DIEM vs VXUS

DIEM vs VXUS
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Quick Verdict

VXUS has a lower expense ratio. DIEM delivered stronger 1-year returns. VXUS offers more diversification with 8,747 holdings.

Lower Fees: VXUSHigher Returns: DIEMMore Diversified: VXUS

Side-by-Side Comparison

MetricDIEMVXUSWinner
Expense Ratio0.19%0.05%
AUM$93M$158.1B
Dividend Yield2.96%2.59%
Holdings6048,747
YTD Return+24.09%+14.26%
1Y Return+39.89%+25.40%
3Y Return (annualized)+26.72%+20.47%
5Y Return (annualized)+12.10%+9.76%
Volatility (annualized)15.7%15.1%
Max Drawdown-44.4%-39.9%
Fund FamilyFranklin Templeton Investments (US)Vanguard (US)
CategoryEquityEquity
InceptionJun 1, 2016Jan 26, 2011

DIEM vs VXUS Performance

Franklin Emerging Market Core Dividend Tilt Index ETF (DIEM) is a ETF from Franklin Templeton Investments (US) and Vanguard Total International Stock ETF (VXUS) is a ETF from Vanguard (US). Over the past year DIEM returned +39.89% while VXUS returned +25.40%. Year to date, DIEM is up 24.09% versus a gain of 14.26% for VXUS.

Over three years, DIEM compounded at +26.72% per year against +20.47% for VXUS; over five years the annualized figures are +12.10% and +9.76% respectively. Across the full 10-year window we track, DIEM has the edge at +7.20% annualized vs +4.83%. 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 15.1% for VXUS. 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 -39.9% for VXUS. 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.

Fees and Cost Over Time

DIEM charges 0.19% per year while VXUS charges 0.05%. On a $10,000 position that is $19 vs $5 annually, a gap of $14 per year that compounds over a long holding period. On income, DIEM currently yields 2.96% against 2.59% for VXUS.

Holdings Overlap

12.2%overlap

DIEM and VXUS share 375 holdings out of 8001 unique holdings combined, representing a 12.2% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in DIEMWeight in VXUSDifference
2330:TW13.18%3.41%9.77%
000660:KR8.82%0.90%7.92%
0700:HK1.12%0.92%0.20%
2454:TWProProPro
9988:HKProProPro
VALE3:BVProProPro
2317:TWProProPro
3988:HKProProPro
402340:KRProProPro
2222:SAProProPro
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Frequently Asked Questions

Which is cheaper, DIEM or VXUS?

DIEM has an expense ratio of 0.19% while VXUS charges 0.05%. VXUS is the cheaper option. On a $10,000 investment, that is $14 per year of difference.

Which performed better, DIEM or VXUS?

Over the past year DIEM returned +39.89% vs +25.40% for VXUS, so DIEM leads on 1-year performance. Over the longest common window we track (10 years), DIEM annualized +7.20% vs +4.83% for VXUS. Past performance does not guarantee future results.

Which is riskier, DIEM or VXUS?

DIEM has been the more volatile fund at 15.7% annualized versus 15.1% for VXUS. Worst drawdown: DIEM -44.4% vs VXUS -39.9%.

Should I hold both DIEM and VXUS?

DIEM and VXUS have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.

What is the holdings overlap between DIEM and VXUS?

DIEM and VXUS share 375 common holdings with a 12.2% weight overlap. Combined, they hold 8001 unique securities.

Which pays a higher dividend, DIEM or VXUS?

DIEM yields 2.96% while VXUS yields 2.59%, so DIEM currently pays the higher dividend yield.

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