AVEE vs SPY
Avantis Emerging Markets Small Cap Equity ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. AVEE offers more diversification with 2,833 holdings.
Side-by-Side Comparison
| Metric | AVEE | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.42% | 0.09% | |
| AUM | $123M | $821.1B | |
| Dividend Yield | 2.44% | 1.01% | |
| Holdings | 2,833 | 505 | |
| YTD Return | +9.62% | +13.70% | |
| 1Y Return | +12.47% | +21.44% | |
| 3Y Return (annualized) | - | +22.50% | |
| 5Y Return (annualized) | - | +13.24% | |
| Volatility (annualized) | 14.9% | 15.3% | |
| Max Drawdown | -20.2% | -56.5% | |
| Fund Family | Avantis Investors | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Nov 7, 2023 | Jan 22, 1993 |
AVEE vs SPY Performance
Avantis Emerging Markets Small Cap Equity ETF (AVEE) is a ETF from Avantis Investors and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year AVEE returned +12.47% while SPY returned +21.44%. Year to date, AVEE is up 9.62% versus a gain of 13.70% for SPY.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 14.9% for AVEE. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -20.2% for AVEE and -56.5% for SPY. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.57. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AVEE charges 0.42% per year while SPY charges 0.09%. On a $10,000 position that is $42 vs $9 annually, a gap of $33 per year that compounds over a long holding period. On income, AVEE currently yields 2.44% against 1.01% for SPY.
Holdings Overlap
AVEE and SPY share 0 holdings out of 2181 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, AVEE or SPY?
AVEE has an expense ratio of 0.42% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, AVEE or SPY?
Over the past year AVEE returned +12.47% vs +21.44% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (3 years), AVEE annualized +14.90% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, AVEE or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 14.9% for AVEE. Worst drawdown: AVEE -20.2% vs SPY -56.5%.
Should I hold both AVEE and SPY?
AVEE and SPY have a monthly-return correlation of 0.57, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AVEE and SPY?
AVEE and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2181 unique securities.
Which pays a higher dividend, AVEE or SPY?
AVEE yields 2.44% while SPY yields 1.01%, so AVEE currently pays the higher dividend yield.
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