FLMI vs VYM
Franklin Dynamic Municipal Bond ETF vs Vanguard High Dividend Yield ETF
Which is better, FLMI or VYM?
Municipal Bond against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FLMI | VYM |
|---|---|---|
| Expense Ratio | 0.30% | 0.04%Best |
| AUM | $2.4B | $81.6B |
| Dividend Yield | 3.96% | 2.24% |
| Holdings | 1,342 | 613 |
| YTD Return | -0.36% | +14.82%Best |
| 1Y Return | +3.80% | +20.84%Best |
| 3Y Return (annualized) | +5.15% | +18.64%Best |
| 5Y Return (annualized) | +1.47% | +12.28%Best |
| Volatility (annualized) | 5.5%Best | 14.9% |
| Max Drawdown | -14.7%Best | -35.7% |
| $10,000 over 5 years | $10,757 | $17,845Best |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) |
| Category | Tax Preferred | Equity |
| Style | Municipal Bond | Large Cap Value |
| Inception | Aug 31, 2017 | Nov 10, 2006 |
Not shown on this pair: Top 10 Weight.
Volatility and max drawdown are measured over the window both funds cover: Sep 5, 2017 to Sep 4, 2026 (9 years).
FLMI vs VYM growth
Month-end closes. Both lines start at 0% in the first month shown, so the gap between them is the difference in growth across that window. The full view covers the 9 years both funds cover.
FLMI vs VYM Performance
Franklin Dynamic Municipal Bond ETF (FLMI) is an ETF from Franklin Templeton Investments (US) and Vanguard High Dividend Yield ETF (VYM) is an ETF from Vanguard (US). Over the past year FLMI returned +3.80% while VYM returned +20.84%. Year to date, FLMI is down 0.36% versus a gain of 14.82% for VYM.
Over three years, FLMI compounded at +5.15% per year against +18.64% for VYM; over five years the annualized figures are +1.47% and +12.28% respectively. Across the full 9-year window we track, VYM has the edge at +10.43% annualized vs +1.79%.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.9% 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 -35.7% for VYM. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.43. They move together some of the time, and apart the rest.
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
We hold position weights for 202 holdings in FLMI and 603 in VYM, totalling 30.2% and 99.5% of the two funds. The two books name no position in common, so there is no overlap percentage to show.
0 positions in common, counted across the 202 positions we hold weights for in FLMI and 603 in VYM, against full books of 1,342 and 613.
You are not choosing between two funds in isolation.
Whichever of FLMI and VYM you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
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, by $26 a year on a $10,000 investment.
Which performed better, FLMI or VYM?
Over the past year FLMI returned +3.80% vs +20.84% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), FLMI annualized +1.79% vs +10.43% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
Which is riskier, FLMI or VYM?
VYM has been the more volatile fund at 14.9% annualized versus 5.5% for FLMI. Worst drawdown: FLMI -14.7% vs VYM -35.7%.
Should I hold both FLMI and VYM?
FLMI and VYM have a monthly-return correlation of 0.43, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
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.
Is VYM better than FLMI?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. Which one suits a particular account depends on what it is for. This is information, not a recommendation.