What does the difference in expense ratios mean for investors?

The expense ratio represents the annual cost of managing the fund. Fund B (VWO) has a significantly lower expense ratio of 0.06% compared to Fund A (AVEM) at 0.33%. This 0.27% difference may seem small, but over decades, it can impact net returns due to compounding. Lower fees provide a head start on returns, while higher fees must be offset by outperformance or other benefits to provide the same net result.

How do net assets and fund age affect investor confidence?

Net assets measure the total value of money the fund manages, while inception date marks its start. Fund B launched in 2005 with $126.6 billion in assets, indicating a long track record and substantial scale. Fund A launched in 2019 with $28.4 billion, representing a shorter history. While Fund A has significant assets, Fund B's longer existence provides more data for evaluating how it has performed across various market cycles.

Why are the holdings in these emerging markets funds so small?

The top 10 holdings of Fund B (VWO) represent small percentages (0.52% and 0.46%), suggesting it is extremely diversified. For emerging markets, this approach can mitigate the impact of a company or sector collapsing. In contrast, Fund A has a notable holding of TSM at 6.39%, which creates more concentration risk, where a single company's performance can significantly alter the fund's trajectory.

How do the dividend yields compare between these funds?

Fund A offers a dividend yield of 2.50%, whereas Fund B yields 1.99%. This means Fund A pays out more income relative to its share price. For income-focused investors, this could be appealing. However, a higher yield is not always a sign of health or superior income generation; investors should examine the source of the yield and its sustainability within the overall investment strategy.

What does 'top holdings overlap' mean for portfolio diversification?

The comparison page notes that PDD is a top-10 holding in both ETFs, appearing in both funds' top 10 lists, with weights of 0.45% and 0.52%, respectively. This overlap means that investors holding both funds have a small degree of double exposure to PDD's performance. While the weights are low, identifying such overlaps is crucial for investors managing portfolios to understand their true diversification.

Which investment goals are these funds typically aligned with?

The fund types provide clues to their intended purpose. Fund B, an index fund, aligns with goals of broad market exposure at a low cost. Fund A, an active fund, may target performance relative to its benchmark through skilled stock selection. This comparison helps investors identify whether they prefer the passive, cost-driven approach of Fund B or the potentially more concentrated and actively managed strategy of Fund A.

What are the risks associated with emerging market investments?

Emerging markets like those tracked by these funds offer growth potential but carry unique risks. These include political instability, currency fluctuations, and less-established regulatory frameworks. Both fund categories, as stated in the provided data, are exposed to these same broad risks. The choice is not avoiding the risks but deciding how to manage them—whether through an active strategy or a passive, diversified one.

Why are sector weights listed as 'not available'?

For both ETFs, the sector weight breakdown is marked as 'not available'. This limitation prevents investors from directly comparing how concentrated or diversified each fund is within specific sectors like technology or financials. This data gap can hinder informed analysis of how each fund's underlying holdings might react to sector-specific economic downturns or rallies, which is a key factor for many emerging market investors.

What should a beginner check when comparing ETFs?

When comparing ETFs, beginners should start by reviewing the core data provided here: expense ratios, net assets, inception date, and dividend yield. A lower expense ratio (Fund B at 0.06% vs Fund A at 0.33%) reduces investment costs. A longer history (Fund B since 2005 vs Fund A since 2019) can offer more reliable performance data. These metrics are foundational for understanding cost, stability, and potential returns.

Does a longer track record automatically make a fund better?

No. A longer track record is an indicator of a fund's stability and consistency, not a guarantee of superior future performance. Fund B has existed since 2005, offering over a decade of historical data. Fund A, founded in 2019, has a shorter record and may present less certainty. Investors should assess performance within its historical context alongside other factors like fees and management style.

What information should I check beyond these ETF metrics?

The comparison only covers key metrics like fees, size, and holdings. It is advisable to consult the fund's official fact sheets and annual reports for information on its investment strategy, manager commentary, and risk disclosures not found here. This information is crucial for understanding a fund's goals and how it might fit within a broader investment portfolio.

AVEM vs VWO

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

This page compares the Avantis Emerging Markets Equity ETF (AVEM) and the Vanguard FTSE Emerging Markets ETF (VWO). We analyse expense ratios, net assets, dividend yields, inception dates and top holdings, including the shared position in PDD. Explore how each fund tracks its market and their respective cost structures. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

AVEM

Metric

VWO

0.33%

Expense Ratio

0.06%

2.50%

Dividend Yield

1.99%

$28.44B

Net Assets

$126.59B

4,046

Holdings

5,061

Sep 17, 2019

Inception Date

Mar 4, 2005

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Index Tracked

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Diversified Emerging Mkts

Fund Category

Diversified Emerging Mkts

VWO costs about $27.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	AVEM	VWO
PDDPDD Holdings Inc.	0.45%	0.52%

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Investment Analysis

AVEM

Pros

Investing in the Avantis Emerging Markets Equity ETF offers the opportunity for exposure to a well-managed, actively managed portfolio of emerging markets equities.
With a low expense ratio of 0.33%, investors can benefit from cost-efficient management relative to other active funds.
The fund's substantial net assets of $28.4 billion indicate significant investor confidence and potentially better liquidity.

Considerations

The fund has a relatively short inception date, September 17, 2019, which may present higher uncertainty in terms of long-term performance.
Specific sector weights and index methodology are not available, which limits transparency regarding how the fund tracks or selects its investments.
The dividend yield is 2.50%, which is lower compared to other emerging markets funds, possibly indicating a lower income generation capability.

VWO

Pros

Investing in the Vanguard FTSE Emerging Markets ETF provides low-cost access to a broad range of emerging market stocks with an expense ratio of 0.06%.
The fund's inception date of March 4, 2005, suggests a longer track record, potentially providing more reliable performance metrics for investors.
With net assets of $126.6 billion, the fund offers high liquidity and the ability to meet investor demand without significant price volatility.

Considerations

The dividend yield is 1.99%, which might not be suitable for income-focused investors looking for higher yield from their investments.
Specific sector weights are not available, limiting the investor's ability to make informed decisions about sector exposure.
The fund's largest holdings are PDD at 0.52% and AU at 0.46%, indicating a low concentration, but also a potential for higher diversification risks across a wide array of stocks.

About AVEM and VWO

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.

VWO (VWO)

The Vanguard FTSE Emerging Markets ETF provides investors with broad exposure to publicly traded companies in emerging market countries. As a diversified fund, it aims to track the performance of the emerging markets equity asset class, encompassing thousands of holdings across various sectors and geographies. With a low expense ratio of 0.06%, it offers a cost-efficient way to gain access to these dynamic economies. The fund, established in March 2005, holds net assets of approximately USD 126.59 billion. Investors should be aware that emerging market investments can be more volatile than developed markets, with returns not guaranteed and values subject to rise and fall. It is suitable for those seeking diversification and long-term growth potential within emerging economies.

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AVEM vs VWO

Fund Snapshot