AVEE vs JEMA

AVEEBAvantis Emerging Markets Small Cap Equity ETF

JEMAAJPMorgan ActiveBuilders 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.

JEMA Active emerging-markets management priced like an index fund: J.P. Morgan blends its own country, region and style EM strategies into one roughly 500-stock portfolio built to keep the MSCI EM index's sector and country risk shape.

Stated mandate

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

JEMA Seeks long-term capital appreciation through a portfolio of emerging-market equities.

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.

• JEMA 0.33% a year, about half the 0.65% median for active EM funds and level with the cheapest names in the group (AVEM, AVXC, AVSE).
• Not one manager's hunch: the portfolio stitches together a range of J.P. Morgan's actively managed EM strategies across countries, regions and styles.sec.gov
• Active tilts, benchmark shape. It overweights and underweights countries and sectors versus the MSCI EM index while aiming to hold similar sector and geographic risk.sec.gov
• A multi-billion-dollar fund that stands among the strongest implementations in the active EM group on cost and structure.

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.

• JEMA Active means results ride on the adviser's calls, and the fund has only been trading since 2021, a short record for an EM strategy.sec.gov
• Full-market EM exposure runs hot: volatility screens as the softer part of the picture next to peers, the trade-off for staying in the whole asset class.
• Moderately traded rather than a tape giant, and cash comes back once or twice a year, not monthly.

Full AVEE profile⁠

Full JEMA profile⁠