Hey everyone,
I’m building out my long-term portfolio and want to add some emerging markets exposure for diversification (thinking 15-20% of total assets). I’m torn between AVEM (Avantis Emerging Markets Equity ETF) and AVES (Avantis Emerging Markets Value ETF). Both are from Avantis, low-cost, and actively managed with factor tilts, but I can’t figure out which fits better for someone with a 20+ year horizon.
AVEM seems like a broader play on EM with light value/profitability tilts, while AVES is more aggressively tilted toward value stocks in EM (cheaper valuations, smaller caps). I’m not chasing past performance (AVEM was strong in 2025 with \~35% returns, AVES \~30%), but focusing on future potential – value factors could shine if EM growth picks up, but broad exposure feels safer.
What do you think?
If you’re using one (or both) in your portfolio, why?
Should I go with AVEM for the “set it and forget it” broad coverage, or AVES for that extra value punch (believing in the value premium long-term)?
Or split 50/50? Appreciate any insights, many thanks in advance!
Ray