LVHD vs VYM
Franklin U.S. Low Volatility High Dividend 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 558 holdings.
Side-by-Side Comparison
| Metric | LVHD | VYM | Winner |
|---|---|---|---|
| Expense Ratio | 0.27% | 0.04% | |
| AUM | $644M | $79.0B | |
| Dividend Yield | 3.12% | 2.86% | |
| Holdings | 117 | 568 | |
| YTD Return | +11.82% | +16.16% | |
| 1Y Return | +12.30% | +26.05% | |
| 3Y Return (annualized) | +10.70% | +18.43% | |
| 5Y Return (annualized) | +6.91% | +12.21% | |
| Volatility (annualized) | 13.6% | 14.6% | |
| Max Drawdown | -37.3% | -58.8% | |
| Fund Family | Franklin Templeton Investments (US) | Vanguard (US) | |
| Category | Equity | Equity | |
| Inception | Dec 28, 2015 | Nov 10, 2006 |
LVHD vs VYM Performance
Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) 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 LVHD returned +12.30% while VYM returned +26.05%. Year to date, LVHD is up 11.82% versus a gain of 16.16% for VYM.
Over three years, LVHD compounded at +10.70% per year against +18.43% for VYM; over five years the annualized figures are +6.91% and +12.21% respectively. Across the full 11-year window we track, LVHD has the edge at +7.33% annualized vs +7.09%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VYM has been the more volatile fund, with annualized monthly volatility of 14.6% compared with 13.6% for LVHD. 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 -37.3% for LVHD 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 0.90. They move almost in lockstep, so holding both mostly duplicates the same exposure.
Fees and Cost Over Time
LVHD charges 0.27% per year while VYM charges 0.04%. On a $10,000 position that is $27 vs $4 annually, a gap of $23 per year that compounds over a long holding period. On income, LVHD currently yields 3.12% against 2.86% for VYM.
Holdings Overlap
LVHD and VYM share 77 holdings out of 595 unique holdings combined, representing a 21.5% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, LVHD or VYM?
LVHD has an expense ratio of 0.27% while VYM charges 0.04%. VYM is the cheaper option. On a $10,000 investment, that is $23 per year of difference.
Which performed better, LVHD or VYM?
Over the past year LVHD returned +12.30% vs +26.05% for VYM, so VYM leads on 1-year performance. Over the longest common window we track (11 years), LVHD annualized +7.33% vs +7.09% for VYM. Past performance does not guarantee future results.
Which is riskier, LVHD or VYM?
VYM has been the more volatile fund at 14.6% annualized versus 13.6% for LVHD. Worst drawdown: LVHD -37.3% vs VYM -58.8%.
Should I hold both LVHD and VYM?
LVHD and VYM have a monthly-return correlation of 0.90, so they move almost identically. Holding both adds little diversification - most investors pick one, usually on fees or the specific index tracked.
What is the holdings overlap between LVHD and VYM?
LVHD and VYM share 77 common holdings with a 21.5% weight overlap. Combined, they hold 595 unique securities.
Which pays a higher dividend, LVHD or VYM?
LVHD yields 3.12% while VYM yields 2.86%, so LVHD currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.