What does the expense ratio represent for AVEM and DFEM?

The expense ratio is the annual fee deducted from a fund's assets to cover operational costs. For AVEM, this fee is 0.33%, while DFEM charges 0.39%. These figures represent the percentage of investment capital investors pay annually to the fund managers for management and administrative services. A lower ratio means more of the gross return remains for investors before market performance is considered. Understanding this cost helps in evaluating the efficiency of each fund. The difference between the two ratios is 0.06 percentage points, which may accumulate over long investment horizons, affecting net returns.

How do inception dates affect the analysis of DFEM compared to AVEM?

Inception dates indicate when a fund first began trading and accumulating performance history. AVEM was established on September 17, 2019, giving it several years of operational history to analyse across various market cycles. In contrast, DFEM launched on April 27, 2022, making it significantly newer with less historical data available. This difference matters because newer funds may have less evidence regarding how they handle different market conditions. Investors analysing DFEM must consider that its long-term track record is still developing, whereas AVEM provides a longer window of past performance for comparison.

Why is net asset value important for comparing AVEM and DFEM?

Net assets represent the total market value of all holdings within a fund, minus its liabilities. AVEM holds $28.4 billion in net assets, while DFEM has $9.7 billion. Larger asset bases often indicate greater market presence and can contribute to higher liquidity, meaning shares might be bought or sold more easily without significantly impacting price. Smaller funds are not necessarily inferior but may experience different liquidity characteristics. These figures provide context on the scale of each fund's operations within the emerging markets equity category, helping investors understand the size and potential stability of the vehicles they are comparing.

How do the top holdings of AVEM and DFEM compare in terms of diversification?

AVEM's largest holding is TSM at 6.39%, followed by BABA at 0.71%, ASX at 0.52%, NTES at 0.47%, SHG at 0.47%, IBN at 0.46%, and PDD at 0.45%. DFEM lists IBN at 0.40% and HDB at 0.39% among its top positions. The shared holding between both funds' top ten lists is IBN. AVEM exhibits a more concentrated top holding with TSM, while DFEM's listed top weights are significantly lower and more closely grouped. This suggests different levels of concentration risk, where a single stock's performance might impact AVEM more heavily than the specific stocks listed for DFEM, based solely on these figures.

What do the dividend yields of AVEM and DFEM indicate for income-focused investors?

AVEM reports a dividend yield of 2.50%, while DFEM reports a yield of 1.81%. Dividend yield measures the annual dividend payment relative to the fund's share price, expressed as a percentage. A higher yield like AVEM's may appeal to those prioritising current income generation from emerging market equities. DFEM's lower yield might reflect different underlying company payout policies or capital appreciation focus within its holdings. It is crucial to note that past yields do not guarantee future distributions. Investors should consider these figures alongside total return potential and tax implications when evaluating income streams from these emerging markets funds.

How might the fee difference between AVEM and DFEM impact long-term returns?

AVEM charges an expense ratio of 0.33%, whereas DFEM charges 0.39%. This creates a fee difference of 0.06 percentage points annually. Over time, fees are deducted from gross returns, directly reducing the amount of capital available for compound growth. While the difference seems small in a single year, the cumulative impact over decades can become more noticeable due to the loss of compounding on those withheld fees. When comparing similar investment strategies, a lower expense ratio is often preferred because it allows a greater portion of market gains to remain within the investment vehicle, potentially enhancing net wealth accumulation over the long term.

What role do financial institutions play in DFEM's exposure based on top holdings?

DFEM's listed top holdings include IBN at 0.40% and HDB at 0.39%. Both IBN (ICICI Bank Ltd) and HDB (HDFC Bank Ltd) are major financial institutions based in India. This indicates that the fund maintains significant exposure to the banking and financial services sectors within emerging markets. Financial institutions are often sensitive to interest rate changes, economic growth, and regulatory environments in their home countries. While these specific holdings represent small individual weights, their presence suggests a strategy that includes direct exposure to the financial health of key emerging economies. Investors should consider how this sector weighting aligns with their broader portfolio diversification.

Why is the index tracked status listed as 'not available' for both funds?

For both AVEM and DFEM, the 'Index tracked' field is listed as not available. This typically indicates that the funds do not strictly follow a single, publicly disclosed benchmark index in the way traditional passive index funds might, or that the specific benchmark methodology is not publicly detailed in this data source. It could suggest a more flexible or systematic investment approach that targets certain factor exposures or characteristics rather than replicating a fixed list of stocks. Investors must recognise that without a clear index benchmark, comparing performance against a standard market metric requires more careful analysis of the fund's stated objectives and actual holdings.

How does the lack of sector weight data affect risk assessment for AVEM and DFEM?

Both AVEM and DFEM have 'Sector weights' listed as not available in the provided data. Sector weights reveal how a fund's assets are distributed across different economic sectors such as technology, healthcare, or financials. Without this information, investors cannot precisely assess the fund's sector concentration or diversification. This opacity makes it difficult to determine if one fund is heavily overweight in a volatile sector compared to the other. Investors must rely on other data points, such as individual top holdings, to infer potential sector biases, understanding that these limited snapshots do not reflect the complete portfolio composition across all industry classifications.

What does the shared holding IBN imply about the market segments of AVEM and DFEM?

The shared top-10 holding for both AVEM and DFEM is IBN (ICICI Bank Ltd). This indicates that both funds have exposure to Indian banking stocks within their portfolios. IBN appears in AVEM's list at 0.46% and in DFEM's list at 0.40%. The presence of the same stock in both funds suggests an overlap in their investment universe, likely targeting large-cap or significant emerging market companies with substantial liquidity and market capitalisation. While this creates a point of similarity, it also means that events affecting ICICI Bank could impact the performance of both funds simultaneously, reducing the diversification benefit of holding both if they are otherwise similar.

