

• AVSE Thinly traded next to the index-fund giants of emerging markets, so bid-ask spreads can widen and larger orders need care.
• The ESG exclusions are the portfolio team's own judgment calls, so the holdings and the results will drift from a plain broad EM benchmark.
• Emerging markets equity brings currency swings and country-level political risk, and this fund holds that exposure directly. Pays quarterly.

Full AVEE profile⁠

Full AVSE profile⁠