FLCO vs VTI

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

MetricFLCOVTIWinner
Expense Ratio0.35%0.03%
AUM$557M$663.5B
Dividend Yield4.63%1.07%
Holdings2213,543
YTD Return-0.61%+14.96%
1Y Return+1.13%+22.39%
3Y Return (annualized)+4.98%+21.51%
5Y Return (annualized)-0.49%+12.36%
Volatility (annualized)7.4%15.4%
Max Drawdown-23.9%-56.6%
Fund FamilyFranklin Templeton Investments (US)Vanguard (US)
CategoryFixed IncomeEquity
InceptionOct 3, 2016May 24, 2001

FLCO vs VTI Performance

Franklin Investment Grade Corporate ETF (FLCO) is a ETF from Franklin Templeton Investments (US) and Vanguard Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FLCO returned +1.13% while VTI returned +22.39%. Year to date, FLCO is down 0.61% versus a gain of 14.96% for VTI.

Over three years, FLCO compounded at +4.98% per year against +21.51% for VTI; over five years the annualized figures are -0.49% and +12.36% respectively. Across the full 10-year window we track, VTI has the edge at +8.16% annualized vs +0.43%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

VTI has been the more volatile fund, with annualized monthly volatility of 15.4% 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 -56.6% 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 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

FLCO charges 0.35% per year while VTI charges 0.03%. On a $10,000 position that is $35 vs $3 annually, a gap of $32 per year that compounds over a long holding period. On income, FLCO currently yields 4.63% against 1.07% for VTI.

Holdings Overlap

0.0%overlap

FLCO and VTI share 0 holdings out of 2979 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 VTI?

FLCO has an expense ratio of 0.35% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $32 per year of difference.

Which performed better, FLCO or VTI?

Over the past year FLCO returned +1.13% vs +22.39% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (10 years), FLCO annualized +0.43% vs +8.16% for VTI. Past performance does not guarantee future results.

Which is riskier, FLCO or VTI?

VTI has been the more volatile fund at 15.4% annualized versus 7.4% for FLCO. Worst drawdown: FLCO -23.9% vs VTI -56.6%.

Should I hold both FLCO and VTI?

FLCO and VTI 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 VTI?

FLCO and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2979 unique securities.

Which pays a higher dividend, FLCO or VTI?

FLCO yields 4.63% while VTI yields 1.07%, so FLCO currently pays the higher dividend yield.

Get Full ETF Analytics

Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.