AVSE vs. DIEM

Last updated Jun 24, 2026

AVSE (Avantis Responsible Emerging Markets Equity ETF) and DIEM (Franklin Emerging Market Core Dividend Tilt Index ETF) are both Emerging Markets Diversified funds - AVSE tracks the MSCI Emerging Markets Index while DIEM tracks the Morningstar Emerging Markets Dividend Enhanced Select Index. Both are passively managed. Over the past 3 years, AVSE returned 24.48%/yr vs 27.25%/yr for DIEM. With a 0.96 correlation, they move nearly in lockstep. AVSE charges 0.33%/yr vs 0.19%/yr for DIEM.

Performance

AVSE vs. DIEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Avantis Responsible Emerging Markets Equity ETF (AVSE) and Franklin Emerging Market Core Dividend Tilt Index ETF (DIEM). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, AVSE achieves a 23.92% return, which is significantly lower than DIEM's 29.85% return.

AVSE

• 1D: -5.42%
• 1M: 3.43%
• YTD: 23.92%
• 6M: 24.59%
• 1Y: 44.42%
• 3Y*: 24.48%
• 5Y*: —
• 10Y*: —

DIEM

• 1D: -4.97%
• 1M: 4.80%
• YTD: 29.85%
• 6M: 30.75%
• 1Y: 53.23%
• 3Y*: 27.25%
• 5Y*: 11.58%
• 10Y*: 9.27%

*Multi-year figures are annualized to reflect compound growth (CAGR)

AVSE vs. DIEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
AVSE Avantis Responsible Emerging Markets Equity ETF	23.92%	32.54%	8.29%	16.01%	-14.43%
DIEM Franklin Emerging Market Core Dividend Tilt Index ETF	29.85%	30.81%	12.29%	15.41%	-15.15%

Correlation

The correlation between AVSE and DIEM is 0.95 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.95
Correlation (3Y) Calculated over the trailing 3-year period	0.96
Correlation (All Time) Calculated using the full available price history since Mar 30, 2022	0.96

The correlation between AVSE and DIEM has been stable across timeframes, ranging from 0.95 to 0.96 - a consistent structural relationship.

Return for Risk

AVSE vs. DIEM — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

AVSE

AVSE Risk / Return Rank: 66
AVSE Sharpe Ratio Rank: 66
AVSE Sortino Ratio Rank: 60
AVSE Omega Ratio Rank: 69
AVSE Calmar Ratio Rank: 67
AVSE Martin Ratio Rank: 70

DIEM

DIEM Risk / Return Rank: 83
DIEM Sharpe Ratio Rank: 85
DIEM Sortino Ratio Rank: 76
DIEM Omega Ratio Rank: 86
DIEM Calmar Ratio Rank: 84
DIEM Martin Ratio Rank: 86

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

AVSE vs. DIEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Avantis Responsible Emerging Markets Equity ETF (AVSE) and Franklin Emerging Market Core Dividend Tilt Index ETF (DIEM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	AVSE	DIEM	Difference
Sharpe ratio: Return per unit of total volatility	2.02	2.55	-0.53
Sortino ratio: Return per unit of downside risk	2.62	3.17	-0.55
Omega ratio: Gain probability vs. loss probability	1.38	1.49	-0.11
Calmar ratio: Return relative to maximum drawdown	3.15	4.34	-1.19
Martin ratio: Return relative to average drawdown	12.04	16.81	-4.77

AVSE vs. DIEM - Sharpe Ratio Comparison

The current AVSE Sharpe Ratio is 2.02, which is comparable to the DIEM Sharpe Ratio of 2.55. The chart below compares the historical Sharpe Ratios of AVSE and DIEM, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

AVSE vs. DIEM - Drawdown Comparison

The maximum AVSE drawdown since its inception was -26.28%, smaller than the maximum DIEM drawdown of -38.61%. Use the drawdown chart below to compare losses from any high point for AVSE and DIEM.

Drawdown Indicators

	AVSE	DIEM	Difference
Max Drawdown Largest peak-to-trough decline	-26.28%	-38.61%	+12.33%
Max Drawdown (1Y) Largest decline over 1 year	-14.17%	-12.33%	-1.84%
Max Drawdown (3Y) Largest decline over 3 years	-17.68%	-16.82%	-0.86%
Max Drawdown (5Y) Largest decline over 5 years	—	-33.34%	—
Max Drawdown (10Y) Largest decline over 10 years	—	-38.61%	—
Current Drawdown Current decline from peak	-5.42%	-4.97%	-0.45%
Average Drawdown Average peak-to-trough decline	-6.78%	-9.68%	+2.90%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.70%	3.18%	+0.52%

Volatility

AVSE vs. DIEM - Volatility Comparison

Avantis Responsible Emerging Markets Equity ETF (AVSE) and Franklin Emerging Market Core Dividend Tilt Index ETF (DIEM) have volatilities of 12.30% and 12.21%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	AVSE	DIEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.30%	12.21%	+0.09%
Volatility (6M) Calculated over the trailing 6-month period	19.98%	19.22%	+0.76%
Volatility (1Y) Calculated over the trailing 1-year period	22.13%	20.98%	+1.15%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	18.68%	17.58%	+1.10%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	18.68%	17.91%	+0.77%

AVSE vs. DIEM - Expense Ratio Comparison

AVSE has a 0.33% expense ratio, which is higher than DIEM's 0.19% expense ratio.

Dividends

AVSE vs. DIEM - Dividend Comparison

AVSE's dividend yield for the trailing twelve months is around 2.81%, more than DIEM's 1.63% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
AVSE Avantis Responsible Emerging Markets Equity ETF	2.81%	2.68%	3.03%	3.20%	1.27%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
DIEM Franklin Emerging Market Core Dividend Tilt Index ETF	1.63%	2.99%	4.92%	4.45%	6.31%	4.06%	2.75%	5.98%	3.87%	2.61%	0.35%

Frequently Asked Questions

Can I hold both AVSE and DIEM in my portfolio?

With a correlation of 0.95, AVSE and DIEM move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, AVSE or DIEM?

AVSE has higher volatility (12.30%) compared to DIEM (12.21%). In terms of maximum drawdown, AVSE dropped -26.28% vs DIEM's -38.61%.

Which ETF is better, AVSE or DIEM?

On 3-year performance, DIEM leads with 27.25% vs 24.48% for AVSE. On fees, DIEM is cheaper at 0.19% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, AVSE or DIEM?

Over the 3-year period, DIEM has performed better with a 27.25% return vs 24.48%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, AVSE or DIEM?

DIEM is cheaper with a 0.19% expense ratio, compared with 0.33% for AVSE.

Which ETF pays a higher dividend yield, AVSE or DIEM?

AVSE has the higher dividend yield at 2.81%, compared with 1.63% for DIEM.

What is the main difference between AVSE and DIEM?

AVSE tracks MSCI Emerging Markets Index, while DIEM tracks Morningstar Emerging Markets Dividend Enhanced Select Index. They also come from different issuers: Avantis and Franklin Templeton. Their fees differ too: 0.33% for AVSE and 0.19% for DIEM.

Which has better risk-adjusted returns?

DIEM currently has the higher Sharpe Ratio (2.55 vs 2.02), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.