FLCO vs SPY
Franklin Investment Grade Corporate ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 503 holdings.
Side-by-Side Comparison
| Metric | FLCO | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.09% | |
| AUM | $557M | $789.1B | |
| Dividend Yield | 4.63% | 1.01% | |
| Holdings | 221 | 505 | |
| YTD Return | -1.01% | +13.39% | |
| 1Y Return | +1.24% | +22.52% | |
| 3Y Return (annualized) | +4.85% | +21.36% | |
| 5Y Return (annualized) | -0.46% | +13.19% | |
| Volatility (annualized) | 7.4% | 15.3% | |
| Max Drawdown | -23.9% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management | |
| Category | Fixed Income | Equity | |
| Inception | Oct 3, 2016 | Jan 22, 1993 |
FLCO vs SPY Performance
Franklin Investment Grade Corporate ETF (FLCO) is a ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FLCO returned +1.24% while SPY returned +22.52%. Year to date, FLCO is down 1.01% versus a gain of 13.39% for SPY.
Over three years, FLCO compounded at +4.85% per year against +21.36% for SPY; over five years the annualized figures are -0.46% and +13.19% respectively. Across the full 10-year window we track, SPY has the edge at +8.84% annualized vs +0.39%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SPY has been the more volatile fund, with annualized monthly volatility of 15.3% compared with 7.4% for FLCO. 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 -23.9% for FLCO and -56.5% for SPY. 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLCO charges 0.35% per year while SPY charges 0.09%. On a $10,000 position that is $35 vs $9 annually, a gap of $26 per year that compounds over a long holding period. On income, FLCO currently yields 4.63% against 1.01% for SPY.
Holdings Overlap
FLCO and SPY share 0 holdings out of 699 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, FLCO or SPY?
FLCO has an expense ratio of 0.35% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, FLCO or SPY?
Over the past year FLCO returned +1.24% vs +22.52% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (10 years), FLCO annualized +0.39% vs +8.84% for SPY. Past performance does not guarantee future results.
Which is riskier, FLCO or SPY?
SPY has been the more volatile fund at 15.3% annualized versus 7.4% for FLCO. Worst drawdown: FLCO -23.9% vs SPY -56.5%.
Should I hold both FLCO and SPY?
FLCO and SPY have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLCO and SPY?
FLCO and SPY share 0 common holdings with a 0.0% weight overlap. Combined, they hold 699 unique securities.
Which pays a higher dividend, FLCO or SPY?
FLCO yields 4.63% while SPY yields 1.01%, so FLCO currently pays the higher dividend yield.
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