FLCO vs VYM
Franklin Investment Grade Corporate ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 558 holdings.
Side-by-Side Comparison
| Metric | FLCO | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $557M | $79.0B | |
| Dividend Yield | 4.63% | 2.86% | |
| Holdings | 221 | 568 | |
| YTD Return | -1.07% | +16.10% | |
| 1Y Return | +1.18% | +25.99% | |
| 3Y Return (annualized) | +4.78% | +18.29% | |
| 5Y Return (annualized) | -0.44% | +12.35% | |
| Volatility (annualized) | 7.4% | 14.6% | |
| Max Drawdown | -23.9% | -58.8% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Oct 3, 2016 | Nov 10, 2006 |
FLCO vs VYM Performance
Franklin Investment Grade Corporate ETF (FLCO) 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 FLCO returned +1.18% while VYM returned +25.99%. Year to date, FLCO is down 1.07% versus a gain of 16.10% for VYM.
Over three years, FLCO compounded at +4.78% per year against +18.29% for VYM; over five years the annualized figures are -0.44% and +12.35% respectively. Across the full 10-year window we track, VYM has the edge at +7.08% annualized vs +0.38%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% 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 -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 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
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 4.63% against 2.86% for VYM.
Holdings Overlap
FLCO and VYM share 0 holdings out of 754 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 VYM?
FLCO has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, FLCO or VYM?
Over the past year FLCO returned +1.18% vs +25.99% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (10 years), FLCO annualized +0.38% vs +7.08% for VYM. Past performance does not guarantee future results.
Which is riskier, FLCO or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 7.4% for FLCO. Worst drawdown: FLCO -23.9% vs VYM -58.8%.
Should I hold both FLCO and VYM?
FLCO and VYM have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLCO and VYM?
FLCO and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 754 unique securities.
Which pays a higher dividend, FLCO or VYM?
FLCO yields 4.63% while VYM yields 2.86%, so FLCO currently pays the higher dividend yield.
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