AVEM vs EMEQ

AVEMAAvantis Emerging Markets Equity ETF

EMEQDNomura Focused Emerging Markets Equity ETF

In short

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.

EMEQ Emerging markets stripped to conviction: about 60 stocks, formally non-diversified, actively picked with no index to hug. Nomura's 2024 entrant charges 0.85%, with no fee waiver, above the typical EM fund.

Stated mandate

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

EMEQ The Fund seeks long-term capital appreciation.

Why people hold it

• 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.

• EMEQ Concentration is the point. Roughly 60 names and a non-diversified classification mean one winner can actually move the fund, instead of being diluted across a broad index.yahoo.com
• Fully active, no declared benchmark: at least 80% of assets in emerging markets issuers, companies of any size, position sizes set by the manager rather than index weights.yahoo.com
• Past the startup stage. Assets in the hundreds of millions and moderate daily volume for a fund that only listed in 2024.

Worth knowing

• 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.

• EMEQ Cost is the trade-off: 0.85%, with no fee waiver, against 0.33% at AVEM, JEMA, AVSE and AVXC and 0.39% at DFEM. Above the category median across 27 funds.
• Non-diversified cuts both ways. With about 60 holdings, a stumble in one large position or one country lands harder than it would in a broad index fund.yahoo.com
• Short history. It launched September 2024, so the risk picture rests on about a year of data rather than a full market cycle.

Full AVEM profile⁠

Full EMEQ profile⁠