DFSE vs. DIEM
DFSE (Dimensional Emerging Markets Sustainability Core 1 ETF) and DIEM (Franklin Emerging Market Core Dividend Tilt Index ETF) are both Emerging Markets Diversified funds. DFSE is actively managed, while DIEM is passively managed. Over the past 3 years, DFSE returned 16.55%/yr vs 23.75%/yr for DIEM. Their correlation of 0.93 suggests significant overlap in exposure. DFSE charges 0.41%/yr vs 0.19%/yr for DIEM.
Performance
DFSE vs. DIEM - Performance Comparison
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Returns By Period
In the year-to-date period, DFSE achieves a 13.49% return, which is significantly lower than DIEM's 24.14% return.
DFSE
- 1D
- -3.34%
- 1M
- -4.77%
- 6M
- 8.47%
- YTD
- 13.49%
- 1Y
- 25.67%
- 3Y*
- 16.55%
- 5Y*
- —
- 10Y*
- —
DIEM
- 1D
- -3.35%
- 1M
- -4.04%
- 6M
- 18.80%
- YTD
- 24.14%
- 1Y
- 41.33%
- 3Y*
- 23.75%
- 5Y*
- 10.93%
- 10Y*
- 8.30%
DFSE vs. DIEM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | |
|---|---|---|---|---|---|
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF | 13.49% | 28.22% | 6.90% | 14.66% | 10.68% |
DIEM Franklin Emerging Market Core Dividend Tilt Index ETF | 24.14% | 30.81% | 12.29% | 15.41% | 12.59% |
Correlation
The correlation between DFSE and DIEM is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.94 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.93 |
Correlation (All Time) Calculated using the full available price history since Nov 2, 2022 | 0.93 |
The correlation between DFSE and DIEM has been stable across timeframes, ranging from 0.93 to 0.94 - a consistent structural relationship.
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Return for Risk
DFSE vs. DIEM — Risk / Return Rank
DFSE
DIEM
DFSE vs. DIEM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) 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.
| DFSE | DIEM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.69 | ||
| Sortino ratioReturn per unit of downside risk | -0.77 | ||
| Omega ratioGain probability vs. loss probability | 1.24 | 1.37 | -0.13 |
| Calmar ratioReturn relative to maximum drawdown | 2.00 | 3.37 | -1.36 |
| Martin ratioReturn relative to average drawdown | 6.80 | 11.88 | -5.08 |
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Drawdowns
DFSE vs. DIEM - Drawdown Comparison
The maximum DFSE drawdown since its inception was -19.77%, smaller than the maximum DIEM drawdown of -38.61%. Use the drawdown chart below to compare losses from any high point for DFSE and DIEM.
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Drawdown Indicators
| DFSE | DIEM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -19.77% | -38.61% | +18.84% |
Max Drawdown (1Y)Largest decline over 1 year | -12.88% | -12.33% | -0.55% |
Max Drawdown (3Y)Largest decline over 3 years | -19.77% | -16.82% | -2.95% |
Max Drawdown (5Y)Largest decline over 5 years | — | -33.34% | — |
Max Drawdown (10Y)Largest decline over 10 years | — | -38.61% | — |
Current DrawdownCurrent decline from peak | -7.78% | -9.15% | +1.37% |
Average DrawdownAverage peak-to-trough decline | -4.01% | -9.67% | +5.66% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.79% | 3.49% | +0.30% |
Volatility
DFSE vs. DIEM - Volatility Comparison
The current volatility for Dimensional Emerging Markets Sustainability Core 1 ETF (DFSE) is 9.95%, while Franklin Emerging Market Core Dividend Tilt Index ETF (DIEM) has a volatility of 10.87%. This indicates that DFSE 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.
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Volatility by Period
| DFSE | DIEM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 9.95% | 10.87% | -0.92% |
Volatility (6M)Calculated over the trailing 6-month period | 19.53% | 20.32% | -0.79% |
Volatility (1Y)Calculated over the trailing 1-year period | 21.47% | 21.96% | -0.49% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 18.36% | 17.81% | +0.55% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.36% | 18.00% | +0.36% |
DFSE vs. DIEM - Expense Ratio Comparison
DFSE has a 0.41% expense ratio, which is higher than DIEM's 0.19% expense ratio.
Dividends
DFSE vs. DIEM - Dividend Comparison
DFSE's dividend yield for the trailing twelve months is around 1.95%, less than DIEM's 2.99% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
DFSE Dimensional Emerging Markets Sustainability Core 1 ETF | 1.95% | 2.26% | 2.06% | 2.06% | 0.36% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
DIEM Franklin Emerging Market Core Dividend Tilt Index ETF | 2.99% | 2.99% | 4.92% | 4.45% | 6.31% | 4.06% | 2.75% | 5.98% | 3.87% | 2.61% | 0.35% |
Frequently Asked Questions
With a correlation of 0.94, DFSE 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.
DIEM has higher volatility (10.87%) compared to DFSE (9.95%). In terms of maximum drawdown, DFSE dropped -19.77% vs DIEM's -38.61%.
On 3-year performance, DIEM leads with 23.75% vs 16.55% for DFSE. On fees, DIEM is cheaper at 0.19% per year. On volatility, DFSE has been the lower-risk option at 9.95%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 3-year period, DIEM has performed better with a 23.75% return vs 16.55%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
DIEM is cheaper with a 0.19% expense ratio, compared with 0.41% for DFSE.
DIEM has the higher dividend yield at 2.99%, compared with 1.95% for DFSE.
They also come from different issuers: Dimensional and Franklin Templeton. Their fees differ too: 0.41% for DFSE and 0.19% for DIEM.
DIEM currently has the higher Sharpe Ratio (1.89 vs 1.20), 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.
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