DIEM vs VYM
Franklin Emerging Market Core Dividend Tilt Index ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. DIEM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | DIEM | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.19% | 0.04% | |
| AUM | $93M | $81.6B | |
| Dividend Yield | 2.96% | 2.24% | |
| Holdings | 604 | 616 | |
| YTD Return | +26.14% | +15.34% | |
| 1Y Return | +42.44% | +23.24% | |
| 3Y Return (annualized) | +27.50% | +19.22% | |
| 5Y Return (annualized) | +12.24% | +12.21% | |
| Volatility (annualized) | 15.7% | 14.6% | |
| Max Drawdown | -44.4% | -58.8% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Jun 1, 2016 | Nov 10, 2006 |
DIEM vs VYM Performance
Franklin Emerging Market Core Dividend Tilt Index ETF (DIEM) is a ETF from Franklin Templeton Investments (US) and Vanguard High Dividend Yield ETF (VYM) is a ETF from Vanguard (US). Over the past year DIEM returned +42.44% while VYM returned +23.24%. Year to date, DIEM is up 26.14% versus a gain of 15.34% for VYM.
Over three years, DIEM compounded at +27.50% per year against +19.22% for VYM; over five years the annualized figures are +12.24% and +12.21% respectively. Across the full 10-year window we track, DIEM has the edge at +7.37% annualized vs +7.04%. 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 14.6% for VYM. 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 -58.8% for VYM. 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 0.67. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
DIEM charges 0.19% per year while VYM charges 0.04%. On a $10,000 position that is $19 vs $4 annually, a gap of $15 per year that compounds over a long holding period. On income, DIEM currently yields 2.96% against 2.24% for VYM.
Holdings Overlap
DIEM and VYM share 1 holdings out of 1109 unique holdings combined, representing a 0.1% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Top Shared Holdings
| Stock | Weight in DIEM | Weight in VYM | Difference |
|---|---|---|---|
| BAP | 0.44% | 0.11% | 0.33% |
Frequently Asked Questions
Which is cheaper, DIEM or VYM?
DIEM has an expense ratio of 0.19% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $15 per year of difference.
Which performed better, DIEM or VYM?
Over the past year DIEM returned +42.44% vs +23.24% for VYM, so DIEM leads on 1-year performance. Over the longest common window we track (10 years), DIEM annualized +7.37% vs +7.04% for VYM. Past performance does not guarantee future results.
Which is riskier, DIEM or VYM?
DIEM has been the more volatile fund at 15.7% annualized versus 14.6% for VYM. Worst drawdown: DIEM -44.4% vs VYM -58.8%.
Should I hold both DIEM and VYM?
DIEM and VYM have a monthly-return correlation of 0.67, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between DIEM and VYM?
DIEM and VYM share 1 common holdings with a 0.1% weight overlap. Combined, they hold 1109 unique securities.
Which pays a higher dividend, DIEM or VYM?
DIEM yields 2.96% while VYM yields 2.24%, so DIEM currently pays the higher dividend yield.
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