FLQS vs VYM
Franklin US Small Cap Multifactor Index ETF vs Vanguard High Dividend Yield ETF
Quick Verdict
VYM has a lower expense ratio. VYM delivered stronger 1-year returns. VYM offers more diversification with 616 holdings.
Side-by-Side Comparison
| Metric | FLQS | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.35% | 0.04% | |
| AUM | $53M | $81.6B | |
| Dividend Yield | 1.33% | 2.24% | |
| Holdings | 499 | 616 | |
| YTD Return | +16.45% | +15.84% | |
| 1Y Return | +17.98% | +23.95% | |
| 3Y Return (annualized) | +13.54% | +19.02% | |
| 5Y Return (annualized) | +6.96% | +12.19% | |
| Volatility (annualized) | 18.6% | 14.6% | |
| Max Drawdown | -42.2% | -58.8% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Apr 26, 2017 | Nov 10, 2006 |
FLQS vs VYM Performance
Franklin US Small Cap Multifactor Index ETF (FLQS) 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 FLQS returned +17.98% while VYM returned +23.95%. Year to date, FLQS is up 16.45% versus a gain of 15.84% for VYM.
Over three years, FLQS compounded at +13.54% per year against +19.02% for VYM; over five years the annualized figures are +6.96% and +12.19% respectively. Across the full 9-year window we track, FLQS has the edge at +8.95% annualized vs +7.07%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
FLQS has been the more volatile fund, with annualized monthly volatility of 18.6% compared with 14.6% for VYM. 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 -42.2% for FLQS 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 0.86. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
FLQS charges 0.35% per year while VYM charges 0.04%. On a $10,000 position that is $35 vs $4 annually, a gap of $31 per year that compounds over a long holding period. On income, FLQS currently yields 1.33% against 2.24% for VYM.
Holdings Overlap
FLQS and VYM share 80 holdings out of 1014 unique holdings combined, representing a 0.9% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, FLQS or VYM?
FLQS has an expense ratio of 0.35% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $31 per year of difference.
Which performed better, FLQS or VYM?
Over the past year FLQS returned +17.98% vs +23.95% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), FLQS annualized +8.95% vs +7.07% for VYM. Past performance does not guarantee future results.
Which is riskier, FLQS or VYM?
FLQS has been the more volatile fund at 18.6% annualized versus 14.6% for VYM. Worst drawdown: FLQS -42.2% vs VYM -58.8%.
Should I hold both FLQS and VYM?
FLQS and VYM have a monthly-return correlation of 0.86, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between FLQS and VYM?
FLQS and VYM share 80 common holdings with a 0.9% weight overlap. Combined, they hold 1014 unique securities.
Which pays a higher dividend, FLQS or VYM?
FLQS yields 1.33% while VYM yields 2.24%, so VYM currently pays the higher dividend yield.
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