FLQS vs VYM
Franklin US Small Cap Multifactor Index ETF vs Vanguard High Dividend Yield ETF
Which is better, FLQS or VYM?
Small Cap Blend against Large Cap Value.
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. FLQS is less concentrated, with 9.3% of the fund in its ten largest positions against 25.9%.
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 | FLQS | VYM |
|---|---|---|
| Expense Ratio | 0.35% | 0.04%Best |
| AUM | $47M | $81.6B |
| Dividend Yield | 1.33% | 2.24% |
| Holdings | 499 | 613 |
| YTD Return | +14.57% | +14.82%Best |
| 1Y Return | +12.26% | +20.84%Best |
| 3Y Return (annualized) | +12.81% | +18.64%Best |
| 5Y Return (annualized) | +6.22% | +12.28%Best |
| Volatility (annualized) | 18.6% | 14.6%Best |
| Max Drawdown | -42.2% | -35.7%Best |
| $10,000 over 5 years | $13,522 | $17,845Best |
| Top 10 Weight | 9.3%Best | 25.9% |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) |
| Category | Equity | Equity |
| Style | Small Cap Blend | Large Cap Value |
| Inception | Apr 26, 2017 | Nov 10, 2006 |
Volatility and max drawdown are measured over the window both funds cover: Apr 28, 2017 to Sep 4, 2026 (9.4 years).
FLQS 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 9.4 years both funds cover.
FLQS vs VYM Performance
Franklin US Small Cap Multifactor Index ETF (FLQS) 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 FLQS returned +12.26% while VYM returned +20.84%. Year to date, FLQS is up 14.57% versus a gain of 14.82% for VYM.
Over three years, FLQS compounded at +12.81% per year against +18.64% for VYM; over five years the annualized figures are +6.22% and +12.28% respectively. Across the full 9-year window we track, VYM has the edge at +10.21% annualized vs +8.71%.
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 -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 0.86. 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
27.5% of FLQS's money is in holdings VYM also owns. 0.9% of VYM's money is in holdings FLQS also owns.
FLQS and VYM share little of their money.
79 positions in common, counted across the 491 positions we hold weights for in FLQS and 602 in VYM, against full books of 499 and 613.
What only one of them owns
Our book lists 499 positions for VYM that do not appear in our book for FLQS (96.3% of the fund), and 393 for FLQS that do not appear in VYM (68.2%).
Some of those will be the same company recorded under a different code in one of the two books, so the real difference in what you would own is no larger than this and may be smaller. We do not name the individual positions here for that reason.
Top Shared Holdings
| Stock | Weight in FLQS | Weight in VYM | Difference |
|---|---|---|---|
| FCFSFirstcash Inc | 0.87% | 0.04% | 0.83% |
| CAKECheesecake Factory Inc/the | 0.83% | 0.02% | 0.81% |
| SIGISelective Ins Group Inc | 0.81% | 0.02% | 0.79% |
| YOUClear Secure Inc -Class A | 0.80% | 0.02% | 0.78% |
| HOMBHome Bancshares Inc/ar | 0.76% | 0.02% | 0.74% |
| PNMPnm Resources Inc | 0.74% | 0.02% | 0.72% |
| SWXSouthwest Gas Corp. | 0.72% | 0.03% | 0.69% |
| SXTSensient Technologies Corp | 0.69% | 0.02% | 0.67% |
| AROCArchrock, Inc. | 0.66% | 0.03% | 0.63% |
| KTBKontoor Brands Inc | 0.66% | 0.02% | 0.64% |
27.5% of FLQS is already inside VYM.
You probably hold more than these two. Add the rest and see how much of the whole book is the same companies twice.
Free for up to 10 holdings. No account needed.
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, by $31 a year on a $10,000 investment.
Which performed better, FLQS or VYM?
Over the past year FLQS returned +12.26% vs +20.84% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (9 years), FLQS annualized +8.71% vs +10.21% for VYM. Past performance does not guarantee future results. This is information, not a recommendation.
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 -35.7%.
Should I hold both FLQS and VYM?
FLQS and VYM have a monthly-return correlation of 0.86, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
What is the holdings overlap between FLQS and VYM?
27.5% of FLQS's money is in holdings VYM also owns. 0.9% of VYM's is in holdings FLQS also owns. They hold 79 positions in common, counted across the 491 positions we hold weights for in FLQS and 602 in VYM.
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.
Is VYM better than FLQS?
VYM has a lower expense ratio. VYM led over 1Y, 3Y, 5Y and the full window. FLQS is less concentrated, with 9.3% of the fund in its ten largest positions against 25.9%. Which one suits a particular account depends on what it is for. This is information, not a recommendation.