DFEM vs. DIEM

Last updated Jun 4, 2026

DFEM (Dimensional Emerging Markets Core Equity 2 ETF) and DIEM (Franklin Emerging Market Core Dividend Tilt Index ETF) are both Emerging Markets Diversified funds. DFEM is actively managed, while DIEM is passively managed. Over the past 3 years, DFEM returned 23.24%/yr vs 28.35%/yr for DIEM. With a 0.96 correlation, they move nearly in lockstep. DFEM charges 0.39%/yr vs 0.19%/yr for DIEM.

Performance

DFEM vs. DIEM - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Dimensional Emerging Markets Core Equity 2 ETF (DFEM) 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, DFEM achieves a 25.59% return, which is significantly lower than DIEM's 32.78% return.

DFEM

• 1D: -1.28%
• 1M: 6.85%
• YTD: 25.59%
• 6M: 27.96%
• 1Y: 50.40%
• 3Y*: 23.24%
• 5Y*: —
• 10Y*: —

DIEM

• 1D: -1.37%
• 1M: 12.08%
• YTD: 32.78%
• 6M: 35.57%
• 1Y: 60.54%
• 3Y*: 28.35%
• 5Y*: 11.49%
• 10Y*: —

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

DFEM vs. DIEM - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
DFEM Dimensional Emerging Markets Core Equity 2 ETF	25.59%	29.51%	7.53%	13.91%	-8.69%
DIEM Franklin Emerging Market Core Dividend Tilt Index ETF	32.78%	30.81%	12.29%	15.41%	-9.18%

Correlation

The correlation between DFEM 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 Apr 28, 2022	0.96

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

DFEM vs. DIEM - Sectors Allocation Comparison

Sectors	DFEM	DIEM
Technology	32.9%	40.3%
Financial Services	15.4%	23.3%
Industrials	11.9%	4.7%
Consumer Cyclical	9.8%	6.7%
Basic Materials	8.4%	4.2%
Communication Services	5.5%	5.6%
Energy	4.4%	6.0%
Healthcare	3.8%	0.6%
Consumer Defensive	3.7%	2.9%
Utilities	2.2%	4.1%
Real Estate	2.0%	1.6%

Return for Risk

DFEM vs. DIEM — Risk / Return Rank

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

DFEM

DFEM Risk / Return Rank: 81
DFEM Sharpe Ratio Rank: 83
DFEM Sortino Ratio Rank: 78
DFEM Omega Ratio Rank: 82
DFEM Calmar Ratio Rank: 80
DFEM Martin Ratio Rank: 81

DIEM

DIEM Risk / Return Rank: 90
DIEM Sharpe Ratio Rank: 92
DIEM Sortino Ratio Rank: 90
DIEM Omega Ratio Rank: 92
DIEM Calmar Ratio Rank: 87
DIEM Martin Ratio Rank: 89

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.

DFEM vs. DIEM - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Markets Core Equity 2 ETF (DFEM) 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.

	DFEM	DIEM	Difference
Sharpe ratio: Return per unit of total volatility	2.74	3.35	-0.60
Sortino ratio: Return per unit of downside risk	3.54	4.26	-0.71
Omega ratio: Gain probability vs. loss probability	1.50	1.62	-0.12
Calmar ratio: Return relative to maximum drawdown	4.18	4.93	-0.76
Martin ratio: Return relative to average drawdown	16.33	20.34	-4.00
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DFEM vs. DIEM - Sharpe Ratio Comparison

The current DFEM Sharpe Ratio is 2.74, which is comparable to the DIEM Sharpe Ratio of 3.35. The chart below compares the historical Sharpe Ratios of DFEM 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.

Sharpe Ratios by Period

	DFEM	DIEM	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.74	3.35	-0.60
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	—	0.68	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.92	0.55	+0.37

Drawdowns

DFEM vs. DIEM - Drawdown Comparison

The maximum DFEM drawdown since its inception was -20.82%, smaller than the maximum DIEM drawdown of -38.61%. Use the drawdown chart below to compare losses from any high point for DFEM and DIEM.

Drawdown Indicators

	DFEM	DIEM	Difference
Max Drawdown Largest peak-to-trough decline	-20.82%	-38.61%	+17.79%
Max Drawdown (1Y) Largest decline over 1 year	-12.12%	-12.33%	+0.21%
Max Drawdown (3Y) Largest decline over 3 years	-18.09%	-16.82%	-1.27%
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	-1.28%	-1.37%	+0.09%
Average Drawdown Average peak-to-trough decline	-5.03%	-9.72%	+4.69%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.09%	2.99%	+0.10%

Volatility

DFEM vs. DIEM - Volatility Comparison

The current volatility for Dimensional Emerging Markets Core Equity 2 ETF (DFEM) is 7.78%, while Franklin Emerging Market Core Dividend Tilt Index ETF (DIEM) has a volatility of 8.52%. This indicates that DFEM experiences smaller price fluctuations and is considered to be less risky than DIEM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DFEM	DIEM	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.78%	8.52%	-0.74%
Volatility (6M) Calculated over the trailing 6-month period	16.02%	15.91%	+0.11%
Volatility (1Y) Calculated over the trailing 1-year period	18.45%	18.17%	+0.28%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.26%	16.93%	+0.33%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.26%	17.59%	-0.33%

DFEM vs. DIEM - Expense Ratio Comparison

DFEM has a 0.39% expense ratio, which is higher than DIEM's 0.19% expense ratio.

Dividends

DFEM vs. DIEM - Dividend Comparison

DFEM's dividend yield for the trailing twelve months is around 1.82%, less than DIEM's 2.30% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
DFEM Dimensional Emerging Markets Core Equity 2 ETF	1.82%	2.32%	2.50%	2.38%	1.99%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
DIEM Franklin Emerging Market Core Dividend Tilt Index ETF	2.30%	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 DFEM and DIEM in my portfolio?

With a correlation of 0.95, DFEM 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, DFEM or DIEM?

DIEM has higher volatility (8.52%) compared to DFEM (7.78%). In terms of maximum drawdown, DFEM dropped -20.82% vs DIEM's -38.61%.

Which ETF is better, DFEM or DIEM?

On 3-year performance, DIEM leads with 28.35% vs 23.24% for DFEM. On fees, DIEM is cheaper at 0.19% per year. On volatility, DFEM has been the lower-risk option at 7.78%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DFEM or DIEM?

Over the 3-year period, DIEM has performed better with a 28.35% return vs 23.24%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DFEM or DIEM?

DIEM is cheaper with a 0.19% expense ratio, compared with 0.39% for DFEM.

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

DIEM has the higher dividend yield at 2.30%, compared with 1.82% for DFEM.

What is the main difference between DFEM and DIEM?

They also come from different issuers: Dimensional and Franklin Templeton. Their fees differ too: 0.39% for DFEM and 0.19% for DIEM.

Which has better risk-adjusted returns?

DIEM currently has the higher Sharpe Ratio (3.35 vs 2.74), 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.