LVHI vs QQQ
Franklin International Low Volatility High Dividend Index ETF vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. LVHI delivered stronger 1-year returns. LVHI offers more diversification with 300 holdings.
Side-by-Side Comparison
| Metric | LVHI | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 0.40% | 0.18% | |
| AUM | $5.6B | $496.3B | |
| Dividend Yield | 3.76% | 0.44% | |
| Holdings | 300 | 108 | |
| YTD Return | +15.59% | +15.47% | |
| 1Y Return | +27.39% | +24.44% | |
| 3Y Return (annualized) | +23.22% | +25.47% | |
| 5Y Return (annualized) | +16.18% | +14.22% | |
| Volatility (annualized) | 11.0% | 30.6% | |
| Max Drawdown | -32.3% | -83.0% | |
| Fund Family | Franklin Templeton Investments (US) | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | Jul 27, 2016 | Mar 10, 1999 |
LVHI vs QQQ Performance
Franklin International Low Volatility High Dividend Index ETF (LVHI) is a ETF from Franklin Templeton Investments (US) and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year LVHI returned +27.39% while QQQ returned +24.44%. Year to date, LVHI is up 15.59% versus a gain of 15.47% for QQQ.
Over three years, LVHI compounded at +23.22% per year against +25.47% for QQQ; over five years the annualized figures are +16.18% and +14.22% respectively. Across the full 10-year window we track, QQQ has the edge at +12.99% annualized vs +11.50%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 11.0% for LVHI. 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 -32.3% for LVHI and -83.0% for QQQ. 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 0.44. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
LVHI charges 0.40% per year while QQQ charges 0.18%. On a $10,000 position that is $40 vs $18 annually, a gap of $22 per year that compounds over a long holding period. On income, LVHI currently yields 3.76% against 0.44% for QQQ.
Holdings Overlap
LVHI and QQQ share 0 holdings out of 295 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, LVHI or QQQ?
LVHI has an expense ratio of 0.40% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $22 per year of difference.
Which performed better, LVHI or QQQ?
Over the past year LVHI returned +27.39% vs +24.44% for QQQ, so LVHI leads on 1-year performance. Over the longest common window we track (10 years), LVHI annualized +11.50% vs +12.99% for QQQ. Past performance does not guarantee future results.
Which is riskier, LVHI or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 11.0% for LVHI. Worst drawdown: LVHI -32.3% vs QQQ -83.0%.
Should I hold both LVHI and QQQ?
LVHI and QQQ have a monthly-return correlation of 0.44, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between LVHI and QQQ?
LVHI and QQQ share 0 common holdings with a 0.0% weight overlap. Combined, they hold 295 unique securities.
Which pays a higher dividend, LVHI or QQQ?
LVHI yields 3.76% while QQQ yields 0.44%, so LVHI currently pays the higher dividend yield.
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