AVEE vs AVXC

AVEEBAvantis Emerging Markets Small Cap Equity ETF

AVXCAAvantis Emerging Markets ex-China 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.

AVXC The China question, answered by subtraction. Avantis runs its usual emerging-markets playbook (roughly 2,800 stocks of every size, tilted toward the cheap and the profitable) with China left out entirely, for 0.33% a year.

Stated mandate

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

AVXC The fund invests in a broad set of companies across emerging-market countries, excluding China, and spanning all market capitalizations. It seeks higher expected returns by overweighting securities with lower valuations and higher profitability ratios.

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.

• AVXC 0.33% a year, about half the typical fee among active EM funds, and the ex-China carve-out costs no more than Avantis charges on its with-China flagship, AVEM.
• Roughly 2,800 holdings spanning all market-cap sizes, so removing China doesn't turn the fund into a concentrated bet on a few large markets.avantisinvestors.com
• Actively run against MSCI Emerging Markets IMI rather than tracking it: the mandate overweights lower-valuation, higher-profitability companies.
• One of the stronger builds in the active emerging-markets group we review, on cost and portfolio construction alike.

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.

• AVXC Thinly traded next to the giants of the category, so spreads and limit orders matter more on the way in and the way out.
• Launched in 2024, so the live record is short and the risk picture is still forming.
• Leaving China out is a real departure from standard EM exposure, and the value and small-cap tilts add more distance from a plain cap-weighted index.

Full AVEE profile⁠

Full AVXC profile⁠