FLMI vs VOO
Franklin Dynamic Municipal Bond ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. FLMI offers more diversification with 1,342 holdings.
Side-by-Side Comparison
| Metric | FLMI | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.03% | |
| AUM | $2.4B | $997.4B | |
| Dividend Yield | 3.96% | 1.08% | |
| Holdings | 1,342 | 509 | |
| YTD Return | +1.74% | +14.27% | |
| 1Y Return | +6.73% | +21.79% | |
| 3Y Return (annualized) | +5.61% | +22.19% | |
| 5Y Return (annualized) | +1.83% | +13.28% | |
| Volatility (annualized) | 5.5% | 14.2% | |
| Max Drawdown | -14.7% | -34.3% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Aug 31, 2017 | Sep 7, 2010 |
FLMI vs VOO Performance
Franklin Dynamic Municipal Bond ETF (FLMI) is a ETF from Franklin Templeton Investments (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year FLMI returned +6.73% while VOO returned +21.79%. Year to date, FLMI is up 1.74% versus a gain of 14.27% for VOO.
Over three years, FLMI compounded at +5.61% per year against +22.19% for VOO; over five years the annualized figures are +1.83% and +13.28% respectively. Across the full 9-year window we track, VOO has the edge at +13.59% annualized vs +2.04%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.2% 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 -34.3% for VOO. 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 VOO 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 1.08% for VOO.
Holdings Overlap
FLMI and VOO 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 VOO?
FLMI has an expense ratio of 0.30% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, FLMI or VOO?
Over the past year FLMI returned +6.73% vs +21.79% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (9 years), FLMI annualized +2.04% vs +13.59% for VOO. Past performance does not guarantee future results.
Which is riskier, FLMI or VOO?
VOO has been the more volatile fund at 14.2% annualized versus 5.5% for FLMI. Worst drawdown: FLMI -14.7% vs VOO -34.3%.
Should I hold both FLMI and VOO?
FLMI and VOO 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 VOO?
FLMI and VOO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 707 unique securities.
Which pays a higher dividend, FLMI or VOO?
FLMI yields 3.96% while VOO yields 1.08%, so FLMI currently pays the higher dividend yield.
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