AVSE vs MFEM
Avantis Responsible Emerging Markets Equity ETF vs PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF
Quick Verdict
AVSE has a lower expense ratio. MFEM delivered stronger 1-year returns. AVSE offers more diversification with 2,438 holdings.
Side-by-Side Comparison
| Metric | AVSE | MFEM | Winner |
|---|---|---|---|
| Expense Ratio | 0.33% | 0.49% | |
| AUM | $221M | $156M | |
| Dividend Yield | 2.16% | 2.39% | |
| Holdings | 2,438 | 701 | |
| YTD Return | +19.05% | +22.70% | |
| 1Y Return | +33.25% | +34.93% | |
| 3Y Return (annualized) | +23.75% | +20.54% | |
| 5Y Return (annualized) | - | +8.69% | |
| Volatility (annualized) | 18.4% | 17.7% | |
| Max Drawdown | -26.3% | -45.3% | |
| Fund Family | Avantis Investors | PIMCO (US) | |
| Category | Equity | Equity | |
| Inception | Mar 28, 2022 | Aug 31, 2017 |
AVSE vs MFEM Performance
Avantis Responsible Emerging Markets Equity ETF (AVSE) is a ETF from Avantis Investors and PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is a ETF from PIMCO (US). Over the past year AVSE returned +33.25% while MFEM returned +34.93%. Year to date, AVSE is up 19.05% versus a gain of 22.70% for MFEM.
Over three years, AVSE compounded at +23.75% per year against +20.54% for MFEM. Across the full 4-year window we track, AVSE has the edge at +13.62% annualized vs +6.94%. 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 17.7% for MFEM. 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 -45.3% for MFEM. 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 0.96. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
AVSE charges 0.33% per year while MFEM charges 0.49%. On a $10,000 position that is $33 vs $49 annually, a gap of $16 per year that compounds over a long holding period. On income, AVSE currently yields 2.16% against 2.39% for MFEM.
Holdings Overlap
AVSE and MFEM share 198 holdings out of 1832 unique holdings combined, representing a 21.6% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, AVSE or MFEM?
AVSE has an expense ratio of 0.33% while MFEM charges 0.49%. AVSE is the cheaper option. On a $10,000 investment, that is $16 per year of difference.
Which performed better, AVSE or MFEM?
Over the past year AVSE returned +33.25% vs +34.93% for MFEM, so MFEM leads on 1-year performance. Over the longest common window we track (4 years), AVSE annualized +13.62% vs +6.94% for MFEM. Past performance does not guarantee future results.
Which is riskier, AVSE or MFEM?
AVSE has been the more volatile fund at 18.4% annualized versus 17.7% for MFEM. Worst drawdown: AVSE -26.3% vs MFEM -45.3%.
Should I hold both AVSE and MFEM?
AVSE and MFEM have a monthly-return correlation of 0.96, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between AVSE and MFEM?
AVSE and MFEM share 198 common holdings with a 21.6% weight overlap. Combined, they hold 1832 unique securities.
Which pays a higher dividend, AVSE or MFEM?
AVSE yields 2.16% while MFEM yields 2.39%, so MFEM currently pays the higher dividend yield.
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