INCE vs MFEM
Franklin Income Equity Focus ETF vs PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF
Quick Verdict
INCE has a lower expense ratio. MFEM delivered stronger 1-year returns. MFEM offers more diversification with 701 holdings.
Side-by-Side Comparison
| Metric | INCE | MFEM | Winner |
|---|---|---|---|
| Expense Ratio | 0.29% | 0.49% | |
| AUM | $282M | $156M | |
| Dividend Yield | 4.86% | 2.39% | |
| Holdings | 97 | 701 | |
| YTD Return | +16.64% | +21.80% | |
| 1Y Return | +23.49% | +33.81% | |
| 3Y Return (annualized) | +17.60% | +20.43% | |
| 5Y Return (annualized) | +10.71% | +8.97% | |
| Volatility (annualized) | 13.8% | 17.7% | |
| Max Drawdown | -34.1% | -45.3% | |
| Fund Family | Franklin Templeton Investments (US) | PIMCO (US) | |
| Category | Equity | Equity | |
| Inception | Sep 20, 2016 | Aug 31, 2017 |
INCE vs MFEM Performance
Franklin Income Equity Focus ETF (INCE) is a ETF from Franklin Templeton Investments (US) and PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF (MFEM) is a ETF from PIMCO (US). Over the past year INCE returned +23.49% while MFEM returned +33.81%. Year to date, INCE is up 16.64% versus a gain of 21.80% for MFEM.
Over three years, INCE compounded at +17.60% per year against +20.43% for MFEM; over five years the annualized figures are +10.71% and +8.97% respectively. Across the full 9-year window we track, INCE has the edge at +12.55% annualized vs +6.84%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
MFEM has been the more volatile fund, with annualized monthly volatility of 17.7% compared with 13.8% for INCE. 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 -34.1% for INCE and -45.3% for MFEM. 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 0.69. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
INCE charges 0.29% per year while MFEM charges 0.49%. On a $10,000 position that is $29 vs $49 annually, a gap of $20 per year that compounds over a long holding period. On income, INCE currently yields 4.86% against 2.39% for MFEM.
Holdings Overlap
INCE and MFEM share 0 holdings out of 562 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, INCE or MFEM?
INCE has an expense ratio of 0.29% while MFEM charges 0.49%. INCE is the cheaper option. On a $10,000 investment, that is $20 per year of difference.
Which performed better, INCE or MFEM?
Over the past year INCE returned +23.49% vs +33.81% for MFEM, so MFEM leads on 1-year performance. Over the longest common window we track (9 years), INCE annualized +12.55% vs +6.84% for MFEM. Past performance does not guarantee future results.
Which is riskier, INCE or MFEM?
MFEM has been the more volatile fund at 17.7% annualized versus 13.8% for INCE. Worst drawdown: INCE -34.1% vs MFEM -45.3%.
Should I hold both INCE and MFEM?
INCE and MFEM have a monthly-return correlation of 0.69, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between INCE and MFEM?
INCE and MFEM share 0 common holdings with a 0.0% weight overlap. Combined, they hold 562 unique securities.
Which pays a higher dividend, INCE or MFEM?
INCE yields 4.86% while MFEM yields 2.39%, so INCE currently pays the higher dividend yield.
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