AVSE vs IG
Avantis Responsible Emerging Markets Equity ETF vs Principal Investment Grade Corporate ETF
Quick Verdict
IG has a lower expense ratio. AVSE delivered stronger 1-year returns. AVSE offers more diversification with 1526 holdings.
Side-by-Side Comparison
| Metric | AVSE | IG | Winner |
|---|---|---|---|
| Expense Ratio | 0.33% | 0.19% | |
| AUM | $210M | $198M | |
| Dividend Yield | 1.27% | 5.07% | |
| Holdings | 4,803 | 248 | |
| YTD Return | +18.68% | -1.76% | |
| 1Y Return | +32.87% | +0.69% | |
| 3Y Return (annualized) | +23.33% | +4.77% | |
| 5Y Return (annualized) | - | -0.76% | |
| Volatility (annualized) | 18.4% | 8.0% | |
| Max Drawdown | -26.3% | -23.8% | |
| Fund Family | Avantis Investors | Principal Funds | |
| Category | Equity | Fixed Income | |
| Inception | Mar 28, 2022 | Apr 18, 2018 |
AVSE vs IG Performance
Avantis Responsible Emerging Markets Equity ETF (AVSE) is a ETF from Avantis Investors and Principal Investment Grade Corporate ETF (IG) is a ETF from Principal Funds. Over the past year AVSE returned +32.87% while IG returned +0.69%. Year to date, AVSE is up 18.68% versus a loss of 1.76% for IG.
Over three years, AVSE compounded at +23.33% per year against +4.77% for IG. Across the full 4-year window we track, AVSE has the edge at +13.55% annualized vs +0.56%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
AVSE has been the more volatile fund, with annualized monthly volatility of 18.4% compared with 8.0% for IG. 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 -26.3% for AVSE and -23.8% for IG. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
AVSE charges 0.33% per year while IG charges 0.19%. On a $10,000 position that is $33 vs $19 annually, a gap of $14 per year that compounds over a long holding period. On income, AVSE currently yields 1.27% against 5.07% for IG.
Holdings Overlap
AVSE and IG share 0 holdings out of 1671 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, AVSE or IG?
AVSE has an expense ratio of 0.33% while IG charges 0.19%. IG is the cheaper option. On a $10,000 investment, that is $14 per year of difference.
Which performed better, AVSE or IG?
Over the past year AVSE returned +32.87% vs +0.69% for IG, so AVSE leads on 1-year performance. Over the longest common window we track (4 years), AVSE annualized +13.55% vs +0.56% for IG. Past performance does not guarantee future results.
Which is riskier, AVSE or IG?
AVSE has been the more volatile fund at 18.4% annualized versus 8.0% for IG. Worst drawdown: AVSE -26.3% vs IG -23.8%.
Should I hold both AVSE and IG?
AVSE and IG have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between AVSE and IG?
AVSE and IG share 0 common holdings with a 0.0% weight overlap. Combined, they hold 1671 unique securities.
Which pays a higher dividend, AVSE or IG?
AVSE yields 1.27% while IG yields 5.07%, so IG currently pays the higher dividend yield.
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