INCM vs VOO
Franklin Income Focus ETF vs Vanguard S&P 500 ETF
Quick Verdict
VOO has a lower expense ratio. VOO delivered stronger 1-year returns. VOO offers more diversification with 509 holdings.
Side-by-Side Comparison
| Metric | INCM | VOO | Winner |
|---|---|---|---|
| Expense Ratio | 0.38% | 0.03% | |
| AUM | $1.8B | $997.4B | |
| Dividend Yield | 5.22% | 1.08% | |
| Holdings | 381 | 509 | |
| YTD Return | +8.73% | +12.73% | |
| 1Y Return | +13.16% | +20.59% | |
| 3Y Return (annualized) | +11.90% | +21.70% | |
| 5Y Return (annualized) | - | +12.87% | |
| Volatility (annualized) | 7.3% | 14.1% | |
| Max Drawdown | -7.8% | -34.3% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Allocation/Balanced | Equity | |
| Inception | Jun 6, 2023 | Sep 7, 2010 |
INCM vs VOO Performance
Franklin Income Focus ETF (INCM) is a ETF from Franklin Templeton Investments (US) and Vanguard S&P 500 ETF (VOO) is a ETF from Vanguard (US). Over the past year INCM returned +13.16% while VOO returned +20.59%. Year to date, INCM is up 8.73% versus a gain of 12.73% for VOO.
Over three years, INCM compounded at +11.90% per year against +21.70% for VOO. Across the full 3-year window we track, VOO has the edge at +13.47% annualized vs +11.02%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VOO has been the more volatile fund, with annualized monthly volatility of 14.1% compared with 7.3% for INCM. 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 -7.8% for INCM and -34.3% for VOO. 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 0.71. They usually move together, but the gap leaves some room for diversification.
Fees and Cost Over Time
INCM charges 0.38% per year while VOO charges 0.03%. On a $10,000 position that is $38 vs $3 annually, a gap of $35 per year that compounds over a long holding period. On income, INCM currently yields 5.22% against 1.08% for VOO.
Holdings Overlap
INCM and VOO share 43 holdings out of 725 unique holdings combined, representing a 10.2% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, INCM or VOO?
INCM has an expense ratio of 0.38% while VOO charges 0.03%. VOO is the cheaper option. On a $10,000 investment, that is $35 per year of difference.
Which performed better, INCM or VOO?
Over the past year INCM returned +13.16% vs +20.59% for VOO, so VOO leads on 1-year performance. Over the longest common window we track (3 years), INCM annualized +11.02% vs +13.47% for VOO. Past performance does not guarantee future results.
Which is riskier, INCM or VOO?
VOO has been the more volatile fund at 14.1% annualized versus 7.3% for INCM. Worst drawdown: INCM -7.8% vs VOO -34.3%.
Should I hold both INCM and VOO?
INCM and VOO have a monthly-return correlation of 0.71, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between INCM and VOO?
INCM and VOO share 43 common holdings with a 10.2% weight overlap. Combined, they hold 725 unique securities.
Which pays a higher dividend, INCM or VOO?
INCM yields 5.22% while VOO yields 1.08%, so INCM currently pays the higher dividend yield.
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