FLAX vs. AAXJ

Last updated Jun 4, 2026

FLAX (Franklin FTSE Asia ex Japan ETF) and AAXJ (iShares MSCI All Country Asia ex-Japan ETF) are both Asia Pacific Equities funds - FLAX tracks the FTSE Asia ex Japan RIC Capped Index while AAXJ tracks the MSCI All Country Asia ex Japan Index. Both are passively managed. Over the past 5 years, FLAX returned 7.95%/yr vs 7.04%/yr for AAXJ. Their correlation of 0.95 suggests significant overlap in exposure. FLAX charges 0.19%/yr vs 0.68%/yr for AAXJ.

Performance

FLAX vs. AAXJ - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Franklin FTSE Asia ex Japan ETF (FLAX) and iShares MSCI All Country Asia ex-Japan ETF (AAXJ). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FLAX achieves a 29.31% return, which is significantly lower than AAXJ's 31.17% return.

FLAX

• 1D: -1.11%
• 1M: 10.05%
• YTD: 29.31%
• 6M: 32.11%
• 1Y: 58.93%
• 3Y*: 25.00%
• 5Y*: 7.95%
• 10Y*: —

AAXJ

• 1D: -1.06%
• 1M: 10.65%
• YTD: 31.17%
• 6M: 33.71%
• 1Y: 59.00%
• 3Y*: 24.49%
• 5Y*: 7.04%
• 10Y*: 10.50%

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

FLAX vs. AAXJ - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018
FLAX Franklin FTSE Asia ex Japan ETF	29.31%	33.72%	9.82%	6.27%	-18.88%	-3.54%	24.17%	17.19%	-12.02%
AAXJ iShares MSCI All Country Asia ex-Japan ETF	31.17%	31.53%	10.41%	4.79%	-20.35%	-5.73%	23.35%	17.93%	-11.61%

Correlation

The correlation between FLAX and AAXJ is 0.98 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.98
Correlation (5Y) Calculated over the trailing 5-year period	0.99
Correlation (All Time) Calculated using the full available price history since Feb 9, 2018	0.95

The correlation between FLAX and AAXJ has been stable across timeframes, ranging from 0.95 to 0.99 - a consistent structural relationship.

FLAX vs. AAXJ - Sectors Allocation Comparison

Sectors	FLAX	AAXJ
Technology	39.7%	41.6%
Financial Services	17.2%	17.7%
Consumer Cyclical	10.2%	10.3%
Industrials	9.2%	8.3%
Communication Services	6.5%	6.9%
Basic Materials	4.2%	3.5%
Healthcare	3.3%	3.0%
Energy	3.0%	2.7%
Consumer Defensive	2.8%	2.4%
Utilities	2.1%	1.8%
Real Estate	2.0%	1.7%

Return for Risk

FLAX vs. AAXJ — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FLAX

FLAX Risk / Return Rank: 87
FLAX Sharpe Ratio Rank: 90
FLAX Sortino Ratio Rank: 88
FLAX Omega Ratio Rank: 89
FLAX Calmar Ratio Rank: 84
FLAX Martin Ratio Rank: 86

AAXJ

AAXJ Risk / Return Rank: 84
AAXJ Sharpe Ratio Rank: 87
AAXJ Sortino Ratio Rank: 83
AAXJ Omega Ratio Rank: 85
AAXJ Calmar Ratio Rank: 82
AAXJ Martin Ratio Rank: 82

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FLAX vs. AAXJ - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Franklin FTSE Asia ex Japan ETF (FLAX) and iShares MSCI All Country Asia ex-Japan ETF (AAXJ). 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.

	FLAX	AAXJ	Difference
Sharpe ratio: Return per unit of total volatility	3.11	2.93	+0.18
Sortino ratio: Return per unit of downside risk	4.06	3.77	+0.29
Omega ratio: Gain probability vs. loss probability	1.57	1.53	+0.04
Calmar ratio: Return relative to maximum drawdown	4.56	4.34	+0.22
Martin ratio: Return relative to average drawdown	17.96	16.76	+1.20
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FLAX vs. AAXJ - Sharpe Ratio Comparison

The current FLAX Sharpe Ratio is 3.11, which is comparable to the AAXJ Sharpe Ratio of 2.93. The chart below compares the historical Sharpe Ratios of FLAX and AAXJ, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FLAX	AAXJ	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	3.11	2.93	+0.18
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.42	0.35	+0.07
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	—	0.52	—
Sharpe Ratio (All Time) Calculated using the full available price history	0.44	0.28	+0.16

Drawdowns

FLAX vs. AAXJ - Drawdown Comparison

The maximum FLAX drawdown since its inception was -42.51%, smaller than the maximum AAXJ drawdown of -49.37%. Use the drawdown chart below to compare losses from any high point for FLAX and AAXJ.

