FLAU vs VTI

FLAU vs VTI
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Quick Verdict

VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.

Lower Fees: VTIHigher Returns: VTIMore Diversified: VTI

Side-by-Side Comparison

MetricFLAUVTIWinner
Expense Ratio0.09%0.03%
AUM$181M$666.9B
Dividend Yield3.05%1.07%
Holdings1113,543
YTD Return+14.53%+13.67%
1Y Return+16.82%+22.17%
3Y Return (annualized)+16.04%+21.93%
5Y Return (annualized)+8.27%+12.51%
Volatility (annualized)20.1%15.3%
Max Drawdown-46.0%-56.6%
Fund FamilyFranklin Templeton Investments (US)Vanguard (US)
CategoryEquityEquity
InceptionNov 2, 2017May 24, 2001

FLAU vs VTI Performance

Franklin FTSE Australia ETF (FLAU) is a ETF from Franklin Templeton Investments (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FLAU returned +16.82% while VTI returned +22.17%. Year to date, FLAU is up 14.53% versus a gain of 13.67% for VTI.

Over three years, FLAU compounded at +16.04% per year against +21.93% for VTI; over five years the annualized figures are +8.27% and +12.51% respectively. Across the full 9-year window we track, VTI has the edge at +8.11% annualized vs +6.84%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FLAU has been the more volatile fund, with annualized monthly volatility of 20.1% compared with 15.3% for VTI. 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 -46.0% for FLAU and -56.6% for VTI. 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 0.83. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FLAU charges 0.09% per year while VTI charges 0.03%. On a $10,000 position that is $9 vs $3 annually, a gap of $6 per year that compounds over a long holding period. On income, FLAU currently yields 3.05% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

FLAU and VTI share 2 holdings out of 2889 unique holdings combined, representing a 0.0% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FLAUWeight in VTIDifference
SIG:LN0.60%0.00%0.60%
SGP:AU0.43%0.00%0.43%

Frequently Asked Questions

Which is cheaper, FLAU or VTI?

FLAU has an expense ratio of 0.09% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $6 per year of difference.

Which performed better, FLAU or VTI?

Over the past year FLAU returned +16.82% vs +22.17% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (9 years), FLAU annualized +6.84% vs +8.11% for VTI. Past performance does not guarantee future results.

Which is riskier, FLAU or VTI?

FLAU has been the more volatile fund at 20.1% annualized versus 15.3% for VTI. Worst drawdown: FLAU -46.0% vs VTI -56.6%.

Should I hold both FLAU and VTI?

FLAU and VTI have a monthly-return correlation of 0.83, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FLAU and VTI?

FLAU and VTI share 2 common holdings with a 0.0% weight overlap. Combined, they hold 2889 unique securities.

Which pays a higher dividend, FLAU or VTI?

FLAU yields 3.05% while VTI yields 1.07%, so FLAU currently pays the higher dividend yield.

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