How do the expense ratios of AVEM and AVES compare, and what does that mean for investors?

AVEM has an expense ratio of 0.33% while AVES charges 0.36%. The three-basis-point difference means that for every £1,000 invested annually, AVES costs £0.30 more in fees. Over long investment periods, these small differences accumulate due to compounding effects. While not substantial per year, investors should consider how fee structures impact their overall returns when comparing ETFs with similar investment objectives.

What is the key difference in investment approach between AVEM and AVES?

AVEM provides diversified exposure to emerging markets equity, tracking a broad basket of companies. In contrast, AVES employs a value-focused strategy, targeting undervalued stocks within emerging markets. AVEM's larger net assets of $28.4 billion suggest broader market representation, while AVES's $1.6 billion reflects its more specialised approach. Investors might prefer AVEM for comprehensive market exposure or AVES when seeking potential value opportunities, though both carry emerging market risks.

What does it mean that both funds are issued by ARK?

ARK, as the fund issuer, manages the ETF structure, ensures regulatory compliance, handles liquidity through authorised participants, and implements the stated investment strategies. While both funds share the same issuer, they follow distinct objectives: AVEM tracks diversified emerging markets equity while AVES focuses on value selection. Investors should evaluate the specific strategies and holdings rather than assuming the issuer's reputation guarantees identical approaches or outcomes across different funds.

How do the dividend yields of AVEM and AVES compare?

AVES has a higher dividend yield of 3.37% compared to AVEM's 2.50%, reflecting its value strategy which typically targets companies with stronger cash distributions. The 0.87 percentage point difference may appeal to income-focused investors. However, higher yields don't always indicate superior performance, as they can also reflect lower share prices. Dividend yields fluctuate based on market conditions and company distributions, so potential investors should consider the total return profile alongside current yields.

What types of emerging market companies do these funds invest in?

AVEM provides diversified exposure to emerging markets equity, with holdings like TSM at 6.39% indicating semiconductor sector involvement. AVES focuses on value stocks within emerging markets, showing different top holdings such as ASX at 1.50%. The shared top-10 holdings (ASX and SHG) suggest some overlap in companies like telecom operators, but their weightings differ significantly. Investors should examine the specific holdings to understand each fund's market positioning and risk profile within emerging economies.

How does the fund size difference between AVEM and AVES affect their operation?

AVEM's net assets of $28.4 billion provide significant scale advantages including potentially tighter bid-ask spreads and better liquidity for trading. AVES at $1.6 billion, while still substantial, may experience more price volatility during market stress. Larger funds generally offer more stable tracking of benchmark indices and can absorb larger investor flows without disrupting portfolio management. However, smaller size doesn't necessarily indicate inferior performance; AVES might implement its value strategy more effectively due to less market impact when adjusting positions.

What does a 'value' strategy mean in emerging markets, as seen with AVES?

A value strategy like AVES's focuses on identifying companies trading below what the fund manager believes to be their intrinsic worth, often targeting firms with strong balance sheets or stable earnings that may be temporarily undervalued by markets. In emerging markets, this approach seeks to capitalise on potential mispricing opportunities in regions with high volatility and information asymmetry. While such strategies have historically shown premium returns over long periods, they can underperform growth strategies during certain market cycles, requiring patience and understanding of economic factors driving valuation discrepancies.

How do the inception dates of these ETFs impact their track records?

AVEM launched in September 2019, while AVES began in September 2021, giving AVEM approximately two additional years of operating history. This longer track record allows AVEM to demonstrate performance across more market cycles, though past performance doesn't guarantee future results. The difference in inception dates means AVES hasn't experienced some of the market conditions that AVEM has navigated, including different economic phases in emerging markets. Investors should consider that shorter history means less data for evaluating consistency and strategy effectiveness over various market environments.

What types of investor goals align with these funds?

AVEM's diversified emerging markets approach suits investors seeking broad exposure to developing economies with moderate risk tolerance. Its lower dividend yield of 2.50% aligns with growth-focused or balanced portfolios. AVES's value strategy with 3.37% yield might appeal to those seeking potential capital appreciation from undervalued stocks combined with modest income. Both carry emerging market volatility risks, so investors typically use these as satellite holdings within a diversified portfolio rather than core investments, tailoring allocations based on their specific return expectations and risk capacity for international equity exposure.

What does the 'Index tracked: not available' information mean for potential investors?