Drawdown Indicators

	FLAX	AAXJ	Difference
Max Drawdown Largest peak-to-trough decline	-42.51%	-49.37%	+6.86%
Max Drawdown (1Y) Largest decline over 1 year	-12.99%	-13.66%	+0.67%
Max Drawdown (3Y) Largest decline over 3 years	-19.29%	-19.74%	+0.45%
Max Drawdown (5Y) Largest decline over 5 years	-38.75%	-40.74%	+1.99%
Max Drawdown (10Y) Largest decline over 10 years	—	-44.52%	—
Current Drawdown Current decline from peak	-1.11%	-1.06%	-0.05%
Average Drawdown Average peak-to-trough decline	-15.41%	-14.03%	-1.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.29%	3.53%	-0.24%

Volatility

FLAX vs. AAXJ - Volatility Comparison

Franklin FTSE Asia ex Japan ETF (FLAX) and iShares MSCI All Country Asia ex-Japan ETF (AAXJ) have volatilities of 8.58% and 8.93%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FLAX	AAXJ	Difference
Volatility (1M) Calculated over the trailing 1-month period	8.58%	8.93%	-0.35%
Volatility (6M) Calculated over the trailing 6-month period	16.54%	17.46%	-0.92%
Volatility (1Y) Calculated over the trailing 1-year period	19.07%	20.25%	-1.18%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	19.02%	19.94%	-0.92%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	19.93%	20.25%	-0.32%

FLAX vs. AAXJ - Expense Ratio Comparison

FLAX has a 0.19% expense ratio, which is lower than AAXJ's 0.68% expense ratio.

Dividends

FLAX vs. AAXJ - Dividend Comparison

FLAX's dividend yield for the trailing twelve months is around 1.83%, more than AAXJ's 1.38% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
AAXJ iShares MSCI All Country Asia ex-Japan ETF	1.38%	1.81%	1.86%	1.95%	1.74%	2.21%	1.06%	1.83%	2.10%	1.99%	1.77%	2.44%
FLAX Franklin FTSE Asia ex Japan ETF	1.83%	2.37%	3.12%	2.20%	2.86%	2.38%	1.57%	2.23%	2.35%	0.00%	0.00%	0.00%

Frequently Asked Questions

Can I hold both FLAX and AAXJ in my portfolio?

With a correlation of 0.98, FLAX and AAXJ move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FLAX or AAXJ?

AAXJ has higher volatility (8.93%) compared to FLAX (8.58%). In terms of maximum drawdown, FLAX dropped -42.51% vs AAXJ's -49.37%.

Which ETF is better, FLAX or AAXJ?

On 5-year performance, FLAX leads with 7.95% vs 7.04% for AAXJ. On fees, FLAX is cheaper at 0.19% per year. On volatility, FLAX has been the lower-risk option at 8.58%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FLAX or AAXJ?

Over the 5-year period, FLAX has performed better with a 7.95% return vs 7.04%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FLAX or AAXJ?

FLAX is cheaper with a 0.19% expense ratio, compared with 0.68% for AAXJ.

Which ETF pays a higher dividend yield, FLAX or AAXJ?

FLAX has the higher dividend yield at 1.83%, compared with 1.38% for AAXJ.

What is the main difference between FLAX and AAXJ?

FLAX tracks FTSE Asia ex Japan RIC Capped Index, while AAXJ tracks MSCI All Country Asia ex Japan Index. They also come from different issuers: Franklin Templeton and iShares. Their fees differ too: 0.19% for FLAX and 0.68% for AAXJ.

Which has better risk-adjusted returns?

FLAX currently has the higher Sharpe Ratio (3.11 vs 2.93), 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.