What are expense ratios and why do they matter for international ETFs?

An expense ratio is the annual fee a fund charges to manage your money, expressed as a percentage of your investment. It directly reduces net returns. For instance, AVDE has an expense ratio of 0.23%, while AVNM charges 0.31%. Although the difference seems small, over many years, higher fees can significantly erode compounded growth. Understanding these costs helps you evaluate the true efficiency of a fund, regardless of its potential gross performance. Always compare fees alongside other factors like strategy and holdings when assessing long-term value.

How does fund size influence liquidity in ETF investments?

Fund size, often measured by net assets, impacts liquidity and trading ease. AVDE has substantial net assets of $19.1 billion, suggesting high liquidity and tighter bid-ask spreads, which can lower transaction costs for investors. Conversely, AVNM has net assets of $766 million. While still tradable, smaller funds may experience wider spreads or less depth in order books, particularly during volatile markets. Investors should consider size as a proxy for liquidity risk, ensuring the ETF can be bought or sold efficiently when needed without impacting the price significantly.

What does an inception date tell you about an ETF's track record?

The inception date marks when a fund began trading, providing the start of its official performance history. AVDE launched on September 24, 2019, offering a longer track record for analysing behaviour through various market cycles. AVNM started on June 27, 2023, meaning it has limited historical data. A shorter history makes it harder to assess how the fund performs during different economic conditions. Beginners should view newer funds with caution, recognising that consistent long-term performance metrics are not yet available for thorough evaluation.

How do the top holdings of AVDE and AVNM differ structurally?

AVDE and AVNM have fundamentally different structures reflected in their holdings. AVDE’s top holdings are individual companies like ASML and SHEL. In contrast, AVNM is a fund-of-funds structure, meaning its top holdings are other Avantis ETFs, such as AVDE itself. This is why the shared top-10 holdings list shows none among their direct top positions. One invests directly in equities, while the other invests in a basket of funds that hold equities. This difference impacts how the portfolios are constructed and managed.

What is the practical impact of the fee difference between these funds?

The fee difference between AVDE (0.23%) and AVNM (0.31%) is 0.08 percentage points. On an investment of £10,000, this represents £8 per year in additional costs for AVNM. While this may seem minor, over 20 or 30 years, this compounding cost effect can reduce total portfolio growth. It is crucial to remember that higher fees are not automatically better; they must be justified by the strategy or exposure provided. Always weigh the cost against the specific benefits of the fund structure.

How do dividend yields compare between AVDE and AVNM?

AVDE offers a dividend yield of 2.74%, while AVNM provides 2.76%. These yields are nearly identical. Dividend yield indicates the income return relative to the fund’s price. It is important to understand that yields fluctuate with both payout amounts and share prices. A slightly higher yield does not necessarily mean better total returns, as capital gains also play a major role. Both funds distribute income periodically, and investors should note that past yields are not guarantees of future distributions.

What exposure do these funds provide to international markets?

Both AVDE and AVNM are categorised as Foreign Large Blend funds. However, their market exposure differs due to structure. AVDE provides direct active quant exposure to international large-cap equities. AVNM aims for broader total international market exposure via its fund-of-funds approach, aggregating other Avantis funds. This means AVNM indirectly holds a mix of large, small, value, and international stocks. Investors seeking specific niche factors might look at AVNM, whereas those preferring direct large-cap active management might consider AVDE.

Why is sector weight data unavailable for both ETFs?

According to the provided data, sector weights are currently not available for both AVDE and AVNM. Sector allocation helps investors understand concentration risk, such as excessive exposure to technology or financials. Without this data, it is difficult to precisely analyse how diversified the portfolio is across different economic sectors. While the funds hold numerous assets, the lack of disclosed sector weights prevents a granular breakdown of industry exposure. Investors may need to consult the fund providers' latest prospectuses or fact sheets for updated sector data.

How does the index tracking method affect these funds?

The data indicates that the specific index tracked by both AVDE and AVNM is not available. This suggests they may be actively managed or follow proprietary benchmark methodologies rather than tracking a standard public index like the MSCI World. This lack of a visible benchmark means investors cannot easily compare performance against a standard reference point. Understanding the tracking method is vital for gauging the manager's skill and the strategy's intent, especially when standard index comparisons are not possible.

How do ETF distributions work in practice?

