FLGV vs VYM
Franklin US Treasury Bond 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 | FLGV | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.09% | 0.04% | |
| AUM | $1.0B | $79.0B | |
| Dividend Yield | 4.11% | 2.86% | |
| Holdings | 47 | 568 | |
| YTD Return | -0.78% | +16.16% | |
| 1Y Return | +1.19% | +26.05% | |
| 3Y Return (annualized) | +3.28% | +18.43% | |
| 5Y Return (annualized) | -0.50% | +12.21% | |
| Volatility (annualized) | 5.0% | 14.6% | |
| Max Drawdown | -18.4% | -58.8% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Fixed Income | Equity | |
| Inception | Jun 9, 2020 | Nov 10, 2006 |
FLGV vs VYM Performance
Franklin US Treasury Bond ETF (FLGV) 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 FLGV returned +1.19% while VYM returned +26.05%. Year to date, FLGV is down 0.78% versus a gain of 16.16% for VYM.
Over three years, FLGV compounded at +3.28% per year against +18.43% for VYM; over five years the annualized figures are -0.50% and +12.21% respectively. Across the full 6-year window we track, VYM has the edge at +7.09% annualized vs -0.96%. 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 5.0% for FLGV. 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 -18.4% for FLGV 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 0.40. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLGV 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, FLGV currently yields 4.11% against 2.86% for VYM.
Holdings Overlap
FLGV and VYM share 0 holdings out of 599 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, FLGV or VYM?
FLGV 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, FLGV or VYM?
Over the past year FLGV returned +1.19% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (6 years), FLGV annualized -0.96% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, FLGV or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.0% for FLGV. Worst drawdown: FLGV -18.4% vs VYM -58.8%.
Should I hold both FLGV and VYM?
FLGV and VYM have a monthly-return correlation of 0.40, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLGV and VYM?
FLGV and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 599 unique securities.
Which pays a higher dividend, FLGV or VYM?
FLGV yields 4.11% while VYM yields 2.86%, so FLGV currently pays the higher dividend yield.
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