FLEU vs VYM

FLEU vs VYM
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Quick Verdict

VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.

Lower Fees: VYMHigher Returns: VYMMore Diversified: VYM

Side-by-Side Comparison

MetricFLEUVYMWinner
Expense Ratio0.09%0.04%
AUM$74M$81.6B
Dividend Yield2.68%2.24%
Holdings265616
YTD Return+12.27%+16.42%
1Y Return+20.80%+24.22%
3Y Return (annualized)+20.38%+19.03%
5Y Return (annualized)+12.64%+12.21%
Volatility (annualized)15.7%14.6%
Max Drawdown-35.6%-58.8%
Fund FamilyFranklin Templeton Investments (US)Vanguard (US)
CategoryEquityEquity
InceptionNov 2, 2017Nov 10, 2006

FLEU vs VYM Performance

Franklin FTSE Eurozone ETF (FLEU) 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 FLEU returned +20.80% while VYM returned +24.22%. Year to date, FLEU is up 12.27% versus a gain of 16.42% for VYM.

Over three years, FLEU compounded at +20.38% per year against +19.03% for VYM; over five years the annualized figures are +12.64% and +12.21% respectively. Across the full 9-year window we track, FLEU has the edge at +8.67% annualized vs +7.10%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

FLEU has been the more volatile fund, with annualized monthly volatility of 15.7% compared with 14.6% for VYM. 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 -35.6% for FLEU 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 0.81. They usually move together, but the gap leaves some room for diversification.

Fees and Cost Over Time

FLEU charges 0.09% per year while VYM charges 0.04%. On a $10,000 position that is $9 vs $4 annually, a gap of $5 per year that compounds over a long holding period. On income, FLEU currently yields 2.68% against 2.24% for VYM.

Holdings Overlap

0.1%overlap

FLEU and VYM share 2 holdings out of 856 unique holdings combined, representing a 0.1% weight overlap.

Moderate overlap means holding both could provide meaningful diversification benefits.

Top Shared Holdings

StockWeight in FLEUWeight in VYMDifference
BG0.20%0.06%0.14%
AM0.07%0.03%0.04%

Frequently Asked Questions

Which is cheaper, FLEU or VYM?

FLEU has an expense ratio of 0.09% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $5 per year of difference.

Which performed better, FLEU or VYM?

Over the past year FLEU returned +20.80% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), FLEU annualized +8.67% vs +7.10% for VYM. Past performance does not guarantee future results.

Which is riskier, FLEU or VYM?

FLEU has been the more volatile fund at 15.7% annualized versus 14.6% for VYM. Worst drawdown: FLEU -35.6% vs VYM -58.8%.

Should I hold both FLEU and VYM?

FLEU and VYM have a monthly-return correlation of 0.81, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between FLEU and VYM?

FLEU and VYM share 2 common holdings with a 0.1% weight overlap. Combined, they hold 856 unique securities.

Which pays a higher dividend, FLEU or VYM?

FLEU yields 2.68% while VYM yields 2.24%, so FLEU currently pays the higher dividend yield.

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