ETFs like AVDE and AVNM pay out dividends from the underlying holdings, typically quarterly. The yield figures (2.74% for AVDE and 2.76% for AVNM) reflect the recent distribution rate. These payments are not fixed and can change based on company payouts and market conditions. In UK accounts, these may be reinvested or paid as cash. Investors should check if the fund uses an accumulating or distributing share class, though the data provided focuses on yields, implying distribution. Distributions are taxable events in some jurisdictions.

What should beginners know about the Avantis active strategy?

AVDE and AVNM employ complex active quant strategies, distinct from passive indexing. This means the portfolio is not simply copying a list of companies. The strategy involves using data to target specific factors like value or size. While this can potentially enhance returns or manage risk, it requires understanding non-index approaches. The fund manager makes active decisions on holdings. Beginners should be aware that active management comes with higher fees and the risk that the strategy may underperform the market if the manager’s views are incorrect.

Which type of investing goal fits these funds?

AVDE, with its lower fee and larger size, typically aligns with goals seeking direct, active international large-cap exposure. Its stability makes it suitable for core portfolio components. AVNM, with its fund-of-funds structure, fits goals requiring broader total international market access, including smaller-cap or value factors, in a single holding. The higher fee reflects the aggregated strategy. Neither is universally better; it depends on whether an investor prefers direct large-cap exposure or a consolidated basket of varied international factors.

AVDE vs AVNM

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare AVDE (Avantis International Equity ETF) and AVNM (Avantis Total Intl Markets Equity ETF). This page analyses fees, holdings, dividends and market tracking. AVDE has a 0.23% expense ratio and AVNM 0.31%. Both are Avantis funds; note data shows AVNM issuer as ARK. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

AVDE

Metric

AVNM

0.23%

Expense Ratio

0.31%

2.74%

Dividend Yield

2.76%

$19.06B

Net Assets

$766.25M

3,336

Holdings

Sep 24, 2019

Inception Date

Jun 27, 2023

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Index Tracked

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Foreign Large Blend

Fund Category

Foreign Large Blend

AVDE costs about $8.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

AVDE

Pros

AVDE offers significantly lower management fees at 0.23% compared to higher-cost alternatives.
The fund benefits from substantial net assets of $19.1 billion ensuring high liquidity levels.
Investors receive a competitive dividend yield of 2.74% from international large-cap equities.

Considerations

The specific index methodology and tracked benchmark for AVDE are currently not available.
A lack of disclosed sector weights prevents precise analysis of portfolio diversification.
The fund employs a complex active quant strategy requiring understanding of non-index approaches.

AVNM

Pros

AVNM provides broad exposure to total international markets through a fund-of-funds structure.
The dividend yield of 2.76% is slightly higher than comparable active international equity ETFs.
Utilising Avantis sibling funds allows targeted exposure to specific value and size factors.

Considerations

Net assets of $766 million are considerably lower than the larger AVDE competitor.
The expense ratio of 0.31% is notably higher than the 0.23% fee for AVDE.
Recent inception in June 2023 limits long-term performance history for thorough evaluation.

About AVDE and AVNM

AVDE (AVDE)

The Avantis International Equity ETF (AVDE) is an exchange-traded fund that aims to provide investors with access to quality companies located outside the United States. With an inception date of September 24, 2019, this fund has grown significantly, managing net assets of USD 19.06 billion. It boasts a broad portfolio of 3,336 holdings, diversified across various regions. Operating with a competitive expense ratio of 0.23%, AVDE is categorised as a Foreign Large Blend fund. Currently, it offers a dividend yield of 2.74%, appealing to investors seeking international diversification and potential income. The fund's strategy focuses on identifying companies with strong fundamentals, offering exposure to global markets beyond the US.

AVNM (AVNM)

The Avantis Total International Markets Equity ETF (AVNM) offers investors a diversified exposure to large and mid-cap companies located outside the United States. Launched in June 2023, this exchange-traded fund aims to capture the performance of developed and emerging international markets, providing a broad view of global economic activity. With net assets of USD 766 million, it has established a reasonable footprint for early-stage growth. The fund maintains an expense ratio of 0.31%, which is competitive within the foreign large blend category, and currently reports a dividend yield of 2.76%. While it holds only 8 specific holdings at present, the structure allows for targeted access to international equity trends. As with any equity investment, values can fluctuate due to currency shifts, geopolitical events, and global market conditions. This fund is designed for investors seeking to complement their US-focused portfolios with international diversification, though returns are not guaranteed and past performance is not indicative of future results.

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AVDE vs AVNM

Fund Snapshot