AVEM — Avantis Emerging Markets Equity ETF
Avantis (American Century) · Expense Ratio: 0.33% · Emerging Markets · 11bp above the Emerging Markets category average of 0.22%
Key Facts
| Ticker | AVEM |
| Full Name | Avantis Emerging Markets Equity ETF |
| Provider | Avantis (American Century) |
| Expense Ratio | 0.33% |
| Category | Emerging Markets |
| Assets Under Management | $3B |
| Inception Year | 2019 (7 years ago) |
| Number of Holdings | 2,700 |
| Dividend Yield | ~2% (moderate) |
| Top Holdings | TSM, BABA, RELIANCE |
What Is AVEM?
AVEM, managed by Avantis (American Century), launched in 2019, is a smaller fund — check bid-ask spreads before making large trades in the Emerging Markets category. Emerging market stock ETF covering developing countries like China, India, Brazil. With $3B in assets under management, investors should verify current bid-ask spreads, especially for large orders.
AVEM in a FIRE Portfolio
This fund serves as a satellite position — adding targeted exposure to emerging markets within a FIRE portfolio built around a broad-market core.
Satellite holdings typically make up 5-20% of your portfolio. In a globally diversified FIRE portfolio, emerging markets exposure of 10-15% of your equity allocation captures growth in developing economies while limiting volatility.
Cost Analysis: How AVEM's 0.33% Fee Affects Your FIRE Timeline
At 0.33%, AVEM is relatively expensive. Annual cost on a $100K position: $330. Over 30 years, fees could consume approximately 2% of total returns. On a $1M FIRE portfolio, cumulative fees approach $33,000. Compare with lower-cost peers in Emerging Markets: .
Dividend Income Potential
With a moderate dividend yield of approximately 2%, here's what AVEM could generate in annual income at different portfolio sizes:
| Portfolio Value | Annual Dividend Income | Monthly Income |
|---|---|---|
| $100,000 | $2,000/year | $167/month |
| $250,000 | $5,000/year | $417/month |
| $500,000 | $10,000/year | $833/month |
| $1,000,000 | $20,000/year | $1,667/month |
Frequently Asked Questions About AVEM
What is the expense ratio for AVEM?
AVEM has an expense ratio of 0.33%. This is relatively expensive — on a $100K portfolio, annual fees are $330. 11bp above the emerging markets category average of 0.22%.
Is AVEM good for a FIRE portfolio?
This fund serves as a satellite position — adding targeted exposure to emerging markets within a FIRE portfolio built around a broad-market core. Its 0.33% expense ratio is relatively expensive for the Emerging Markets category.
How does the 0.33% fee affect long-term returns?
At 0.33%, annual costs are $330/$100K. Over 30 years, this could reduce your final portfolio value by 2% or more. For a $1M FIRE portfolio, that's $19,800+ in lost compound growth.
Is AVEM liquid enough for my portfolio?
AVEM manages $3B in assets — a smaller fund — check bid-ask spreads before making large trades. For most individual FIRE investors making regular contributions, liquidity is sufficient. If you're investing large lump sums ($100K+), use limit orders to control your execution price.
Similar ETFs in Emerging Markets
- VWO — Vanguard FTSE Emerging Markets ETF (0.08% · Satellite Position)
- IEMG — iShares Core MSCI Emerging Markets ETF (0.09% · Satellite Position)
- SCHE — Schwab Emerging Markets Equity ETF (0.11% · Satellite Position)
- EEM — iShares MSCI Emerging Markets ETF (0.68% · Satellite Position)
- ESGE — iShares ESG Aware Emerging Markets ETF (0.18% · Satellite Position)
- SPEM — SPDR Portfolio Emerging Markets ETF (0.11% · Satellite Position)