FLCO vs VYM
Franklin Investment Grade Corporate ETF vs Vanguard High Dividend Yield ETF
Which is better, FLCO or VYM?
Long Term Mid Quality against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FLCO | VYM |
|---|---|---|
| Expense Ratio | 0.35% | 0.04%Best |
| AUM | $553M | $81.6B |
| Dividend Yield | 4.78% | 2.22% |
| Holdings | 229 | 613 |
| YTD Return | -0.97% | +10.96%Best |
| 1Y Return | -0.51% | +15.42%Best |
| 3Y Return (annualized) | +5.35% | +17.78%Best |
| 5Y Return (annualized) | -0.71% | +12.05%Best |
| Volatility (annualized) | 7.4%Best | 14.3% |
| Max Drawdown | -23.9%Best | -35.7% |
| $10,000 over 5 years | $9,650 | $17,663Best |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Long Term Mid Quality | Large Cap Value |
| Inception | Oct 3, 2016 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Oct 5, 2016 to Sep 22, 2026 (10 years).
FLCO vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 10 years both funds cover.
FLCO vs VYM Performance
Franklin Investment Grade Corporate ETF (FLCO) is an ETF from Franklin Templeton Investments (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FLCO returned -0.51% while VYM returned +15.42%. Year to date, FLCO is down 0.97% versus a gain of 10.96% for VYM.
Over three years, FLCO compounded at +5.35% per year against +17.78% for VYM; over five years the annualized figures are -0.71% and +12.05% respectively. Across the full 10-year window we track, VYM has the edge at +10.03% annualized vs +0.39%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.3% 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 -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.53. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FLCO charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, FLCO currently yields 4.78% against 2.22% for VYM.
Holdings Overlap
We hold position weights for 163 holdings in FLCO and 557 in VYM, totalling 76.6% and 99.2% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 163 positions we hold weights for in FLCO and 557 in VYM, against full books of 229 and 613.
You are not choosing between two funds in isolation.
Whichever of FLCO and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FLCO or VYM?
FLCO has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option, by $31 a year on a $10,000 investment.
Which performed better, FLCO or VYM?
Over the past year FLCO returned -0.51% vs +15.42% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), FLCO annualized +0.39% vs +10.03% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FLCO or VYM?
VYM has been the more volatile fund at 14.3% annualized versus 7.4% for FLCO. Worst drawdown: FLCO -23.9% vs VYM -35.7%.
Should I hold both FLCO and VYM?
FLCO and VYM have a monthly-return correlation of 0.53, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FLCO or VYM?
FLCO yields 4.78% while VYM yields 2.22%, so FLCO currently pays the higher dividend yield.
Is VYM better than FLCO?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.