Avantis Emerging Markets Equity ETF

AVEM

Market cap $25.9B

Emerging markets spent most of the last decade as the asset class everyone owned a little of and complained about a lot.

The Avantis Emerging Markets Equity ETF offers EM exposure with a broad, actively managed portfolio of 3,900+ stocks. AVEM has outperformed EEM and key multifactor competitors since 2019, with higher volatility. The ETF features significant country (China, Taiwan) and sector (Technology) concentration.

American Century Investments has established itself as an innovative player in the ETF space, after launching its first products in January 2018. The index-based American Century US Quality Value ETF (VALQ) and the actively managed American Century Diversified Corporate Bond ETF (KORP) are still trading today.

Emerging-market equities have delivered a sharp move higher over the past year, and the three largest vehicles investors use to access the asset class have each captured it differently.

The ETF landscape is undergoing a structural shift as financial advisors increasingly pivot from pure passive indexing toward active management. While the ETF Rule of 2019 provided the regulatory spark, current market volatility and the quest for tax efficiency have accelerated active ETF adoption.

The S&P 500 is down 1.6% so far in 2026. Meanwhile, emerging markets are up sharply, developed international markets are outperforming, and a decade-long valuation gap between US and non-US equities is finally closing.

For nearly two decades, the playbook for U.S. investors was simple: Buy domestic tech and enjoy the ride. However, the conversation has shifted toward a long-overdue resurgence of international investing.

With no end in sight to the macroeconomic uncertainty on both the domestic and global fronts, is now the time to pivot to the flexibility of active ETFs? Many advisors and investors seem to think so.

Global conflict is on the rise in 2026, as it has been already in recent years. From Russia's invasion of Ukraine to the U.S. attacks on Venezuela and Iran, conflict has driven volatility increasingly higher.

China's tech sector spent three years in the penalty box after Beijing's 2021 regulatory crackdown erased trillions in market value.