INCE vs TYO

Quick Verdict

INCE has a lower expense ratio. INCE delivered stronger 1-year returns. INCE offers more diversification with 47 holdings.

Lower Fees: INCEHigher Returns: INCEMore Diversified: INCE

Side-by-Side Comparison

MetricINCETYOWinner
Expense Ratio0.29%1.00%
AUM$132M$12M
Dividend Yield4.82%2.62%
Holdings826
YTD Return+17.14%+11.63%
1Y Return+26.04%+10.94%
3Y Return (annualized)+16.96%+4.88%
5Y Return (annualized)+10.99%+14.70%
Volatility (annualized)13.8%19.3%
Max Drawdown-34.1%-90.4%
Fund FamilyFranklin Templeton Investments (US)Direxion Shares ETF Trust
CategoryEquityAlternative
InceptionSep 20, 2016Apr 16, 2009

INCE vs TYO Performance

Franklin Income Equity Focus ETF (INCE) is a ETF from Franklin Templeton Investments (US) and Direxion Daily 7-10 Year Treasury Bear 3X ETF (TYO) is a ETF from Direxion Shares ETF Trust. Over the past year INCE returned +26.04% while TYO returned +10.94%. Year to date, INCE is up 17.14% versus a gain of 11.63% for TYO.

Over three years, INCE compounded at +16.96% per year against +4.88% for TYO; over five years the annualized figures are +10.99% and +14.70% respectively. Across the full 10-year window we track, INCE has the edge at +12.63% annualized vs -7.21%. Past performance does not guarantee future results.

Risk: Volatility and Drawdowns

TYO has been the more volatile fund, with annualized monthly volatility of 19.3% 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 -90.4% for TYO. 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 -0.20. They move independently enough that combining them can meaningfully diversify a portfolio.

Fees and Cost Over Time

INCE charges 0.29% per year while TYO charges 1.00%. On a $10,000 position that is $29 vs $100 annually, a gap of $71 per year that compounds over a long holding period. On income, INCE currently yields 4.82% against 2.62% for TYO.

Holdings Overlap

0.0%overlap

INCE and TYO share 0 holdings out of 50 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 TYO?

INCE has an expense ratio of 0.29% while TYO charges 1.00%. INCE is the cheaper option. On a $10,000 investment, that is $71 per year of difference.

Which performed better, INCE or TYO?

Over the past year INCE returned +26.04% vs +10.94% for TYO, so INCE leads on 1-year performance. Over the longest common window we track (10 years), INCE annualized +12.63% vs -7.21% for TYO. Past performance does not guarantee future results.

Which is riskier, INCE or TYO?

TYO has been the more volatile fund at 19.3% annualized versus 13.8% for INCE. Worst drawdown: INCE -34.1% vs TYO -90.4%.

Should I hold both INCE and TYO?

INCE and TYO have a monthly-return correlation of -0.20, so combining them can provide real diversification depending on your allocation goals.

What is the holdings overlap between INCE and TYO?

INCE and TYO share 0 common holdings with a 0.0% weight overlap. Combined, they hold 50 unique securities.

Which pays a higher dividend, INCE or TYO?

INCE yields 4.82% while TYO yields 2.62%, so INCE currently pays the higher dividend yield.

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