DIEM vs. VWO
DIEM (Franklin Emerging Market Core Dividend Tilt Index ETF) and VWO (Vanguard FTSE Emerging Markets ETF) are both exchange-traded funds - DIEM is a Emerging Markets Diversified fund tracking the Morningstar Emerging Markets Dividend Enhanced Select Index, while VWO is a Emerging Markets Equities fund tracking the FTSE Emerging Index. Both are passively managed. Over the past 10 years, DIEM returned 9.27%/yr vs 8.97%/yr for VWO. Their correlation of 0.92 suggests significant overlap in exposure. DIEM charges 0.19%/yr vs 0.08%/yr for VWO.
Performance
DIEM vs. VWO - Performance Comparison
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Returns By Period
In the year-to-date period, DIEM achieves a 29.85% return, which is significantly higher than VWO's 10.55% return. Both investments have delivered pretty close results over the past 10 years, with DIEM having a 9.27% annualized return and VWO not far behind at 8.97%.
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%
VWO
- 1D
- -3.07%
- 1M
- 0.76%
- YTD
- 10.55%
- 6M
- 10.67%
- 1Y
- 27.03%
- 3Y*
- 17.42%
- 5Y*
- 5.09%
- 10Y*
- 8.97%
DIEM vs. VWO - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
DIEM Franklin Emerging Market Core Dividend Tilt Index ETF | 29.85% | 30.81% | 12.29% | 15.41% | -20.61% | 6.92% | 1.27% | 12.23% | -11.29% | 27.61% |
VWO Vanguard FTSE Emerging Markets ETF | 10.55% | 25.60% | 10.59% | 9.25% | -17.98% | 1.26% | 15.17% | 20.75% | -14.76% | 31.49% |
Correlation
The correlation between DIEM and VWO is 0.93, 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 | 0.93 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.95 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.95 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.92 |
Correlation (All Time) Calculated using the full available price history since Jun 3, 2016 | 0.92 |
The correlation between DIEM and VWO has been stable across timeframes, ranging from 0.92 to 0.95 - a consistent structural relationship.
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Return for Risk
DIEM vs. VWO — Risk / Return Rank
DIEM
VWO
DIEM vs. VWO - 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 Vanguard FTSE Emerging Markets ETF (VWO). 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 | VWO | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | +0.95 | ||
| Sortino ratioReturn per unit of downside risk | +0.95 | ||
| Omega ratioGain probability vs. loss probability | 1.49 | 1.30 | +0.19 |
| Calmar ratioReturn relative to maximum drawdown | 4.34 | 2.43 | +1.91 |
| Martin ratioReturn relative to average drawdown | 16.81 | 8.56 | +8.25 |
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Drawdowns
DIEM vs. VWO - Drawdown Comparison
The maximum DIEM drawdown since its inception was -38.61%, smaller than the maximum VWO drawdown of -67.68%. Use the drawdown chart below to compare losses from any high point for DIEM and VWO.
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Drawdown Indicators
| DIEM | VWO | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -38.61% | -67.68% | +29.07% |
Max Drawdown (1Y)Largest decline over 1 year | -12.33% | -11.17% | -1.16% |
Max Drawdown (3Y)Largest decline over 3 years | -16.82% | -17.37% | +0.55% |
Max Drawdown (5Y)Largest decline over 5 years | -33.34% | -32.60% | -0.74% |
Max Drawdown (10Y)Largest decline over 10 years | -38.61% | -36.39% | -2.22% |
Current DrawdownCurrent decline from peak | -4.97% | -3.07% | -1.90% |
Average DrawdownAverage peak-to-trough decline | -9.68% | -15.79% | +6.11% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 3.18% | 3.17% | +0.01% |
Volatility
DIEM vs. VWO - Volatility Comparison
Franklin Emerging Market Core Dividend Tilt Index ETF (DIEM) has a higher volatility of 12.21% compared to Vanguard FTSE Emerging Markets ETF (VWO) at 7.37%. This indicates that DIEM's price experiences larger fluctuations and is considered to be riskier than VWO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| DIEM | VWO | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 12.21% | 7.37% | +4.84% |
Volatility (6M)Calculated over the trailing 6-month period | 19.22% | 14.62% | +4.60% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.98% | 16.94% | +4.04% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 17.58% | 17.58% | 0.00% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 17.91% | 19.18% | -1.27% |
DIEM vs. VWO - Expense Ratio Comparison
DIEM has a 0.19% expense ratio, which is higher than VWO's 0.08% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Dividends
DIEM vs. VWO - Dividend Comparison
DIEM's dividend yield for the trailing twelve months is around 1.63%, less than VWO's 2.33% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
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% | 0.00% |
VWO Vanguard FTSE Emerging Markets ETF | 2.33% | 2.79% | 3.20% | 3.52% | 4.11% | 2.63% | 1.91% | 3.23% | 2.88% | 2.30% | 2.52% | 3.26% |
Frequently Asked Questions
With a correlation of 0.93, DIEM and VWO 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 (12.21%) compared to VWO (7.37%). In terms of maximum drawdown, DIEM dropped -38.61% vs VWO's -67.68%.
On 10-year performance, DIEM leads with 9.27% vs 8.97% for VWO. On fees, VWO is cheaper at 0.08% per year. On volatility, VWO has been the lower-risk option at 7.37%. The better choice depends on whether you care most about return, fees, risk, or income.
Over the 10-year period, DIEM has performed better with a 9.27% return vs 8.97%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.
VWO is cheaper with a 0.08% expense ratio, compared with 0.19% for DIEM.
VWO has the higher dividend yield at 2.33%, compared with 1.63% for DIEM.
DIEM is categorized as Emerging Markets Diversified, while VWO is Emerging Markets Equities. DIEM tracks Morningstar Emerging Markets Dividend Enhanced Select Index, while VWO tracks FTSE Emerging Index. They also come from different issuers: Franklin Templeton and Vanguard. Their fees differ too: 0.19% for DIEM and 0.08% for VWO.
DIEM currently has the higher Sharpe Ratio (2.55 vs 1.60), 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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