FLMI vs VYM
Franklin Dynamic Municipal Bond ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. FLMI offers more diversification with 1,342 holdings.
Side-by-Side Comparison
| Metric | FLMI | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.04% | |
| AUM | $2.4B | $81.6B | |
| Dividend Yield | 3.96% | 2.24% | |
| Holdings | 1,342 | 616 | |
| YTD Return | +1.74% | +16.42% | |
| 1Y Return | +6.73% | +24.22% | |
| 3Y Return (annualized) | +5.61% | +19.03% | |
| 5Y Return (annualized) | +1.83% | +12.21% | |
| Volatility (annualized) | 5.5% | 14.6% | |
| Max Drawdown | -14.7% | -58.8% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Tax Preferred | Equity | |
| Inception | Aug 31, 2017 | Nov 10, 2006 |
FLMI vs VYM Performance
Franklin Dynamic Municipal Bond ETF (FLMI) 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 FLMI returned +6.73% while VYM returned +24.22%. Year to date, FLMI is up 1.74% versus a gain of 16.42% for VYM.
Over three years, FLMI compounded at +5.61% per year against +19.03% for VYM; over five years the annualized figures are +1.83% and +12.21% respectively. Across the full 9-year window we track, VYM has the edge at +7.10% annualized vs +2.04%. 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 5.5% 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 -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 0.43. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
FLMI charges 0.30% per year while VYM charges 0.04%. On a $10,000 position that is $30 vs $4 annually, a gap of $26 per year that compounds over a long holding period. On income, FLMI currently yields 3.96% against 2.24% for VYM.
Holdings Overlap
FLMI and VYM share 0 holdings out of 805 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 VYM?
FLMI has an expense ratio of 0.30% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $26 per year of difference.
Which performed better, FLMI or VYM?
Over the past year FLMI returned +6.73% vs +24.22% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), FLMI annualized +2.04% vs +7.10% for VYM. Past performance does not guarantee future results.
Which is riskier, FLMI or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 5.5% for FLMI. Worst drawdown: FLMI -14.7% vs VYM -58.8%.
Should I hold both FLMI and VYM?
FLMI and VYM have a monthly-return correlation of 0.43, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLMI and VYM?
FLMI and VYM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 805 unique securities.
Which pays a higher dividend, FLMI or VYM?
FLMI yields 3.96% while VYM yields 2.24%, so FLMI currently pays the higher dividend yield.
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