DIEM vs. EEM
DIEM (Franklin Emerging Market Core Dividend Tilt Index ETF) and EEM (iShares MSCI Emerging Markets ETF) are both Emerging Markets Diversified funds - DIEM tracks the Morningstar Emerging Markets Dividend Enhanced Select Index while EEM tracks the MSCI Emerging Markets Index (Net). Both are passively managed. Over the past 10 years, DIEM returned 8.30%/yr vs 8.45%/yr for EEM. Their correlation of 0.93 suggests significant overlap in exposure. DIEM charges 0.19%/yr vs 0.72%/yr for EEM.
Performance
DIEM vs. EEM - Performance Comparison
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Returns By Period
In the year-to-date period, DIEM achieves a 24.14% return, which is significantly higher than EEM's 18.51% return. Both investments have delivered pretty close results over the past 10 years, with DIEM having a 8.30% annualized return and EEM not far ahead at 8.45%.
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%
EEM
- 1D
- -3.59%
- 1M
- -4.49%
- 6M
- 11.90%
- YTD
- 18.51%
- 1Y
- 36.27%
- 3Y*
- 19.09%
- 5Y*
- 6.13%
- 10Y*
- 8.45%
DIEM vs. EEM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
DIEM Franklin Emerging Market Core Dividend Tilt Index ETF | 24.14% | 30.81% | 12.29% | 15.41% | -20.61% | 6.92% | 1.27% | 12.23% | -11.29% | 27.61% |
EEM iShares MSCI Emerging Markets ETF | 18.51% | 33.98% | 6.49% | 8.95% | -20.56% | -3.63% | 17.02% | 18.22% | -15.31% | 37.26% |
Correlation
The correlation between DIEM and EEM is 0.97 - 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 | 0.97 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.97 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.96 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.94 |
Correlation (All Time) Calculated using the full available price history since Jun 3, 2016 | 0.93 |
The correlation between DIEM and EEM has been stable across timeframes, ranging from 0.93 to 0.97 - a consistent structural relationship.
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Return for Risk
DIEM vs. EEM — Risk / Return Rank
DIEM
EEM
DIEM vs. EEM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Franklin Emerging Market Core Dividend Tilt Index ETF (DIEM) and iShares MSCI Emerging Markets ETF (EEM). 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.
| DIEM | EEM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.35 | ||
| Sortino ratioReturn per unit of downside risk | +0.39 | ||
| Omega ratioGain probability vs. loss probability | 1.37 | 1.30 | +0.07 |
| Calmar ratioReturn relative to maximum drawdown | 3.37 | 2.69 | +0.67 |
| Martin ratioReturn relative to average drawdown | 11.88 | 9.20 | +2.68 |
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Drawdowns
DIEM vs. EEM - Drawdown Comparison
The maximum DIEM drawdown since its inception was -38.61%, smaller than the maximum EEM drawdown of -66.43%. Use the drawdown chart below to compare losses from any high point for DIEM and EEM.
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Drawdown Indicators
| DIEM | EEM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.61% | -66.43% | +27.82% |
Max Drawdown (1Y)Largest decline over 1 year | -12.33% | -13.52% | +1.19% |
Max Drawdown (3Y)Largest decline over 3 years | -16.82% | -17.29% | +0.47% |
Max Drawdown (5Y)Largest decline over 5 years | -33.34% | -35.70% | +2.36% |
Max Drawdown (10Y)Largest decline over 10 years | -38.61% | -39.82% | +1.21% |
Current DrawdownCurrent decline from peak | -9.15% | -9.42% | +0.27% |
Average DrawdownAverage peak-to-trough decline | -9.67% | -15.97% | +6.30% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.49% | 3.95% | -0.46% |
Volatility
DIEM vs. EEM - Volatility Comparison
Franklin Emerging Market Core Dividend Tilt Index ETF (DIEM) and iShares MSCI Emerging Markets ETF (EEM) have volatilities of 10.87% and 11.27%, 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.
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Volatility by Period
| DIEM | EEM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.87% | 11.27% | -0.40% |
Volatility (6M)Calculated over the trailing 6-month period | 20.32% | 21.57% | -1.25% |
Volatility (1Y)Calculated over the trailing 1-year period | 21.96% | 23.57% | -1.61% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.81% | 19.71% | -1.90% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 18.00% | 20.70% | -2.70% |
DIEM vs. EEM - Expense Ratio Comparison
DIEM has a 0.19% expense ratio, which is lower than EEM's 0.72% expense ratio.
Dividends
DIEM vs. EEM - Dividend Comparison
DIEM's dividend yield for the trailing twelve months is around 2.99%, more than EEM's 1.73% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% | 0.00% |
EEM iShares MSCI Emerging Markets ETF | 1.73% | 2.22% | 2.43% | 2.63% | 2.50% | 1.99% | 1.45% | 2.76% | 2.24% | 1.89% | 1.89% | 2.49% |
Frequently Asked Questions
With a correlation of 0.97, DIEM and EEM 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.
EEM has higher volatility (11.27%) compared to DIEM (10.87%). In terms of maximum drawdown, DIEM dropped -38.61% vs EEM's -66.43%.
On 10-year performance, EEM leads with 8.45% vs 8.30% for DIEM. On fees, DIEM is cheaper at 0.19% per year. On volatility, DIEM has been the lower-risk option at 10.87%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, EEM has performed better with a 8.45% return vs 8.30%. 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 0.72% for EEM.
DIEM has the higher dividend yield at 2.99%, compared with 1.73% for EEM.
DIEM tracks Morningstar Emerging Markets Dividend Enhanced Select Index, while EEM tracks MSCI Emerging Markets Index (Net). They also come from different issuers: Franklin Templeton and iShares. Their fees differ too: 0.19% for DIEM and 0.72% for EEM.
DIEM currently has the higher Sharpe Ratio (1.89 vs 1.55), 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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