FLQM vs SPY
Franklin US Mid Cap Multifactor Index ETF vs State Street SPDR S&P 500 ETF Trust
Quick Verdict
SPY has a lower expense ratio. SPY delivered stronger 1-year returns. SPY offers more diversification with 505 holdings.
Side-by-Side Comparison
| Metric | FLQM | SPY | Winner |
|---|---|---|---|
| Expense Ratio | 0.30% | 0.09% | |
| AUM | $1.6B | $789.1B | |
| Dividend Yield | 1.51% | 1.01% | |
| Holdings | 209 | 505 | |
| YTD Return | +9.04% | +14.47% | |
| 1Y Return | +9.42% | +21.96% | |
| 3Y Return (annualized) | +11.71% | +21.70% | |
| 5Y Return (annualized) | +7.37% | +13.30% | |
| Volatility (annualized) | 16.8% | 15.3% | |
| Max Drawdown | -37.3% | -56.5% | |
| Fund Family | Franklin Templeton Investments (US) | State Street Investment Management | |
| Category | Equity | Equity | |
| Inception | Apr 26, 2017 | Jan 22, 1993 |
FLQM vs SPY Performance
Franklin US Mid Cap Multifactor Index ETF (FLQM) is a ETF from Franklin Templeton Investments (US) and State Street SPDR S&P 500 ETF Trust (SPY) is a ETF from State Street Investment Management. Over the past year FLQM returned +9.42% while SPY returned +21.96%. Year to date, FLQM is up 9.04% versus a gain of 14.47% for SPY.
Over three years, FLQM compounded at +11.71% per year against +21.70% for SPY; over five years the annualized figures are +7.37% and +13.30% respectively. Across the full 9-year window we track, FLQM has the edge at +11.30% annualized vs +8.87%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FLQM has been the more volatile fund, with annualized monthly volatility of 16.8% compared with 15.3% for SPY. 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 -37.3% for FLQM and -56.5% for SPY. 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
FLQM charges 0.30% per year while SPY charges 0.09%. On a $10,000 position that is $30 vs $9 annually, a gap of $21 per year that compounds over a long holding period. On income, FLQM currently yields 1.51% against 1.01% for SPY.
Holdings Overlap
FLQM and SPY share 7 holdings out of 506 unique holdings combined, representing a 0.3% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FLQM or SPY?
FLQM has an expense ratio of 0.30% while SPY charges 0.09%. SPY is the cheaper option. On a $10,000 investment, that is $21 per year of difference.
Which performed better, FLQM or SPY?
Over the past year FLQM returned +9.42% vs +21.96% for SPY, so SPY leads on 1-year performance. Over the longest common window we track (9 years), FLQM annualized +11.30% vs +8.87% for SPY. Past performance does not guarantee future results.
Which is riskier, FLQM or SPY?
FLQM has been the more volatile fund at 16.8% annualized versus 15.3% for SPY. Worst drawdown: FLQM -37.3% vs SPY -56.5%.
Should I hold both FLQM and SPY?
FLQM and SPY have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between FLQM and SPY?
FLQM and SPY share 7 common holdings with a 0.3% weight overlap. Combined, they hold 506 unique securities.
Which pays a higher dividend, FLQM or SPY?
FLQM yields 1.51% while SPY yields 1.01%, so FLQM currently pays the higher dividend yield.
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