How can beginners interpret the 'Diversified Emerging Mkts' category for these funds?

Both AVEM and DFEM fall under the 'Diversified Emerging Mkts' category. This classification signifies that the funds invest broadly across multiple countries and companies within developing economies, rather than focusing on a single country or specific industry niche. For beginners, this category implies a strategy aimed at capturing growth from various emerging markets while spreading risk across different geographies and sectors. However, 'diversified' does not eliminate volatility; emerging markets can be sensitive to global economic shifts. When comparing these funds, investors are looking at two different methods of accessing this broad asset class, each with its own cost structure and portfolio construction approach.

What should investors consider regarding the transparency limitations shown for these funds?

The data for both AVEM and DFEM lists 'Index tracked' and 'Sector weights' as not available. This lack of specific benchmark and sector allocation data can make it challenging for investors to fully understand the underlying strategy or to perform precise peer comparisons. Transparency is a key factor in evaluating any fund. When such details are absent, investors should look to the fund prospectus or official website for deeper information. It is important to recognise that without clear sector breakdowns, assessing how these funds might react to specific industry downturns or sector rotations is more difficult, requiring reliance on broader category assumptions and available holding data.

AVEM vs DFEM

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

Compare Avantis Emerging Markets Equity ETF (AVEM) with Dimensional Emerging Markets (DFEM). This page examines fees, holdings, dividends and how each fund tracks its market. Educational content, not financial advice.

Compare Avantis Emerging Markets Equity ETF (AVEM) with Dimensional Emerging Markets (DFEM). This page examines fees, holdings, dividends and how each fund tracks its market. Educational content, not ...

Fund Snapshot

Key Fund Metrics

AVEM

Metric

DFEM

0.33%

Expense Ratio

0.39%

2.50%

Dividend Yield

1.81%

$28.44B

Net Assets

$9.68B

4,046

Holdings

6,659

Sep 17, 2019

Inception Date

Apr 27, 2022

–

Index Tracked

–

Diversified Emerging Mkts

Fund Category

Diversified Emerging Mkts

AVEM costs about $6.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	AVEM	DFEM
IBNICICI Bank Limited	0.46%	0.40%

Discover More Comparisons

AVEM vs VWO

Compare AVEM and VWO emerging markets ETFs. Review expense ratios, net assets, dividend yields, top holdings and tracking methods for informed analysis.

AVEM vs AVES

Compare AVEM and AVES ETFs on fees, holdings, dividends and tracking. Review expense ratios, net assets, yields and market exposure for research.

AVEM vs DFAE

Compare AVEM and DFAE emerging market ETFs on fees, holdings, dividends, and tracking. AVEM: 0.33% fee, 2.50% yield. DFAE: 0.29% fee, 1.72% yield.

Investment Analysis

AVEM

Pros

The fund boasts substantial net assets of $28.4 billion, indicating strong liquidity and market presence.
It offers a moderate expense ratio of 0.33% for a diversified emerging markets strategy.
The portfolio maintains low concentration with its largest holding at 6.39%, reducing single-stock risk.

Considerations

The index tracked is not available, limiting transparency regarding the specific benchmark methodology.
Sector weights are not available, preventing a clear assessment of the fund’s sector allocation.
The dividend yield of 2.50% may be lower than some income-focused emerging market alternatives.

DFEM

Pros

The fund provides a diversified approach to emerging markets equity with a modest asset base.
It maintains significant holdings in major financial institutions, offering sector-specific exposure within the asset class.
The expense ratio of 0.39% remains within the broader range for systematic equity strategies.

Considerations

The fund is relatively young with an inception date of 27 April 2022, lacking long-term performance history.
A dividend yield of 1.81% is relatively low for investors prioritising income generation.
The index tracked is not available, obscuring the exact passive or active benchmark reference.

Related Market Insights

Banking On Emerging Market Wealth: The Financial Services Goldmine

Discover the goldmine in emerging market financial services. Invest in global institutions benefiting from expanding wealth & sophisticated banking demand in high-growth economies. Explore Nemes on Nemo.

Aimee Silverwood | Financial Analyst

31 July 2025

Read Insight

Related Market Insights

Banking On Emerging Market Wealth: The Financial Services Goldmine

Discover the goldmine in emerging market financial services. Invest in global institutions benefiting from expanding wealth & sophisticated banking demand in high-growth economies. Explore Nemes on Nemo.

Aimee Silverwood | Financial Analyst

31 July 2025

Read Insight

About AVEM and DFEM

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.

DFEM (DFEM)

Dimensional Emerging Markets (DFEM) is an exchange-traded fund providing broad exposure to equities listed in emerging-market economies. It aims to give investors access to potential growth in countries such as China, India and Brazil via a diversified basket of companies across sectors. DFEM may use a research-driven, systematic construction method and can include factor tilts; specifics (index tracked, weighting and fees) should be checked in the fund’s prospectus. Emerging-market investing can offer attractive long-term returns but typically involves higher political, economic and currency risk, and greater volatility and liquidity constraints than developed markets. Market capitalisation for DFEM is not provided here. This summary is educational and not personal financial advice — consider your investment horizon, risk tolerance and consult an authorised adviser before investing.

Which Baskets Do They Appear In?

Banking On Emerging Market Wealth

Standard Chartered's impressive profit growth, driven by its wealth management success in emerging markets, highlights a significant investment opportunity. This theme focuses on other global financial institutions that are similarly positioned to capitalize on the expanding wealth and demand for sophisticated banking services in high-growth economies.

Published: 31 July 2025

Explore Basket