FLMI vs IVV
Franklin Dynamic Municipal Bond ETF vs iShares Core S&P 500 ETF
Quick Verdict
IVV has a lower expense ratio. IVV delivered stronger 1-year returns. FLMI offers more diversification with 1,342 holdings.
Side-by-Side Comparison
| Metric | FLMI | IVV | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.03% | |
| AUM | $2.4B | $907.0B | |
| Dividend Yield | 3.96% | 1.10% | |
| Holdings | 1,342 | 508 | |
| YTD Return | +1.49% | +13.22% | |
| 1Y Return | +6.34% | +21.62% | |
| 3Y Return (annualized) | +5.82% | +22.17% | |
| 5Y Return (annualized) | +1.77% | +13.42% | |
| Volatility (annualized) | 5.5% | 15.1% | |
| Max Drawdown | -14.7% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | iShares by BlackRock (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Aug 31, 2017 | May 15, 2000 |
FLMI vs IVV Performance
Franklin Dynamic Municipal Bond ETF (FLMI) is a ETF from Franklin Templeton Investments (US) and iShares Core S&P 500 ETF (IVV) is a ETF from iShares by BlackRock (US). Over the past year FLMI returned +6.34% while IVV returned +21.62%. Year to date, FLMI is up 1.49% versus a gain of 13.22% for IVV.
Over three years, FLMI compounded at +5.82% per year against +22.17% for IVV; over five years the annualized figures are +1.77% and +13.42% respectively. Across the full 9-year window we track, IVV has the edge at +7.02% annualized vs +2.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
IVV has been the more volatile fund, with annualized monthly volatility of 15.1% compared with 5.5% for FLMI. 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 -14.7% for FLMI and -56.5% for IVV. 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
FLMI charges 0.30% per year while IVV charges 0.03%. On a $10,000 position that is $30 vs $3 annually, a gap of $27 per year that compounds over a long holding period. On income, FLMI currently yields 3.96% against 1.10% for IVV.
Holdings Overlap
FLMI and IVV share 0 holdings out of 707 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, FLMI or IVV?
FLMI has an expense ratio of 0.30% while IVV charges 0.03%. IVV is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, FLMI or IVV?
Over the past year FLMI returned +6.34% vs +21.62% for IVV, so IVV leads on 1-year performance. Over the longest common window we track (9 years), FLMI annualized +2.01% vs +7.02% for IVV. Past performance does not guarantee future results.
Which is riskier, FLMI or IVV?
IVV has been the more volatile fund at 15.1% annualized versus 5.5% for FLMI. Worst drawdown: FLMI -14.7% vs IVV -56.5%.
Should I hold both FLMI and IVV?
FLMI and IVV 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 FLMI and IVV?
FLMI and IVV share 0 common holdings with a 0.0% weight overlap. Combined, they hold 707 unique securities.
Which pays a higher dividend, FLMI or IVV?
FLMI yields 3.96% while IVV yields 1.10%, so FLMI currently pays the higher dividend yield.
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