DIEM vs. PBDC

Last updated Jun 24, 2026

DIEM (Franklin Emerging Market Core Dividend Tilt Index ETF) and PBDC (Putnam BDC Income ETF) are both exchange-traded funds - DIEM is a Emerging Markets Diversified fund tracking the Morningstar Emerging Markets Dividend Enhanced Select Index, while PBDC is a Financials Equities fund actively managed by Franklin Templeton. DIEM is passively managed, while PBDC is actively managed. Over the past 3 years, DIEM returned 27.25%/yr vs 7.11%/yr for PBDC. At a 0.37 correlation, their price movements are largely independent. DIEM charges 0.19%/yr vs 13.49%/yr for PBDC.

Performance

DIEM vs. PBDC - 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 Putnam BDC Income ETF (PBDC). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, DIEM achieves a 29.85% return, which is significantly higher than PBDC's -11.42% return.

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%

PBDC

• 1D: 0.30%
• 1M: -1.31%
• YTD: -11.42%
• 6M: -9.25%
• 1Y: -11.33%
• 3Y*: 7.11%
• 5Y*: —
• 10Y*: —

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

DIEM vs. PBDC - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
DIEM Franklin Emerging Market Core Dividend Tilt Index ETF	29.85%	30.81%	12.29%	15.41%	11.79%
PBDC Putnam BDC Income ETF	-11.42%	-1.77%	19.43%	30.52%	10.38%

Correlation

The correlation between DIEM and PBDC is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.29
Correlation (3Y) Calculated over the trailing 3-year period	0.34
Correlation (All Time) Calculated using the full available price history since Sep 30, 2022	0.37

Return for Risk

DIEM vs. PBDC — Risk / Return Rank

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

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

PBDC

PBDC Risk / Return Rank: 4
PBDC Sharpe Ratio Rank: 4
PBDC Sortino Ratio Rank: 4
PBDC Omega Ratio Rank: 4
PBDC Calmar Ratio Rank: 4
PBDC Martin Ratio Rank: 4

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. PBDC - 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 Putnam BDC Income ETF (PBDC). 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	PBDC	Difference
Sharpe ratio: Return per unit of total volatility	2.55	-0.61	+3.16
Sortino ratio: Return per unit of downside risk	3.17	-0.76	+3.93
Omega ratio: Gain probability vs. loss probability	1.49	0.91	+0.58
Calmar ratio: Return relative to maximum drawdown	4.34	-0.56	+4.90
Martin ratio: Return relative to average drawdown	16.81	-0.98	+17.79

DIEM vs. PBDC - Sharpe Ratio Comparison

The current DIEM Sharpe Ratio is 2.55, which is higher than the PBDC Sharpe Ratio of -0.61. The chart below compares the historical Sharpe Ratios of DIEM and PBDC, 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

DIEM vs. PBDC - Drawdown Comparison

The maximum DIEM drawdown since its inception was -38.61%, which is greater than PBDC's maximum drawdown of -20.47%. Use the drawdown chart below to compare losses from any high point for DIEM and PBDC.

Drawdown Indicators

	DIEM	PBDC	Difference
Max Drawdown Largest peak-to-trough decline	-38.61%	-20.47%	-18.14%
Max Drawdown (1Y) Largest decline over 1 year	-12.33%	-20.15%	+7.82%
Max Drawdown (3Y) Largest decline over 3 years	-16.82%	-20.47%	+3.65%
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	-4.97%	-18.74%	+13.77%
Average Drawdown Average peak-to-trough decline	-9.68%	-4.83%	-4.85%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.18%	11.58%	-8.40%

Volatility

DIEM vs. PBDC - Volatility Comparison

Franklin Emerging Market Core Dividend Tilt Index ETF (DIEM) has a higher volatility of 12.21% compared to Putnam BDC Income ETF (PBDC) at 5.50%. This indicates that DIEM's price experiences larger fluctuations and is considered to be riskier than PBDC based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	DIEM	PBDC	Difference
Volatility (1M) Calculated over the trailing 1-month period	12.21%	5.50%	+6.71%
Volatility (6M) Calculated over the trailing 6-month period	19.22%	15.43%	+3.79%
Volatility (1Y) Calculated over the trailing 1-year period	20.98%	18.66%	+2.32%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	17.58%	17.05%	+0.53%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.91%	17.05%	+0.86%

DIEM vs. PBDC - Expense Ratio Comparison

DIEM has a 0.19% expense ratio, which is lower than PBDC's 13.49% expense ratio.

Dividends

DIEM vs. PBDC - Dividend Comparison

DIEM's dividend yield for the trailing twelve months is around 1.63%, less than PBDC's 11.91% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
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%
PBDC Putnam BDC Income ETF	11.91%	10.53%	9.29%	9.86%	3.40%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both DIEM and PBDC in my portfolio?

DIEM and PBDC have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, DIEM or PBDC?

DIEM has higher volatility (12.21%) compared to PBDC (5.50%). In terms of maximum drawdown, DIEM dropped -38.61% vs PBDC's -20.47%.

Which ETF is better, DIEM or PBDC?

On 3-year performance, DIEM leads with 27.25% vs 7.11% for PBDC. On fees, DIEM is cheaper at 0.19% per year. On volatility, PBDC has been the lower-risk option at 5.50%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, DIEM or PBDC?

Over the 3-year period, DIEM has performed better with a 27.25% return vs 7.11%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, DIEM or PBDC?

DIEM is cheaper with a 0.19% expense ratio, compared with 13.49% for PBDC.

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

PBDC has the higher dividend yield at 11.91%, compared with 1.63% for DIEM.

What is the main difference between DIEM and PBDC?

DIEM is categorized as Emerging Markets Diversified, while PBDC is Financials Equities. Their fees differ too: 0.19% for DIEM and 13.49% for PBDC.

Which has better risk-adjusted returns?

DIEM currently has the higher Sharpe Ratio (2.55 vs -0.61), 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.