EEM vs. DIEM
EEM (iShares MSCI Emerging Markets ETF) and DIEM (Franklin Emerging Market Core Dividend Tilt Index ETF) are both Emerging Markets Diversified funds - EEM tracks the MSCI Emerging Markets Index (Net) while DIEM tracks the Morningstar Emerging Markets Dividend Enhanced Select Index. Both are passively managed. Over the past 10 years, EEM returned 8.30%/yr vs 8.23%/yr for DIEM. Their correlation of 0.93 suggests significant overlap in exposure. EEM charges 0.72%/yr vs 0.19%/yr for DIEM.
Performance
EEM vs. DIEM - Performance Comparison
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Returns By Period
In the year-to-date period, EEM achieves a 17.94% return, which is significantly lower than DIEM's 23.35% return. Both investments have delivered pretty close results over the past 10 years, with EEM having a 8.30% annualized return and DIEM not far behind at 8.23%.
EEM
- 1D
- -2.10%
- 1M
- -6.48%
- 6M
- 11.07%
- YTD
- 17.94%
- 1Y
- 33.81%
- 3Y*
- 18.86%
- 5Y*
- 6.14%
- 10Y*
- 8.30%
DIEM
- 1D
- -2.00%
- 1M
- -6.03%
- 6M
- 16.95%
- YTD
- 23.35%
- 1Y
- 38.88%
- 3Y*
- 23.48%
- 5Y*
- 10.89%
- 10Y*
- 8.23%
EEM vs. DIEM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
EEM iShares MSCI Emerging Markets ETF | 17.94% | 33.98% | 6.49% | 8.95% | -20.56% | -3.63% | 17.02% | 18.22% | -15.31% | 37.26% |
DIEM Franklin Emerging Market Core Dividend Tilt Index ETF | 23.35% | 30.81% | 12.29% | 15.41% | -20.61% | 6.92% | 1.27% | 12.23% | -11.29% | 27.61% |
Correlation
The correlation between EEM and DIEM 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 EEM and DIEM has been stable across timeframes, ranging from 0.93 to 0.97 - a consistent structural relationship.
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Return for Risk
EEM vs. DIEM — Risk / Return Rank
EEM
DIEM
EEM vs. DIEM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for iShares MSCI Emerging Markets ETF (EEM) 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.
| EEM | DIEM | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.34 | ||
| Sortino ratioReturn per unit of downside risk | -0.38 | ||
| Omega ratioGain probability vs. loss probability | 1.28 | 1.34 | -0.06 |
| Calmar ratioReturn relative to maximum drawdown | 2.51 | 3.17 | -0.65 |
| Martin ratioReturn relative to average drawdown | 8.34 | 10.80 | -2.46 |
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Drawdowns
EEM vs. DIEM - Drawdown Comparison
The maximum EEM drawdown since its inception was -66.43%, which is greater than DIEM's maximum drawdown of -38.61%. Use the drawdown chart below to compare losses from any high point for EEM and DIEM.
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Drawdown Indicators
| EEM | DIEM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -66.43% | -38.61% | -27.82% |
Max Drawdown (1Y)Largest decline over 1 year | -13.52% | -12.33% | -1.19% |
Max Drawdown (3Y)Largest decline over 3 years | -17.29% | -16.82% | -0.47% |
Max Drawdown (5Y)Largest decline over 5 years | -35.20% | -33.34% | -1.86% |
Max Drawdown (10Y)Largest decline over 10 years | -39.82% | -38.61% | -1.21% |
Current DrawdownCurrent decline from peak | -9.86% | -9.73% | -0.13% |
Average DrawdownAverage peak-to-trough decline | -15.96% | -9.66% | -6.30% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 4.06% | 3.61% | +0.45% |
Volatility
EEM vs. DIEM - Volatility Comparison
iShares MSCI Emerging Markets ETF (EEM) and Franklin Emerging Market Core Dividend Tilt Index ETF (DIEM) have volatilities of 10.05% and 9.72%, 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
| EEM | DIEM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.05% | 9.72% | +0.33% |
Volatility (6M)Calculated over the trailing 6-month period | 21.69% | 20.47% | +1.22% |
Volatility (1Y)Calculated over the trailing 1-year period | 23.69% | 22.08% | +1.61% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 19.75% | 17.84% | +1.91% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 20.71% | 17.94% | +2.77% |
EEM vs. DIEM - Expense Ratio Comparison
EEM has a 0.72% expense ratio, which is higher than DIEM's 0.19% expense ratio.
Dividends
EEM vs. DIEM - Dividend Comparison
EEM's dividend yield for the trailing twelve months is around 1.74%, less than DIEM's 3.01% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
DIEM Franklin Emerging Market Core Dividend Tilt Index ETF | 3.01% | 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 | 1.74% | 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, EEM 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.
EEM has higher volatility (10.05%) compared to DIEM (9.72%). In terms of maximum drawdown, EEM dropped -66.43% vs DIEM's -38.61%.
On 10-year performance, EEM leads with 8.30% vs 8.23% for DIEM. On fees, DIEM is cheaper at 0.19% per year. On volatility, DIEM has been the lower-risk option at 9.72%. 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 8.30% return vs 8.23%. 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 3.01%, compared with 1.74% for EEM.
EEM tracks MSCI Emerging Markets Index (Net), while DIEM tracks Morningstar Emerging Markets Dividend Enhanced Select Index. They also come from different issuers: iShares and Franklin Templeton. Their fees differ too: 0.72% for EEM and 0.19% for DIEM.
DIEM currently has the higher Sharpe Ratio (1.77 vs 1.43), 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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