FLMI vs VTI
Franklin Dynamic Municipal Bond ETF vs Vanguard Morningstar Total Stock Market ETF
Quick Verdict
VTI has a lower expense ratio. VTI delivered stronger 1-year returns. VTI offers more diversification with 3,543 holdings.
Side-by-Side Comparison
| Metric | FLMI | VTI | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.03% | |
| AUM | $2.4B | $666.9B | |
| Dividend Yield | 3.96% | 1.07% | |
| Holdings | 1,342 | 3,543 | |
| YTD Return | +1.49% | +13.67% | |
| 1Y Return | +6.34% | +22.17% | |
| 3Y Return (annualized) | +5.82% | +21.93% | |
| 5Y Return (annualized) | +1.77% | +12.51% | |
| Volatility (annualized) | 5.5% | 15.3% | |
| Max Drawdown | -14.7% | -56.6% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Aug 31, 2017 | May 24, 2001 |
FLMI vs VTI Performance
Franklin Dynamic Municipal Bond ETF (FLMI) is a ETF from Franklin Templeton Investments (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is a ETF from Vanguard (US). Over the past year FLMI returned +6.34% while VTI returned +22.17%. Year to date, FLMI is up 1.49% versus a gain of 13.67% for VTI.
Over three years, FLMI compounded at +5.82% per year against +21.93% for VTI; over five years the annualized figures are +1.77% and +12.51% respectively. Across the full 9-year window we track, VTI has the edge at +8.11% annualized vs +2.01%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.3% 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 -56.6% for VTI. 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 0.53. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLMI charges 0.30% per year while VTI 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 1.07% for VTI.
Holdings Overlap
FLMI and VTI share 0 holdings out of 2989 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 VTI?
FLMI has an expense ratio of 0.30% while VTI charges 0.03%. VTI is the cheaper option. On a $10,000 investment, that is $27 per year of difference.
Which performed better, FLMI or VTI?
Over the past year FLMI returned +6.34% vs +22.17% for VTI, so VTI leads on 1-year performance. Over the longest common window we track (9 years), FLMI annualized +2.01% vs +8.11% for VTI. Past performance does not guarantee future results.
Which is riskier, FLMI or VTI?
VTI has been the more volatile fund at 15.3% annualized versus 5.5% for FLMI. Worst drawdown: FLMI -14.7% vs VTI -56.6%.
Should I hold both FLMI and VTI?
FLMI and VTI have a monthly-return correlation of 0.53, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLMI and VTI?
FLMI and VTI share 0 common holdings with a 0.0% weight overlap. Combined, they hold 2989 unique securities.
Which pays a higher dividend, FLMI or VTI?
FLMI yields 3.96% while VTI yields 1.07%, so FLMI currently pays the higher dividend yield.
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