DIEM vs. FNDE

Last updated Jun 3, 2026

DIEM (Franklin Emerging Market Core Dividend Tilt Index ETF) and FNDE (Schwab Fundamental Emerging Markets Large Company Index ETF) are both exchange-traded funds - DIEM is a Emerging Markets Diversified fund tracking the Morningstar Emerging Markets Dividend Enhanced Select Index, while FNDE is a Emerging Markets Equities fund tracking the Russell Fundamental Emerging Markets Large Company Index. Both are passively managed. Over the past 5 years, DIEM returned 11.95%/yr vs 10.18%/yr for FNDE. Their correlation of 0.92 suggests significant overlap in exposure. DIEM charges 0.19%/yr vs 0.39%/yr for FNDE.

Performance

DIEM vs. FNDE - Performance Comparison

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

Returns By Period

In the year-to-date period, DIEM achieves a 34.62% return, which is significantly higher than FNDE's 17.44% return.

DIEM

• 1D: 1.25%
• 1M: 13.76%
• YTD: 34.62%
• 6M: 37.79%
• 1Y: 63.44%
• 3Y*: 28.94%
• 5Y*: 11.95%
• 10Y*: —

FNDE

• 1D: 1.63%
• 1M: 4.16%
• YTD: 17.44%
• 6M: 18.33%
• 1Y: 39.87%
• 3Y*: 22.27%
• 5Y*: 10.18%
• 10Y*: 11.46%

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

DIEM vs. FNDE - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
DIEM Franklin Emerging Market Core Dividend Tilt Index ETF	34.62%	30.81%	12.29%	15.41%	-20.61%	6.92%	1.27%	12.23%	-11.29%	27.61%
FNDE Schwab Fundamental Emerging Markets Large Company Index ETF	17.44%	29.46%	12.10%	14.99%	-15.58%	14.41%	-2.77%	19.75%	-10.37%	26.77%

Correlation

The correlation between DIEM and FNDE is 0.90, 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	0.90
Correlation (3Y) Calculated over the trailing 3-year period	0.94
Correlation (5Y) Calculated over the trailing 5-year period	0.95
Correlation (All Time) Calculated using the full available price history since Jun 6, 2016	0.92

The correlation between DIEM and FNDE has been stable across timeframes, ranging from 0.90 to 0.95 - a consistent structural relationship.

DIEM vs. FNDE - Sectors Allocation Comparison

Sectors	DIEM	FNDE
Technology	40.3%	18.7%
Financial Services	23.3%	23.8%
Consumer Cyclical	6.7%	9.5%
Energy	6.0%	15.5%
Communication Services	5.6%	6.6%
Industrials	4.7%	4.7%
Basic Materials	4.2%	13.6%
Utilities	4.1%	2.5%
Consumer Defensive	2.9%	3.1%
Real Estate	1.6%	1.5%
Healthcare	0.6%	0.5%

Return for Risk

DIEM vs. FNDE — Risk / Return Rank

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

DIEM

DIEM Risk / Return Rank: 91
DIEM Sharpe Ratio Rank: 93
DIEM Sortino Ratio Rank: 92
DIEM Omega Ratio Rank: 93
DIEM Calmar Ratio Rank: 88
DIEM Martin Ratio Rank: 90

FNDE

FNDE Risk / Return Rank: 79
FNDE Sharpe Ratio Rank: 81
FNDE Sortino Ratio Rank: 78
FNDE Omega Ratio Rank: 81
FNDE Calmar Ratio Rank: 77
FNDE Martin Ratio Rank: 77

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.

DIEM vs. FNDE - 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 Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE). 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.

	DIEM	FNDE	Difference
Sharpe ratio Return per unit of total volatility	3.52	2.69	+0.83
Sortino ratio Return per unit of downside risk	4.44	3.54	+0.90
Omega ratio Gain probability vs. loss probability	1.66	1.49	+0.17
Calmar ratio Return relative to maximum drawdown	5.18	3.97	+1.21
Martin ratio Return relative to average drawdown	21.41	15.08	+6.33
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

DIEM vs. FNDE - Sharpe Ratio Comparison

The current DIEM Sharpe Ratio is 3.52, which is higher than the FNDE Sharpe Ratio of 2.69. The chart below compares the historical Sharpe Ratios of DIEM and FNDE, 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

	DIEM	FNDE	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.52	2.69	+0.83
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.71	0.61	+0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.60	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.56	0.38	+0.17

Drawdowns

DIEM vs. FNDE - Drawdown Comparison

The maximum DIEM drawdown since its inception was -38.61%, smaller than the maximum FNDE drawdown of -43.55%. Use the drawdown chart below to compare losses from any high point for DIEM and FNDE.

