DIEM vs SCHD
Franklin Emerging Market Core Dividend Tilt Index ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. DIEM delivered stronger 1-year returns. DIEM offers more diversification with 604 holdings.
Side-by-Side Comparison
| Metric | DIEM | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.06% | |
| AUM | $93M | $108.7B | |
| Dividend Yield | 2.96% | 3.13% | |
| Holdings | 604 | 104 | |
| YTD Return | +24.83% | +27.67% | |
| 1Y Return | +40.61% | +31.26% | |
| 3Y Return (annualized) | +26.94% | +16.66% | |
| 5Y Return (annualized) | +12.25% | +10.18% | |
| Volatility (annualized) | 15.7% | 13.6% | |
| Max Drawdown | -44.4% | -33.4% | |
| Fund Family | Franklin Templeton Investments (US) | Charles Schwab Asset Management | |
| Category | Equity | Equity | |
| Inception | Jun 1, 2016 | Oct 20, 2011 |
DIEM vs SCHD Performance
Franklin Emerging Market Core Dividend Tilt Index ETF (DIEM) is a ETF from Franklin Templeton Investments (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year DIEM returned +40.61% while SCHD returned +31.26%. Year to date, DIEM is up 24.83% versus a gain of 27.67% for SCHD.
Over three years, DIEM compounded at +26.94% per year against +16.66% for SCHD; over five years the annualized figures are +12.25% and +10.18% respectively. Across the full 10-year window we track, SCHD has the edge at +11.57% annualized vs +7.26%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
DIEM has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 13.6% for SCHD. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -44.4% for DIEM and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.63. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DIEM charges 0.19% per year while SCHD charges 0.06%. On a $10,000 position that is $19 vs $6 annually, a gap of $13 per year that compounds over a long holding period. On income, DIEM currently yields 2.96% against 3.13% for SCHD.
Holdings Overlap
DIEM and SCHD share 0 holdings out of 607 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, DIEM or SCHD?
DIEM has an expense ratio of 0.19% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $13 per year of difference.
Which performed better, DIEM or SCHD?
Over the past year DIEM returned +40.61% vs +31.26% for SCHD, so DIEM leads on 1-year performance. Over the longest common window we track (10 years), DIEM annualized +7.26% vs +11.57% for SCHD. Past performance does not guarantee future results.
Which is riskier, DIEM or SCHD?
DIEM has been the more volatile fund at 15.7% annualized versus 13.6% for SCHD. Worst drawdown: DIEM -44.4% vs SCHD -33.4%.
Should I hold both DIEM and SCHD?
DIEM and SCHD have a monthly-return correlation of 0.63, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DIEM and SCHD?
DIEM and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 607 unique securities.
Which pays a higher dividend, DIEM or SCHD?
DIEM yields 2.96% while SCHD yields 3.13%, so SCHD currently pays the higher dividend yield.
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