AVEM vs SPY
Avantis Emerging Markets Equity ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. AVEM delivered stronger 1-year returns. AVEM offers more diversification with 3,967 holdings.
Side-by-Side Comparison
| Metric | AVEM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.33% | 0.09% | |
| AUM | $27.4B | $821.1B | |
| Dividend Yield | 1.98% | 1.01% | |
| Holdings | 3,967 | 505 | |
| YTD Return | +17.43% | +12.93% | |
| 1Y Return | +31.25% | +20.62% | |
| 3Y Return (annualized) | +23.80% | +22.00% | |
| 5Y Return (annualized) | +10.49% | +13.33% | |
| Volatility (annualized) | 18.8% | 15.3% | |
| Max Drawdown | -36.0% | -56.5% | |
| Fund Family | Avantis Investors | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Sep 17, 2019 | Jan 22, 1993 |
AVEM vs SPY Performance
Avantis Emerging Markets Equity ETF (AVEM) 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 AVEM returned +31.25% while SPY returned +20.62%. Year to date, AVEM is up 17.43% versus a gain of 12.93% for SPY.
Over three years, AVEM compounded at +23.80% per year against +22.00% for SPY; over five years the annualized figures are +10.49% and +13.33% respectively. Across the full 7-year window we track, AVEM has the edge at +11.69% annualized vs +8.82%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AVEM has been the more volatile fund, with annualized monthly volatility of 18.8% compared with 15.3% for SPY. 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 -36.0% for AVEM 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 0.72. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
AVEM charges 0.33% per year while SPY charges 0.09%. On a $10,000 position that is $33 vs $9 annually, a gap of $24 per year that compounds over a long holding period. On income, AVEM currently yields 1.98% against 1.01% for SPY.
Holdings Overlap
AVEM and SPY share 1 holdings out of 1703 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in AVEM | Weight in SPY | Difference |
|---|---|---|---|
| HAL | 0.03% | 0.04% | 0.01% |
Frequently Asked Questions
Which is cheaper, AVEM or SPY?
AVEM has an expense ratio of 0.33% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $24 per year of difference.
Which performed better, AVEM or SPY?
Over the past year AVEM returned +31.25% vs +20.62% for SPY, so AVEM leads on 1-year performance. Over the longest common window we track (7 years), AVEM annualized +11.69% vs +8.82% for SPY. Past performance does not guarantee future results.
Which is riskier, AVEM or SPY?
AVEM has been the more volatile fund at 18.8% annualized versus 15.3% for SPY. Worst drawdown: AVEM -36.0% vs SPY -56.5%.
Should I hold both AVEM and SPY?
AVEM and SPY have a monthly-return correlation of 0.72, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AVEM and SPY?
AVEM and SPY share 1 common holdings with a 0.0% weight overlap. Combined, they hold 1703 unique securities.
Which pays a higher dividend, AVEM or SPY?
AVEM yields 1.98% while SPY yields 1.01%, so AVEM currently pays the higher dividend yield.
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