The absence of publicly disclosed index tracking information for both AVEM and AVES limits transparency into the exact benchmark these funds use to measure performance. This means investors cannot easily compare tracking error or verify whether the funds' strategies align with recognised market indices. For emerging markets ETFs, where index composition significantly influences returns, this lack of information makes it harder to assess whether the funds add value through active management or simply replicate market movements. Potential investors should weigh this reduced transparency against other fund characteristics when considering these ETFs.

What is the significance of shared top-10 holdings (ASX and SHG) between these funds?

The presence of ASX and SHG in both AVEM's and AVES's top-10 holdings indicates these companies represent meaningful exposure in emerging markets for both funds' strategies. However, their weightings differ significantly—ASX is 0.52% in AVEM versus 1.50% in AVES, while SHG is 0.47% versus 0.98%. This demonstrates that even when investing in similar stocks, the funds maintain distinct portfolio constructions aligned with their strategies (diversified versus value-focused). Investors should examine how these shared holdings contribute to each fund's overall risk-return profile rather than assuming similar strategies.

AVEM vs AVES

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

Compare Avantis Emerging Markets Equity ETF (AVEM) and Avantis Emerging Markets Value ETF (AVES). This page analyses fees, holdings, dividends and market tracking. AVEM tracks diversified emerging markets with a 0.33% expense ratio, while AVES focuses on value with a 0.36% expense ratio. Understand the differences in net assets and yield before investing. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

AVEM

Metric

AVES

0.33%

Expense Ratio

0.36%

2.50%

Dividend Yield

3.37%

$28.44B

Net Assets

$1.56B

4,046

Holdings

1,991

Sep 17, 2019

Inception Date

Sep 28, 2021

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Index Tracked

–

Diversified Emerging Mkts

Fund Category

Diversified Emerging Mkts

AVEM costs about $3.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	AVEM	AVES
ASXASE Technology Holding Co., Ltd.	0.52%	1.50%
SHGShinhan Financial Group Co., Ltd.	0.47%	0.98%

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Investment Analysis

AVEM

Pros

AVEM offers access to emerging markets with a competitive expense ratio of 0.33 per cent.
The fund has accumulated net assets of $28.4 billion, indicating significant scale and liquidity.
It provides broad exposure to the category with a reasonable dividend yield of 2.50 per cent.

Considerations

The specific index tracked by the fund is not available, reducing transparency on methodology.
Sector weightings are not available, preventing a clear understanding of the portfolio's diversification.
Top holdings show a high concentration in TSM at 6.39 per cent, posing single-stock risk.

AVES

Pros

AVES provides a value-focused strategy in emerging markets, appealing to investors seeking factor exposure.
The fund delivers a higher dividend yield of 3.37 per cent compared to many equity ETFs.
It maintains a relatively low expense ratio of 0.36 per cent for a specialised value strategy.

Considerations

With net assets of only $1.6 billion, the fund is significantly smaller than its peer.
The index tracked is not available, which limits visibility into the specific value selection criteria.
Sector weights are not disclosed, making it difficult to assess the underlying economic exposure.

About AVEM and AVES

AVEM (AVEM)

The Avantis Emerging Markets Equity ETF (AVEM) offers investors a structured way to gain exposure to a broad range of stocks in emerging market economies. As an exchange-traded fund launched in September 2019, it currently holds a substantial portfolio of 4,046 holdings with net assets of USD 28.44 billion. This fund fits within the Diversified Emerging Markets category, which includes economies from Asia, Latin America, Africa, and Eastern Europe. While emerging markets can provide opportunities for growth that developed markets might not offer, they also tend to be more volatile. The fund features a dividend yield of 2.50% and an expense ratio of 0.33%. Investors should remember that share prices and yields can rise as well as fall, and returns are not guaranteed.

AVES (AVES)

The Avantis Emerging Markets Value ETF (AVES) is an exchange-traded fund designed to provide investors with exposure to value-oriented companies within emerging markets. Managed by American Century, this fund seeks to capitalise on the long-term potential of developing economies by focusing on firms that appear undervalued relative to their fundamentals. With an expense ratio of 0.36%, it offers a cost-effective way to access a diverse portfolio of nearly 2,000 holdings. The fund currently holds net assets of USD 1.56 billion and offers a dividend yield of 3.37%, making it an attractive option for those looking to balance growth potential with income generation in the volatile emerging markets sector. Investors should note that emerging market investments carry higher risks, including currency fluctuations and geopolitical uncertainties, and values can rise and fall.

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AVEM vs AVES

Fund Snapshot