FDL vs. LVHD

Last updated Aug 4, 2026

FDL (First Trust Morningstar Dividend Leaders Index Fund) and LVHD (Franklin U.S. Low Volatility High Dividend Index ETF) are both exchange-traded funds - FDL is a Large Cap Value Equities fund tracking the Morningstar Dividend Leaders Index, while LVHD is a Dividend fund tracking the Franklin U.S. Low Volatility High Dividend Index. Both are passively managed. Over the past 10 years, FDL returned 11.08%/yr vs 8.26%/yr for LVHD. Their correlation of 0.84 means they have usually moved in the same direction. FDL charges 0.43%/yr vs 0.27%/yr for LVHD.

Performance

FDL vs. LVHD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Morningstar Dividend Leaders Index Fund (FDL) and Franklin U.S. Low Volatility High Dividend Index ETF (LVHD). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FDL achieves a 18.62% return, which is significantly higher than LVHD's 13.57% return. Over the past 10 years, FDL has outperformed LVHD with an annualized return of 11.08%, while LVHD has yielded a comparatively lower 8.26% annualized return.

FDL

• 1D: 0.39%
• 1M: 3.67%
• 6M: 9.83%
• YTD: 18.62%
• 1Y: 28.15%
• 3Y*: 19.02%
• 5Y*: 14.10%
• 10Y*: 11.08%
• ALL TIME*: 8.96%

LVHD

• 1D: -0.01%
• 1M: -0.57%
• 6M: 7.71%
• YTD: 13.57%
• 1Y: 14.82%
• 3Y*: 10.47%
• 5Y*: 7.44%
• 10Y*: 8.26%
• ALL TIME*: 9.15%

*Multi-year figures are annualized to reflect compound growth (CAGR)

Liquidity Comparison

Position	Avg. Volume Value (2W)	Avg. Volume Value (1M)	Avg. Volume Value (3M)
FDL First Trust Morningstar Dividend Leaders Index Fund	$51.38M	$49.50M	$43.21M
LVHD Franklin U.S. Low Volatility High Dividend Index ETF	$2.34M	$2.46M	$2.92M

FDL vs. LVHD - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FDL First Trust Morningstar Dividend Leaders Index Fund	18.62%	14.79%	17.98%	2.94%	6.66%	26.10%	-4.30%	24.41%	-5.99%	12.02%
LVHD Franklin U.S. Low Volatility High Dividend Index ETF	13.57%	7.50%	10.18%	-0.95%	-1.82%	26.90%	-1.28%	22.91%	-5.58%	14.25%

Correlation

The correlation between FDL and LVHD is 0.79, which is moderate. They have sometimes moved together and sometimes differently, sharing some price drivers without tracking each other closely.

	Correlation
Correlation (1Y) Focuses on recent behavior, but can change the most.	0.79
Correlation (3Y) Balances recent behavior with more history.	0.84
Correlation (5Y) Shows whether the relationship held over a longer period.	0.84
Correlation (10Y) Provides a long-term view across more market conditions.	0.84
Correlation (All Time) Calculated using the full available price history since Dec 29, 2015	0.84

The correlation between FDL and LVHD has been stable across timeframes, ranging from 0.79 to 0.84 - a consistent structural relationship.

FDL vs. LVHD - Sectors Allocation Comparison

Sectors	FDL	LVHD
Consumer Defensive	24.3%	21.8%
Utilities	15.4%	24.8%
Financial Services	13.7%	8.6%
Healthcare	11.7%	4.7%
Communication Services	11.2%	2.2%
Energy	11.1%	7.0%
Consumer Cyclical	4.4%	7.5%
Technology	4.3%	3.1%
Industrials	3.6%	4.9%
Basic Materials	0.4%	-
Real Estate	-	15.4%

Return for Risk

FDL vs. LVHD — Risk / Return Rank

Compare historical risk-adjusted metric ranks over the past 12 months.

FDL

FDL Risk / Return Rank: 92
FDL Sharpe Ratio Rank: 91
FDL Sortino Ratio Rank: 93
FDL Omega Ratio Rank: 89
FDL Calmar Ratio Rank: 96
FDL Martin Ratio Rank: 91

LVHD

LVHD Risk / Return Rank: 58
LVHD Sharpe Ratio Rank: 58
LVHD Sortino Ratio Rank: 62
LVHD Omega Ratio Rank: 54
LVHD Calmar Ratio Rank: 68
LVHD Martin Ratio Rank: 50

The rank (0–100) uses a weighted average of the Sharpe, Sortino, Omega, Calmar, and Martin percentile ranks for the trailing 12 months. Higher means stronger historical risk-adjusted performance within the peer group.