Drawdown Indicators

	DIEM	FNDE	Difference
Max Drawdown Largest peak-to-trough decline	-38.61%	-43.55%	+4.94%
Max Drawdown (1Y) Largest decline over 1 year	-12.33%	-10.23%	-2.10%
Max Drawdown (3Y) Largest decline over 3 years	-16.82%	-18.40%	+1.58%
Max Drawdown (5Y) Largest decline over 5 years	-33.34%	-29.44%	-3.90%
Max Drawdown (10Y) Largest decline over 10 years	—	-39.93%	—
Current Drawdown Current decline from peak	0.00%	0.00%	0.00%
Average Drawdown Average peak-to-trough decline	-9.72%	-11.71%	+1.99%
Ulcer Index Depth and duration of drawdowns from previous peaks	2.98%	2.69%	+0.29%

Volatility

DIEM vs. FNDE - Volatility Comparison

Franklin Emerging Market Core Dividend Tilt Index ETF (DIEM) has a higher volatility of 8.30% compared to Schwab Fundamental Emerging Markets Large Company Index ETF (FNDE) at 5.08%. This indicates that DIEM's price experiences larger fluctuations and is considered to be riskier than FNDE based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DIEM	FNDE	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.30%	5.08%	+3.22%
Volatility (6M) Calculated over the trailing 6-month period	15.83%	12.18%	+3.65%
Volatility (1Y) Calculated over the trailing 1-year period	18.10%	14.90%	+3.20%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	16.92%	16.90%	+0.02%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.59%	19.30%	-1.71%

DIEM vs. FNDE - Expense Ratio Comparison

DIEM has a 0.19% expense ratio, which is lower than FNDE's 0.39% expense ratio.

Dividends

DIEM vs. FNDE - Dividend Comparison

DIEM's dividend yield for the trailing twelve months is around 2.27%, less than FNDE's 3.56% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
DIEM Franklin Emerging Market Core Dividend Tilt Index ETF	2.27%	2.99%	4.92%	4.45%	6.31%	4.06%	2.75%	5.98%	3.87%	2.61%	0.35%	0.00%
FNDE Schwab Fundamental Emerging Markets Large Company Index ETF	3.56%	4.19%	4.82%	4.74%	5.59%	4.32%	2.50%	3.47%	2.98%	2.05%	1.65%	2.02%

Frequently Asked Questions

Can I hold both DIEM and FNDE in my portfolio?

With a correlation of 0.90, DIEM and FNDE 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, DIEM or FNDE?

DIEM has higher volatility (8.30%) compared to FNDE (5.08%). In terms of maximum drawdown, DIEM dropped -38.61% vs FNDE's -43.55%.

Which ETF is better, DIEM or FNDE?

On 5-year performance, DIEM leads with 11.95% vs 10.18% for FNDE. On fees, DIEM is cheaper at 0.19% per year. On volatility, FNDE has been the lower-risk option at 5.08%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DIEM or FNDE?

Over the 5-year period, DIEM has performed better with a 11.95% return vs 10.18%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DIEM or FNDE?

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

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

FNDE has the higher dividend yield at 3.56%, compared with 2.27% for DIEM.

What is the main difference between DIEM and FNDE?

DIEM is categorized as Emerging Markets Diversified, while FNDE is Emerging Markets Equities. DIEM tracks Morningstar Emerging Markets Dividend Enhanced Select Index, while FNDE tracks Russell Fundamental Emerging Markets Large Company Index. They also come from different issuers: Franklin Templeton and Charles Schwab. Their fees differ too: 0.19% for DIEM and 0.39% for FNDE.

Which has better risk-adjusted returns?

DIEM currently has the higher Sharpe Ratio (3.52 vs 2.69), 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.