FDL vs. LVHD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Morningstar Dividend Leaders Index Fund (FDL) and Franklin U.S. Low Volatility High Dividend Index ETF (LVHD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FDL	LVHD	Difference
Sharpe ratio: Return per unit of total volatility	2.38	1.42	+0.97
Sortino ratio: Return per unit of downside risk	3.58	2.13	+1.45
Omega ratio: Gain probability vs. loss probability	1.42	1.25	+0.17
Calmar ratio: Return relative to maximum drawdown	6.62	2.41	+4.20
Martin ratio: Return relative to average drawdown	15.62	5.96	+9.66

FDL vs. LVHD - Sharpe Ratio Comparison

The current FDL Sharpe Ratio is 2.38, which is higher than the LVHD Sharpe Ratio of 1.42. The chart below compares the historical Sharpe Ratios of FDL and LVHD, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FDL vs. LVHD - Drawdown Comparison

The maximum FDL drawdown since its inception was -65.93%, which is greater than LVHD's maximum drawdown of -37.32%. Use the drawdown chart below to compare losses from any high point for FDL and LVHD.

Drawdown Indicators

	FDL	LVHD	Difference
Max Drawdown Largest peak-to-trough decline	-65.93%	-37.32%	-28.61%
Max Drawdown (1Y) Largest decline over 1 year	-4.27%	-6.17%	+1.90%
Max Drawdown (3Y) Largest decline over 3 years	-12.24%	-11.87%	-0.37%
Max Drawdown (5Y) Largest decline over 5 years	-16.46%	-16.75%	+0.29%
Max Drawdown (10Y) Largest decline over 10 years	-41.40%	-37.32%	-4.08%
Current Drawdown Current decline from peak	-1.58%	-2.13%	+0.55%
Average Drawdown Average peak-to-trough decline	-9.59%	-4.00%	-5.59%
Ulcer Index Depth and duration of drawdowns from previous peaks	1.81%	2.49%	-0.68%

Volatility

FDL vs. LVHD - Volatility Comparison

First Trust Morningstar Dividend Leaders Index Fund (FDL) has a higher volatility of 4.65% compared to Franklin U.S. Low Volatility High Dividend Index ETF (LVHD) at 4.27%. This indicates that FDL's price experiences larger fluctuations and is considered to be riskier than LVHD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FDL	LVHD	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.65%	4.27%	+0.38%
Volatility (6M) Calculated over the trailing 6-month period	8.75%	8.31%	+0.44%
Volatility (1Y) Calculated over the trailing 1-year period	11.89%	10.53%	+1.36%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.44%	13.05%	+1.39%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	17.16%	15.58%	+1.58%

FDL vs. LVHD - Expense Ratio Comparison

FDL has a 0.43% expense ratio, which is higher than LVHD's 0.27% expense ratio.

Dividends

FDL vs. LVHD - Dividend Comparison

FDL's dividend yield for the trailing twelve months is around 3.58%, more than LVHD's 3.20% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FDL First Trust Morningstar Dividend Leaders Index Fund	3.58%	4.04%	4.96%	4.58%	3.58%	4.59%	4.48%	3.75%	3.97%	3.18%	2.93%	3.65%
LVHD Franklin U.S. Low Volatility High Dividend Index ETF	3.20%	3.35%	4.23%	3.55%	3.30%	2.56%	3.27%	3.30%	3.82%	3.33%	2.48%	0.00%

Frequently Asked Questions

Can I hold both FDL and LVHD in my portfolio?

FDL and LVHD have a correlation of 0.79, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, FDL or LVHD?

FDL has higher volatility (4.65%) compared to LVHD (4.27%). In terms of maximum drawdown, FDL dropped -65.93% vs LVHD's -37.32%.

Which ETF is better, FDL or LVHD?

On 10-year performance, FDL leads with 11.08% vs 8.26% for LVHD. On fees, LVHD is cheaper at 0.27% per year. On volatility, LVHD has been the lower-risk option at 4.27%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FDL or LVHD?

Over the 10-year period, FDL has performed better with a 11.08% return vs 8.26%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FDL or LVHD?

LVHD is cheaper with a 0.27% expense ratio, compared with 0.43% for FDL.

Which ETF pays a higher dividend yield, FDL or LVHD?

FDL has the higher dividend yield at 3.58%, compared with 3.20% for LVHD.

What is the main difference between FDL and LVHD?

FDL is categorized as Large Cap Value Equities, while LVHD is Dividend. FDL tracks Morningstar Dividend Leaders Index, while LVHD tracks Franklin U.S. Low Volatility High Dividend Index. They also come from different issuers: First Trust and Franklin Templeton. Their fees differ too: 0.43% for FDL and 0.27% for LVHD.

Which has better risk-adjusted returns?

FDL currently has the higher Sharpe Ratio (2.38 vs 1.42), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.